HomeMy WebLinkAboutAttachment 1 SCIP Manual 2018
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CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM
“SCIP”
MANUAL OF PROCEDURES
Version 3.0
[Last Revised January 2019]
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STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM
CONTACT INFORMATION
California Statewide Communities
Development Authority
James Hamill
1700 North Broadway, Suite 405
Walnut Creek, California 94596
(925) 476-5644
(925) 391-3590 (fax)
jhamill@cscda.org
Jon Penkower
1700 North Broadway, Suite 405
Walnut Creek, California 94596
(925) 476-5887
(925) 391-3590 (fax)
jpenkower@cscda.org
Program Administrator
Vo Nguyen
BLX Group, LLC
777 South Figueroa Street, Suite 800
Los Angeles, California 90017
(213) 612-2152
vnguyen@blxgroup.com
Trustee
Jeanie Mar
Wilmington Trust National Association
650 Town Center Drive, Suite 600
Costa Mesa, California 92626
(714) 384-4153
jmar@wilmingtontrust.com
Justin Gagnon
BLX Group LLC
2711 North Haskell Avenue Lockbox #35,
Suite 2600
Dallas, Texas 75204
(919) 594-1862
jgagnon@blxgroup.com
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Assessment Administrator
David Taussig
David Taussig and Associates, Inc
5000 Birch Street, Suite 6000
Newport Beach, California 92660
(949) 955-1500
(949) 955-1590 (fax)
dtadavid@taussig.com
Nathan Perez
David Taussig and Associates, Inc.
100 West San Fernando Street, Suite 430
San Jose, California 95113
(800) 969-4382
nperez@taussig.com
Underwriter
Robert L. Williams, Jr.
RBC Capital Markets, LLC
345 California Street, Suite 2800
San Francisco, California 94111
(415) 445-8674
(415) 445-8679 (fax)
bob.williams@rbccm.com
SCIP Legal Counsel
Patricia L. Eichar
Orrick, Herrington & Sutcliffe LLP
400 Capitol Mall, Suite 3000
Sacramento, California 95814
(916) 329-7917
peichar@orrick.com
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Executive Summary
Introduction
Capitalized terms used in this Manual have the meanings given under the tab, “Glossary of
Terms.”
The Statewide Community Infrastructure Program (“SCIP”) is a program of the California
Statewide Communities Development Authority (the “Authority”). The Authority is a joint
powers authority. Membership in the Authority is open to every California city, county and local
agency, and most are already members. If your city, county or local agency is not yet a member,
the necessary membership materials can be obtained by contacting the Authority (see “Contact
Information” preceding this Executive Summary).
SCIP financing is available for development projects (“Projects”) situated within cities or
counties which have elected to become SCIP participants (each, a “Local Agency”). Eligibility
to become a Local Agency requires only (a) membership in the Authority, and (b) adoption of a
resolution making the election (the “SCIP Resolution”).
Participation in SCIP entails the submission of an application (an “Application”) by the property
owner (the “Applicant”) of a Project for which development entitlements either have been
obtained or are being obtained from a Local Agency. For Projects determined to be qualified,
SCIP provides non-recourse financing of either (a) eligible development impact fees payable to
the Local Agency (or, in certain circumstances, payable to another local agency) (the “Fees”) or
(b) eligible public capital improvements (the “Improvements”) or both.
Applicants benefit from SCIP because it allows them to obtain low-cost, long-term financing of
Fees and Improvements, which can otherwise entail substantial cash outlays. The Local
Agencies benefit from SCIP because it encourages developers to pay Fees sooner and in la rger
blocks than they otherwise would. The availability of low-cost, long-term financing also softens
the burden of rising Fee amounts and Improvement costs, benefiting both the Applicants and the
Local Agencies.
General Structure of SCIP
In general terms, this is how SCIP works. Upon receipt of a completed Application, including
the Landowner Information Form (with attachments), the SCIP team reviews it to determine (a)
eligibility of the Fees and Improvements for which the Applicant seeks financing and (b)
creditworthiness of the Applicant and the Project. Once approved by the SCIP team, the
Application is acknowledged by the Local Agency. Approved Applications are aggregated for
inclusion in the next round of financing. Periodically, as warranted by the accumulation of
approved Applications, the Authority issues tax-exempt revenue bonds (the “Bonds”). The
proceeds from the Bonds are used to finance Fees and/or Improvements for qualifying Projects
located throughout the state. For projects involving a sufficient amount of financing (generally
$5 million or more) a special standalone series of bonds may be issued to fund the Project
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separately if the timing of issuance of a pooled financing does not suit the Project, subject to
approval of the Authority.
Revenues to pay debt service on the Bonds are derived by the Authority in one of two ways –
namely (1) through the levy of special assessments on the parcels which comprise the
participating Projects by establishing one or more assessment districts (each, an “Assessment
District”) pursuant to the Municipal Improvement Act of 1913 (the “Assessment Act”) or (2)
through the levy of special taxes on the Project parcels by establishing a community facilities
district (a “CFD”) pursuant to the Mello-Roos Community Facilities Act of 1982 (the “CFD
Act”). Absent circumstances which warrant a CFD, the Assessment District format has been and
is expected to continue to be the customary format for SCIP financing.
This Manual is generally devoted to the Assessment District format, though many of the topics
covered apply to the CFD format as well. Considerations which are specific to the CFD format
are not covered and will need to be discussed among the participants for any given proposed use
of that format.
Assessment District Format
Under the Assessment District format, the Authority will levy assessments on the parcels in each
Assessment District, with a separate Assessment District for each Project. The assessments will
be payable in annual installments (“Assessment Installments”) billed and collected on the
applicable county property tax roll, and the Assessment Installments will be calculated to be
sufficient to pay annual debt service on the Bonds, together with certain administrative costs of
SCIP.
The assessment payment obligation is non-recourse to the property owner and follows the parcel
upon change of ownership. As with a conventional assessment district, each property owner
retains the right to pay off the assessment at any time and thereby discharge the lien which
secures payment of the Assessment Installments.
A major advantage of SCIP for Local Agencies is that the Authority handles all of the
proceedings for the formation of the Assessment Districts, levy of the assessments, issuance of
the Bonds and administration of the Assessment Installment collection and enforcement.
Furthermore, in order to facilitate tax compliance, the proceeds of sale of the Bonds are
administered by a trustee bank (the “Trustee”) until requisitioned by the Local Agency to pay
Fees or to acquire completed Improvements, as the case may be.
The duties of staff of Local Agencies are correspondingly reduced and relate primarily to making
developers aware of the availability of the SCIP program, making application forms available to
interested developers, confirming the status of Projects for which Applications have been
submitted, confirming the Fee and Improvement obligations for qualified Projects, determining
when Improvements are completed and therefore ready for acquisition, and submitting requests
to the Trustee for disbursement of SCIP funds to pay Fees and to acquire completed
Improvements for Projects which have been funded. In addition, when Improvements will be
financed, the Local Agency will be required to enter into an “Acquisition Agreement” with the
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Applicant to provide the terms and conditions governing the acquisition of completed
Improvements.
When an Application seeks financing of Fees payable to local agencies other than the Local
Agency, staff of the Local Agency, together with the Applicant, will usually need to serve as
liaison to the other local agency to establish eligibility of such Fees for SCIP financing and to
establish procedures for monitoring investment earnings on the Fees until expended for purposes
authorized by the applicable Fee Statute.
CFD Format
For larger-scale Projects with planned phasing of the Project and the related Improvements, the
CFD format may be more suitable, given the added flexibility of the special tax calculated
annually to reflect the development status of each taxable parcel, as opposed to the more rigid
fixed lien assessment of the Assessment District format, and the related flexibility of phasing the
financing through multiple series of bonds to match the phases of Project development and
Improvements. Any determination to utilize the CFD format will be made on a case by case
basis, in consultation among the SCIP team, the Local Agency and the Applicant. Projects
financed with the CFD format are not pooled with projects financed with the Assessment District
format.
Financing Eligible Impact Fees
To be eligible for SCIP financing, Fees must (1) be payable as conditions of development
approval for the Project or otherwise provide special benefit to the Project, and (2) proceeds of
the Fees must be expended for public improvements which themselves would be eligible for
SCIP financing, though the public improvements need not be related to or required for the
Project. In addition, there are certain timing limitations that apply to Fees financed through
SCIP, in particular that the Fees must not have been paid to the Local Agency more than 60 days
prior to the submission of a completed Application and the Authority’s issuance of a Declaration
of Official Intent to Reimburse for the particular Project.
Within SCIP, there are two programs for funding eligible Fees, and either or both may be
applicable for a given Project. The two programs are (1) the Fee Reimbursement Program and
(2) the Fee Prefunding Program. In each case, for federal income tax purposes, the proceeds of
the Bonds will be allocated to the public improvements actually financed by the Local Agency
with the fee amounts received.
Under the Fee Reimbursement Program, payment of the Fees by the Applicant precedes the
issuance of the Bonds, usually in connection with obtaining a building permit. In general, in
order to include Fees in the Fee Reimbursement Program, the Fees must have been paid by the
Applicant to the Local Agency (or other local agency, as applicable) no more than 60 days prior
to submission of a completed Application and the Authority’s issuance of a Declaration of
Official Intent to Reimburse. In order to ensure compliance with the federal income tax
requirements for the Bonds, when the Fees that are intended to later be reimbursed by the Bonds
are paid to the Local Agency, the Local Agency transfers those Fees to SCIP for deposit in the
Local Agency Account. That money is immediately available for requisition by the Local
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Agency to make authorized fee expenditures, even before the Bonds are issued. But by holding
and investing the unspent Fees until spent, the Authority is able to monitor the investment
earnings (which accrue to the Local Agency) for federal tax law arbitrage purposes and track the
timing requirements for allocating the proceeds of the later-issued Bonds to the public
improvements financed by the Fees. SCIP encourages the Local Agency to spend those amounts
as quickly as possible, and before any other fee revenues of the Local Agency. Once the
proceeds of sale of the Bonds are available, the Applicant applies for reimbursement of the
amount of eligible Fees which have been paid. If the Local Agency transfers paid fees to SCIP
but Bonds are not issued the Fees are returned to the Local Agency by SCIP. In this way, the
Local Agency is never at risk for the receipt of the Fees.
Under the Fee Prefunding Program, the Fees are funded from proceeds of the Bonds without the
need for the Applicant to pay the Fees. For arbitrage rebate purposes, SCIP will invest and hold
the proceeds representing the Fees. Again, those moneys are immediately available for
requisition by the Local Agency to make authorized fee expenditures. Thus the full amount of
Fees funded is immediately available to the Local Agency, irrespective of whether any portion of
such Fees has yet become payable with respect to the Project. The advantage to the Applicant is
that it never has to pay out of pocket any portion of the Fees, and the advantage to the Lo cal
Agency is that the full amount of Fees funded is immediately available to spend on qualified
public improvements without waiting for any portion of the prefunded Fees to become due from
the Applicant. The landowner receives a credit for fees paid from Bond proceeds in this way.
Each Local Agency is encouraged but not required to develop procedures to track the amounts of
such credits to the landowners.
Financing Eligible Improvements
To be eligible for SCIP financing, Improvements must meet three conditions – namely, (1) they
must be required as conditions of development approval for the Project or otherwise provide
special benefit to the Project, (2) they must not have been accepted by and the ownership of them
already transferred to the Local Agency or other local agency prior to issuance of the Bonds and
(3) they must be the kinds of public improvements authorized to be financed under the
Assessment Act. In practice, most of the public improvements which are required as conditions
of Project approvals are eligible under the Assessment Act (e.g., roads, street lights, landscaping,
storm drains, water and sewer facilities, and parks).
As mentioned above, the Authority will require that an Acquisition Agreement be entered into
between the Local Agency and the Applicant to provide the terms and conditions governing the
acquisition of completed Improvements. The Acquisition Agreement is prepared by the SCIP
team, in the form approved by the Local Agency as part of its SCIP Resolution, as modified to
suit the particular circumstances and Local Agency requirements.
Conclusion
The information and materials which follow in this Manual are intended to assist interested
persons in further understanding SCIP and how it might be utilized to finance Fees and
Improvements associated with a given Project. As indicated above in this Executive Summary,
the focus in this Manual is on the Assessment District format. Upon request of an Applicant who
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may have a preference for the CFD format, the SCIP team will review t he Applicant’s Project
and determine, in consultation with the Applicant and the Applicant’s consultants, whether the
CFD format will be suitable.
Interested parties are invited to contact one or more of the persons listed in “Contact
Information” preceding this Executive Summary with questions or requests for clarification.
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Table of Contents
Article Caption Page
I Local Agency Participation in SCIP ............................................................. 1-1
II General Eligibility Requirements ................................................................. 2-1
III Application Process & Review ..................................................................... 3-1
IV Assessment Proceedings ............................................................................... 4-1
V Bonds ............................................................................................................ 5-1
VI Funds Management & Administration.......................................................... 6-1
VII Collection of Assessments ............................................................................ 7-1
VIII Property Owner Information ......................................................................... 8-1
IX Miscellaneous ............................................................................................... 9-1
Glossary of Terms
Appendices A through W, Inclusive
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I Local Agency Participation in SCIP
1.01 Eligibility
Any California city, county, city and county, or a special district (a “Local Agency”) may
participate in SCIP if it meets the following requirements:
(a) The Local Agency must be or must become a member in good standing of the
Authority prior to or concurrently with joining SCIP.
(b) The Local Agency must have in place a development fee program pursuant to a
Fee Statute (for fee financing) and/or desire to allow the financing of
Improvements for eligible Projects.
(c) If the Local Agency is not itself a city, county or city and county, the city or, if in
unincorporated territory, the county in which each Project is located must be a
SCIP participating Local Agency.
1.02 SCIP Resolution
To participate in SCIP, the Local Agency must adopt a SCIP Resolution in substantially the form
attached in Appendix G and must send a certified copy of such resolution to the Program
Administrator. The Resolution must remain in full force and effect so long as the Local Agency
wishes to participate in SCIP. A sample staff report and form of Notice of Hearing are also
included in Appendix G.
1.03 Withdrawal from SCIP
Any Local Agency may elect to withdraw from SCIP at any time by repealing the SCIP
Resolution; provided, that such repeal shall not be effective as to any completed Application
duly filed with the Program Administrator and not yet funded, without the consent of the
Applicant. Upon withdrawal from SCIP, the Local Agency shall send a certified copy of the
withdrawal resolution to the Program Administrator.
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II General Eligibility Requirements
2.01 General
The following criteria determine threshold eligibility for SCIP financing. Each Application is
also subject to review for certain underwriting criteria, as described in Article III.
2.02 Eligible Impact Fees
In order to be eligible for financing under SCIP, Fees must meet the following criteria:
(a) Fees must be levied under a Fee Statute (except that in limited circumstances,
other fees payable as a condition of development may be eligible).
(b) Fees must be collected by a Local Agency and levied by either the Local Agency
or another governmental entity as a condition of new development or otherwise
provide special benefit to the Project as determined by the Assessment Engineer,
and be payable at time of (i) granting of entitlements, (ii) issuance of a building
permit, (iii) connection to a utility system, or (iv) issuance of a certificate of
occupancy. If fees are levied by another government entity and not a Local
Agency SCIP participant, the Local Agency and the other government entity must
enter into a fee collection agreement in substantially the form attached as
Appendix W.
(c) Fees must only be for the payment of Capital Costs of improvements to be owned
by the Local Agency or another governmental entity.
(d) The Local Agency (or other government agency collecting the Fee, as applicable)
must reasonably expect to spend the Bond-funded Fees within 3 years of the date
Bonds are issued.
(e) Improvements to be funded with the Fees must be improvements that could be
financed under the Assessment Act.
2.03 Eligible Improvements
In order to be eligible for financing under SCIP, Improvements must meet the following criteria:
(a) The Improvements must be required as a condition of the development project
which is the subject of the Application or otherwise provide special benefit to the
Project as determined by the Assessment Engineer.
(b) The Improvements must be authorized under the Assessment Act.
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(c) The Improvements must not have been completed and ownership transferred to
the Local Agency or another governmental entity prior to submission of a
completed Application and issuance, in connection therewith, of a Declaration of
Official Intent to Reimburse pertaining thereto.
(d) Improvements must be owned by the Local Agency or another government entity
upon completion.
2.04 Eligible Property Owners
In order to apply for participation in SCIP, a Property Owner must meet the following criteria:
(a) The Property Owner must be a natural person, partnership, limited liability
company, or corporation in good standing holding, or with a contractual right to
acquire, fee simple title in the proposed Assessed Parcel(s).
(b) If property is held as community property, tenants in common, or joint tenants,
the Application must be signed by all owners or their authorized representative(s).
(c) The Property Owner may not be any governmental or quasi-governmental entity;
provided that on a case by case basis the Authority may approve participation by
Projects that are in governmental ownership but intended to be sold to private
parties after completion of Improvements and/or funding of fees.
(d) The Property Owner may not be the subject of any bankruptcy proceeding.
2.05 Eligible Property
In order for property to be eligible for SCIP, it must meet the following criteria:
(a) The property must consist of one or more parcels each of which must be a legal
parcel in compliance with the Subdivision Map Act.
(b) The application must be approved by each governmental entity whose Fees or
Improvements will be funded and the application must be approved by a city or
city and county or, if within unincorporated territory, a county, that is also a Local
Agency SCIP participant. This applies even if no Fees or Improvements of such
Local Agency will be funded.
(c) The property must not be subject to any judgment lien, mechanics lien, or tax lien
(other than for taxes levied but not yet due).
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III Application Process & Review
3.01 Application
An Applicant who wishes to finance either Eligible Impact Fees or Eligible Improvements (or
both) must complete and submit a SCIP Application and a Landowner Informati on Form
(samples of the forms are attached as Appendix A).* The Applicant must submit the completed
Application with all attachments and Landowner Information Form (together, the “Application”)
to the Program Administrator, along with payment of the application fee as provided in
Section 3.02 below. The Program Administrator will confer with Authority staff and if the
Application is approved, the Program Administrator will coordinate with the Local Agency to
have the Local Agency review and countersign the Application and issue the Declaration of
Official Intent to Reimburse.
The Local Agency shall have no responsibility for determining the sufficiency of the Application
except to verify (i) the accuracy of the amounts and categories of the Eligible Impa ct Fees and
the items of Eligible Improvements and related estimated costs, as set forth in the Application,
and (ii) that the Project approvals and entitlements described in the Application have been
granted by the Local Agency.
_________________
* Applicants may also apply on-line at http://www.cscda.org (follow “Statewide Community Infrastructure
Program (SCIP)” hyperlink).
3.02 Application Fees
In order to apply for SCIP, Applicants must pay a non-refundable application fee ($1,500 as of
January 2019). The Application Fee may be adjusted from time to time by the Authority and the
current fees are available upon request. The application fee must be included with the
Application, with the check made payable to “Statewide Community Infrastructure Program,”
and is non-refundable. Application fees will be deposited by the Program Administrator in the
fund or account established for the payment of Program Administration Costs.
3.03 Application Review and Underwriting Criteria.
Completed Applications will be reviewed by SCIP Counsel and the SCIP Underwriter in
accordance with the SCIP Timetable for the applicable Program Series. An Application can be
approved, disapproved, or approved for partial funding. Approval of an application does not
guarantee that bonds will be issued in the amount stated in the Application.
In addition to demonstrating that all criteria are met for Eligible Impact Fees, if any, Eligible
Improvements, if any, eligible Property Owners and eligible property, the Application shall
demonstrate the following:
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(a) Compliance with the California Environmental Quality Act must be established
for the Project.
(b) If the Application seeks participation in the Fee Reimbursement Program, the
Applicant must be aware that at the time it applies for reimbursement of Fees
paid, a copy of each building permit obtained upon payment of the related Fees
will be required.
If the Application seeks participation in the Fee Prefunding Program, all
discretionary entitlements must be in place, i.e. there must be an approved vesting
tentative subdivision map (if the Project involves a major subdivision under the
Subdivision Map Act), and/or conditional use permit (if required for the Project),
including improvements design plans, as applicable. In addition, the Applicant
must provide evidence that all other discretionary permits, such as Army Corps of
Engineers Section 404 permits, Fish and Game permits, and Fish and Wildlife
permits and any other required permits for the development of the Project have
been obtained.
(c) The Application must be submitted by the Property Owner (developers,
contractors or other persons who are not Property Owners may not submit
Applications unless they are signed by the Property Owner).
(d) Applications should be accompanied by a copy of the most recent property tax
bill, if available. The Applicant must certify that it has not been more than 30
days delinquent in the payment of any assessment or special tax securing a bond
within the last 5 years.
(e) If there are any fixed lien assessments on any Assessed Parcel at the time the
Application is submitted or if any such assessments are levied at any time prior to
the adoption of the Resolution Confirming Assessment, either (i) the prepayment
cost of such fixed lien assessments will be added to the Assessment and SCIP will
prepay such prior assessments on behalf of the Property Owner or (ii) the
Property Owner will prepay such assessments in cash no later than the date fixed
by the Assessment Administrator.
(f) Each Assessed Parcel must have a minimum Assessed Value or Appraised Value
of at least 3 times the total Assessment. In most cases, the SCIP Underwriter will
require an Appraisal by a certified MAI appraiser chosen by the SCIP
Underwriter and approved by the Authority, using a bulk sale “as is” valuation,
including the value of the Eligible Impact Fees and Eligible Improvements being
financed. All Appraisal costs must be paid by the Applicant in advance to the
Program Administrator. Appraisal costs may be refunded from Bond proceeds if
Bonds are issued.
(g) The Property Owner must not be the subject of any bankruptcy proceeding and
must not have been adjudged bankrupt within the last 5 years.
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(h) The Authority, on recommendation from the SCIP Underwriter and SCIP
Counsel, reserves the right to reject any Application if it believes, in its sole
discretion, that the Assessed Parcel(s), the Project or the Property Owner poses
undue credit risks. Each Applicant must authorize the Program Administrator to
obtain a copy of a credit report from one or more nationally recognized credit
reporting agencies, and may be required to provide copies of banking statements
and/or tax returns.
(i) If the Project will include the funding of Improvements, the Applicant may be
required to pay costs of preparation of the Engineer’s Report in advance as
determined by the Authority and any such payments shall be non-refundable.
3.04 Approval, Partial Approval and Rejection of Applications
Applications may either be approved or rejected.
(a) If an Application is approved, the Program Administrator will arrange for the
applied-for reimbursement to the Property Owner (to the extent of the Impact Fee
Reimbursement Program) and the applied-for funding (to the extent of the Impact
Fee Prefunding Program) of all Eligible Impact Fees and the applied-for funding
of the estimated cost and expense of Eligible Improvements upon the issuance of
the applicable Program Series.
(b) If an Application is rejected, the Program Administrator will send a not ice of
rejection to the Applicant. Any application fees or other charges paid in
connection with the Application are non-refundable.
If an approved Application includes Eligible Improvements, SCIP Counsel will initiate the
preparation of an Acquisition Agreement substantially in the form attached to the SCIP
Resolution of the Local Agency. See Appendix G for the form of SCIP Resolution, to which the
form of Acquisition Agreement is attached as Exhibit B. SCIP Counsel will coordinate with the
Assessment Engineer to obtain the description and estimated costs pertaining to the Eligible
Improvements (Exhibit A to the Acquisition Agreement) and will coordinate with the Applicant
and the Local Agency to approve and execute the final form of the Acquisition Agreement.
After the application is approved, the exact dollar amount of funds the Bond issuance will
provide is dependent upon a number of factors, including federal income tax requirements, Local
Agency limitations, value to lien ratio, effective tax rate, and other credit factors.
