Lake County Considers Development Fee Deferrals

Rickelman explained that the county fee deferral program “would help developers manage high upfront costs,” particularly for water and sewer fees in special district service areas. The program would create a revolving fund allowing qualified commercial and multifamily projects to defer fees—such as water, sewer, and fire mitigation—until they receive a certificate of occupancy or five years pass, whichever comes first. Developers would provide upfront funds and complete standardized forms, while agreements prepared with the county attorney’s office, likely secured by liens, would protect the County financially.

He then explained the process. The program would help ensure new projects meet county standards while easing upfront costs for developers. Rickelman explained, “Applicants would need to complete entitlements— including minor and major permits, California Environmental Quality Act (CEQA) requirements, and all design and zoning approvals—before applying for a building permit.” Deferred fees would accrue interest to preserve the fund’s value and support the County’s short-term cash management.

The program would apply to:

• Commercial

• Multifamily (Market rate/ affordable housing)

Possible fees it would apply to:

• Special districts water and sewer impact fees

• Fire mitigation fees

Beyond the county program, Rickelman noted that larger developments could benefit from the Statewide Community Infrastructure Program (SCIP), managed by the California Statewide Communities Development Authority (CSCDA). “CSCDA is a joint powers authority with the League of Cities and CSAC, of which Lake County has been a member since 1988. The County has not yet joined SCIP, which would require a Board resolution,” he explained. Currently, 146 local agencies—including counties, cities, and special districts—participate. CSCDA assumes underwriting and risk for SCIP projects, providing a structured program for larger-scale community infrastructure development.

Rickelman explained the SCIP supports projects ranging from $500,000 to $35 million, including fees, public improvements, and facilities. Residential developments generally require at least 100 units, often for master-planned communities, though other projects may qualify. Assessments apply only to the parcels involved, can be repaid over up to 30 years, and tax-exempt financing helps reduce costs. Developers apply directly through CSCDA, which manages administration and assumes all risk.

Hamill highlighted, “the County would bear no liability and would retain control over project participation. This is a tool in the County’s toolbox. As Ben outlined, the County would have control over what projects can opt into this county tax deferral program.”

District 5 Supervisor Jessica Pyska thanked Rickelman for proposing the county fee deferral:  “I really appreciate you bringing this. I think anything that we can do to incentivize development is important for achieving the priorities we laid out in our Housing Action and Implementation Plan (HAIP).”

District 2 Supervisor Bruno Sabatier emphasized expanding the program’s scope: “It would be helpful to consider all fees that keep adding up and explore whether we can include them, since they can total $50,000–$70,000 on top of construction and property costs. With 61 water districts, we should identify opportunities to incentivize homebuilding. Evaluate all fees, then reduce what isn’t feasible, starting at the top.”

Following board discussion, Rickelman outlined the next steps for the county fee deferral program: it would require a county ordinance, and he will return with additional program details. Guidelines will be created to clarify expectations for the County and developers, and standardized forms will be developed to simplify the application process. These measures will help ensure a transparent, consistent, and efficient approach to encouraging development while maintaining county oversight.

To watch the Board presentation, click here.