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Revolving Loan Fund Program
Program Overview
The Revolving Loan Fund (RLF) Program is designed to assist in reducing the immediate cost of new development or expansion of commercial, or industrial development in the City of Modesto. The program is designed to provide for a fee waiver and deferral of development impact fees including Capital Facilities, Water Connection and/or Wastewater Capacity Fees.
Policy
The RLF Program waives thirty-five percent (35%) of Capital Facilities, Water Connection and/or Wastewater Capacity Fees on any new or expansion of commercial, or industrial development where these fees are assessed. Applicants have the option to waive thirty-five percent (35%), or up to $90,000, pay ten percent (10%) at building permit issuance, and defer the remaining fifty-five percent (55%) plus interest, in no more than five (5) annual payments. A waiver request above $90,000 and capped at $250,000 may be allowed by the Director of Community and Economic Development, in which a public hearing pursuant to Government Code Section 53083 will be held before a loan above $90,000 is approved.
Program Options
There are two options for this program.
The fee waiver and deferral Revolving Loan Fund (RLF) program is designed to make payment arrangements for your Capital Facility fees in order to defer payments due for commercial or industrial expansion or development.
Program Requirements
- Approved application and total fees paid to the City
- Located within the City of Modesto boundaries or sphere of influence
- Loan-to-Value ratio must not exceed one hundred percent (100%) of the property value
- Two-year timeline from application approval to Certificate of Occupancy
- Applicant must disclose any personal liens on the property
Fee Waiver and Deferral Program Summary
- Thirty-five percent (35%) fee waiver off of total impact/connection/capacity fees, or up to $90,000
- Ten percent (10%) of total impact/connection/capacity fees due (deferred fees) at the time of building permit issuance
- Remaining fifty-five percent (55%) plus interest, in no more than five (5) annual payments
- Three percent (3%) interest on loan
- A lien will be placed on property and remain until deferred amount with interest is paid in full
Payment Information
Once you are approved for the program, you will need to do the following to start your payment plan:
- Applicants will sign a deferral agreement.
- Applicants will receive a copy of the approved agreement after it has been recorded with Stanislaus County
- Once your project is completed, you will need to provide your Certificate of Occupancy to Infrastructure Finance.
- IFP staff will set up annual billing on remaining fifty five percent (55%) of total deferred fees, plus interest, in no more than five (5) annual payments.
- The first payment will be due one (1) year after Certificate of Occupancy
- Each annual billing will include an invoice with amount due and due date
- After balance and interest is paid the lien will be removed from your property
If an applicant would like to pay off their deferral early, you will need to contact Infrastructure Finance and a staff member will provide a written lien payoff quote.
Once the deferral is paid in full, including all interest, Infrastructure Finance staff will have the lien removed from the property.
The fee waiver Revolving Loan Fund (RLF) program is designed to waive initial Capital Facility fees for commercial or industrial expansion or development.
Program Requirements
- Approved application and total fees paid to the City
- Located within the City of Modesto boundaries or sphere of influence
- Loan-to-Value ratio must not exceed one hundred percent (100%) of the property value
- Two-year timeline from application approval to Certificate of Occupancy
- Applicant must disclose any personal liens on the property
Fee Waiver Program Summary
- Thirty-five percent (35%) fee waiver off of total impact/connection/capacity fees due, or up to $90,000
- Remaining sixty-five percent (65%) of total impact/connection/capacity fees due at the time of building permit issuance
Payment Information
Once you are approved for the fee waiver, you will need to remaining sixty-five percent (65%) prior to building permit issuance.
Application Process
Prospective applicants should first contact the City of Modesto Infrastructure Financing Program. Please review the information below to understand the requirements and processing for the applications we receive.
Required Documentation for Fee Waiver and Deferral Program
- Revolving Loan Fund Program Application
- Project description
- Proof of ownership
- Two-year timeline for project completion
- Deferral of Capital Facilities, Water Connection and/or Wastewater Capacity Agreement and Notice of Lien
- Promissory Note
- Deed of Trust
Required Documentation for Fee Waiver Program
- Revolving Loan Fund Program Application
- Project description
- Proof of ownership
- Two-year timeline for project completion
Applications
- Download an application for the Fee Waiver and Deferral program (PDF)
- Download an application for the Fee Waiver program (PDF)
Submit your application by emailing Infrastructure Finance.
Application Fees
- Administration Fee ($250)
- Title Report Fee ($500)
These fees will be due after your application is approved.
Staff Review of Application
Only completed applications will be accepted, all required documentation needs to be provided at time of application. Once staff has accepted the application, it will require administrative approval, this process typically takes four (4) weeks.