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IV Assessment Proceedings
4.01 Local Agency Requirements
Once the Local Agency has adopted a SCIP Resolution, normally it will not be necessary for the
City Council or the Board of Supervisors of the Local Agency, as th e case may be, to take any
further action. Designated staff of the Local Agency will need to (a) review the Application to
perform the verification described in 3.01 above, followed by execution of the Application, (b)
coordinate review, finalization and execution on behalf of the Local Agency of the Acquisition
Agreement when Eligible Improvements are being financed, (c) monitor progress and
completion of construction of Eligible Improvements for purposes of submitting reimbursement
requisitions pursuant to the Acquisition Agreement, if any, (d) sign a closing certificate in
substantially the form of Appendix N (upon the issuance of each applicable Program Series) and
(e) administer the requisition process for disbursement of those Eligible Impact Fees which have
been financed by the applicable Program Series.
It may be necessary due to special circumstances or changes in law or in the SCIP procedures for
the Local Agency to take some further action to facilitate financing of Eligible Impact Fees
and/or Improvements. In such case, all documentation and proceedings will be prepared by
SCIP Counsel at no cost to the Local Agency and will be forwarded to the Local Agency for
review and approval. It is possible that further information will be needed from Local Agencies
beyond the information in the Application, and by adopting its SCIP Resolution, the Local
Agency agrees to cooperate with the Program Administrator, SCIP Underwriter, SCIP Counsel
and Assessment Engineer with respect to developing such additional information.
4.02 Property Owner Requirements
Upon satisfaction of the Application requirements of Article III, each Applicant will be sent an
Assessment Ballot in substantially the form attached hereto as Appendix B and a Consent and
Waiver in substantially the form attached hereto as Appendix C, accompanied by a copy of the
preliminary Engineer’s Report showing (a) the Eligible Impact Fees, Eligible Improvements and
related program costs being financed and (b) the amount of the Assessment being imposed on
each of the Applicant’s Assessed Parcels. The Assessment Ballot must be marked “Approve”
and executed by the Property Owner and the Consent and Waiver must be executed by the
Property Owner and returned to the Program Administrator by the deadline indi cated in the
transmittal letter. Failure to properly complete or return either of these documents will result in
the rejection of the Application.
4.03 Assessment Proceedings – General
All proceedings for the establishment of Assessment Districts and the issuance of Local
Obligations and Bonds will be conducted by the Authority. Assessment proceedings are
conducted by the Authority in full compliance with the requirements of Article XIIID of the
California Constitution (Proposition 2018). Upon determining which Applications have satisfied
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the requirements of Article III for a Program Series, the Authority will commence the
proceedings to establish the Assessment Districts. For each Program Series, the Authority will
create a separate Assessment District for each Project being financed by such Program Series.
4.04 Engineer’s Reports
For each Assessment District, the Assessment Engineer will prepare an Engineer’s Report
containing the items required by Section 10204 of the Assessment Act. The Engineer’s Report
must be signed by a California registered professional engineer and must be filed with the
Authority. Each Local Agency will be required to cooperate with the Assessment Engineer to
finalize the amounts and descriptions of Fees and Improvements included in the Engineer’s
Report.
4.05 Assessment Amount
The Assessment for each Assessed Parcel will be calculated as set forth in the Engineer’s Report
as the sum of the following amounts:
(a) Total Eligible Impact Fees financed for such Assessed Parcel; plus
(b) Benefit Share of Estimated Cost and Expense of Eligible Improvements for the
Project of which the Assessed Parcel is a part; plus
(c) Pro-Rata Share of Costs of Issuance; plus
(d) Pro-Rata Share of Reserve Requirement; plus
(e) Pro-Rata Share of Capitalized Interest, if any; plus
(f) Prior assessment liens, if any.
Prior to the mailing of the Notice of Hearing and the Assessment Ballot (see Section 4.06(c)
below) the Assessment Engineer will determine the not-to-exceed Assessment amount, which
will be included in the Assessment Ballot. The actual amount of the Assessment will ultimately
be less than or equal to the Assessment amount shown in the ballot.
4.06 Sequence of Events
Assessment Proceedings will consist of the following legal actions to be taken by the Authority
and the Program Administrator, in accordance with the SCIP Timetable for such Program Series:
(a) Adoption of resolution of intention in substantially the form shown in Appendix I.
(b) Adoption of resolution preliminarily approving Engineer’s Report and calling
public hearing in substantially the form shown in Appendix J.
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(c) Mail the Notice of Hearing to each Property Owner at the address shown on the
most recent equalized assessment roll of the County or as otherwise known to th e
Assessment Engineer, in substantially the form attached as Appendix K. The
Notice of Hearing will include a transmittal letter, the Assessment Ballot, the
Consent and Waiver and a copy of the applicable preliminary Engineer’s Report.
(d) Assessment Ballots and Consents and Waivers must be returned to the Program
Administrator no later than the deadline identified in the transmittal letter.
(e) No earlier than 45 days after mailing of the notices, the Authority will conduct a
joint public hearing for all Assessment Districts in the Program Series. Any
Property Owner, Local Agency representative or member of the general public
will be given the opportunity to testify at the hearing. Any Property Owner may
withdraw their Assessment Ballot and Consent and Waiver at the hearing, and in
such event, the Property Owner will not be included in the Assessment District
and the Program Series.
(f) At the conclusion of the hearing, the Authority will customarily adopt the
following Resolutions:
(i) Resolution Confirming Assessment in substantially the form attached as
Appendix D.
(ii) Local Obligation Resolution in substantially the form attached as
Appendix E.
(iii) Revenue Bond Resolution in substantially the form attached as
Appendix F. (See Article V – Bonds.)
However, in some circumstances the Authority may need to defer adoption of the
Local Obligation Resolution and the Revenue Bond Resolution to a later date, in
which case the resolutions will be considered at such time as circumstances
permit. For example, the condition of the municipal bond market in general may
warrant deferral of these actions until a later time.
(g) Within approximately 5 days after the hearing and adoption of the above
resolutions, the Assessment Engineer will record the assessment diagram and a
notice of assessment against each Assessed Parcel in substantially the form
attached as Appendix L and will publish a notice of recording of assessment in
newspapers of general circulation within each County containing an Assessment
District in substantially the form attached as Appendix M.
(h) The statute of limitations to challenge any Assessment runs 30 days after the levy
of the Assessment, which is the date on which the Resolution Confirming
Assessment is adopted.
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(i) In the event the Authority determines to refinance any Program Series, such
refinancing shall not have any effect on the Local Obligations or the Assessment
Installments levied for such Program Series.
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V Bonds
5.01 Financing Structure
Funding of SCIP will be accomplished through a two-step process involving first, the issuance of
the Local Obligations under the Assessment Bond Act and second, the issuance by the Authority
of Bonds under the Revenue Bond Act. The Bonds for each Program Series will be secured by
the Local Obligations issued for each separate Assessment District in the Program Series. By
using this approach, the Authority will be pooling all of the Assessments into a blended security
which will provide benefits through diversification of credit risk as well as economies of scale.
The Local Obligations will be registered in the name of the SCIP Trustee and held as security for
the Revenue Bonds. Assessment Installment payments will be applied to the payment of debt
service on the Local Obligations, which will in turn be applied by the SCIP Trustee, as holder of
the Local Obligations, to the payment of debt service on the Bonds.
5.02 Bond Documents
The Authority will approve a set of Bond Documents for each Program Series. Copies of the
draft Bond Documents for each Program Series will be made available for review by any Local
Agency or Applicant participating in the Program Series at least 15 days prior to the adoption
thereof by the Authority; provided, that the Authority reserves the right to modify such Bond
Documents thereafter.
5.03 Local Agency Closing Certificate
Each Local Agency which has Assessments in its jurisdiction for a Program Series will be
required to execute and deliver to the Authority a closing certificate, dated as of the Closing
Date, in substantially the form attached hereto as Appendix N.
5.04 Arbitrage Rebate
As set forth in Appendix O, the Program Administrator will provide all required arbitrage rebate
and yield restriction reporting services with respect to the Bonds, including preparing the
necessary Internal Revenue Service (“IRS”) documentation and instructing the SCIP Trustee to
make any required arbitrage rebate or yield reduction payments to the IRS.
5.05 Continuing Disclosure
As set forth in Appendix P, the Program Administrator will provide the services necessary to
ensure that the Authority will meet its continuing disclosure obligation with respect to the Bonds.
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5.06 Refunding Dividend Program
The Authority reserves the right to refinance the Bonds for any Program S eries if the Authority
determines in its sole discretion that market conditions will allow the Authority to achieve
significant savings from such refinancing after payment of all costs of issuance as determined by
the Authority. Local Agencies may be asked to provide certain certifications or agreements in
connection with such refunding. Subject to applicable federal tax limitations, all net savings
generated from a refunding shall be monetized in the refunding and each Local Agency will
receive a pro rata credit for such savings in the appropriate SCIP Trustee account, and such
credited amount may be withdrawn by the Local Agency to pay Capital Costs as provided in
Article VI. Because all savings are monetized and paid out to Local Agencies (subject to
applicable federal tax limitations), no refunding will result in a reduction of any Assessment or
Assessment Installment. In certain circumstances, subject to the discretion of the Authority or if
so directed by the Local Agencies, the net savings generated from the refunding shall be applied
to provide a credit to property owners for application against the next year’s assessments.
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VI Funds Management & Administration
6.01 Deposits to SCIP
Payments from the Local Agency to SCIP of Fees paid to i t by the Applicants to be reimbursed,
and Bond proceeds received by SCIP for prefunded Fees or for acquisition of Improvements,
will be deposited with the SCIP Trustee into the Custody Account. The Custody Account will
contain a subaccount for each separate Local Agency. That subaccount is known as the “Local
Agency Account.” Each Local Agency Account will contain separate Fee Accounts (e.g., water,
sewer, roadway, etc.) into which moneys allocable to the Local Agency’s Fees will be deposited,
as described in Section 6.03 and 6.04, below.
6.02 Access to SCIP Funds
Each Local Agency will access its Local Agency Account by submitting a disbursement request
to the Program Administrator for Capital Costs. Disbursement requests should be submitted no
earlier than the time of payment by the Local Agency for the Capital Costs. The form of
disbursement request is as set forth in Appendix Q. All disbursement requests shall be
forwarded either by facsimile or e-mail to the Program Administrator. Upon receipt of a
disbursement request, the Program Administrator will instruct the SCIP Trustee to disburse the
requested funds in accordance with the instructions provided by the Local Agency. For
disbursements by wire, each Local Agency will provide the Program Admi nistrator with contact
information for the appropriate financial institution, including wire instructions. Disbursements
generally will occur within two business days of receipt of a completed disbursement request.
6.03 Account Statements
The Program Administrator will provide each Local Agency with statements identifying the
balance in its Local Agency Account and the portion thereof which is allocable to each Fee
Account therein (e.g., water, sewer, roadway, etc.), the current market value of its Local Agency
Account, interest earnings credited and accrued during the statement period, current investment
holdings and cash flow activity. Such statements may be provided monthly or quarterly at the
election of the Local Agency.
6.04 Fee Account Allocation
The Program Administrator will record the allocation of funds held for each Local Agency to
each Fee Account based on directions provided by each Local Agency upon entering SCIP.
6.05 Management of SCIP Funds
Funds held in SCIP accounts, including Local Agency Accounts, will be invested appropriately
at the direction of the Program Administrator. Investment instructions provided to the SCIP
Trustee by the Program Administrator will at all times conform with SCIP’s investment policy as
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set forth in Appendix R. Investment earnings will be credited to each SCIP Account and
subaccount therein for the benefit of the respective Local Agencies.
6.06 Rejected Applications
Any Applicant whose application for Fee reimbursement is rejected will be notified by t he
Program Administrator that the Fee reimbursement applied for is not eligible for reimbursement.
When an application is rejected, the Fees transferred to SCIP by the Local Agency, if any, held
in the applicable Local Agency Account, will be returned to the Local Agency and the Local
Agency will be responsible for accounting for such funds in the appropriate capital accounts
established for the Local Agency’s fee programs. Property Owners shall not be entitled to any
refund of Fee payments or costs paid in connection with any rejected Application other than as
approved by the Local Agency.
6.07 SCIP Record Retention Policy
The Program Administrator will maintain SCIP accounting records on site for not less than 2
years after a Local Agency closes its Local Agency Account and not less than 3 years thereafter
at an appropriate off-site location.
6.08 Inspection of SCIP Accounting Records
The Program Administrator will comply with reasonable requests of the Local Agencies to
inspect SCIP accounting records during normal business hours and, upon the request of a Local
Agency, will provide a Local Agency with a statement of the Local Agency Account.
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VII Collection of Assessments
7.01 Annual Posting
For each Assessment District, the Assessment Administrator will annually transmit to each
County, no later than the County’s deadline, the auditor’s record required by Section 8682 of the
Assessment Bond Act for posting on the tax roll. The Assessment Installments will appear on
the property tax bill mailed by the County to each Property Owner as a separate line item in
substantially the following form:
“CSCDA SCIP Assessment District No. [20__-__] – $_____”
7.02 Administrative Cost Assessment
Pursuant to Section 10204(f) of the Assessment Act, the Authority will annually levy an
additional assessment to defray the costs of collection and administration of the assessments and
the Local Obligations which are not otherwise reimbursed in an amount not to exceed 10% of the
Assessment Installment for such year. Such amounts will be applied by the Authority to pay
Program Administration Costs and a full accounting will be provided each year upon request to
any Local Agency or Property Owner participating in a Program Series. In addition, each
County will add up to $8 per parcel to each semi-annual Assessment Installment pursuant the
Assessment Bond Act as an administrative charge to defray the County’s costs of collecting
assessments on the tax roll.
7.03 Payment of Assessment Collections to Authority
Each County will pay the Assessment Installments (net of the County’s administrative charge)
collected each year to the Authority and the Authority will immediately deposit such funds as
follows:
(a) Amounts representing Program Administration Costs will be deposited in the
Expense Fund held under the Trust Agreements for the appropriate Program
Series.
(b) Amounts representing principal and interest installments of the Assessments will
be transferred to the SCIP Trustee for deposit in the Revenue Fund held under the
Trust Agreements for the appropriate Program Series.
7.04 Interest Earnings on Funds and Accounts and Assessment Credits
(a) Expense Fund. Earnings on amounts held in the Expense Fund will be retained in
such fund and applied as a credit against Program Administration Costs.
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(b) Local Agency Accounts. Earnings on amounts in each Local Agency Account
shall be retained in each Local Agency Account and will be available for
withdrawal by the Local Agency as provided in Section 6.02. At the direction of
the Local Agency, such earnings may be applied as a credit against future
Assessment Installments.
(c) Revenue Fund. Earnings on amounts in the Revenue Fund for each Program
Series held by the SCIP Trustee under each Trust Agreement shall be retained in
such Revenue Fund and applied as a credit on the annual Assessment Installments
in the next succeeding fiscal year, except:
(i) In the case of Refunding Bonds issued pursuant to the Refunding
Dividend Program, such earnings may be applied to pay debt service on
the Refunding Bonds in the event that prepayments of Assessments
require such earnings to be applied to maintain cash-flow balance
between the revenue from the Local Obligations and the debt service
payments on the Refunding Bonds;
(ii) To the extent the portion of the Assessment Installments actually
collected by the Authority for Program Administration Costs together
with the amounts available in the Program Administration Fund is less
than the Program Administration Costs, such earnings may be
transferred to the Authority for deposit in the Program Administration
Fund to pay Program Administration Costs; and
(iii) Notwithstanding the above, to the extent amounts are required to be
deposited in the Rebate Fund to pay arbitrage rebate with respect to any
Program Series, earnings on amounts in the Revenue Fund and any
Local Agency Accounts in excess of the applicable bond yield
(calculated pursuant to the Internal Revenue Code and the regulations
issued thereunder) may be transferred to the Rebate Fund.
7.05 Prepayment of Assessments
Property Owners shall have the right at any time to prepay their Assessment in part or in full.
Payoff quotes may be obtained from the Assessment Administrator. Payoff quotes will be
calculated in accordance with the Assessment Bond Act, and assuming that the applicable
Assessment is not then delinquent, the payoff quote shall include the unpaid principal amount of
the Assessment, plus accrued interest at the rate of interest on the Local Obligations, plus a
prepayment premium not to exceed 3% of the unpaid principal amount plus an administrative
charge for the prepayment. In the event that the applicable Assessment is then delinquent, an
additional amount will be payable with respect to reinstatement of such delinquencies. The
Property Owner may be entitled to a credit for a proportionate share of any reserve fund. Payoff
quotes and prepayments will require payment of administrative charges as established by the
Assessment Administrator.
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7.06 Delinquent Assessment Installments
The Assessment Administrator will monitor the payment of all Assessment Installments and will
track any delinquencies in the payment of such Assessment Installments by Property Owners
(regardless of the remittance of such installments to the Authority by any County pursuant to the
provisions of Revenue & Taxation Code Sections 4717 and following (the so-called “Teeter
Plan”)). In the event an Assessment Installment is not paid on or prior to December 10 or
April 10 of any fiscal year, as the case may be, the Assessment Administrator will take the
following steps and any additional steps as directed by the Authority:
(a) Within 90 days after the December 10 or April 10 due date of such Assessment
Installment, the Assessment Administrator shall send a demand letter to the
Property Owner in substantially the form set forth in Appendix S. An
administrative fee for sending the letter will be charged. If the parcel goes to
foreclosure it will be charged to the parcel; if the delinquency is paid before it is
stripped from the roll, the fee will simply be an administrative expense of the
Authority.
(b) If the Assessment Installment has not been paid, including any penalties, within
30 days of the date of the initial demand letter, the Assessment Administrator
shall send a second letter by certified mail, in substantially the form set forth in
Appendix T, indicating that (i) the Assessment Installment remains delinquent
and (ii) the Authority will direct Foreclosure Counsel to commence foreclosure
proceedings on the Assessed Parcel if payment is not received within 30 days of
the receipt of the second letter.
(c) Concurrently with sending the second demand letter to the Property Owner, the
Assessment Administrator shall determine whether there is a mortgage lien on the
Assessed Parcel and, if so, shall send a demand letter by certified mail to the
lender in substantially the form set forth in Appendix U.
(d) If the Assessment Installment is not paid within the period specified in the
demand letters prescribed by the foregoing steps (b) and (c), then unless the
property owner is in bankruptcy or on active military duty, the Assessment
Administrator shall, after April 10 (in order to include both installments if both
are delinquent), cause a Notice of Intent to Remove Delinquent Assessment
Installment(s) from the Tax Roll to be recorded in the office of the appropriate
County Recorder, pursuant to Section 8833(a)(1) of the Assessment Bond Act,
and then proceed to cause the delinquent installments to be stripped from the
County tax roll and submit the delinquent installment information to Foreclosure
Counsel (with a copy to the SCIP Underwriter, the Program Administrator and
SCIP Counsel) to commence and prosecute, to the fullest extent permitted by law,
Superior Court judicial foreclosure proceedings against the Assessed Parcel in
accordance with the Assessment Bond Act, the Local Obligation Resolution and
the Trust Agreement
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(e) Upon notification by the Assessment Administrator and receipt from the
Assessment Administrator and SCIP Counsel of the information required for the
foreclosure complaint, Foreclosure Counsel may contact the property owner and
lender in an additional attempt to collect the stripped assessment installments,
penalties, interest, and all costs and expenses, but will, prior to any applicable
deadline set forth in the Trust Agreement or otherwise, take all steps necessary to
prepare and file a complaint for judicial foreclosure of the lien of the Assessment
and will diligently prosecute such action to judgment and a sheriff’s sale.
(f) Once step (b) of this Section has been reached, the Property Owner shall be
required to pay the fees and expenses of the Assessment Administrator and
Foreclosure Counsel incurred with respect to the Assessed Parcel, in addition to
any delinquent Assessment Installment, penalties and interest assessed by the
applicable County, in order to bring the Assessed Parcel current. In addition, if
step (b) of this Section has been reached with respect to any Property Owner, such
Property Owner will be barred from further participation in SCIP absent a specific
waiver approved by the Legislative Body.
7.07 Tenders of Bonds Not Permitted
All of the Local Obligations will be held by the SCIP Trustee for th e benefit of the holders of the
Bonds. Although Section 8688 of the Assessment Bond Act allows owners of property within
assessment districts to tender bonds issued under the Assessment Bond Act for payment of
assessment installments, the Bonds are not issued under the Assessment Bond Act and Property
Owners who may hold Bonds will not be permitted to tender such Bonds in the payment of
Assessment Installments.
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VIII Property Owner Information
8.01 Balance and Payoff Information
The Assessment Administrator will maintain a database of information with respect to each
Assessed Parcel which will allow the Property Owner or any other interested person to obtain
either a current balance or a payoff quote for the Assessment on such parcel. The Asses sment
Administrator will be permitted to charge a reasonable fee for providing such information as
provided in the current schedule of fees of the Assessment Administrator on file with the
Program Administrator.
8.02 Disclosure of Assessment
Each Property Owner shall comply with the requirements of applicable law with respect to the
disclosure of the Assessment to any purchaser of an Assessed Parcel. The form of disclosure
notice to subsequent purchasers is attached as Appendix V. For a reasonable fee i n accordance
with the schedule of fees maintained by the Assessment Administrator, the Assessment
Administrator will supply a completed notice for any individual Assessed Parcel upon request.
8.03 Billing Questions
The Assessment Administrator will maintain a toll free telephone number to respond to inquiries
from Property Owners concerning billing of Assessment Installments.
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IX Miscellaneous
9.01 Use of this Manual
This Manual is intended to provide guidance to Local Agencies, Applicants, Property Owners
and SCIP consultants in the implementation of SCIP’s programs. It is not intended to supersede
or replace the legal documents which are used in the SCIP programs. In case of any
inconsistency between the provisions of this Manual and such legal documents, the legal
documents will control. Capitalized terms used in this Manual have the meanings given under
the tab, “Glossary of Terms.”
9.02 Contact Information
The contact information for SCIP is provided at the beginning of this Manual. Any n otice or
other correspondence must be sent by first-class mail to the addresses listed and any
communication by facsimile or e-mail will not be considered effective unless a copy is also sent
by first class mail.
9.03 Limited Liability
In no event will any Local Agency or any of its officers, employees or agents be liable for the
payment of Assessments, Assessment Installments, Program Administration Costs, Costs of
Issuance or any other fees or expenses in connection with SCIP. Neither the Authority nor any
of its members, officers, employees or agents will be liable for the payment of Assessments,
Assessment Installments, Program Administration Costs, Costs of Issuance or any other fees or
expenses in connection with SCIP except from the Assessment Installments or other funds and
accounts established pursuant to SCIP.
9.04 Legal Representation
SCIP Counsel will represent only the Authority in connection with the SCIP program and shall
not be deemed to have an attorney-client relationship with any Local Agency, Applicant or other
participant or party in connection with SCIP or any Program Series. By participating in SCIP,
each Local Agency, Applicant or other participant or party agrees that there is no conflict of
interest with respect to any other relationship with SCIP Counsel on other matters and, to the
extent such conflict is deemed to exist, waives the conflict.
9.05 Interpretation
This Manual is intended to be an operating guide for SCIP, to be used by the Authority, the
program consultants and Local Agency participants in implementing and administering SCIP.
Interpretation of this Manual will be controlled by the Program Administrator in consultation
with SCIP Counsel, subject to final approval by the Legislative Body, whose determinations
shall be final and conclusive.
