CITY OF SANTA MARIA
ADOPTION OF THE BOLD AND SCIP
PROGRAMS
City Council Meeting
September 16, 2025
Market Context
0 2
4 6
8 10
12 14
16 Effective Interest Rate - Speculative Residential
Construction
Source: National Association of Homebuilders Survey on Acquisition, Development & Construction Financing Community Facilities Districts
A Community Facilities District (CFD) is a special taxing district created by a local government to fund specific public improvements and/or ongoing services.
Eligible costs include:
✓ Streets and sidewalks
✓ Sewer and water treatment capacity
✓ Water and sewer lines
✓ Flood control
✓ Parks and open space
✓ Street lighting
✓ School facilities
✓ Development impact fees
✓ Ongoing funding of services
CFD Formation
• Developer submits application to participate
• CMFA/CSCDA works with applicant and the City to determine which facilities and fees are eligible for tax-exempt bond funding
• City approves the project’s participation
• CFDs are established by CMFA/CSCDA; formation is funded by developer • Bonds are issued to fund infrastructure and fees
• Project and associated infrastructure are constructed • Bonds are repaid via assessments over time
CMFA and the BOLD Program
CSCDA and the SCIP Program
Benefits to the Development Community
✓ Facilitates Financing: Access to low-cost, long-term tax- exempt financing instead of paying cash up-front for
improvements and fees
✓ Flexibility: Property owners can choose to pay off
assessments or special taxes at any time
✓ Homebuyers: Funding infrastructure costs through
assessments yields lower mortgage amounts, making
qualification easier
✓ Funding for Smaller Projects: Both programs offer tax- exempt financing to smaller projects that would not
otherwise qualify, starting at just $500,000
Benefits to the City
✓ Business Friendly: Provides a new tool for
economic development, consistent with the City
Council’s goals
✓ Facilitates Development: Allows for
construction of projects that might otherwise be
financially infeasible, providing new amenities for
local residents
✓ No Financial Obligation: No risk to the City;
bonds are issued by external parties and
secured by assessments on real estate
Benefits to the City
✓ Minimal Administration: CMFA and CSCDA
handle all district formation, bond issuance, and
ongoing administration
✓ Immediate Revenue: Funding model provides
for up-front payment of fees rather than extended
payment schedules, improving the City’s cash
flow for infrastructure investments
✓ Competitive Advantage: Tax-exempt financing
creates a competitive advantage, attracting
development to Santa Maria
Questions?