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Appropriation Adjustment, Density Bonus and Development Impact Fee Deferral <br />Agreement for FX Residences <br />December 7, 2021 <br />Page 9 <br />2 <br />2 <br />6 <br />3 <br />Deferral Period: The development impact fees will be deferred until the final <br />inspection or issuance of a certificate of occupancy for the Project, whichever <br />comes first. <br />Extension: An extension of the Agreement may only be granted by the City <br />Council. <br />Payment Security: Payment of fee is a personal obligation of the owner, or any <br />successor secured by the property, and if left unpaid, shall be collected as a special <br />lien against the property. <br />Recordation of Agreement and Lien against Property: The Agreement will be <br />recorded in the Official Records of the County of Orange and the Agreement shall <br />contractually bind the owner to pay the development impact fees and shall <br />constitute a lien against the property. <br />The intended goal of the collection of development impact fees at the time of building <br />permit issuance is to ensure that the payment of the fees is completed prior to the vesting <br />of development rights by a project developer. Development impact fees for development <br />projects include customary fees to defray costs for the City to provide development <br />services under the permit, outside agency fees as applicable, and established <br />development impact fees. While deferral of collection of development impact fees is not <br />a routine practice, HomeAid submitted their request under California Government Code <br />Section 66007 and the City is required to consider their request. <br />The collection of the development impact fees for a new residential development is to <br />generally fund planned acquisition and development of parks and open space within the <br />City to mitigate the impacts that new developments will have on the demand for parks <br />and open space within the City. While the request will defer the collection of the <br />development impact fees to a later time in the development process, it will not waive or <br />prevent the City from collecting the fee through protections and securities provided to the <br />City under the agreement. Furthermore, the fees will be paid prior to the actual impact, <br />as no residents will be allowed to occupy the Project until payment is received by the City. <br />The Development Impact Fee Deferral Agreement has been signed by HomeAid to <br />acknowledge their acceptance of the terms. <br />Subordination Agreement <br />As a public lender for an affordable housing project such as this, the private market senior <br />lender typically requests a subordination agreement for the Housing Authority’s loan <br />agreement in order to ensure the senior lender will be paid back before the Housing <br />Authority’s loan. In this case, staff is uncertain if a subordination agreement is going to <br />be requested by the private market senior lender or another lender. If necessary, the