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9.06 Revisions to this Manual
SCIP is an ongoing program, and from time to time the Authority may determine that revisions
are required to SCIP and this Manual for the purpose of improving the program in the interests of
the Authority, the Local Agencies and other parties. This Manual will be updated and revised
from time to time as approved by the Legislative Body and revised editions will be posted on the
Authority’s website at http://www.cscda.org (follow “Statewide Community Infrastructure
Program (SCIP)” hyperlink).
9.07 Waivers of Policy
The Legislative Body may, in its discretion, require additional measures and procedures,
enhanced security, and higher standards in certain circumstances. Further, the Legislative Body
may, in its discretion, waive any of the policies and procedures set forth herein to the extent
permitted by law. Such waivers may only be granted by action of the Legislative Body. Any
action taken by the Legislative Body that is inconsistent with these policies and procedures shall
be deemed to constitute a waiver of such policy or procedure.
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Glossary of Terms
Capitalized terms used in this Manual have the meanings given below, unless the context
requires otherwise.
Acquisition Agreement means the agreement between the Local Agency and the
Applicant, in substantially the form attached as Exhibit A to the SCIP Resolution, the
form of which is attached hereto as Appendix G, and providing the terms and conditions
upon which the Applicant will be reimbursed all or a portion of the cost and expense of
Eligible Improvements completed by the Applicant, all as more fully provided by and
subject to the limitations set forth in the agreement.
Applicant means a person who applies for financing of Eligible Impact Fees and/o r
Eligible Improvements through SCIP.
Application means a completed application for financing of Eligible Impact Fees and/or
Eligible Improvements, submitted by a Property Owner to the Program Administrator.
The two forms which must be completed and submitted, together with applicable
attachments, to constitute a completed Application, are entitled “SCIP Application” and
“SCIP Landowner Information Form,” respectively, and are set forth in Appendix A.
Appraisal means an appraisal of one or more Assessed Parcels prepared by an
independent professional appraiser who is a Member of the Appraisal Institute (MAI),
and is selected by the Authority from an approved list on file with the Authority.
Appraised Value means the market value of an Assessed Parcel as shown in an
Appraisal.
Assessed Parcel means a parcel of land subject to or proposed to be subject to an
Assessment. Each Assessed Parcel must be a legal parcel in compliance with the
Subdivision Map Act. Individual condominium units in a condominium project will be
deemed legal parcels for this purpose once a separate Assessor’s Parcel Number has been
assigned to each condominium unit in the condominium project by the County Assessor
for the County in which the condominium project is located.
Assessed Value means the assessed value (land and improvements) of an Assessed
Parcel as shown on the most recent equalized assessment roll (including any
supplemental roll) of the County in which the Assessed Parcel is located.
Assessment means a special assessment levied by the Authority on property pursuant to
the Assessment Act.
Assessment Act means the Municipal Improvement Act of 1913, being Division 12 of
the Streets & Highways Code of the State.
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Assessment Administrator means David Taussig & Associates, LLP or any successor
firm appointed by the Authority as the Assessment Administrator for SCIP.
Assessment Ballot means a Property Owner assessment ballot with respect to a proposed
Assessment in substantially the form set forth in Appendix B.
Assessment Bond Act means the Improvement Bond Act of 1915, being Division 10 of
the Streets & Highways Code of the State.
Assessment District means an assessment district formed by the Authority pursuant to
the Assessment Act for the purpose of financing Eligible Impact Fees and/or Eligible
Improvements through the issuance of Local Obligations.
Assessment Engineer means David Taussig & Associates LLP or any successor firm
appointed by the Authority as the Assessment Engineer for SCIP.
Assessment Installment means an annual installment payable with respect to an unpaid
Assessment and consisting of principal, interest and administrative charges.
Authority means the California Statewide Communities Development Authority, a joint
exercise of powers authority duly established pursuant to the laws of the State.
Bond Documents means, with respect to each Program Series, the Revenue Bond
Resolution, Trust Agreement, Local Obligation Resolution, Bond Purchase Agreement,
Continuing Disclosure Agreement, Preliminary and final Official Statement, Escrow
Agreement (in the case of refundings), and any and all other documents deemed
necessary by SCIP Counsel to the authorization, sale and issuance of Bonds.
Bonds means bonds issued by the Authority for SCIP under the Revenue Bond Act, the
proceeds of sale of which are applied to the purchase of the Local Obligations of the
applicable Program Series.
Capital Costs means costs properly chargeable to a capital account pursuant to generally
accepted accounting principles incurred for either (1) public capital improvements legally
payable from Eligible Impact Fees or (2) Eligible Improvements.
Closing Date means the date on which the Bonds for a Program Series are initially
delivered to the SCIP Underwriter.
Consent and Waiver means a consent and waiver of a Property Owner in substantially
the form set forth in Appendix C.
Costs of Issuance means, with respect to each Program Series, all costs of issuing the
Bonds and the Local Obligations, including without limitation costs of appraisals,
engineer’s reports, apportionment fees, absorption studies, credit enhancement (such as
bond insurance), rating agency fees, underwriter’s discount, legal fees and expenses,
Authority fees and expenses, trustee fees and expenses, printing, publica tion, document
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reproduction, filing and recording costs and any other cost related to the issuance of the
Bonds or the Local Obligations. Costs of issuance may also include an amount
calculated by the Authority as the amount necessary to pay Program Administration
Costs through the first full fiscal year of each Program Series.
Custody Account means the account established by the SCIP Trustee pursuant to the
Trust Agreement for each Program Series and into which is deposited that portion of the
proceeds of sale of the Bonds for such Program Series representing (1) Eligible Impact
Fees financed from such Program Series and (2) amounts financed on account of Eligible
Improvements.
Declaration of Official Intent to Reimburse means the written statement of the Local
Agency or of the Authority, received in connection with the Application, declaring the
intention to reimburse expenditures made by or on behalf of a Property Owner with
respect to Eligible Impact Fees or Eligible Improvements prior to issuance of Bonds of
the applicable Program Series.
Eligible Impact Fee means a fee levied or collected by a Local Agency pursuant to a Fee
Statute and otherwise meeting the requirements of Section 2.02.
Eligible Improvement means a public capital improvement authorized by the
Assessment Act, together with authorized incidental expenses associated therewith, and
otherwise meeting the requirements of Section 2.02.
Engineer’s Report means the report prepared by the Assessment Engineer for each
Assessment District, which shall contain the information required by Section 10204 of
the Assessment Act and shall be signed by a California registered professional engineer.
Fee Account means the separate account for each category of Eligible Impact Fees
established by the SCIP Trustee for each Local Agency pursuant to Article VI.
Fee Prefunding Program means that component of SCIP pertaining to the financing of
Eligible Fees on behalf of an Applicant, with payment being made directly to the Local
Agency or other governmental entity to which the Eligible Fees are payable.
Fee Reimbursement Program means that component of SCIP pertaining to the
financing of Eligible Fees which have been paid by an Applicant prior to the Closing
Date of the Bonds of a given Program Series.
Fee Statute means the Mitigation Fee Act (California Government Code Sections 66000
and following) or any other State law or local legislation imposing fees on new
development to pay for the Capital Costs of public capital improvements.
Foreclosure Counsel means an attorney or firm of attorneys designated from time to
time by the Legislative Body to act as counsel to the Authority in prosecuting foreclosure
actions in connection with SCIP.
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Legislative Body means the commission of the Authority.
Local Agency means a city, county, city and county or special district which is a member
of the Authority and has an effective SCIP Resolution in place.
Local Agency Account means the subaccount established by the SCIP Trustee within the
Custody Account, as described in Section 6.01.
Local Obligation Resolution means a resolution of the Authority in substantially the
form set forth in Appendix E.
Local Obligations means limited obligation improvement bonds issued by the Authority
under the Assessment Bond Act for SCIP and pledged as security for Bonds of a given
Program Series.
Program Administration Costs means all costs of administering each Program Series,
including fees and expenses of the Program Administrator, Assessment Administrator,
SCIP Counsel, Foreclosure Counsel and any other costs or expenses of administering
each Program Series.
Program Administration Fund means the fund established by the SCIP Trustee for the
payment of Program Administration Costs.
Program Administrator means BLX Group LLC, or any successor firm appointed by
the Authority as the Program Administrator for SCIP.
Program Series means an individual series of Bonds to be issued to fund an Application
or a group of Applications, as shall be determined by the Authority, or a series of Bonds
issued to refund any Program Series.
Project means a development project being undertaken by an Applicant within a Local
Agency which has been conditioned upon either (a) payment of impact fees or (b)
construction and installation of public capital improvements or both and for which an
Application for SCIP financing of Eligible Impact Fees and/or Eligible Improvements has
been submitted by an Applicant.
Property Owner means the legal owner(s) of property subject to an Assessment or for
which an Application has been filed.
Pro-Rata Share means a percentage determined by dividing the amount of the
assessment for an Assessed Parcel by the total amount of assessment being financed in
the applicable Program Series.
Rebate Fund means the fund by that name established by the SCIP Trustee for each
Program Series for the purposes of holding amounts payable to the United States
Treasury pursuant to the requirements of Section 148 of the Internal Revenue Code and
the regulations issued thereunder.
4135-2255-3356.8
Refunding Bonds means Bonds issued pursuant to the Refunding Dividend Program.
Refunding Dividend Program is the SCIP program described in Section 5.06.
Reserve Requirement means, with respect to the Bonds issued for any Program Series,
the amount required to be maintained in the Reserve Account within the Revenue Fund
for such Program Series. The Reserve Requirement will normally be equal to the
maximum annual debt service on the Bonds for the Program Series; however the
Authority may determine to establish a lower Reserve Requirement for any Program
Series if feasible.
Resolution Confirming Assessment means a resolution of the Authority in substantially
the form set forth in Appendix D.
Revenue Bond Act means Article 4 of Chapter 5 of Division 7 of Title 1 of the
Government Code of the State.
Revenue Bond Resolution means a resolution of the Authority in substantially the form
set forth in Appendix F.
Revenue Fund means the fund by that name established by the SCIP Trustee under each
Trust Agreement for a Program Series, including the following subaccounts: the Interest
Account, the Principal Account and the Reserve Account.
SCIP means the Authority’s development impact fee and public capital improvement
financing program known as the “Statewide Community Infrastructure Program.”
SCIP Counsel means Orrick, Herrington & Sutcliffe LLP, or such other attorney or firm
of attorneys who are nationally recognized bond counsel selected and appointed by the
Authority.
SCIP Resolution means a resolution of the governing body of a Local Agency in
substantially the form attached as Appendix G.
SCIP Timetable means the time schedule for each Program Series as approved by the
Authority. A sample SCIP Timetable is provided in Appendix H and a specific SCIP
Timetable will be established by the Authority, in consultation with the SCIP
Underwriter, for each Program Series.
SCIP Trustee means Wilmington Trust National Association, or any successor
appointed by the Authority as Trustee for SCIP.
SCIP Underwriter means RBC Capital Markets, LLC or any successor firm(s)
appointed by the Authority as the underwriter(s) for SCIP.
State means the State of California.
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Subdivision Map Act means the provisions of Division 2 of Title 7 of the Government
Code of the State, commencing at Section 66410.
Trust Agreement means a trust agreement, indenture, or similar instrument which
secures and provides the terms for issuance and administration of a given Program Series.
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Appendices
Appendix Description
A Form of Application and Landowner Information
B Form of Assessment Ballot
C Form of Property Owner Consent and Waiver
D Form of Resolution Confirming Assessment
E Form of Local Obligation Resolution
F Form of Revenue Bond Resolution
G-1 Form of SCIP Resolution, with attachments:
• Form of CSCDA Resolution of Intention
• Form of Acquisition Agreement
• SCIP Contacts
G-2 Sample Staff Report
G-3 Form of Notice of Public Hearing
H Sample SCIP Timetable
I Form of Resolution of Intention
J Form of Resolution Preliminarily Approving Engineer’s Report
K Form of Notice of Hearing
L Form of Recorded Notice of Assessment
M Form of Published Notice of Recording of Assessment
N Form of Local Agency Closing Certificate
O Arbitrage Rebate Services
P Continuing Disclosure Services
Q SCIP Disbursement Form
R SCIP Investment Policy
S Form of Initial Demand Letter of Delinquent Property Owner
T Form of Second Letter of Delinquent Owner
U Form of Lender Demand Letter
V Form of Disclosure Notice to Subsequent Purchasers
W Form of Fee Collection
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APPENDIX A
Form of Application and Landowner Information
SCIP APPLICATION
Applicant Information
Name of Project: _____________________________________________________________________
Location/Address of Project Site: ________________________________________________________
Project Proceeds Requested:____________________________________________________________
Name of Developer: _________________________________________________________________
Contact Information
Name: _______________________________________________ Title: ________________________
Address: _______________________________________________ City: _______________________
Zip Code: ________________________________________ Telephone: ________________________
Email: ___________________________________________ FAX: ____________________________
Applicant Acknowledgment and Certification
One of the following is true and correct: (A) The undersigned represents the owner(s) of the project,
including a joint owners by tenancy in common, community property, joint tenancy or otherwise, or (B)
the undersigned has this project under option. The undersigned Applicant acknowledges and agrees that
it shall comply with all applicable provisions of the California Labor Code, including, as applicable, the
payment of prevailing wage. As respects any and all claims related to prevailing wage, the und ersigned
assumes all responsibility for the payment of prevailing wage and the compliance with prevailing wage
laws, if required, and specifically waives any and all rights against the California Statewide
Communities Development Authority and each participating local agency with respect to the project that
is a subject of this application, as well as their agents, employees, agencies and consultants (the
“Indemnified Parties”) pursuant to Labor Code Section 1726(c) and any analogous federal law and
agrees to defend and fully indemnify the Indemnified Parties for damages, claims, fines, penalties,
litigation expenses, costs, attorney’s fees and interest relating to the project.
Signed: _____________________________________________________ Dated: _________________
Social Security Number or Taxpayer ID Number: ____________________________________________
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Local Agency Information (Include Each Applicable Local Agency)
Local Agency Name: ___________________________________________________________
Mailing Address
(City/County/State/Zip): _________________________________________________________
Contact Information
Name: _______________________________________________ Title: ___________________
Telephone: ___________________ FAX: __________________ Email: ___________________
Local Agency Acknowledgement
I hereby certify that I am an authorized representative of the Local Agency, and that I have been
authorized by the Local Agency to execute this Preliminary Application for CSCDA financing.
Signed: _____________________________________________________ Dated: ____________
Local Agency Name: ___________________________________________________________
Mailing Address
(City/County/State/Zip): _________________________________________________________
Contact Information
Name: _______________________________________________ Title: ___________________
Telephone: ___________________ FAX: __________________ Email: ___________________
Local Agency Acknowledgement
I hereby certify that I am an authorized representative of the Local Agency, and that I have been
authorized by the Local Agency to execute this Preliminary Application for CSCDA financing.
Signed: _____________________________________________________ Dated: ____________
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Local Agency Name: ___________________________________________________________
Mailing Address
(City/County/State/Zip): _________________________________________________________
Contact Information
Name: _______________________________________________ Title: ___________________
Telephone: ___________________ FAX: __________________ Email: ___________________
Local Agency Acknowledgement
I hereby certify that I am an authorized representative of the Local Agency, and that I have been
authorized by the Local Agency to execute this Preliminary Application for CSCDA financing.
Signed: _____________________________________________________ Dated: ____________
Local Agency Name: ___________________________________________________________
Mailing Address
(City/County/State/Zip): _________________________________________________________
Contact Information
Name: _______________________________________________ Title: ___________________
Telephone: ___________________ FAX: __________________ Email: ___________________
Local Agency Acknowledgement
I hereby certify that I am an authorized representative of the Local Agency, and that I have been
authorized by the Local Agency to execute this Preliminary Application for CSCDA financing.
Signed: _____________________________________________________ Dated: ____________
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SCIP LANDOWNER INFORMATION
THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY (“CSCDA”)
INTENDS TO ISSUE TAX-EXEMPT BONDS (THE “BONDS”) TO FINANCE CERTAIN
IMPACT FEES FOR THE CITY/COUNTY. UNDER FEDERAL AND STATE SECURITIES
LAWS, THE CITY/COUNTY IS REQUIRED TO DISCLOSE ALL MATERIAL FACTS TO THE
PURCHASERS OF THE BONDS. FOR THIS REASON, IT IS IMPORTANT THAT YOU
ANSWER EACH OF THE FOLLOWING QUESTIONS COMPLETELY AND ACCURATELY.
YOUR PROMPT AND COMPLETE RESPONSE TO THIS QUESTIONNAIRE IS CRITICAL TO
THE CSCDA’S ABILITY TO ISSUE BONDS TO FINANCE YOUR DEVELOPMENT IMPACT
FEES.
OWNERSHIP
Name of Landowner:
Please describe the ownership structure of the Landowner (i.e., individuals, family trust, partnership,
corporation, etc.). Please include resumes of key individuals responsible for making decisions for
Landowner. Please include a copy of relevant formation documents (partnership agreement, articles
of incorporation and bylaws, family trusts, etc.)
Name of Developer: (if different from Landowner).
Evidence of Legal Title (please include copy of a grant deed or title report)
PROPERTY INFORMATION
For the (the “Property”) within the proposed Assessment District, please list the following:
Number of gross acres owned:
Number of acres proposed for development:
Number of acres developed to date, if any:
List the Assessor’s Parcel Numbers for the Property:
How long have you owned the Property?
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DEVELOPMENT IMPACT FEES TO BE FINANCED BY SCIP
(Attach Fee Schedule or list below)
Type (water, sewer, road, etc.)
Local Agency
Amount of Fee (specify per unit,
equivalent dwelling unit or other
calculation method and total)
TOTAL:
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IMPROVEMENTS TO BE FINANCED BY SCIP
Type (water, sewer, road, etc.)
Local Agency Budgeted Cost
TOTAL:
Have you entered into any option or other form of agreement to sell all or a portion of the Property?
YES_____ NO_____. If YES, please describe the arrangement and attach a copy of agreements describing
the arrangement.
Describe the proposed land use of the Property:
Is the Property proposed for residential, commercial retail, industrial or a combination of different
land uses?
Please state the total number of residential units proposed (single family of multi family), and the total land
acreage and building square footage for commercial, retail, or industrial development proposed.
Describe the expected timing for development of the Property: If available, please list projected sales or
leasing information.
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What is the status of land use approvals, maps and ElR’s for the Property (i.e., briefly describe the
current zoning and the status of any Development Agreements, Specific Plans, tentative maps or final maps
for the Property)? What is the status of recordation of a final map?
What is the status of recordation of a final map (circle one)?
None Tentative Map Recorded Final Large Lot Map
Recorded Final Subdivision Map Other (explain)
Will any impact fees be owing after funding by SCIP as a condition to develop the Property?
YES_____ NO_____. If YES, please explain and provide an estimated amount.
Please list all discretionary approvals (including vesting tentative subdivision map, conditional use
permits, Section 404 permits, fish and wildlife permits, and any other governmental permits) that are
still needed for development of the Project.
Is any development currently underway on the Property? YES_____ NO_____. If YES, please give a
general description and provide information as to estimated construction or permit value.
Are there any existing trust deeds/loans on the Property? Please state the name, address and telephone
number of the lending institution and the approximate loan amount.
Has construction financing been obtained? YES_____ NO_____. If YES, please describe the source and
amount of such loan. Please provide any other information on how the project is to be financed.
Has the developer or any partner or related entity of the landowner ever filed for bankruptcy or
been declared bankrupt? YES_____ NO_____ If YES, specify date and location of court where
bankruptcy action took place:
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Are there any other foreseeable circumstances not described above that could prevent or
significantly delay the proposed development of the Property? YES_____ NO_____. If YES, please
explain. Please attach a copy of the most recent tax bill for the Property and evidence that current
installments due have been paid.
PAYMENT OF TAXES/ASSESSMENTS
What is the current status of property taxes, special taxes and assessments on the Property
(paid/owing/delinquent)? If any property taxes or assessments on the Property are delinquent or
have been delinquent at any time during the past 3 years? If YES, please explain. Attach a copy of the
latest tax bill.
Describe the source of funds that you will use to pay any taxes/assessments to be levied on your Property in
connection with the Assessment District (i.e., bank savings, land sale proceeds, loan proceeds, etc.).
Do you foresee any difficulty in your ability to make timely payment of your taxes/assessments?
YES_____ NO_____. If YES, please explain.
EXPERIENCE OF LANDOWNER AND DEVELOPMENT GROUP
Describe the development experience of the Landowner developer or affiliated construction entity. Briefly
describe any current or recently completed developments undertaken by the Landowner. Please provide
corporate literature and sales brochures, if available.
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4135-2255-3356.8
NOTICE REGARDING DISCLOSURE
In 1994, the Securities and Exchange Commission adopted amendments (the “Amendments”) to Rule
15c2-12 under the Securities Exchange Act of 1934 relating to certain required disclosure information
that must be made available to prospective purchasers of municipal bonds. Under the Amendments and
other federal and state securities laws, certain material information must be disclosed (i) in connection
with the initial offering of bonds with respect to material persons”; and (ii) on an ongoing basis with
respect to obligated persons.”
Whether a property owner/developer might be a material person or an obligated person will depend on
all of the facts and circumstances. If the information you provide in response to this questionnaire
indicates this might be the case, the financing team will review with you the information that may need
to be disclosed to potential Bond investors in order to satisfy the Amendments and other federal and
state securities laws.
If information on the proposed development of your property is disclosed in connection with the sale of
the Bonds, you will be required to certify at that time that the information is true and correct and does
not omit to state any material fact.
If we have additional questions regarding your Property, who is the appropriate person to contact?
Name: ____________________________________________________________________
Title: _____________________________________________________________________
Address: __________________________________________________________________
Phone Number: ____________________________________________________________
Thank you for your assistance in providing the above information, which is essential to enable SCIP to
move forward with the proposed financing.
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4135-2255-3356.8
SUBMITTAL INSTRUCTIONS
Please mail a copy of this Landowner information with the Application to the following people.
Also, please mail the $1,500 application fee to CSCDA-SCIP, Attn: Vo Nguyen. The application
and landowner information form can also be filled out and sent by going online to SCIP at
www.cscda.org
Statewide Community
Infrastructure Program
c/o Orrick, Herrington & Sutcliffe
400 Capitol Mall, Suite 3000
Sacramento, CA 95814
Attention: Patricia Eichar
Phone: (916) 329-7917
Fax: (916) 329-4900
Email: peichar@orrick.com
Statewide Community
Infrastructure Program
RBC Capital Markets, LLC
345 California Street, Suite 2800
San Francisco, California 94111
Attention: Bob Williams
Phone: (415) 445-8674
Fax: (415) 445-8679
Email: bob.williams@rbccm.com
Statewide Community
Infrastructure Program
c/o BLX Group LLC
777 South Figueroa Street,
Suite 800
Los Angeles, California 90017
Phone: (213) 612-2152
Fax: (213) 612-2499
vnguyen@blxgroup.com
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APPENDIX B
Form of Assessment Ballot
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM
ASSESSMENT DISTRICT NO. ______
(COUNTY OF __________, CALIFORNIA)
OFFICIAL PROPERTY OWNER ASSESSMENT BALLOT
This assessment ballot is for the use of the property owner of the parcel identified below,
which parcel is located within the proposed Statewide Community Infrastructure Program
Assessment District No. _______ (County of ______, California). Please advise
________________________, Assessment Administrator for SCIP, at (___) ___-____ if the
name set forth below is incorrect or if the entity set forth below is no longer the owner of one or
more of these parcels.
This assessment ballot may be used to express either support for or opposition to the
proposed assessment district. In order to be counted, this assessment ballot must be marked
(“Yes” or “No”), dated and signed below by an authorized representative of the owner.
