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?