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City Council approves financing program to encourage development and economic investment 

City of Sacramento now participating in Statewide Community Infrastructure Program

April 20, 2017

The City is now offering a tool to help housing and commercial projects move faster. A resolution was passed at the City Council meeting on April 18 to join the Statewide Community Infrastructure Program (SCIP). This program allows property owners to finance development impact fees and public capital improvements through tax-exempt bonds for up to 30 years.

SCIP provides a pooled tax-exempt bond financing program for developers to pay development impact fees and finance infrastructure costs such as public roads and utilities. The City of Sacramento joins other local agencies utilizing SCIP including Elk Grove, Roseville, West Sacramento, and Placer County.

"If we can make it easier for developers to build the kind of products we say we want, then we need programs like SCIP to assist in moving the process along," said Mayor Darrell Steinberg.

Prior to SCIP, only projects large enough to absorb the cost of forming an assessment of community facilities district and issuing bonds could reasonably access tax-exempt bond financing.

"SCIP is a great addition to our streamlined processes and provides a means to reduce overall project costs and incentivize development," said Ryan DeVore, Community Development Department Director.

The program is one of many incentives the City has in its toolbox to encourage more homes to be built to meet the demand. Some 800,000 more people are expected to be living in the Sacramento region by 2035.  By 2021, the City needs nearly 70,000 more housing units than today.

SCIP was created in 2003 by the California Statewide Communities Development Authority to provide local governments an effective economic development tool for financing public infrastructure and development impact fees.

 

For more information please visit the SCIP web page.


Contact: Kelli Trapani, Communications Coordinator, (916) 808-4756