The ballot must then be delivered to the California Statewide Communities Development
Authority (the “Authority”) either by mail or in person, as follows:
Mail Delivery: If by mail, return by overnight parcel service delivery to ____________,
Orrick, Herrington & Sutcliffe LLP, 405 Howard Street, San Francisco, CA 94105.
Personal Delivery: If in person, to California Statewide Communities Development
Authority, in care of ____________ at the above address in San Francisco, at any time up to 4:30
p.m. on ___________, 20__ (the day before the ________ hearing) , or at the protest hearing
itself scheduled for ____ _.m. on ________ or any further continuation thereof at the offices of
_____________, _______ Street, Suite ____, Sacramento, California.
However delivered, this ballot must be received by the California Statewide Communities
Development Authority prior to the close of the public hearing, whether on _______, 20__, or
any other date to which the public hearing is continued, to be counted.
TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.
OFFICIAL ASSESSMENT BALLOT
Property Owner Name: _____________________________________
Assessment No.
____
Parcel No.
______________
Amount of Assessment
$____________
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ASSESSMENT BALLOT MEASURE
Shall the California Statewide Communities Development Authority establish
the proposed Statewide Community Infrastructure Program Assessment
District No. ______ (County of _____, California), levy an assessment not to
exceed the amount set forth above on the parcel identified, issue bonds in the
amount of the unpaid assessment(s), and proceed with the proposed funding of
eligible development impact fees and/or public capital improvements?
Yes _____
No _____
Date: _______________________
Owner Signature(s): __________________________________________
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APPENDIX C
Form of Property Owner Consent and Waiver
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM
ASSESSMENT DISTRICT NO. ________
(COUNTY OF _______, CALIFORNIA)
CONSENT AND WAIVER
The undersigned hereby certifies, consents and waives as follows:
1. The undersigned acknowledges receipt of (a) the Notice of Public Hearing and
Assessment Ballot Procedure, (b) the Official Property Owner Assessment Ballot and
(c) the Engineer’s Report pertaining to the Statewide Community Infrastructure
Program Assessment District No. _____ (County of ______, California), for which the
public hearing is scheduled for ____________, 20__, at the time and place set forth in
the notice.
2. The undersigned is/are the owner(s) or an authorized representative of the owner(s) of
the parcel(s) identified in the section entitled “Assessment Roll” of the Engineer’s
Report as Assessment No. _____, with a proposed assessment to be levied on said
property in the aggregate amount of $____________.
3. The undersigned hereby consents to the levy of the assessment(s) upon the above-
mentioned parcel(s) in said amount by action of the California Statewide Communities
Development Authority following the close of the public hearing on ____________,
20__.
4. The undersigned hereby expressly acknowledges that the assessment installments
payable with respect to the above-mentioned parcel(s) shall not be subject to
reduction, offset, or credit of any kind in the event that the bonds secured thereby are
refunded or for any other reason.
5. The undersigned expressly waive each of the following:
(a) any and all defects in notice or procedure in the conduct of the public
hearing and the assessment ballot procedure, whether known or unknown;
(b) the entitlement to pay all or any portion of the assessment(s) levied upon the
above-mentioned parcel(s) in cash (which entails the benefit of a cash
payment discount) prior to the issuance, sale and delivery of bonds upon the
security of the unpaid assessment(s);
(c) the entitlement to file any lawsuit or other proceeding to challenge any
aspect of the proceedings of the California Statewide Communities
Development Authority relative to Statewide Community Infrastructure
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Program Assessment District No. _____ (County of ______, California),
including without limitation, the assessment ballot proceeding, the levy of
the assessment(s) or the issuance, sale and delivery of bonds, which
entitlement would otherwise extend 30 days beyond levy of the
assessment(s) (currently scheduled to occur on ___________, 20__)
pursuant to Section 10400 of the California Streets and Highways Code;
(d) the right to notice and a hearing on any modifications or changes to the
Engineer’s Report between the preliminary approval thereof on
_____________, 20__, and the final approval thereof following the close of
the public hearing on _______________, 20__;
(e) in the case of any changes in configuration of the parcel(s) between the
preliminary approval of the Engineer’s Report on ___________, 20__ and
the final approval thereof on __________, 20__, which results in increase in
the assessment(s) to be levied on the above-mentioned parcel(s), the
undersigned hereby consents to such increased assessment(s) and hereby
waives any and all mailed notice or further hearing which would otherwise
be required by law in order for the California Statewide Communities
Development Authority to consider such increase in assessment; and
(f) mailed notice of recording of assessment(s).
This waiver and each part of it is given for the express purpose of enabling and inducing the
California Statewide Communities Development Authority to expedite the issuance, sale
and delivery of bonds.
Executed at __________________________, California, on ___________________, 20__.
[NAME OF PROPERTY OWNER]
By______________________________________
(signature)
________________________________________
(print name and title of signer)
NOTE: If this form is signed by an authorized representative (other than an officer) of
the property owner(s) of the parcel(s), please attach evidence of authorization
to sign on behalf of the property owner(s).
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APPENDIX D
Form of Resolution Confirming Assessment
RESOLUTION NO. _____
RESOLUTION OF THE COMMISSION OF THE CALIFORNIA
STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
APPROVING THE FINAL ENGINEER’S REPORTS, LEVYING
ASSESSMENTS, ORDERING THE FINANCING OF SPECIFIED
DEVELOPMENT IMPACT FEES AND CAPITAL IMPROVEMENTS,
CONFIRMING THE AMOUNT OF UNPAID ASSESSMENTS, AND
DIRECTING RELATED ACTIONS
WHEREAS, the California Statewide Communities Development Authority is a joint
exercise of powers entity duly organized and existing under and by virtue of the laws of the State
of California (the “Authority”), with this Commission (this “Commission”) serving as the
legislative body of the Authority; and
WHEREAS, this Commission has taken a series of actions pursuant to the Municipal
Improvement Act of 1913 (Division 12, commencing with Section 10000 of the Streets and
Highways Code of the State of California) (the “1913 Act”) preliminary to ordering the financing
of certain public capital improvements and of certain development impact fees, the proceeds of
which will be used to pay the cost of other public capital improvements (the “Fees and
Improvements”), in each case eligible to be funded under the 1913 Act, which development
impact fees and capital improvements are described in the Final Engineer’s Reports (defined
herein) approved by this Resolution, said fees and capital improvements and related incidental
expenses allocable thereto to be charged to the parcels of land with respect to which the Fees and
Improvements are payable or are to be located, as applicable, in connection with the proposed
development of said parcels of land which are situated within one of a number of assessment
districts (the “Districts”) to be designated as set forth in Exhibit A attached hereto and by this
reference incorporated into this Resolution; and
WHEREAS, the program of the Authority providing for the financing of eligible
development impact fees and public capital improvements is commonly known as the “Statewide
Community Infrastructure Program,” or “SCIP;” and
WHEREAS, on _______, 20__, this Commission approved the boundary maps for the
Districts and adopted its Resolutions of Intention (the “Resolutions of Intention”) relating to the
Districts, and such boundary maps were thereafter filed for record in the office of the County
Recorders of the Counties in which the Districts are located; and
WHEREAS, in accordance with the direction of this Commission provided in the
Resolutions of Intention, the Assessment Engineer of the Authority for SCIP, as Engineer of
Work (the “Engineer of Work”), prepared and filed with the Authority on _______, 20__,
______ separate reports for each of the Districts containing the information regarding such
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Districts required by Section 10204 of the Streets and Highways Code of the State of California,
which reports were duly presented to this Commission for preliminary consideration; and
WHEREAS, this Commission, by separate resolutions duly adopted on _______, 20__
(the “Resolutions of Preliminary Approval”), corresponding to the ______ proposed Districts,
preliminarily approved the reports, and fixed ____ [a.m./p.m.], or as soon thereafter as the matter
might be heard, on _________, 20__, at the offices of the ________________, ______, Suite
___, ____________, California, as the time and place for a public hearing with respect to the
financing of the Fees and Improvements, to the extent of the Districts and to the levy of the
assessments therein (the “Assessments”); and
WHEREAS, prior to the public hearing on the date hereof, the Engineer of Work found it
necessary to prepare and submit modified engineer’s reports (the “Final Engineers Reports”) for
all of the Districts due to requests from certain property owners to reduce the assessment amount,
remove parcels, reflect subdivision of parcels, and/or effect certain ministerial modifications; and
WHEREAS, this Commission directed that notice of the public hearing and the related
property owner assessment ballot procedure be given in the time, form and manner required by
Article XIIID of the California Constitution (“Article XIIID”), together with the property owner
assessment ballots themselves; and
WHEREAS, there have been filed with the Authority separate certificates with respect to
each District setting forth the time and manner of the compliance with the requirements of law
for mailing (a) the notices of the public hearing and assessment ballot procedure and (b) the
property owner assessment ballots, as required by Article XIIID; and
WHEREAS, this Commission hereby finds and determines that notices of public hearing
and assessment ballot procedure and the property owner assessment ballots themselves have
been mailed in the form and manner required by Article XIIID; and
WHEREAS, said public hearing was duly convened by this Commission as a
consolidated public hearing for such of the Districts at said time and place specified in the notice
of public hearing and was at such time continued to the date hereof, and this Commission has
proceeded with said public hearing and duly heard all interested parties desiring to be heard at
said public hearing on any aspect of any of the proposed Districts; and
WHEREAS, having thereupon closed the public hearing, and the assessment ballots
which had been returned having then been opened and tallied, and it having been determined that
all of the assessment ballots which were returned were marked in support of the proposed levy of
Assessments, this Commission hereby finds and determines that property owner assessment
ballots cast against the levy of the Assessments did not exceed the property owner ballots cast in
favor of the levy of the Assessments, with the assessment ballots weighted in proportion to the
amount of the proposed Assessment for the parcel to which each such assessment ballot pertains;
and
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WHEREAS, prior to the public hearing on the date hereof, the Engineer of Work found
it necessary to prepare and submit modified engineer’s reports due to certain changes to some of
the parcels in the Districts and/or the Fees and Improvements to be financed by the Assessments;
and
WHEREAS, this Commission has elected to comply with the requirements of Part 7.5 of
the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (the “1931
Act”), being Division 4 (commencing with Section 2800) of Streets and Highways Code of the
State of California, and on the basis of the information included in each Final Engineer’s Report,
this Commission hereby finds and determines that the requirements of the 1931 Act are satisfied
in the manner provided by subsection (d) of Section 2961 of said Part 7.5 of the 1931 Act; and
WHEREAS, there has been filed with the Authority a Consent and Waiver executed by
each owner of each of the parcels upon which an Assessment is proposed to be levied or by an
authorized representative of each owner, waiving any defect in the notice or procedure in the
conduct of the public hearing and the assessment ballot procedure including the timing of receipt
of the notice of the public hearing, waiving the entitlement to pay all or any part the Assessment
in cash within the 30-day cash payment period, and consenting to the modifications made to the
applicable Engineer’s Report between the preliminary approval thereof and approval of the Final
Engineer’s Reports by this Resolution; and
WHEREAS, on the basis of the executed Consent and Waiver forms on file with the
Authority, in which each owner of each parcel on which an Assessment is proposed to be levied
has waived the entitlement to pay all or any portion of such Assessment levied upon the such
parcel in cash (which entails the benefit of a cash payment discount) prior to the issuance, sale
and delivery of bonds upon the security of such Assessment, the Authority has confirmed that the
amount of unpaid Assessments is equal to the full amount of the Assessments levied;
NOW, THEREFORE, BE IT RESOLVED by the Commission of the California
Statewide Communities Development Authority, as follows:
Section 1. The foregoing recitals are true and correct, and this Commission so finds
and determines.
Section 2. There having been no protest received (either written or oral) from any
owner of any of the parcels of land upon which an Assessment is proposed to be levied, this
Commission finds that there has not been a “majority protest,” as said term is defined by Article
XIIID, and this Commission hereby overrules the protests received, if any, whether written and
oral, from any other person.
Section 3. This Commission hereby approves the Final Engineer’s Reports and the
component parts thereof, including each exhibit incorporated by reference in the reports.
Section 4. This Commission hereby finds and determines that the requirements of the
1931 Act have been satisfied in the manner provided by Part 7.5 thereof, and this action shall be
final as to all persons.
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Section 5. This Commission hereby finds and determines that the Engineer of Work,
in the Final Engineer’s Reports, has fairly and properly apportioned the cost of the financing of
the Fees and Improvements to each parcel of land in the Districts in proportion to the estimated
benefits to be received by each parcel, respectively, from the financing of the Fees and
Improvements. This Commission hereby confirms and levies each individual Assessment as
stated in the Final Engineer’s Reports.
Section 6. Bonds representing unpaid Assessments, and bearing interest at a rate not
to exceed twelve (12%) per annum, will be issued in the manner provided by the Improvement
Bond Act of 1915 (Division 10, commencing with Section 8500, of the Streets and Highways
Code of the State of California) (the “1915 Act”), and the last installment of the bonds shall
mature not to exceed twenty-nine (29) years from the second day of September nex t succeeding
twelve (12) months from their date.
Section 7. This Commission hereby finds and determines that either each of the
owners or an authorized representative of each of the owners of each of the parcels assessed in
these proceedings has executed and filed with the administrator of SCIP (the “Program
Administrator”) a form of Consent and Waiver by which the entitlement otherwise given to each
such owner to pay all or any part of the subject Assessment or Assessments in cash within the
30-day cash payment period has been waived, and by which the property owner consents to the
changes to the Engineer’s Report between the preliminary approval thereof on _______, 20__
and the approval of the Final Engineer’s Reports by this Resolution. Accordingly, th is
Commission hereby confirms that the amount of unpaid Assessments is equal to the full amount
of the Assessments levied and directs the Program Administrator to proceed forthwith, without
the necessity of the 30 day cash payment period otherwise required, to provide for the issuance,
sale and delivery of limited obligation improvement bonds in a principal amount not to exceed
the Assessments levied.
Section 8. The Program Administrator is hereby authorized and directed to prepare
the auditors record for each District, pursuant to the Streets and Highways Code, and to transmit
said auditors record to the County Auditor of the County within which each District is located.
The assessment installments for the initial series of bonds issued for the District shall be
apportioned among the parcels in each District having an unpaid Assessment.
Section 9. The Program Administrator is hereby directed to record the Final
Engineer’s Reports with the Authority. The Program Administrator is hereby further directed to
record the assessment diagrams contained in the Final Engineer’s Reports and the notices of
assessment in the office of the County Recorder of the County within which each District is
located in the time, form and manner as required by law.
Section 10. This Resolution shall take effect immediately upon its passage.
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PASSED AND ADOPTED by the California Statewide Communities Development
Authority this ____ day of ____________, 20__.
I, the undersigned, an Authorized Signatory of the California Statewide Communities
Development Authority, DO HEREBY CERTIFY that the foregoing resolution was duly adopted
by the Commission of the Authority at a duly called and noticed meeting of the Commission of
the Authority held in accordance with law and at which a quorum was present and acting
throughout on _______, 20__.
By: ________________________________
Authorized Signatory
California Statewide Communities
Development Authority
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EXHIBIT A
District Name (County)
Assessment/Local
Obligation Amount
1.
2. [List Separate Assessment Districts] [Amount]
3.
4.
5.
6.
7.
8.
9.
10.
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APPENDIX E
Form of Local Obligation Resolution
RESOLUTION NO. ______
RESOLUTION OF THE COMMISSION OF THE CALIFORNIA
STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
PROVIDING FOR THE ISSUANCE OF STATEWIDE
COMMUNITY INFRASTRUCTURE PROGRAM LIMITED
OBLIGATION IMPROVEMENT BONDS IN ONE OR MORE
SERIES; APPROVING THE FORM AND SUBSTANCE OF A
TRUST AGREEMENT AND AUTHORIZING CHANGES
THERETO AND EXECUTION THEREOF; AND AUTHORIZING
RELATED ACTIONS AND THE EXECUTION OF RELATED
DOCUMENTS TO IMPLEMENT THE PROPOSED FINANCING
PROGRAM
WHEREAS, the California Statewide Communities Development Authority is a
joint exercise of powers entity duly organized and existing under and by virtue of the
laws of the State of California (the “Authority”), with this Commission (this
“Commission”) serving as the legislative body of the Authority; and
WHEREAS, this Commission, on __________ __. ____, adopted its Resolutions
of Intention (the “Resolutions of Intention”) relating to the financing of certain
development impact fees and capital improvements in the separate assessment districts
(the “Districts”) designated by the names set forth in Exhibit A attached hereto and by
this reference incorporated herein; and
WHEREAS, the Resolutions of Intention were adopted pursuant to the provisions
of the Municipal Improvement Act of 1913 (Division 12, commencing with Section
10000 of the Streets and Highways Code of the State of California) (the “1913 Act”) and
provided that serial and/or term bonds to represent the unpaid assessments (the
“Assessments”) would be issued in the manner provided by the Improvement Bond Act
of 1915 (Division 10, commencing with Section 8500, of the Streets and Highways Code
of the State of California) (the “1915 Act”), reference being hereby made to the
Resolutions of Intention for further particulars of such bonds; and
WHEREAS, the written engineer’s reports relating to the proposed Districts (in
their final form, the “Engineer’s Reports”) were thereafter duly prepared and filed with
the Authority, and after a hearing duly noticed and held, the Assessments have been
confirmed, levied and approved by resolution adopted by this Commission on the date
hereof; and
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WHEREAS, the assessment diagrams and related notices of assessment have
been authorized to be duly recorded in the office of the Assistant to the Secretary of the
Authority, who is authorized to act as Superintendent of Streets with respect to the
Districts, and the assessment diagrams and related notices of assessment shall be
recorded in the office of the County Recorder of the County in which each respective
District is located, all in the time, form and manner required by law; and
WHEREAS, the Assessments have been levied in the total amounts set forth in
Exhibit A to this Resolution upon the several subdivisions of land in the Districts in
proportion to the estimated benefits to be received by such subdivisions, respectively,
from the payment of certain development impact fees and from certain public capital
improvements, as shown in the Engineer’s Reports; and
WHEREAS, the owners of all of the property which has been assessed in the
Districts or the authorized representatives of such owners have executed and filed
Consent and Waiver forms, by which, among other things, such owners have waived their
rights to pay all or any part of their respective Assessments in cash and have further
waived mailed notice of the Assessments; and
WHEREAS, on the basis of the executed Consent and Waiver forms on file with
the Authority, in which each owner of each parcel on which an Assessment is proposed to
be levied has waived the entitlement to pay all or any portion of such Assessment levied
upon the such parcel in cash (which entails the benefit of a cash payment discount) prior
to the issuance, sale and delivery of bonds upon the security of such Assessment, the
Authority has confirmed that the amount of unpaid Assessments is equal to the full
amount of the Assessments levied, as set forth in Exhibit A to this Resolution, and this
Commission hereby finds and determines that the total of the unpaid Assessments for
each District is as set forth in Exhibit A to this Resolution; and
WHEREAS, in connection with the financing of development impact fees and
capital improvements pursuant to the Authority’s Statewide Community Infrastructure
Program (the “Program”), this Commission has determined to issue one or more separate
series of its Statewide Community Infrastructure Program Limited Obligation
Improvement Bonds, relating to each District (the “Local Obligations”), pursuant to a
Trust Agreement in substantially the form currently on file with this Commission (the
“Trust Agreement”), by and between the Authority and Wilmington Trust, National
Association (the “Trustee”), such Local Obligations to be registered in the name of the
Trustee and each series thereof to be issued in an aggregate principal amount not to
exceed the principal amount of unpaid Assessments of the applicable District; and
WHEREAS, for the purpose of funding the Local Obligations and thereby
financing the development impact fees and public capital improvements in the Districts
as described above, this Commission, is expected from time to time to authorize its
Statewide Community Infrastructure Program Revenue Bonds in one or more series (the
“Revenue Bonds”) pursuant to the same Trust Agreement as the Local Obligations to be
acquired; and
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WHEREAS, the Authority has authorized the issuance of and sale of the
Revenue Bonds, with the net proceeds of sale thereof (after funding a reserve fund and
payment of costs of issuance) to be utilized by the Trustee to acquire the Local
Obligations; and
WHEREAS, in furtherance of implementing the issuance of the Local
Obligations as described above, there has been filed with the Secretary of the Authority,
for consideration and approval by this Commission, the form of the Trust Agreement,
under the terms of which, among other things, the Local Obligations are to be issued; and
WHEREAS, being fully advised in the matter of the Program, this Commission
wishes to approve the financing as described above;
WHEREAS, Government Code Section 5852.1 requires that the Commission of
the Authority obtain from an underwriter, financial adviser or private lender and disclose,
prior to authorization of the issuance of bonds with a term of greater than 13 months,
good faith estimates of the following information in a meeting open to the public: (a) the
true interest cost of the bonds, (b) the sum of all fees and charges paid to third parties
with respect to the bonds, (c) the amount of proceeds of the bonds expected to be
received net of the fees and charges paid to third parties and any reserves or capitalized
interest paid or funded with proceeds of the bonds, and (d) the sum total of all debt
service payments on the bonds calculated to the final maturity of the bonds plus the fees
and charges paid to third parties not paid with the proceeds of the bonds; and
WHEREAS, in compliance with Government Code Section 5852.1, the
Commission of the Authority has obtained from RBC Capital Markets, LLC, the
underwriter, the required good faith estimates and such estimates have been disclosed at
this meeting; and
NOW, THEREFORE, BE IT RESOLVED by the Commission of the
California Statewide Communities Development Authority, as follows:
Section 1. The foregoing recitals are true and correct, and this Commission so
finds and determines. This Resolution is adopted in accordance with the “SCIP Manual
of Procedures” adopted by this Commission, as it may be amended from time to time.
Section 2. This Commission has reviewed all proceedings heretofore taken
relative to the foregoing and has found, as a result of such review, and does hereby find
and determine that all acts, conditions and things required by law to exist, to happen and
to be performed precedent to and in the issuance of the Local Obligations as hereinafter
authorized and provided do exist, have happened and have been performed in due time,
form and manner as required b y law, and the Authority, upon approval by the Authority
of the issuance of the Revenue Bonds, shall be authorized pursuant to each and every
requirement of law to issue the Local Obligations.
Section 3. A separate series of Local Obligations shall be issued for each
District as provided in the Trust Agreement and shall represent and shall be secured by
the unpaid Assessments of each such District in accordance with the provisions of the
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1915 Act and pursuant to the provisions of the Resolutions of Intention and proceedings
taken thereunder. Each series of the Local Obligations shall be issued in an aggregate
principal amount not to exceed the unpaid Assessments as set forth in Exhibit A to this
Resolution, shall bear interest at rates not to exceed __%, and shall be known as the
“California Statewide Communities Development Authority Statewide Community
Infrastructure Program Limited Obligation Improvement Bonds,” with appropriate series
and sub-series designations as determined by the Authority. The Local Obligati ons may
be issued in one or more issuances and pursuant to the same or a separate Trust
Agreement as other Local Obligations of the Authority.
Section 4. The form and substance of the Trust Agreement made available to
the Commissioners at this meeting is hereby approved. Any member of the Commission
of the Authority, the Executive Director of the Authority, or their administrative
delegatees duly authorized pursuant to a resolution of the Authority (each, an
“Authorized Signatory”), is hereby authorized and directed, for and in the name and on
behalf of the Authority, to execute and deliver the Trust Agreement in substantially said
form, with such changes therein as any member of the Commission may require or
approve in consultation with Bond Counsel, such approval to be conclusively evidenced
by the execution and delivery thereof.
Section 5. The Treasurer of the Authority and the Secretary of the Authority
are hereby authorized and directed to execute the Local Obligations on behalf of the
Authority, manually or by use of engraved, printed or lithographed facsimile signature.
