The City of Santa Ana is participating in the Statewide Community Infrastructure Program (SCIP), which provides developers the option to finance development impact fees on residential and non-residential projects via tax-exempt bonds, administered through the California Statewide Communities Development Authority (CSCDA).
Questions and answers
What is SCIP?
SCIP allows the City of Santa Ana's development impact fees on residential and non-residential projects to be financed. SCIP pays the City of Santa Ana the development impact fees via tax-exempt bonds. The developer/property owner applying for SCIP agrees to pay assessments to the SCIP over a period that may not exceed 30 years (secured by a lien against the property). Property owners of participating projects may be reimbursed for development impact fees paid at the time of building permit issuance, or can receive pre-funding of the development impact fees just prior to obtaining a building permit. The two SCIP programs are called the “Reimbursement Program” and the “Pre Funding Program”. Developers may participate through either program, or a combination of both. Property owners of participating projects may be reimbursed for public capital improvements upon determination by the City Engineer to pay the Acquisition price of the improvements as provided in Resolution No. 2020-080, passed and adopted by the City Council on October 20, 2020. This option allows developers to directly finance projects through SCIP and leverage SCIP's scale without the city or developer taking risk and forming a stand-alone district.
What improvements are eligible?
• Frontage (pavement, curb, and gutter)
• Street and roads
• Street lighting
• Bike and pedestrian trails
• Other improvements
Benefits to property owners
SCIP financing provides low-cost tax-exempt financing for both development impact fees and direct infrastructure financing, thereby enhancing cash flow during the development process. The program allows smaller projects to access cost-effective, tax exempt financing. Property owners also have the option to pay off the assessments at any time within the 30 year maximum period.
What City fees may be financed through SCIP?
All City of Santa Ana impact fees are eligible to be financed by SCIP. Other development impact fees here in the city are not eligible to be financed through the SCIP program.
What type of projects are eligible for SCIP?
SCIP can be used for residential and non-residential projects such as housing developments, retail, commercial, office, and industrial projects.
What is an assessment lien through SCIP?
The assessment lien is imposed on the parcel of land pursuant to the Municipal Improvement Act of 1913. The Act authorizes an issuer to impose an assessment lien on benefiting property to finance various public improvements. It is essentially a legal claim against the property used to secure funding through the SCIP program and must be paid when the property is sold (similar to a mortgage lien).
What is an assessment bond through SCIP?
The bonds are Limited Obligation Improvement Bonds authorized under the Improvement Bond Act of 1915 and secured by the liens imposed under the 1913 Act.
How is SCIP administered?
California Statewide Communities Development Authority (CSCDA) has dedicated staff who administer all ongoing aspects of the program, including tax roll, continuing disclosures and delinquencies. The CSCDA is a California joint powers authority sponsored by the League of California Cities and the California State Association of Counties. The member agencies of CSCDA include approximately 391 cities and 56 counties throughout California, of which the City of Santa Ana is a member.
How do I obtain more information on SCIP?
More information and applications are available on the CSCDA website. For questions on the program, please reach out to the following CSCDA representative:
- James Hamill, Managing Director of the CSCDA
- Phone: (925) 476-5644
- Email: email@example.com