Such signing as herein provided shall be a sufficient and binding execution of the Local
Obligations by the Authority, without the necessity of a seal. In case the person whose
signature appears on the Local Obligations shall cease to be such officer before the
delivery of the Local Obligations to the purchaser, such signature shall nevertheless be
valid and sufficient for all purposes the same as though such person had remained in
office until the delivery of the Local Obligations. Only such of the Local Obligations as
shall bear thereon a certificate of registration and authentication in the form set forth in
the Trust Agreement, executed and dated by any Authorized Signatory, shall be entitled
to any benefits hereunder or be valid or obligatory for any purpose, and such certificate
shall be conclusive evidence that the Local Obligations so authenticated have been duly
authorized, executed, issued and delivered hereunder and are entitled to the benefits
hereof.
Section 6. The Chair, the Vice Chair, the Secretary, the Treasurer, any other
members of the Commission of the Authority, the Executive Director of the Authority,
and other appropriate officers and agents of the Authority are hereby authorized and
directed, jointly and severally, to do any and all things and to execute and deliver any and
all documents, or to make any necessary modifications thereto, which are acceptable to
the members of the Commission of the Authority, the Authority’s general legal counsel
and Bond Counsel and which they deem necessary or advisable in order to consummate
the issuance, sale and delivery of the Local Obligations and to carry out the purposes of
this Resolution.
Section 7. This Resolution shall take effect immediately upon its passage.
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PASSED AND ADOPTED by the California Statewide Communities
Development Authority this ____ day of ____________, 20__.
I, the undersigned, an Authorized Signatory of the California Statewide
Communities Development Authority, DO HEREBY CERTIFY that the foregoing
resolution was duly adopted by the Commission of the Authority at a duly called and
noticed meeting of the Commission of the Authority held in accordance with law and at
which a quorum was present and acting throughout on _______, 20__.
By: ________________________________
Authorized Signatory
California Statewide Communities
Development Authority
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EXHIBIT A
District Name (County)
Local Obligation
Amount
1.
2.
3. [List of Individual Assessment Districts]
[Amount]
4.
5.
6.
7.
8
9.
10.
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4135-2255-3356.8
APPENDIX F
Form of Revenue Bond Resolution
RESOLUTION NO. ______
A RESOLUTION OF THE COMMISSION OF THE CALIFORNIA
STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF NOT TO
EXCEED $_________.__ OF ITS STATEWIDE COMMUNITY
INFRASTRUCTURE PROGRAM REVENUE BONDS, SERIES _____;
APPROVING THE FORMS OF A TRUST AGREEMENT, A BOND
PURCHASE AGREEMENT, AND A CONTINUING DISCLOSURE
CERTIFICATE, AUTHORIZING CHANGES THERETO AND
EXECUTION AND DELIVERY THEREOF AS MODIFIED; APPROVING
A PRELIMINARY OFFICIAL STATEMENT AND AUTHORIZING
CHANGES THERETO AND DELIVERY THEREOF AS MODIFIED;
AUTHORIZING THE PREPARATION OF A FINAL OFFICIAL
STATEMENT SUBSTANTIALLY DERIVED FROM THE
PRELIMINARY OFFICIAL STATEMENT AND EXECUTION AND
DELIVERY THEREOF; AND AUTHORIZING CERTAIN OTHER
ACTIONS IN CONNECTION WITH THE ISSUANCE, SALE AND
DELIVERY OF SUCH BONDS AND IMPLEMENTATION OF THE
RELATED FINANCING PROGRAM
WHEREAS, the California Statewide Communities Development Authority is a joint
exercise of powers entity duly organized and existing under and by virtue of the laws of the State
of California (the “Authority”), with this Commission (this “Commission”) serving as the
legislative body of the Authority; and
WHEREAS, this Commission has completed its legal proceedings under the Municipal
Improvement Act of 1913 (Division 12, commencing with Section 10000 of the Streets and
Highways Code of the State of California) (the “1913 Act”) in connection with the formation of
certain assessment districts identified in said proceedings, as identified on Exhibit A attached
hereto (the “Districts”); and
WHEREAS, this Commission is empowered under the provisions of the Improvement
Bond Act of 1915 (Division 10, commencing with Section 8500, of the Streets and Highways
Code of the State of California) (the “1915 Act”) to undertake legal proceedings for the issuance,
sale and delivery of limited obligation improvement bonds (the “Local Obligations”) upon the
security of the recorded and unpaid assessments (the “Assessments”) of the Districts; and
WHEREAS, this Commission is empowered under the provisions of Article 4, Chapter
5, Division 7, Title 1 of the California Government Code (the “Law”) to issue bonds of the
Authority for the purpose of acquiring certain local obligations issued by the Authority,
including the Local Obligations; and
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4135-2255-3356.8
WHEREAS, this Commission has determined to issue one or more separate series of
Local Obligations, for each District (collectively, the “Local Obligations”), to be issued pursuant
to that certain Trust Agreement (the “Trust Agreement”) between the Authority and Wilmington
Trust, National Association, as Trustee (the “Trustee”), to be registered in the name of the
Trustee and to bear such series designations as set forth in the Trust Agreement, which Local
Obligations will fund certain public capital improvements and the payment of certain
development impact fees which will, in turn, fund public capital improvements (the “Fees and
Improvements”); and
WHEREAS, by this Resolution, this Commission wishes to authorize and undertake the
issuance of the Authority’s Statewide Community Infrastructure Program Revenue Bonds, Series
____ (the “Bonds”), to acquire the Local Obligations, to fund a reserve fund and to pay costs of
issuance (the “Financing Program”); and
WHEREAS, this Commission has determined that the estimated amount necessary to
acquire the Local Obligations, to fund a reserve fund and to pay costs of issuance will require the
issuance of the Bonds in the aggregate principal amount not to exceed $_______; and
WHEREAS, this Commission has determined that all things necessary to make the
Bonds, when authenticated by the Trustee and issued as provided in the Trust Agreement the
valid, binding and legal obligations of the Authority according to the import thereof and hereof
have been done and performed; and
WHEREAS, in furtherance of implementing the financing described above, there have
been filed with the Secretary of the Authority and submitted to this Comm ission for
consideration and approval at this meeting, forms of the following:
(a) the Trust Agreement, described above; and
(b) a Bond Purchase Agreement, under the terms of which, among other
things, the Authority agrees to sell and RBC Capital Markets, LLC, the
underwriter (the “Underwriter”) agrees to purchase the Bonds; and
(c) a Continuing Disclosure Certificate, under the terms of which, among
other things, the Authority agrees and covenants to provide certain annual
financial information and notice of material events to assist the
Underwriter in complying with Rule 15c2-12 of the Securities Exchange
Commission; and
(d) a Preliminary Official Statement, describing the Bonds and the Local
Obligations.
WHEREAS, being fully advised in the matter of the financing, this Commission wishes
to proceed with implementation of the Financing Program; and
WHEREAS, all acts, conditions and things required by the Constitution and laws of the
State of California to exist, to have happened and to have been performed precedent to and i n
connection with the consummation of the Financing Program do exist, have happened and have
been performed in regular and due time, form and manner as required by law, and the Authority
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4135-2255-3356.8
is now duly authorized and empowered, pursuant to each and every requirement of law, to
authorize the execution and delivery of certain documents in order to further implement the
financing in the manner and upon the terms herein provided; and
WHEREAS, Government Code Section 5852.1 requires that the Commission of the
Authority obtain from an underwriter, financial adviser or private lender and disclose, prior to
authorization of the issuance of bonds with a term of greater than 13 months, good faith
estimates of the following information in a meeting open to the public: (a) the true interest cost
of the bonds, (b) the sum of all fees and charges paid to third parties with respect to the bonds,
(c) the amount of proceeds of the bonds expected to be received net of the fees and charges paid
to third parties and any reserves or capitalized interest paid or funded with proceeds of the bonds,
and (d) the sum total of all debt service payments on the bonds calculated to the final maturity of
the bonds plus the fees and charges paid to third parties not paid with the proceeds of the bonds;
and
WHEREAS, in compliance with Government Code Section 5852.1, the Commission of
the Authority has obtained from RBC Capital Markets, LLC, the underwriter, the required good
faith estimates and such estimates have been disclosed at this meeting; and
WHEREAS, the requisite local agencies with jurisdiction over the areas encompassed by
the Districts have determined that the issuance of the Bonds by the Authority and the acquisition
of the Local Obligations will result in significant public benefits, including demonstrable savings
in effective interest rate, bond preparation, bond underwriting and bond issuance costs;
NOW, THEREFORE, BE IT RESOLVED by the Commission of the California
Statewide Communities Development Authority as follows:
Section 1. The foregoing recitals are true and correct, and this Commission so finds
and determines.
Section 2. Pursuant to the Law, the Bonds shall be issued in the aggregate principal
amount of not to exceed $________; provided, however, that (a) the true interest cost on the
Bonds shall not exceed __%, and (b) the maximum term of any maturity shall not extend beyond
________ __, _____.
Section 3. The form and substance of the Trust Agreement made available to the
Commissioners at this meeting is hereby approved. Any member of the Commission of th e
Authority, the Executive Director of the Authority, or their administrative delegatees duly
authorized pursuant to a resolution of the Authority (each, an “Authorized Signatory”) is hereby
authorized and directed, for and in the name and on behalf of the Authority, to execute and
deliver the Trust Agreement in substantially said form, with such changes therein as any member
of the Commission may require or approve in consultation with Bond Counsel, such approval to
be conclusively evidenced by the execution and delivery thereof.
Section 4. The form and substance of the Bond Purchase Agreement is hereby
approved. Any Authorized Signatory is hereby authorized and directed, for and in the name and
on behalf of the Authority, to execute and deliver the Bond Purchase Agreement in substantially
said form, with such changes therein as any member of the Commission may require or approve
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4135-2255-3356.8
in consultation with Bond Counsel, such approval to be conclusively evidenced by the execution
and delivery thereof.
Section 5. The form and substance of the Continuing Disclosure Certificate is hereby
approved. Any Authorized Signatory is hereby authorized to execute and deliver said
Continuing Disclosure Certificate in substantially the form on file with the Secretary and
presented to this meeting, with such changes as any member of the Commission may require or
approve in consultation with Disclosure Counsel, such approval to be conclusively evidenced by
such execution and delivery.
Section 6. (a) The form and substance of the Preliminary Official Statement is
hereby approved. Any Authorized Signatory is hereby authorized to execute the final Official
Statement to be derived therefrom.
(b) Any Authorized Signatory is hereby authorized to find and determine that said
Preliminary Official Statement in preliminary form is, and as of its date shall be, deemed “final”
for purpose of Rule 15c2-12 of the Securities and Exchange Commission, and such Member is
hereby authorized to execute a certificate to such effect in the customary form.
(c) Any Authorized Signatory is hereby authorized in consultation with Disclosure
Counsel to approve corrections and additions to the Preliminary Official Statement by
supplement or amendment thereto, by appropriate insertions, or otherwise as appropriate,
provided that such corrections or additions shall be regarded by any member of the Commission
as necessary to cause the information contained in the Preliminary Official Statement to conform
to facts material to the Bonds or the Local Obligations or to the proceedings of this Commiss ion
or that such corrections or additions are in form rather than in substance.
(d) The Underwriter is authorized to distribute said Preliminary Official Statement and
the final Official Statement to be derived therefrom in connection with the sale and delivery of
the Bonds.
Section 7. The Chair, the Vice Chair, the Secretary, the Treasurer, any other
members of the Commission of the Authority, the Assistant to the Secretary, and other
appropriate officers and agents of the Authority are hereby authorized and directed, jointly and
severally, to do any and all things and to execute and deliver any and all documents which they
may deem necessary or advisable in order to carry out, give effect to and comply with the terms
and intent of this resolution. All actions heretofore taken by the Chair, the Vice Chair, the
Secretary, the Treasurer, any other members of the Commission of the Authority, the Assistant to
the Secretary, and other appropriate officers and agents of the Authority with respect to the
transactions contemplated by this resolution are hereby ratified, confirmed and approved.
Section 8. This Resolution shall take effect immediately upon its passage.
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4135-2255-3356.8
PASSED AND ADOPTED by the California Statewide Communities Development
Authority this ____ day of ____________, 20__.
I, the undersigned, an Authorized Signatory of the California Statewide Communities
Development Authority, DO HEREBY CERTIFY that the foregoing resolution was duly adopted
by the Commission of the Authority at a duly called and noticed meeting of the Commission of
the Authority held in accordance with law and at which a quorum was present and acting
throughout on _______, 20__.
By: ________________________________
Authorized Signatory
California Statewide Communities
Development Authority
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4135-2255-3356.8
APPENDIX G -1
Form of SCIP Resolution
RESOLUTION NO. ________
RESOLUTION OF THE [CITY COUNCIL/BOARD OF SUPERVISORS]
OF THE [CITY/COUNTY OF __________] AUTHORIZING THE CITY
TO JOIN THE STATEWIDE COMMUNITY INFRASTRUCTURE
PROGRAM; AUTHORIZING THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY TO ACCEPT
APPLICATIONS FROM PROPERTY OWNERS, CONDUCT SPECIAL
ASSESSMENT PROCEEDINGS AND LEVY ASSESSMENTS WITHIN
THE TERRITORY OF THE [CITY/COUNTY OF __________];
APPROVING FORM OF ACQUISITION AGREEMENT FOR USE WHEN
APPLICABLE; AND AUTHORIZING RELATED ACTIONS
WHEREAS, the California Statewide Communities Development Authority (the
“Authority”) is a joint exercise of powers authority the members of which include numerous
cities and counties in the State of California, including the [City/County of __________] (the
“[City/County]”); and
WHEREAS, the Authority has established the Statewide Community Infrastructure
Program (“SCIP”) to allow the financing of certain development impact fees (the “Fees”) levied
in accordance with the Mitigation Fee Act (California Government Code Sections 66000 and
following) and other authority providing for the levy of fees on new development to pay for
public capital improvements (collectively, the “Fee Act”) through the levy of special assessments
pursuant to the Municipal Improvement Act of 1913 (Streets and Highways Code Sections
10000 and following) (the “1913 Act”) and the issuance of improvement bonds (the “Local
Obligations”) under the Improvement Bond Act of 1915 (Streets and Highways Code
Sections 8500 and following) (the “1915 Act”) upon the security of the unpaid special
assessments; and
WHEREAS, SCIP will also allow the financing of certain public capital improvements to
be constructed by or on behalf of property owners for acquisition by the [City/County] or another
public agency (the “Improvements”); and
WHEREAS, the [City/County] desires to allow the owners of property being developed
within its jurisdiction (“Participating Developers”) to participate in SCIP and to allow the
Authority to conduct assessment proceedings under the 1913 Act and to issue Local Obligations
under the 1915 Act to finance Fees levied on such properties and Improvements, provided that
such Participating Developers voluntarily agree to participate and consent to the levy of such
assessments; and
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4135-2255-3356.8
WHEREAS, in each year in which eligible property owners within the jurisdiction of the
[City/County] elect to be Participating Developers, the Authority will conduct assessment
proceedings under the 1913 Act and issue Local Obligations under the 1915 Act to finance Fees
payable by such property owners and Improvements and, at the conclusion of such proceedings,
will levy special assessments on such property within the territory of the [City/County];
WHEREAS, there has been presented to this meeting a proposed form of Resolution of
Intention to be adopted by the Authority in connection with such assessment proceedings (the
“ROI”), a copy of which is attached hereto as Exhibit A, and the territory within which
assessments may be levied for SCIP (provided that each Participating Developer consents to
such assessment) shall be coterminous with the [City’s/County’s] official boundaries of record at
the time of adoption of each such ROI (the “Proposed Boundaries”), and reference is hereby
made to such boundaries for the plat or map required to be included in this Resolution pursuant
to Section 10104 of the Streets and Highways Code; and
WHEREAS, there has also been presented to this meeting a proposed form of Acquisition
Agreement (the “Acquisition Agreement”), a copy of which is attached hereto as Exhibit B, to be
approved as to form for use with respect to any Improvements to be constructed and installed by
a Participating Developer and for which the Participating Developer requests acquisition
financing as part of its SCIP application; and
WHEREAS, the [City/County] will not be responsible for the conduct of any assessment
proceedings; the levy or collection of assessments or any required remedial action in the case of
delinquencies in such assessment payments; or the issuance, sale or administration of the Local
Obligations or any other bonds issued in connection with SCIP; and
WHEREAS, pursuant to Government Code Section 6586.5, notice was published at least
five days prior to the adoption of this resolution at a public hearing, which was duly conducted
by this [Council/Board] concerning the significant public benefits of SCIP and the financing of
the Improvements and the public capital improvements to be paid for with the proceeds of the
Fees;
NOW, THEREFORE, BE IT RESOLVED by the [City Council/Board of Supervisors] of
the [City/County of __________] as follows:
Section 1. The [City/County] hereby consents to the conduct of special assessment
proceedings by the Authority in connection with SCIP pursuant to the 1913 Act and the issuance
of Local Obligations under the 1915 Act on any property within the Proposed Boundaries;
provided, that
(1) Such proceedings are conducted pursuant to one or more Resolutions of Intention
in substantially the form of the ROI; and
(2) The Participating Developers, who shall be the legal owners of such property,
execute a written consent to the levy of assessment in connection with SCIP by the Authority and
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execute an assessment ballot in favor of such assessment in compliance with the requirements of
Section 4 of Article XIIID of the State Constitution.
Section 2. The [City/County] hereby finds and declares that the issuance of bonds by the
Authority in connection with SCIP will provide significant public benefits, including without
limitation, savings in effective interest rate, bond preparation, bond underwriting and bond
issuance costs and the more efficient delivery of local agency services to residential and
commercial development within the [City/County].
Section 3. The Authority has prepared and will update from time to time the “SCIP
Manual of Procedures” (the “Manual”), and the [City/County] will handle Fee revenues and
funds for Improvements for properties participating in SCIP in accordance with the procedures
set forth in the Manual.
Section 4. The form of Acquisition Agreement presented to this meeting is hereby
approved, and the [Mayor/Board Chair] is authorized to execute and the [City Clerk/Clerk of the
Board] is authorized to attest the execution of a completed Acquisition Agreement in
substantially said form and pertaining to the Improvements being financed on behalf of the
applicable Participating Developer.
Section 5. The appropriate officials and staff of the [City/County] are hereby authorized
and directed to make SCIP applications available to all property owners who are subject to Fees
for new development within the [City/County] and/or who are conditioned to install
Improvements and to inform such owners of their option to participate in SCIP; provided, that
the Authority shall be responsible for providing such applications and related materials at its own
expense. The staff persons listed on the attached Exhibit C, together with any other staff persons
chosen by the [City Manager/County Administrator] from time to time, are hereby designated as
the contact persons for the Authority in connection with the SCIP program.
Section 6. The appropriate officials and staff of the [City/County] are hereby authorized
and directed to execute and deliver such closing certificates, requisitions, agreements and related
documents, including but not limited to such documents as may be required by Bond Counsel in
connection with the participation in SCIP of any districts, authorities or other third-party entities
entitled to own Improvements and/or to levy and collect fees on new development to pay for
public capital improvements within the jurisdiction of the [City/County], as are reasonably
required by the Authority in accordance with the Manual to implement SCIP for Participating
Developers and to evidence compliance with the requirements of federal and state law in
connection with the issuance by the Authority of the Local Obligations and any other bonds for
SCIP. To that end, and pursuant to Treasury Regulations Section 1.150-2, the staff persons listed
on Exhibit C, or other staff person acting in the same capacity for the [City/County] with respect
to SCIP, are hereby authorized and designated to declare the official intent of the [City/County]
with respect to the public capital improvements to be paid or reimbursed through participation in
SCIP.
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Section 7. This Resolution shall take effect immediately upon its adoption. The [City
Clerk/Clerk of the Board] is hereby authorized and directed to transmit a certified copy of this
resolution to the Secretary of the Authority.
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* * *
PASSED AND ADOPTED this ____ day of ____________, 20__ by the following vote, to wit:
AYES: Council/Board Members ______________________________
NOES: Council/Board Members ______________________________
ABSENT: Council/Board Members ______________________________
ABSTAIN: Council/Board Members ______________________________
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EXHIBIT A TO FORM OF SCIP RESOLUTION
FORM OF RESOLUTION OF INTENTION
TO BE ADOPTED BY CSCDA
(SEE APPENDIX I)
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EXHIBIT B TO FORM OF SCIP RESOLUTION
FORM OF ACQUISITION AGREEMENT
_____________________
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM
ACQUISITION AGREEMENT
BY AND BETWEEN
[CITY/COUNTY OF __________]
AND
[DEVELOPER]
Dated as of _______, 20__
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ACQUISITION AGREEMENT
Recitals
A. The parties to this Acquisition Agreement (the “Agreement”) are the
[CITY/COUNTY OF __________], (the “Local Agency”), and [DEVELOPER], a [here indicate
type of legal entity] (the “Developer”).
B. The effective date of this Agreement is ________, 20__.
C. The Developer has applied for financing of certain public capital improvements
(the “Acquisition Improvements”) and capital facilities fees though the Statewide Community
Infrastructure Program (“SCIP”) administered by the California Statewide Communities
Development Authority (the “Authority”) and such application has been approved by the Local
Agency.
D. The administration, payment and reimbursement of the capital facilities fees is
agreed to be governed by the provisions of the SCIP Manual of Procedures as it may be amended
from time to time. The administration, payment and reimbursement of the Acquisition
Improvements shall be as provided herein.
E. Under SCIP, the Authority intends to issue bonds to fund, among other things, all
or a portion of the costs of the Acquisition Improvements, and the portion of the proceeds of
such bonds allocable to the cost of the Acquisition Improvements to be constructed and installed
by the Developer, together with interest earned thereon prior to such acquisition, is referred to
herein as the “Available Amount”.
F. SCIP will provide financing for the acquisition by the Local Agency of the
Acquisition Improvements and the payment of the Acquisition Price (as defined herein) of the
Acquisition Improvements from the Available Amount. Attached hereto as Exhibit A are
descriptions of the Acquisition Improvements, which descriptions are subject to modification by
written amendment of this Agreement, subject to the approval of the Authority.
G. The parties anticipate that, upon completion of the Acquisition Improvements and
subject to the terms and conditions of this Agreement, the Local Agency will acquire such
completed Acquisition Improvements with the Available Amount.
H. Any and all monetary obligations of the Local Agency arising out of this
Agreement are the special and limited obligations of the Local Agency payable only from t he
Available Amount, and no other funds whatsoever of the Local Agency shall be obligated
therefor.
I. In consideration of Recitals A through H, inclusive, and the mutual covenants,
undertakings and obligations set forth below, the Local Agency and the Dev eloper agree as
stated below.
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Agreement
ARTICLE I
DEFINITIONS; ASSESSMENT DISTRICT
FORMATION AND FINANCING PLAN
Section 1.01. Definitions. As used herein, the following capitalized terms shall
have the meanings ascribed to them below:
“Acceptable Title” means free and clear of all monetary liens, encumbrances,
assessments, whether any such item is recorded or unrecorded, and taxes, except those items
which are reasonably determined by the Local Agency Engineer in his sole discretion not to
interfere with the intended use and therefore are not required to be cleared from the title.
“Acquisition Improvements” shall have the meaning assigned to such term in Recital C
and are described in Exhibit A.
“Acquisition Price” means the amount paid to the Developer upon acquisition of all of
the Acquisition Improvements as provided in Section 2.03.
“Actual Cost” means the cost of construction of all of the Acquisition Improvements, as
documented by the Developer to the satisfaction of the Local Agency, as certified b y the Local
Agency Engineer in an Actual Cost Certificate.
“Actual Cost Certificate” shall mean a certificate prepared by the Developer detailing the
Actual Cost of all of the Acquisition Improvement to be acquired hereunder, as revised by the
Local Agency Engineer pursuant to Section 2.03.
“Agreement” means this Acquisition Agreement, dated as of ______, 20__.
“Assessment District” means the assessment district established by the Authority
pursuant to SCIP which includes the Developer's property for which the Acquisition
Improvements are being funded.
“Authority” means the California Statewide Communities Development Authority.
“Available Amount” means the amount of funds deposited in the Developer Acquisition
Account by the Authority pursuant to SCIP, together with any interest earnings thereon.
“Code” means the Streets and Highways Code of the State of California.
“Developer” means [Developer], a [here indicate type of legal entity].
“[Developer] Acquisition Account” means the account by that name established by the
Authority pursuant to SCIP for the purpose of paying the Acquisition Price of the Acquisition
Improvements.
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“Local Agency” means the [City/County of __________].
“Local Agency Engineer” means the Director of Public Works of the Local Agency (the
“Director”) or the designee of the Director, who will be responsible for administering the
acquisition of the Acquisition Improvements hereunder.
“Project” means the land development program of the Developer pertaining to the
Developer’s property in the Assessment District, including the design and construction of the
Acquisition Improvements and the other public and private improvements to be constructed by
the Developer within or adjacent to the Assessment District.
“SCIP” means the Statewide Community Infrastructure Program of the Authority.
“SCIP Requisition” means a requisition for payment of funds from the [Developer]
Acquisition Account in substantially the form attached hereto as Exhibit B.
“SCIP Trust Agreement” means the Trust Agreement entered into by the Authority and
the SCIP Trustee in connection with the financing for the Acquisition Improvements.
“SCIP Trustee” means Wilmington Trust, National Association, as trustee under the
SCIP Trust Agreement.
“Title Documents” means, for each Acquisition Improvement acquired hereunder, a grant
deed or similar instrument necessary to transfer title to any real property or interests therein
(including easements) necessary or convenient to the operation, maintenance, rehabilitation and
improvement by the Local Agency of that Acquisition Improvement (including, if necessary,
easements for ingress and egress) and a Bill of Sale or similar instrument evidencing transfer of
title to that Acquisition Improvement (other than said real property interests) to the Local
Agency, where applicable.
Section 1.02. Participation in SCIP. Developer has applied for financing through
SCIP of the Acquisition Improvements, and such application has been approved by the Local
Agency. Developer and Local Agency agree that until and unless such financing is completed by
the Authority and the Available Amount is deposited in the Developer Acquisition Account,
neither the Developer nor the Local Agency shall have any obligations under this agreement.
Developer agrees to cooperate with the Local Agency and the Authority in the completion of
SCIP financing for the Acquisition Improvements.
Section 1.03. Deposit and Use of Available Amount.
(a) Upon completion of the SCIP financing, the Available Amount will be
deposited by the Authority in the [Developer] Acquisition Account.
(b) The Authority will cause the SCIP Trustee to establish and maintain the
[Developer] Acquisition Account for the purpose of holding all funds for the Acquisition
Improvements. All earnings on amounts in the [Developer] Acquisition Account shall remain in
the [Developer] Acquisition Account for use as provided herein and pursuant to SCIP. The
amounts in the [Developer] Acquisition Account shall be withdrawn by the Local Agency in
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accordance with SCIP procedures upon completion of the Acquisition Improvements within 30
days (or as soon thereafter as reasonably practicable) of receipt by the Local Agency of the
certification of the Local Agency Engineer required by Section 2.03 of this Agreement, and
subject to satisfaction of all other conditions precedent to such acquisition pursuant to
Section 2.04 of this Agreement, to pay the Acquisition Price of such completed Acquisition
Improvements, as specified in Article II hereof. Upon completion of all of the Acquisition
Improvements and the payment of all costs thereof, any remaining funds in the [Developer]
Acquisition Account (less any amount determined by the Local Agency as necessary to reserve
for claims against such account) (i) shall be applied to pay the costs of any additional
improvements eligible for acquisition with respect to the Project as approved by the Authority
and, to the extent not so used, thereafter (ii) shall be applied by the Authority as provided in
Section 10427.1 of the Code to pay a portion of the assessments levied on the Project property in
the Assessment District.
Section 1.04. No Local Agency Liability; Local Agency Discretion; No Effect
on Other Agreements. In no event shall any actual or alleged act by the Local Agency or any
actual or alleged omission or failure to act by the Local Agency with respect to SCIP subject the
Local Agency to monetary liability therefor. Further, nothing in this Agreement shall be
construed as affecting the Developer’s or the Local Agency’s duty to perform their respective
obligations under any other agreements, public improvement standards, land use regulations or
subdivision requirements related to the Project, which obligations are and shall remain
independent of the Developer’s and the Local Agency’s rights and obligations under this
Agreement.
ARTICLE II
DESIGN, CONSTRUCTION AND ACQUISITION OF ACQUISITION IMPROVEMENTS
Section 2.01. Letting and Administering Design Contracts. The parties presently
anticipate that the Developer has awarded and administered or will award and administer
engineering design contracts for the Acquisition Improvements to be acquired from Developer.
All eligible expenditures of the Developer for design engineering and related costs in connection
with the Acquisition Improvements (whether as an advance to the Local Agency or directly to
the design consultant) shall be reimbursed at the time of acquisition of such Acquisition
Improvements. The Developer shall be entitled to reimbursement for any design costs of the
Acquisition Improvements only out of the Acquisition Price as provided in Section 2.03 and
shall not be entitled to any payment for design costs independent of or prior to the acquisition of
Acquisition Improvements.
Section 2.02. Letting and Administration of Construction Contracts. State law
requires that all Acquisition Improvements shall be constructed as if they were constructed under
the direction and supervision of the Local Agency. In order to assure compliance with those
provisions, except for any contracts entered into prior to the date hereof, Developer agrees to
comply with the guidelines of the Local Agency for letting and administering said contracts. The
Developer agrees that all such contracts shall call for payment of prevailing wages as required by
the Labor Code of the State of California.
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Section 2.03. Sale of Acquisition Improvements. The Developer agrees to sell to
the Local Agency the Acquisition Improvements to be constructed by Developer (including any
rights-of-way or other easements necessary for the operation and maintenance of the Acquisition
Improvements, to the extent not already publicly owned) when such Acquisition Improvements
are completed to the satisfaction of the Local Agency for an amount not to exceed the lesser of
(i) the Available Amount or (ii) the Actual Cost of the Acquisition Improvements. Exhibit A,
attached hereto and incorporated herein, contains a list of each Acquisition Improvement. At the
time of completion of each Acquisition Improvement, the Developer shall deliver to the Local
Agency Engineer a written request for acquisition, accompanied by an Actual Cost Certificate
and executed Title Documents for the transfer of the Acquisition Improvement, where necessary.
In the event that the Local Agency Engineer finds that the supporting paperwork submitted by
the Developer fails to demonstrate the required relationship between the subject Actual Cost and
the related Acquisition Improvement, the Local Agency Engineer shall advise the Developer that
the determination of the Actual Cost (or the ineligible portion thereof) has been disallowed and
shall request further documentation from the Developer. If such further documentation is still
not adequate, the Local Agency Engineer may revise the Actual Cost Certificate to delete any
disallowed items, and such determination shall be final and conclusive.
In the event that the Actual Cost is in excess of the Available Amount, the Local Agency
shall withdraw the Available Amount from the [Developer] Acquisition Account and transfer
said amount to the Developer. In the event that the Actual Cost is less than the Available
Amount, the Local Agency shall withdraw an amount from the [Developer] Acquisition Account
equal to the Actual Cost, and shall transfer said amount to the Developer. Any amounts then
remaining in the [Developer] Acquisition Account shall be applied as provided in Section 1.03.
In no event shall the Local Agency be required to pay the Developer more than the
amount on deposit in the [Developer] Acquisition Account at the time such payment is
requested.
Section 2.04. Conditions Precedent to Payment of Acquisition Price. Payment
by the Local Agency to the Developer from the [Developer] Acquisition Account of the
Acquisition Price for an Acquisition Improvement shall be conditioned first upon the
determination of the Local Agency Engineer, pursuant to Section 2.03, that such Acquisition
Improvement is all complete and ready for acceptance by the Local Agency, and shall be further
conditioned upon prior satisfaction of the following additional conditions precedent:
(a) The Developer shall have provided the Local Agency with lien releases or
other similar documentation satisfactory to the Local Agency as evidence that the property which
is subject to the special assessment liens of the Assessment District is not subject to any
prospective mechanics lien claim respecting the Acquisition Improvements.
(b) All due and payable property taxes, and installments of special
assessments shall be current on property owned by the Developer or under option to the
Developer that is subject to the special assessment liens of the Assessment District.
(c) The Developer shall certify that it is not in default with respect to any loan
secured by any interest in the Project.
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(d) The Developer shall have provided the Local Agency with Title
Documents needed to provide the Local Agency with title to the site, right-of-way, or easement
upon which the subject Acquisition Improvements are situated. All such Title Documents shall
be in a form acceptable to the Local Agency (or applicable governmental agency) and shall
convey Acceptable Title. The Developer shall provide a policy of title insurance as of the date of
transfer in a form acceptable to the Local Agency Engineer insuring the Local Agency as to the
interests acquired in connection with the acquisition of any interest for which such a policy of
title insurance is not required by another agreement between the Local Agency and the
Developer. Each title insurance policy required hereunder shall be in the amount equal to or
greater than the Acquisition Price.
Section 2.05. SCIP Requisition. Upon a determination by the Local Agency
Engineer to pay the Acquisition Price of the Acquisition Improvements pursuant to Section 2.04,
the Local Agency Engineer shall cause a SCIP Requisition to be submitted to the Program
Administrator. The Program Administrator will review the SCIP Requisition and forward it with
instructions to the SCIP Trustee and the SCIP Trustee shall make payment directly to the
Developer of such amount pursuant to the SCIP Trust Agreement. The Local Agency and the
Developer acknowledge and agree that the SCIP Trustee shall make payment strictly in
accordance with the SCIP Requisition and shall not be required to determine whether or not the
Acquisition Improvements have been completed or what the Actual Costs may be with respec t to
such Acquisition Improvements. The SCIP Trustee shall be entitled to rely on the SCIP
Requisition on its face without any further duty of investigation.
ARTICLE III
MISCELLANEOUS
Section 3.01. Indemnification and Hold Harmless. The Developer hereby
assumes the defense of, and indemnifies and saves harmless the Local Agency, the Authority,
and each of its respective officers, directors, employees and agents, from and against all actions,
damages, claims, losses or expenses of every type and description to which they may be
subjected or put, by reason of, or resulting from or alleged to have resulted from the acts or
omissions of the Developer or its agents and employees in the performance of this Agreement, or
arising out of any contract for the design, engineering and construction of the Acquisition
Improvements or arising out of any alleged misstatements of fact or alleged omission of a
material fact made by the Developer, its officers, directors, employees or agents to the
Authority's underwriter, financial advisor, appraiser, district engineer or bond counsel or
regarding the Developer, its proposed developments, its property ownership and its contractual
arrangements contained in the official statement relating to the SCIP financing (provided that the
Developer shall have been furnished a copy of such official statement and shall not have
objected thereto); and provided, further, that nothing in this Section 3.01 shall limit in any
manner the Local Agency’s rights against any of the Developer’s architects, engineers,
contractors or other consultants. Except as set forth in this Section 3.01, no provision of this
Agreement shall in any way limit the extent of the responsibility of the Developer for payment of
damages resulting from the operations of the Developer, its agents and employees. Nothing in
this Section 3.01 shall be understood or construed to mean that the Developer agrees to
indemnify the Local Agency, the Authority or any of its respective officers, directors, employees
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4135-2255-3356.8
or agents, for any negligent or wrongful acts or omissions to act of the Local Agency, Authority
its officers, employees, agents or any consultants or contractors.
Section 3.02. Audit. The Local Agency shall have the right, during normal
business hours and upon the giving of ten days’ written notice to the Developer, to review all
books and records of the Developer pertaining to costs and expenses incurred by the Developer
(for which the Developer seeks reimbursement) in constructing the Acquisition Improvements.
Section 3.03. Cooperation. The Local Agency and the Developer agree to
cooperate with respect to the completion of the SCIP financing for the Acquisition
Improvements. The Local Agency and the Developer agree to meet in good faith to resolve any
differences on future matters which are not specifically covered by this Agreement.
Section 3.04. General Standard of Reasonableness. Any provision of this
Agreement which requires the consent, approval or acceptance of either party hereto or any of
their respective employees, officers or agents shall be deemed to require that such consent,
approval or acceptance not be unreasonably withheld or delayed, unless such provision expressly
incorporates a different standard. The foregoing provision shall not apply to provisions in the
Agreement which provide for decisions to be in the sole discretion of the party making the
decision.
Section 3.05. Third Party Beneficiaries. The Authority and its officers,
employees, agents or any consultants or contractors are expressly deemed third party
beneficiaries of this Agreement with respect to the provisions of Section 3.01. It is expressly
agreed that, except for the Authority with respect to the provisions of Section 3.01, there are no
third party beneficiaries of this Agreement, including without limitation any owners of bo nds,
any of the Local Agency’s or the Developer’s contractors for the Acquisition Improvement s and
any of the Local Agency’s, the Authority's, or the Developer’s agents and employees.
Section 3.06. Conflict with Other Agreements. Nothing contained herein shall
be construed as releasing the Developer or the Local Agency from any condition of development
or requirement imposed by any other agreement between the Local Agency and the Developer,
and, in the event of a conflicting provision, such other agreement shall prevail unless such
conflicting provision is specifically waived or modified in writing by the Local Agency and the
Developer.
Section 3.07. Notices. All invoices for payment, reports, other communication
and notices relating to this Agreement shall be mailed to:
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If to the Local Agency:
[City/County of __________]
[Address to Come]
If to the Developer:
[Developer]
[Address to Come]
Either party may change its address by giving notice in writing to the other party.
Section 3.08. Severability. If any part of this Agreement is held to be illegal or
unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be
given effect to the fullest extent reasonably possible.
Section 3.09. Governing Law. This Agreement and any dispute arising
hereunder shall be governed by and interpreted in accordance with the laws of the State of
California.
Section 3.10. Waiver. Failure by a party to insist upon the strict performance of
any of the provisions of this Agreement by the other party, or the failure by a party to exercise its
rights upon the default of the other party, shall not constitute a waiver of such party’s right to
insist and demand strict compliance by the other party with the terms of this Agreement.
Section 3.11. Singular and Plural; Gender. As used herein, the singular of any
word includes the plural, and terms in the masculine gender shall include the feminine.
Section 3.12. Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original.
Section 3.13. Successors and Assigns. This Agreement is binding upon the
heirs, assigns and successors-in-interest of the parties hereto. The Developer may not assign its
rights or obligations hereunder, except to successors-in-interest to the property within the
District, without the prior written consent of the Local Agency.
Section 3.14. Remedies in General. It is acknowledged by the parties that the
Local Agency would not have entered into this Agreement if it were to be liable in damages
under or with respect to this Agreement or the application thereof, other than for the payment to
the Developer of any (i) moneys owing to the Developer hereunder, or (ii) moneys paid by the
Developer pursuant to the provisions hereof which are misappropriated or improperly obtained,
withheld or applied by the Local Agency.
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In general, each of the parties hereto may pursue any remedy at law or equity available
for the breach of any provision of this Agreement, except that the Local Agency shall not be
liable in damages to the Developer, or to any assignee or transferee of the Developer other than
for the payments to the Developer specified in the preceding paragraph. Subject to the
foregoing, the Developer covenants not to sue for or claim any damages for any alleged breach
of, or dispute which arises out of, this Agreement.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year written above.
[CITY/COUNTY OF __________]
By ______________________________________
[Mayor/Board Chair]
ATTEST:
[City Clerk/Clerk of the Board]
By _________________________________
[DEVELOPER],
a [here indicate type of legal entity]
By ______________________________________
(Signature)
_________________________________________
(Print Name)
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Exhibit A to the Acquisition Agreement
DESCRIPTION OF ACQUISITION IMPROVEMENTS AND BUDGETED AMOUNTS
ACQUISITION IMPROVEMENTS
1.
2.
3.
4.
BUDGETED AMOUNTS
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Exhibit B to The Acquisition Agreement
FORM OF SCIP REQUISITION
To: BLX Group LLC
SCIP Program Administrator
777 S. Figueroa St., Suite 3200
Los Angeles, California 90017
Attention: Vo Nguyen
Fax: 213-612-2499
Re: Statewide Community Infrastructure Program
The undersigned, a duly authorized officer of the [CITY/COUNTY OF __________] hereby
requests a withdrawal from the [DEVELOPER] ACQUISITION ACCOUNT, as follows:
Request Date: [Insert Date of Request]
Name of Developer: [Developer]
Withdrawal Amount: [Insert Acquisition Price]
Acquisition Improvements: [Insert Description of Acquisition Improvement(s) from Ex. A]
Payment Instructions: [Insert Wire Instructions or Payment Address for Developer]
The undersigned hereby certifies as follows:
1. The Withdrawal is being made in accordance with a permitted use of such monies
pursuant to the Acquisition Agreement, and the Withdrawal is not being made for the purpose of
reinvestment.
2. None of the items for which payment is requested have been reimbursed previously from
other sources of funds.
3. If the Withdrawal Amount is greater than the funds held in the [Developer] Acquisition
Account, the SCIP Program Administrator is authorized to amend the amount requested to be
equal to the amount of such funds.
4. To the extent the Withdrawal is being made prior to the date bonds have been issued on
behalf of SCIP, this withdrawal form serves as the declaration of official intent of the
[CITY/COUNTY OF __________], pursuant to Treasury Regulations 1.150-2, to reimburse with
respect expenditures made from the Developer Acquisition Account listed above in the amount
listed above.
[CITY/COUNTY OF __________]
By :
Title:
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Exhibit C to Form of SCIP Resolution
[CITY/COUNTY OF __________] CONTACTS FOR SCIP PROGRAM
Primary Contact
Name:
Title:
Mailing Address:
Delivery Address (if different):
E-mail:
Telephone:
Fax:
Secondary Contact
Name:
Title:
Mailing Address:
Delivery Address (if different):
E-mail:
Telephone:
Fax:
[Add additional contacts as needed]
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APPENDIX G-2
Sample Staff Report
Resolution to Join SCIP
Note to Staff: The following is suggested language for use in a staff report to accompany the
SCIP Resolution. Of course this is only a suggestion and you should feel free to edit as you see
fit. This action requires a public hearing with notice published once in your regular official
notice newspaper at least 5 days prior to the hearing. If you need assistance with this Notice, or
if you would like SCIP to review your staff report, final resolution or agenda item, feel free to
contact us and we will be happy to help.
Description: This item includes a brief staff presentation regarding participation in the Statewide
Community Infrastructure Program (“SCIP”), which is sponsored by the California Statewide
Communities Development Authority (“CSCDA”), followed by [Council/Board] discussion, a
public hearing to take public testimony on SCIP and bonds to be issued by CSCDA, and
consideration of a resolution making certain findings and authorizing certain matters necessary to
participate in SCIP.
Background: CSCDA is a 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, including the [City/County of
__________] (the “[City/County]”).
SCIP was instituted by CSCDA in 2002 to allow owners of property in participating cities and
counties to finance the development impact fees that would be payable by property owners upon
receiving development entitlements or building permits. The program has since been expanded
to include financing of public capital improvements directly. If a property owner chooses to
participate, the selected public capital improvements and the development impact fees owed to
the [City/County] will be financed by the issuance of tax-exempt bonds by CSCDA. CSCDA
will impose a special assessment on the owner’s property to repay the portion of the bonds issued
to finance the fees paid with respect to the property. With respect to impact fees, the property
owner will either pay the impact fees at the time of permit issuance, and will be reimbursed from
the SCIP bond proceeds when the SCIP bonds are issued; or the fees will be funded directly from
the proceeds of the SCIP bonds. In the former case, the [City/County] is required to pay the fees
over to SCIP, and in the latter case, SCIP holds the bond proceeds representing the fees. In both
cases the fees are subject to requisition by the [City/County] at any time to make authorized fee
expenditures. But by holding and investing the money until it is spent, SCIP is able to monitor
the investment earnings (which come to the [City/County]) for federal tax law arbitrage
purposes. SCIP encourages the [City/County] to spend those amounts before any other fee
revenues of the [City/County]. If the fees are paid by the property owner and bonds are never
issued, the fees are returned to the [City/County] by SCIP. In this way, the City is never at risk
for the receipt of the impact fees.
The benefits to the property owner include:
• Only property owners who choose to participate in the program will have assessments
imposed on their property.
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• Instead of paying cash for public capital improvements and/or development impact fees, the
property owner receives low-cost, long-term tax-exempt financing of those fees, freeing up
capital for other purposes.
• The property owner can choose to pay off the special assessments at any time.
• For home buyers, paying for the costs of public infrastructure through a special assessment is
superior to having those costs “rolled” into the cost of the home. Although the tax bill is
higher, the amount of the mortgage is smaller, making it easier to qualify. Moreover,
because the special assessment financing is at tax -exempt rates, it typically comes at lower
cost than mortgage rates.
• Owners of smaller projects, both residential and commercial, can have access to tax-exempt
financing of infrastructure. Before the inception of SCIP, only projects large enough to
justify the formation of an assessment or communities facilities district had access to tax-
exempt financing.
The benefits to the [City/County] include:
• As in conventional assessment financing, the [City/County] is not liable to repay the bonds
issued by CSCDA or the assessments imposed on the participating properties.
• CSCDA handles all district formation, district administration, bond issuance and bond
administration functions. A participating [city/county] can provide tax-exempt financing to
property owners through SCIP while committing virtuall y no staff time to administer the
program.
• Providing tax-exempt financing helps participating cities and counties cushion the impact of
rising public capital improvements costs and development impact fees on property owners.
• The availability of financing will encourage developers to pull permits and pay fees in larger
blocks, giving the participating [city/county] immediate access to revenues for public
infrastructure, rather than receiving a trickle of revenues stretched out over time. As part of
the entitlement negotiation process, the possibility of tax-exempt financing of fees can be
used to encourage a developer to pay fees up front.
• In some cases, the special assessments on successful projects can be refinanced through
refunding bonds. Savings achieved through refinancing will be directed back to the
participating [city/county] for use on public infrastructure, subject to applicable federal tax
limitations.
The proposed resolution authorizes CSCDA to accept applications from owners of property
within our planning jurisdiction to apply for tax-exempt financing of public capital
improvements and development impact fees through SCIP. It also authorizes CSCDA to form
assessment districts within our [City’s/County’s] boundaries, conduct assessment proceedings
and levy assessments against the property of participating owners. It approves the form of an
Acquisition Agreement, attached to the resolution as Exhibit B, to be entered into between the
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[City/County] and the participating property owner/developer, if applicable, to provide the terms
and conditions under which financing for public capital improvements will be provided and to
establish the procedure for disbursement of bond proceeds to pay for completed facilities. It also
authorizes miscellaneous related actions and makes certain findings and determinations required
by law.
Attached to the resolution as Exhibit A is a “Form of Resolution of Intention to be Adopted by
CSCDA.” This is for informational purposes and does not require action by this
[Council/Board].
Recommended Action: After [Council/Board] discussion and questions, open the public hearing
to order and invite any interested members of the public to provide testimony regarding SCIP
and the proposed action. Upon the close of the hearing, if the [Council/Board] wishes to join
SCIP and become a participating member agency in this program, it should adopt the proposed
resolution. The resolution requires only a simple majority vote. If the resolution is approved,
the Clerk should forward a certified copy to SCIP, c/o _____________, Orrick, Herrington &
Sutcliffe LLP, 405 Howard St., San Francisco, CA 94105.
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APPENDIX G-3
Form of Notice of Public Hearing
[Instructions to Staff: a completed notice in this format (but with all blanks filled in and
bracketed language deleted) must be published once in a newspaper of general circulation,
at least 5 calendar days prior to the meeting date. SCIP will require the newspaper’s
affidavit confirming the date of its publication. If you need help completing the notice,
please contact SCIP.]
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that on ____________ [insert date of
Council or Board meeting], a public hearing will be held with respect to the proposed
participation by the _________ [insert name of City or County] (the “_____” [insert “City”
or “County” as appropriate] in the Statewide Community Infrastructure Program of the
California Statewide Communities Development Authority. Participation in said program
will enable property owners to finance public capital improvements and/or development
impact fees for public capital improvements imposed on new development. Said public
capital improvements, if financed, will be among the public capital improvements required
in connection with a given development project. Said development impact fees, if financed,
will be used by the _________ [insert “City” or “County” as appropriate] to pay for public
capital improvements which will serve the _________ [insert “City” or “County” as
appropriate], and which will be of a type and nature authorized under the Municipal
Improvement Act of 1913 (codified at California Streets and Highways Code Sections
10000 et seq.). Participation in said program does not itself authorize the _________ [insert
“City” or “County” as appropriate] to impose additional public capital improvements or
new or additional development impact fees on any property owner.
The hearing will commence at ______ [insert time of hearing], or as soon
thereafter as the matter can be heard, and will be held at __________ [insert street address
and room number or name], ___________, California. Interested persons wishing to
express their views on the participation in such program and the financing of public capital
improvements and/or development impact fees as described above will be given an
opportunity to do so at the public hearing or may, prior to the time of the hearing, submit
written comments to ______ [insert mailing address], Attention: _______ [insert title of
person designated to receive written comments].
Dated: _____________ [insert date of publication.]
[CITY/COUNTY] OF ______________
___________________________________
[Name]
[City Clerk/Clerk of the Board]
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APPENDIX H
Sample SCIP Timetable
Date Action (Responsible Party)
January Accept Applications for Funding (SCIP)
February/March SCIP Due Diligence on Applications (SCIP)
April Final Cut Off Date for SCIP Applications (SCIP)
SCIP Consultants Approve Applications (SCIP)
May Finalize Engineer’s Reports (SCIP)
CSCDA Adopts Resolution of Intention (SCIP)
Notice Public Hearing (SCIP)
July (first two weeks) Hold Public Hearing (SCIP)
Conduct Landowner Protest Ballot Procedure (SCIP)
Confirm Assessments (SCIP)
Authorize the Sale of Bonds (SCIP)
July (last two weeks) Sell and Close Bond Issue (SCIP)
August Place on Tax Roll (SCIP)
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APPENDIX I
Form of Resolution of Intention to be Adopted by CSCDA
RESOLUTION OF INTENTION OF THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY TO FINANCE
IMPROVEMENTS AND/OR THE PAYMENT OF DEVELOPMENT
IMPACT FEES FOR PUBLIC CAPITAL IMPROVEMENTS IN THE
PROPOSED ASSESSMENT DISTRICT NO. _______ (COUNTY OF
__________, CALIFORNIA), APPROVING A PROPOSED BOUNDARY
MAP, MAKING CERTAIN DECLARATIONS, FINDINGS AND
DETERMINATIONS CONCERNING RELATED MATTERS, AND
AUTHORIZING RELATED ACTIONS IN CONNECTION THEREWITH
WHEREAS, under the authority of the Municipal Improvement Act of 1913 (the “1913
Act”), being Division 12 (commencing with Sections 10000 and following) of the California
Streets and Highways Code (the “Code”), the Commission (the “Commission”) of the California
Statewide Communities Development Authority (the “Authority”) intends to finance, through its
Statewide Community Infrastructure Program, the payment of certain development impact fees
for public capital improvements (the “Improvement Fees”) and/or to finance certain public
capital improvements to be constructed by or on behalf of the property owner(s) and to be
acquired by the _____ or another local agency (the “Improvements”) as described in Exhibit A
attached hereto and by this reference incorporated herein, and all of which are of benefit to the
property within the proposed Assessment District No. _______ (County of __________,
California) (the “Assessment District”);
WHEREAS, the Commission finds that the land specially benefited by the
Improvements and/or the Improvement Fees is shown within the boundaries of the map entitled
“Proposed Boundaries of California Statewide Communities Development Authority Statewide
Community Infrastructure Program Assessment District No. _______ (County of __________)
State of California,” a copy of which map is on file with the Secretary and presented to this
Commission meeting, and determines that the land within the exterior boundaries shown on the
map shall be designated “Proposed Boundaries of California Statewide Communities
Development Authority Statewide Community Infrastructure Program Assessment District
No. _______ (County of __________) State of California”;
WHEREAS, the [City/County] of __________is a member of the Authority and has
approved the adoption on its behalf of this Resolution of Intention and has consented to the levy
of the assessments in the Assessment District;
NOW, THEREFORE, BE IT RESOLVED that the Commission of the California
Statewide Communities Development Authority hereby finds, determines and resolves as
follows:
Section 1. The above recitals are true and correct.
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Section 2. Pursuant to Section 2961 of the Special Assessment Investigation,
Limitation and Majority Protest Act of 1931 (the “1931 Act”), being Division 4 (commencing
with Section 2800) of the Code, the Commission hereby declares its intent to comply with the
requirements of the 1931 Act by complying with Part 7.5 thereof.
Section 3. The Commission has designated a registered, professional engineer as
Engineer of Work for this project, and hereby directs said firm to prepare the report containing
the matters required by Sections 2961(b) and 10204 of the Code, as supplemented by Secti on 4
of Article XIIID of the California Constitution.
Section 4. The proposed boundary map of the Assessment District is hereby
approved and adopted. Pursuant to Section 3111 of the Code, the Secretary of the Authority is
directed to file a copy of the map in the office of the County Recorder of the County of
_______within fifteen (15) days of the adoption of this resolution.
Section 5. The Commission determines that the cost of financing the Improvements
and/or the payment of the Improvement Fees shall be specially assessed against the lots, pieces
or parcels of land within the Assessment District benefiting from the financing of the
Improvements and/or the payment of the Improvement Fees. The Commission intends to levy a
special assessment upon such lots, pieces or parcels in accordance with the special benefit to be
received by each such lot, piece or parcel of land, respectively, from the financing of the
Improvements and/or the payment of the Improvement Fees.
Section 6. The Commission intends, pursuant to subparagraph (f) of Section 10204
of the Code, to provide for an annual assessment upon each of the parcels of land in the proposed
Assessment District to pay various costs and expenses incurred from time to time by the
Authority and not otherwise reimbursed to the Authority which result from the administration
and collection of assessment installments or from the administration or registration of the
improvement bonds and the various funds and accounts pertaining thereto.
Section 7. Bonds representing unpaid assessments, and bearing interest at a rate not
to exceed twelve percent (12%) per annum, will be issued in the manner provided by the
Improvement Bond Act of 1915 (Division 10 of the Code), and the last installment of the bonds
shall mature not to exceed twenty-nine (29) years from the second day of September next
succeeding twelve (12) months from their date.
Section 8. The procedure for the collection of assessments and advance retirement of
bonds under the Improvement Bond Act of 1915 shall be as provided in Part 11.1 thereof.
Section 9. Neither the Authority nor any member agency thereof will obligate itself
to advance available funds from its or their own funds or otherwise to cure any deficiency which
may occur in the bond redemption fund. A determination not to obligate itself shall not prevent
the Authority or any such member agency from, in its sole discretion, so advancing funds.
Section 10. The amount of any surplus remaining in the improvement fund after
acquisition of the Improvements and/or payment of Improvement Fees and all other claims shall
be distributed in accordance with the provisions of Section 10427.1 of the Code.
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Section 11. To the extent any Improvement Fees are paid to the Authority in cash with
respect to property within the proposed Assessment District prior to the date of issuance of the
bonds, the amounts so paid shall be reimbursed from the proceeds of the bonds to the property
owner or developer that made the payment.
PASSED AND ADOPTED by the California Statewide Communities Development
Authority this __ day of __________, 20__.
I, the undersigned, an Authorized Signatory of the California Statewide Communities
Development Authority, DO HEREBY CERTIFY that the foregoing resolution was duly adopted
by the Commission of the Authority at a duly called and noticed meeting of the Commission of
the Authority held in accordance with law and at which a quorum was present and acting
throughout on __________, 20__.
By
Authorized Signatory
California Statewide Communities
Development Authority
[Attach Exhibit A – description of development impact fees and public capital
improvements. This exhibit will be prepared by Developer’s Engineer, subject to SCIP review.]
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APPENDIX J
Form of Resolution Preliminarily Approving Engineer’s Report
RESOLUTION NO. __________
RESOLUTION PRELIMINARILY APPROVING ENGINEER’S REPORT,
SETTING DATE FOR PUBLIC HEARING OF PROTESTS AND
PROVIDING FOR PROPERTY OWNER BALLOTS FOR CALIFORNIA
STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM
ASSESSMENT DISTRICT NO. __-__ (CITY OF _________, COUNTY OF
_____, CALIFORNIA)
WHEREAS, at the direction of this Commission, _________________________, as
Engineer of Work for improvement proceedings in California Statewide C ommunities
Development Authority Statewide Community Infrastructure Program Assessment District
No. __-__ (City of _________, County of _____, California) has filed with the Authority the
report described in Section 10204 of the Streets and Highways Code (Municipal Improvement
Act of 1913, hereafter in this resolution referred to as the “Act”), and containing the matters
required by Article XIIID of the California Constitution (“Article XIIID”), and it is appropriate
for this Commission to preliminarily approve said report and to schedule the public hearing of
protests respecting said report.
NOW, THEREFORE, THE COMMISSION OF THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY HEREBY FINDS, DETERMINES AND
RESOLVES as follows:
Section 1. The foregoing recitals are true and correct, and this Commission so finds
and determines.
Section 2. This Commission preliminarily approves the report without modification,
for the purpose of conducting a public hearing of protests as provided in the Act, Article XIIID,
and Section 53753 of the California Government Code (“Section 53753”). Said report shall
stand as the report for the purpose of all subsequent proceedings under the Act and Section
53753, except that it may be confirmed, modified, or corrected as provided in the Act.
Section 3. This Commission hereby sets _:__ p.m., or as soon thereafter as the matter
may be heard, on ____________ __, _____, at the office of the California State Association of
Counties, ________________, _____________, California 95814, as the time and place for a
public hearing of protests to the proposed financing of development impact fees and/or public
capital improvements, the proposed levy of assessments, the amounts of individual assessments,
and related matters as set forth in said report, and any interested person may appear and object to
said financing of development impact fees and/or public capital improvements, or to the extent
of said assessment district or to said proposed assessment.
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Section 4. Staff is hereby directed to cause a notice of said public hearing to be given
by mailing notices thereof, together with assessment ballots, in the time, form and manner
provided by Section 53753, and upon the completion of the mailing of said notices and
assessment ballots, staff is hereby directed to file with the Engineer of Work an affidavit setting
forth the time and manner of the compliance with the requirements of law for mailing said
notices and assessment ballots.
Section 5. _______________________, Engineer of Work, ___________________,
____________, ________________, (___) ___-____, is hereby designated to answer inquiries
regarding the report and the protest proceedings.
Section 6. This Resolution shall take effect immediately upon its passage.
PASSED AND ADOPTED by the California Statewide Communities Development
Authority this __ day of __________, ____.
I, the undersigned, an Authorized Signatory of the California Statewide Communities
Development Authority, DO HEREBY CERTIFY that the foregoing resolution was duly adopted
by the Commission of the Authority at a duly called and noticed meeting of the Commission of
the Authority held in accordance with law and at which a quorum was present and acting
throughout on __________ __, ____.
By_________________________________
Authorized Signatory
California Statewide Communities
Development Authority
[Attach Exhibit A -- description of development impact fees and public capital improvements.
This exhibit will be derived from and possibly identical to Exhibit A of the CSCDA Resolution
of Intention, Appendix I herein]
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APPENDIX K
Form of Notice of Hearing
California Statewide Communities Development
Authority
Statewide Community Infrastructure Program
Assessment District No. ______
(County of ________, California)
NOTICE OF PUBLIC HEARING AND ASSESSMENT BALLOT PROCEDURE
Pursuant to the provisions of the Municipal Improvement Act of 1913 (California Streets
and Highways Code Sections 10000 and following, hereafter referred to as the “1913 Act”),
Section 53753 of the California Government Code, and Section 4 of Article XIIID of the
California Constitution, the California Statewide Communities Development Authority (the
“Authority”) hereby gives notice as follows:
1. At ____ __.m. on ____________, at ________________________________, the
Commission of the Authority (the “Commission”) will hold a public hearing respecting
the proposed Statewide Community Infrastructure Program Assessment District No.
______ (County of _______________, California) (the “Assessment District”) to hear
and consider objections and protests respecting (a) a program for the financing of certain
development impact fees and public capital improvements (the “Program”) imposed upon
parcels of land within the Assessment District by levying special assessments upon such
parcels, which receive special benefit from the financing of such fees and improvements,
(b) the extent of the Assessment District, (c) the estimated cost and expense of the
Program, (d) the amounts of the assessments proposed to be levied upon the benefited
parcels, and (e) the method or formula by which benefit has been estimated and any other
aspect of the proposed Assessment District to which any interested person may want to
object or protest.
2. The applicable development impact fees, public capital improvements and the incidental
costs and expenses of Program implementation, legal proceedings, and bond financing
which are the subject of the proposed Assessment District are described in the enclosed
Engineer’s Report for the proposed Assessment District. Said Engineer’s Report is on
file with the Assessment Engineer, __________________________________ at
__________________________________________________, (___) ________. The
estimated cost and expense to be assessed to the benefited parcels also includes related
engineering expenses, fees for various professional services related to formulation and
implementation of the Assessment District, and costs of issuance respecting the proposed
tax-exempt improvement bonds. Please refer to the enclosed report for further
information on the details of the Program and the estimated cost and expense.
3. A brief description of the development impact fees and public capital improvements to be
financed through the Program is set forth on pages ____ of the enclosed report. Please
see the section entitle “Assessment Roll” on page ___ of the enclosed report for the
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amount of the assessment proposed for your parcel or parcels. The reason that an
assessment is proposed for your parcel or parcels is that the Authority has determined,
preliminarily, that such property is specially benefited by the financing of the public
capital improvements and the development impact fees imposed upon your parcel or
parcels through participation in the Program. The basis upon which the amount of the
proposed assessment was calculated is set forth in the section entitled “Method of
Assessment” of the enclosed report.
Reference is made to the section entitle “Assessment Diagram/Boundary Map” of the
enclosed report for a map showing the individual parcels proposed to be assessed.
4. Pursuant to Sections 2960, 2961 and 10200 of the Streets and Highways Code, the
Authority intends to comply with the requirements of the Special Assessment
Investigation, Limitation and Majority Protest Act of 1931 by proceeding under Part 7.5
of Division 4 of the Streets and Highways Code (“Part 7.5”). Please see the section
entitled “Debt Limitation Report” of the enclosed report for the information required by
Part 7.5. As set forth in the Debt Limitation Report section, this component of the report
will be revised upon receipt of an appraisal report which will establish that the total true
value of the parcels of land and improvements which are proposed to be assessed is at
least twice the total amount of (i) unpaid assessments already levied against the property
to be assessed, together with (ii) the amount of the proposed assessment for that property.
5. The Authority intends, pursuant to subparagraph (f) of Section 10204 of the 1913 Act, to
authorize an annual assessment upon each of the parcels of land in the proposed
assessment district to pay various costs and expenses incurred from time to time by the
Authority and not otherwise reimbursed to the Authority which result from the
administration and collection of assessment installments or from the administration or
registration of the improvement bonds and the various funds and accounts pertaining
thereto, in an amount not to exceed ten percent (10.0%) of the annual principal and
interest amount levied upon each parcel in said assessment district. This annual
assessment shall be in addition to any fee charged pursuant to Sections 8682 and 8682.1
of the Streets and Highways Code. Please see the section entitled “Administration” of
the enclosed report on this topic.
6. It is the intention of the Authority that any delinquent assessment installment shall be
subject to the same penalties and interest as are applicable to general property taxes, and
that the Tax Collector of the County of ______________ shall collect such penalties with
and as a part of such delinquent assessment installments, and all penalties collected shall
be deposited into the bond redemption fund for such bonds.
7. Assuming the Authority levies assessments as intended, property owners will be provid ed
an opportunity to pay all or any part of such assessments in cash unless , as presently
expected, this entitlement is waived in writing by 100% of such property owners.
Following the termination of the cash payment period, bonds representing unpaid
assessments and bearing interest at a rate not to exceed twelve percent (12.0%) per
annum shall be issued by the Authority pursuant to the Improvement Bond Act of 1915
(Division 10, Streets and Highways Code), and the last installment of the bo nds shall
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mature not to exceed twenty-nine (29) years from the second day of September next
succeeding twelve (12) months from their date. These estimates are subject to change,
and the actual duration of payments and interest rate will be determined only at the time
of the bond sale.
8. For further particulars, you may refer to the Resolution of Intention and the enclosed
Engineer’s Report, both of which are on file with the Assessment Engineer. Inquiries
about the assessment proceedings will be answered by __________________________,
Assessment Administrator, at (___) ________.
9. As provided by Section 4 of Article XIIID of the California Constitution and Section
53753 of the California Government Code, an Official Property Owner Assessment
Ballot has been enclosed with this notice, along with a self-addressed, return envelope by
which the assessment ballot may be returned to the ____________ of Orrick, Herrington
& Sutcliffe LLP. Please note that THIS IS THE OFFICIAL ASSESSMENT BALLOT
AND NOT A SAMPLE BALLOT. No further assessment ballot will be provided to you.
This assessment ballot may be used by the owner or owners of the subject parcel to
express either support for or opposition to the proposed assessment. Please see the
assessment ballot for instructions respecting the alternative methods for submitting the
ballot either by mail (which may be done using the enclosed envelope) or by personal
delivery, either prior to or at the time of the public hearing of protests, including
continuations of said public hearing. See the enclosed ballot for further instructions.
Immediately following the close of the public hearing of protests, whether on
______________ or at the conclusion of any continuation of said hearing to a later date
or to later dates, the returned assessment ballots will be opened and tabulated, both in
support of and in opposition to the assessment, with assessment ballots being weighted in
accordance with the amount of the proposed assessment, and the results will be
announced; provided that, in the event the Authority requires opportunity to determine (a)
whether any assessment ballot has been properly signed by an owner or authorized
representative of an owner or (b) any other matter respecting any assessment ballot and
its proper treatment in the assessment ballot procedure, the Authority reserves entitlement
to continue the matter of announcing results to provide the Authority with such
opportunity.
In the event that assessment ballots in opposition exceed assessment ballots in support,
there will be a “majority protest,” and the Authority will be precluded from proceeding
with the proposed assessment.
10. Property owners wishing to preserve the opportunity to file a lawsuit challenging the
assessment, if levied, are required by law to file a written protest with the Authority (in
care of the Program Administrator) and to state therein the specific grounds of protest.
Any grounds of protest not stated in a written protest filed with the Authority (in care of
the Program Administrator) prior to the close of the public hearing of protests are deemed
waived in any subsequent lawsuit and may not be raised in such lawsuit.
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DATED: _______________
Secretary, California Statewide
Communities Development Authority
Enclosures: Preliminary Engineer’s Report
Official Property Owner Assessment Ballot
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APPENDIX L
Form of Recorded Notice of Assessment
RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:
____________________, Secretary
California Statewide Communities
Development Authority
c/o David Taussig & Associates, Inc.
110 West San Fernando Street, Suite 430
San Jose, CA 95113
Attention: _______________
NOTICE OF ASSESSMENT
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
ASSESSMENT DISTRICT NO. ______
FOR THE COUNTY OF _______
STATE OF CALIFORNIA)
Pursuant to the requirements of Section 3114 of the Streets and Highways Code of the State of
California, the undersigned Secretary of the California Statewide Communities Development
Authority (the “Authority”) hereby gives notice that a Diagram and Assessment were recorded in
the office of the Superintendent of Streets of said Authority, as provided in said Section, and
relating to the following described property:
The lots, pieces or parcels of land as shown on the Assessment Diagram for the
California Statewide Communities Development Authority Assessment District
No. ______ for the County of________, State of California, which was filed for
record in the office of the County Recorder of the County _________ on ______,
20__, in Book ______ of Maps of Assessment and Community Facilities Districts
at Page(s) _______ thereof.
NOTICE IS FURTHER GIVEN that upon the recording of this notice in the office of the County
Recorder, the several assessments assessed upon the lots, pieces or parcels of land shall become
a lien upon the lots or portions of lots assessed, respectively.
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Reference is made to the Assessment Diagram hereinabove referred to and the Assessment Roll
recorded in the office of the Superintendent of Streets of said Authority on __________, 20__.
Said Assessment Roll recorded in the office of the Superintendent of Streets is referred to
determine the amount of each assessment levied against each parcel of land shown upon the
assessment diagram.
A list of the names of the assessed owners as they appear on the latest secured assessment roll, or
as known to the undersigned Secretary, is attached hereto and made a part hereof.
NOTICE IS FURTHER GIVEN that, pursuant to Section 10204(f) of said Streets and Highways
Code, the Authority has reserved entitlement to impose an annual assessment, which is in
addition to the installment otherwise payable on account of each unpaid assessment, to pay costs
incurred by the Authority and not otherwise reimbursed which result from the administration and
collection of assessments or from the administration or registration of any associated bonds and
the reserve fund or other related funds; provided that such additional annual assessment shall not
exceed the maximum amount prescribed therefor in the written engineer’s report for these
assessment proceedings.
Dated: _________________
CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY
By______________________________________
_______________________, Secretary
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CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
ASSESSMENT DISTRICT NO. ______
FOR THE COUNTY OF _______
STATE OF CALIFORNIA
Assessment No. Assessor Parcel Number Name of Property Owner
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
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APPENDIX M
Form of Published Notice of Recording of Assessment
NOTICE OF ASSESSMENT
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
ASSESSMENT DISTRICT NO. ______
FOR THE COUNTY OF _______
STATE OF CALIFORNIA
On __________, special assessments for the financing of public improvement districts in
the California Statewide Communities Development Authority (the “Authority”) Assessment
District No. ___ for the County of _________, State of California (the “Assessment District”),
were recorded in the office of the Superintendent of Streets of the Authority. The property
owners within the Assessment District have waived their entitlement to pay all or any portion of
the assessments levied upon their property in cash within thirty days after the recordation of the
assessments in the office of the County Recorder of the County of ___________. These
assessments affect only certain property, the owners of which have voluntarily participated in the
Authority’s Statewide Community Infrastructure Program. Bonds will be issued according to the
Improvement Bond Act of 1915 representing unpaid assessments and bearing interest at a rate
not to exceed 12% per year. Thereafter, unpaid assessments will be payable in installments of
principal and interest over a period of not to exceed thirty (30) years.
Dated: _____________
_______________________________________
_______________________, Secretary
California Statewide Communities
Development Authority
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APPENDIX N
Form of Local Agency Closing Certificate
LOCAL AGENCY CLOSING CERTIFICATE
([Local Agency])
California Statewide Communities Development Authority
Statewide Community Infrastructure Program Revenue Bonds
Series 20___
This Local Agency Closing Certificate is executed and delivered by the undersigned on
behalf of the [Local Agency] (the “Local Agency”) with respect to the financing pursuant to the
Statewide Community Infrastructure Program (“SCIP”) of certain capital improvements required
(the “Improvements”) and certain development impact fees levied by the Local Agency (the
“Eligible Impact Fees”) for certain development projects (the “Projects”) located on real property
within the planning jurisdiction of the Local Agency (the “Assessed Parcels”), all as described in
Schedule I.
The undersigned is an authorized representative of the Local Agency, and is acting for
and on behalf of the Local Agency in executing this Certificate. To the b est of the knowledge
and belief of the undersigned, there are no other facts, estimates or circumstances that would
materially change the certifications and expectations as set forth herein, and said certifications
and expectations are reasonable.
In connection with the issuance of the above referenced bonds (the “Bonds”), the Local
Agency hereby represents, warrants and certifies as follows:
1. With respect to each Assessed Parcel and the Projects to be constructed thereon, each of
the following is true to the best knowledge of the undersigned without undertaking any
investigation or inquiry:
a. The Projects have been approved by the Local Agency and have received all
discretionary development permits and approvals (including, as applicable,
general and specific plans, zoning, tentative or final subdivision maps,
development agreements, use permits and other discretionary permits, but not
including design review and approval related to architectural features, landscaping
or similar items) required to be issued by the Local Agency.
b. There is no legal impediment or limitation which would prevent the Projects from
going forward as approved in a timely fashion.
c. The provisions of the California Environmental Quality Act have been complied
with in connection with the approvals described in subparagraph (a) above.
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d. There is no litigation pending or to the knowledge of the Local Agency threatened
which challenges the development of the Projects or the Local Agency’s
participation in SCIP nor is there any basis therefor.
e. The owners of the Assessed Parcels are not delinquent in the payment of any tax,
assessment, fee or charge levied by the Local Agency on or as a result of the
ownership or development of the Assessed Parcels.
2. The resolution of the Local Agency by which it joined SCIP and the resolution of the
Local Agency by which it approved the form of acquisition agreement were duly adopted
by the governing body of the Local Agency, have not been amended, modified, repealed
or rescinded and are in full force and effect as of the date hereof.
3. The Local Agency is a member in good standing of the California Statewide
Communities Development Authority.
4. The Tax Certifications attached hereto as Exhibit A are true and correct.
5. The Improvements to be acquired by the Local Agency were either (i) in existence and
installed in place on or before [Adoption Date of Resolution of Intention], the date the
California Statewide Communities Development Authority adopted its resolution of
intention for the above referenced district, or (ii) were constructed as if they had been
constructed under the direction and supervision or under the authority of the Local
Agency.
Dated: [Program Series Closing Date]
[LOCAL AGENCY]
__________________________________
Authorized Representative
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SCHEDULE I
Name of Local Agency: [City of _____/County of _____]
SCIP Program Series: Series 20___
County Location: [County]
Property Owner Name(s)
Assessed Parcel (APN)
Assessment
Liens Imposed*
$
TOTAL: $
Allocation Between Improvement Costs and Eligible Impact Fees (per Exhibit B of the
Engineer’s Report for the County of [County]:
1. Improvement Costs $
2. Eligible Impact Fees $
_____________
* Not to exceed
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EXHIBIT A
LOCAL AGENCY TAX CERTIFICATION
The Local Agency hereby makes the following representations of facts and
expectations and covenants to comply with the requirements of this Tax Certification in
connection with its participation in the Statewide Community Infrastructure Program (the
“Program”) Revenue Bonds, Series 20__, in an aggregate amount $____________ (the
“Participation”). The representations and covenants contained in this Tax Certification
are in furtherance of the requirements of the Program and are designed to support the
conclusion that the interest paid on the bonds issued to fund the Program and the
Participation (the “Bonds”) is excluded from gross income for federal income tax
purposes under Section 103 of the Internal Revenue Code of 1986 (the “Code”).
1.1 Use of Facilities. The proceeds of the Participation (the
“Proceeds”) will be used to finance the construction or acquisition of certain public
improvements (the “Facilities”). The Local Agency or another state or local government
agency will own, and for the entire useful life of the Facilities reasonably expec ts to own,
all of the Facilities. To the extent any of the Facilities are sold to an entity that is not a
state or local government agency, the procedures outlined in the SCIP Reference Manual
will be followed. The Local Agency will not allow any of the Proceeds or any of the
Facilities to be used (for example, by lease or other contract) in the trade or business of
any nongovernmental persons (other than in their roles as members of the general public)
and will not loan any of the Proceeds. All of the Facilities will be used in the
performance of essential governmental functions of the Local Agency or another state or
local government agency.
The average expected useful life of the Facilities is at least ___ years.
1.2 Timing of Expenditures. The Local Agency reasonably expects
that all of the Proceeds will be spent for the governmental purpose of the Participation
within three years. In addition, the Local Agency reasonably expects that at least 5% of
the Proceeds will be spent, or that the Local Agency will incur a binding obligation to a
third party involving an expenditure of such amount, within six months. The Local
Agency reasonably expects that construction or acquisition of the Facilities will proceed
with due diligence to completion and that the allocation of proceeds to expenditures for
the Facilities will proceed with due diligence. None of the Proceeds will be used to pay
principal of or interest on any obligations.
1.3 Expenditure of Proceeds. Proceeds and other deposits under the
Program are not treated as spent on the Facilities until the Local Agency makes a transfer
to a person unrelated to the Local Agency and such transfer represents a payment for the
Facilities. A payment for the Facilities will occur if Proceeds or other deposits under the
Program are transferred from the Local Agency Account (as defined in the Trust
Agreement relating to the Participation) either (a) to the Local Agency and actually used
to make a payment to a person unrelated to the Local Agency no later than three days
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after the transfer or (b) directly to a third party at the direction of the Local Agency to pay
the cost of the Facilities, or (c) to the Local Agency to reimburse the Local Agency for
costs of the Facilities paid before the date of the transfer. To the ex tent Proceeds or other
deposits under the Program are transferred to the Local Agency to reimburse the Local
Agency for costs of Facilities paid before the date of the transfer, Proceeds will only be
treated as spent if (i) such costs were originally paid no earlier than 60 days before the
date of the reimbursement declaration related to such transfer attached hereto as Exhibit
B, and (ii) the disbursement of Proceeds to reimburse for such costs occurs within 18
months of the date the costs were paid or 18 months of the date the respective Facilities
was placed in service (whichever is later), but in no case more than 3 years after the date
the costs were paid by the Local Agency.
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APPENDIX O
Arbitrage Rebate and Yield Restriction Services
The Program Administrator will provide the following services (the “Arbitrage
Services”) to the Authority, subject to the conditions and limitations set forth herein.
The Program Administrator will calculate the amount of arbitrage rebate and yield
restriction liability with respect to the Bonds once per year as of the end of each bond
year and as of the final maturity or redemption of the Bonds (each such date on which an
arbitrage rebate and/or yield restriction calculation is performed is referred to herein as a
“Calculation Date”) applying regulations of the United States Department of the Treasury
in effect on such Calculation Date.
Within 60 days of each Calculation Date, the Program Administrator will prepare
or cause to be prepared schedules reflecting the relevant calculations and the assumptions
involved and will deliver a rebate liability report (“Rebate Report”) and a yield restriction
report (“Yield Restriction Report”), if applicable, addressed to the Authority, as to the
amount of the rebate liability and yield restriction liability as of such Calculation Date.
Each Rebate Report and Yield Restriction Report will include a legal opinion provided
by SCIP Counsel to the effect that such report is based on calculations performed in
accordance with applicable federal law and regulations.
The Program Administrator is not obligated to undertake any of the following:
(1) independently determine whether there were “prohibited payments” or “imputed
receipts” within the meaning of the Treasury Regulations; (2) perform calculations or
other research as to the desirability of elections or selections that may be available under
applicable federal tax law; (3) review the tax-exempt status of interest on the Bonds or
any other aspect of the Bonds except to the extent of the Arbitrage Services set forth in
this Appendix; and (4) except as otherwise set forth herein, update any report delivered
hereunder because of events occurring, changes in regulations, or data or information
received, subsequent to the date of delivery of such report.
In addition, the Program Administrator will be entitled to rely entirely on
information provided by the Authority and/or its agents and assigns without independent
verification for the purpose of providing the Arbitrage Services.
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APPENDIX P
Continuing Disclosure Services
SERVICES PROVIDED BY AUTHORITY
The Authority will provide or cause to be provided to the Program Administrator
prompt notice of any one of the following Specified Events as and when they occur: (1)
non-payment related defaults; (2) adverse tax opinions or events affecting the tax -exempt
status of the Bonds (provided, however, that notice to bond counsel of information
regarding any Internal Revenue Service inquiry regarding the Bonds shall be sufficient
transmission of information regarding this specified event); and (3) modifications to
rights of bondholders (provided, however, that notice to bond counsel of information
regarding such proposed modifications to rights of bondholders regarding the Bonds shall
be sufficient transmission of information regarding this specified event).
The Authority will also provide to the Program Administrator all information
required by the Continuing Disclosure Agreement or requested by the Program
Administrator in order to provide the services specified herein; any certifications the
Program Administrator may request regarding the accuracy, completeness and fairness of
such information or of any Disclosure; and any other assistance reasonably requested by
the Program Administrator. Whether or not any such certifications are requested or cover
any specified information, the Authority represents that all information provided to the
Program Administrator will be accurate, complete and fair, and the Program
Administrator shall be entitled to rely, without independent investigation, entirely on the
accuracy, completeness and fairness of all information provided by the Authority and/or
its officers, employees, agents, attorneys, accountants, engineers and consultants.
SERVICES TO BE PROVIDED BY PROGRAM ADMINISTRATOR
The Program Administrator will provide the following services on behalf of the
Authority, subject to the conditions and limitations set forth herein.
I. With respect to each Annual Report:
(1) Determine from the Continuing Disclosure Agreement what categories of
information are required to be included in the Annual Report, about which
obligated persons, by whom and by when it must be provided to the
Municipal Securities Rulemaking Board (the “MSRB”).
(2) Assist the officers or employees of the Authority designated with
responsibility for continuing disclosure to assemble information necessary
for the Annual Report.
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(3) Review material compiled to determine whether it covers the categories
referred to in (1) above. Make appropriate follow-up inquiries based on
the information compiled.
(4) Circulate proposed form of Annual Report to the SCIP Trustee and the
Authority for review and comment; make appropriate revisions.
(5) Prepare and circulate for execution appropriate certifications of the
Authority and others regarding information included in the Annual Report.
(6) Submit or confirm submission of the Annual Report to the MSRB.
(7) Maintain, or cause to be maintained, for at least six (6) years, a record of
the Annual Report submitted to the MSRB.
II. With respect to each of the events specified in the Continuing Disclosure
Agreement (each, a “Specified Event”) requiring timely reporting and subject to
the provisions contained in the introductory part of this Appendix regarding the
transmission of prompt notice of certain specified events to the Program
Administrator:
(1) Upon request by the Authority or SCIP Trustee, assist in determining
whether an event brought to the attention of the Program Administrator by
the Authority or the SCIP Trustee is a Specified Event requiring reporting
pursuant to the Continuing Disclosure Agreement if material and, if so,
whether such Specified Event is material.
(2) Provide appropriate instructions to the SCIP Trustee or other person
designated by the Continuing Disclosure Agreement to provide notice of
Specified Events determined to be material.
(3) Assist in preparation of the notice concerning any Specified Event
determined to be material.
(4) After appropriate execution by the Authority, submit or confirm
submission of the material Specified Event notice to the MSRB.
(5) Maintain, or cause to be maintained, for at least six (6) years, a record of
the Specified Event notice submitted to the MSRB.
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APPENDIX Q
SCIP Disbursement Form
To: BLX Group LLC
SCIP Program Administrator
777 S. Figueroa St., Suite 3200
Los Angeles, California 90017
Attention: Vo Nguyen
Phone: 213-612-2152
Fax: 213-612-2499
Re: 20[__] Statewide Community Infrastructure Program (“SCIP”) Financing
Project Name: ____________________
Assessment District: ____________________
The undersigned, a duly authorized officer of the [LOCAL AGENCY] hereby
requests a disbursement from the [LOCAL AGENCY] Fees Subaccounts associated with
the above captioned financing and certifies that the amounts of development impact fees
financed thereby and listed below have been or will be spent by the [LOCAL AGENCY]
for public capital improvements as of the date indicated below or within 5 days
thereafter:
Subaccount(s) Amount
Total:
Wiring Instructions:
The undersigned hereby additionally certifies as follows:
1. The use to which these funds have been or will be put is a permitted use
pursuant to the fees indicated for public capital improvements, and this disbursement is
not being made for the purpose of reinvestment.
2. None of the expenditures for which payment is requested have been
reimbursed previously from other sources of funds.
3. If the Total amount above is greater than the funds held by SCIP on behalf
of the [LOCAL AGENCY], the Program Administrator is authorized to amend the
amount requested to be equal to the amount of such funds.
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4. To the extent the disbursement is being made prior to the date the bonds
have been issued, this disbursement form serves as the declaration of official intent of the
[LOCAL AGENCY], pursuant to Treasury Regulations 1.150-2, to reimburse itself with
respect to expenditures made from the Fees Sub-accounts referenced above in the amount
requested.
Unless amended by prior written notice to the Program Administrator, the
disbursement amount shall be forwarded to the financial institution and account provided
to the Program Administrator as part of the [Local Agency] SCIP enrollment materials.
Dated: ______________
[LOCAL AGENCY]
Signature: _________________________
Print Name: _________________________
Title: _________________________
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APPENDIX R
SCIP Investment Policy
Introduction
The purpose of this Investment Policy (the “Policy”) is to establish cash
management and investment guidelines for the Program Administrator, who is
responsible for the prudent investment of public funds held in SCIP. All investments will
comply with Federal and State investment regulations and bond covenants applicable to
any debt issued as part of SCIP.
Scope
This Policy applies to all SCIP-related funds.
Standard of Care
California Government Code Section 53600.3 states that “… all governing bodies
of local agencies or persons authorized to make investment decisions on behalf of those
local agencies investing public funds pursuant to this chapter are trustees and therefore
fiduciaries subject to the prudent investor standard. When investing, reinvesting,
purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act
with care, skill, prudence, and diligence under the circumstances then prevailing,
including, but not limited to, the general economic conditions and the anticipated needs
of the agency, that a prudent person acting in a like capacity and familiarity with those
matters would use in the conduct of funds of a like character and with like aims, to
safeguard the principal and maintain the liquidity needs of the agency. Within the
limitations of this section and considering individual investments as part of an overall
strategy, investments may be acquired as authorized by law.”
The Program Administrator in the management of SCIP funds shall use the
“Prudent Investor” standard. The Program Administrator acting in accordance with this
Policy, written portfolio guidelines and procedures and exercising due diligence shall be
relieved of personal responsibility for individual security’s credit risk or market price
changes, provided deviations from expectations are reported in the quarterly investment
reports to the Authority, and appropriate action is taken to control adverse developments.
The Program Administrator and its employees shall refrain from all personal
business activity that could conflict with the management of the investment program.
When investing, reinvesting, purchasing, acquiring, exchanging, selling and managing
SCIP funds, the Program Administrator shall act with the care, skill, prudence and
diligence to meet the aims of the Investment Objectives listed in order in “Investment
Objectives,” below.
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Investment Objectives
SCIP funds shall be prudently invested in order to earn a reasonable return, while
awaiting application for governmental purposes. The specific investment objectives, in
priority order, of investment activities shall be safety, liquidit y, and yield:
1. Safety
Safety of principal is the foremost objective of the investment program. Investments
shall be undertaken in a manner that seeks to ensure the preservation of capital in the
overall portfolio. The objective will be to mitigate credit risk and interest rate risk.
The Program Administrator may elect to sell a security prior to its maturity and
record a capital gain or loss in order to improve the quality, liquidity or yield of the
portfolio in response to market conditions.
2. Liquidity
Investments shall provide sufficient liquidity and flexibility to enable the Program
Administrator to provide funds to the participating Local Agencies for permissible
governmental purposes on an as requested basis. Flexibility may be achieved in a
number of ways, which may include purchasing sufficient short-maturity investments,
purchasing investments that are readily marketable to a large number of securities
dealers, etc.
3. Yield
The Program Administrator will take prudent steps to maximize the retainable
earnings of all SCIP monies after meeting the requirements of safety and liquidity.
Permitted Investments
1. Direct Obligations of the United States of America
United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for
which the full faith and credit of the United States are pledged for the payment of
principal and interest.
2. Federal Agency Obligations
Federal Agency obligations shall be limited to obligations issued by Banks for
Cooperatives, Federal Land Banks, Federal Intermediate Credit Banks, Federal Farm
Credit Banks, the Federal Home Loan Bank Board, the Tennessee Valley District, or
in obligations, participations, or other instruments of, or issued by, or guaranteed as to
principal and interest by the Federal National Mortgage Association; or in guaranteed
portions of Small Business Administration notes; or in obligations, participations, or
other instruments of, or issued by, a federal agency or a United States government -
sponsored enterprise, or such agencies or enterprises which may be created.
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3. Negotiable Certificates of Deposit
Negotiable Certificates of Deposits shall be limited to issuers with the highest short-
term ratings by both Standard & Poor’s and Moody’s rating agencies with a
maximum maturity of one year.
4. Commercial Paper
Commercial paper rated in the highest short-term rating category, as provided by
Moody’s Investors Service, Inc. and Standard & Poor’s Corporation; provided that
the issuing corporation is organized and operating within the United States, has total
assets in excess of $500 million and has an “A” or higher rating for its long-term
debt, if any, as provided by Moody’s or Standard & Poor’s.
Purchases of eligible commercial paper may not exceed 180 days maturity nor
represent more than 10 percent of the outstanding paper of an issuing corporation.
Purchases of commercial paper may not exceed 15 percent of SCIP’s portfolio;
provided, however, that an additional 15 percent, or a total of 30 percent of the
SCIP’s investment portfolio, may be invested only if the dollar-weighted average of
the entire amount does not exceed 31 days.
5. Bankers’ Acceptances
Bankers’ Acceptances shall be limited to issuers with the highest short-term ratings
by both Standard & Poor’s and Moody’s. The maximum maturity shall b e 180 days
or less. A maximum of 40% of SCIP’s funds may be invested in Bankers’
Acceptances, with a maximum of 20% of SCIP’s funds in Bankers’ Acceptances of
any one commercial bank.
6. Money Market Mutual Funds
Shares of beneficial interest shall be limited to shares issued by diversified
management companies that are money market funds registered with the Securities
and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C.
Sec. 80a-1, et seq.) as long as the company shall have attained the highest ranking or
the highest letter and numerical rating provided by not less than two nationally
recognized statistical rating organizations.
7. Repurchase Agreements
Repurchase Agreements shall be limited to the following conditions:
• With any domestic bank the long term debt of which is rated “AA” or better
by S&P and “Aa2” by Moody’s (so long as an opinion is rendered that the
repurchase agreement is a “repurchase agreement” as defined in the Financial
Institutions Reform, Recovery and Enforcement Act of 1989 (“FIRREA”) and
that such bank is subject to FIRREA), or any foreign bank rated at least “AA”
by S&P and “Aaa” by Moody’s or “AAA” by S&P and at least “Aa” by
Moody’s.
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• With (i) any broker-dealer with “retail customers” which has, or the parent
company of which has, long-term debt rated at least “AA” by S&P and “Aa”
by Moody’s, which broker-dealer falls under the jurisdiction of the Securities
Investor’s Protection Corp. (SIPC);
• With any corporation (other than a life or property casualty insurance
company) the long-term debt of which, or, in the case of a guaranteed
corporation the long-term debt of the guarantor, or in the case of a monoline
financial guaranty insurance company the claims paying ability of the
guarantor, is rated at least “AA” by S&P and “Aa” by Moody’s; provided that;
• The market value of the collateral is maintained for United States Treasury
Obligations and Government National Mortgage Association Obligations at
104% of the invested balance, and for Federal National Mortgage Associat ion
Senior debt obligations and Federal Home Loan Mortgage Corporation Senior
debt obligations at 105% of the invested balance, such collateral must also
meet the Further Collateral Requirements below;
• Failure to maintain the requisite collateral percentage will require the Program
Administrator or the SCIP Trustee to liquidate the collateral;
• The SCIP Trustee, or a third party acting solely as agent therefor (the “Holder
of the Collateral”) has possession of the collateral or the collateral has been
transferred to the Holder of the Collateral in accordance with applicable state
and federal laws (other than by means of entries on the transferor’s books);
• The repurchase agreement states, and an opinion of counsel is rendered to the
effect, that the SCIP Trustee has a perfected first priority security interest in
the collateral, any substituted collateral and all proceeds thereof (in case of
bearer securities, this means the Holder of the Collateral is in possession);
• The transferor represents that the collateral is free and clear of any third-party
liens or claims;
• An opinion is rendered that the repurchase agreement is a “repurchase
agreement” as defined in the United States Bankruptcy Code;
• There is or will be a written agreement governing every repurchase
transaction;
• The SCIP Trustee represents that it has no knowledge of any fraud involved in
the repurchase transaction; and
• The SCIP Trustee receives an opinion of counsel (which opinion shall be
addressed to the SCIP Trustee) that such repurchase agreement is legal, valid
and binding and enforceable against the provider in accordance with its terms.
8. Local Agency Investment Fund (LAIF)
9. State Obligations
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State obligations shall be limited to the following:
• Direct general obligations of any state of the United States or any subdivision
or agency thereof to which is pledged the full faith and credit of a state the
unsecured general obligation debt of which is rated “A2” by Moody’s and “A”
by S&P, or better, or any obligation fully and unconditionally guaranteed by
any state, subdivision or agency whose unsecured general obligation debt is so
rated.
• Direct, general short-term obligations of any state agency or subdivision
described in (a) above and rated “A-1+” by S&P and “Prime-1” by Moody’s.
• Special Revenue Bonds (as defined in the United States Bankruptcy Code) of
any state, state agency or subdivision described in (a) above rated “AA” or
better by S&P and “Aa2” or better by Moody’s.
10. Forward Purchase Agreements
With regard solely to the investment of proceeds of the Bonds, the Program
Administrator may direct the SCIP Trustee to enter into Forward Purchase
Agreements subject to the following requirements:
• Each Forward Purchase Agreement shall comply with any applicable
provisions of law or of the bond documents;
• The Program Administrator may provide letters of direction and
representation to the SCIP Trustee and to the provider of each Forward
Purchase Agreement; and
• Each Forward Purchase Agreement shall only provide for the purchase by the
SCIP Trustee of investments described under paragraphs 1, 2 and 4 of
Permitted Investments above, at the times and in the amounts appropriate for
the applicable bond reserve or debt service fund.
11. Investment Agreements
With regard solely to the investment of proceeds of the Bonds, the Program
Administrator may direct the SCIP Trustee to enter into Investment Agreements
subject to the following requirements:
• Each Investment Agreement will limited to agreements with a domestic or
foreign bank or corporation (other than a life or property casualty insurance
company) the long-term debt of which, or in the case of a guaranteed
corporations the long-term debt of the guarantor, or in the case of a monoline
financial guaranty insurance company t the claims paying ability of the
guarantor, is rated at lest “AA” by S&P and” Aa2” by Moody’s; provided,
that prior written notice of an investment in the investment agreement is
provided to S&P and Moody’s and, provided, further, by the terms of the
investment agreement.
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• Interest payments are to be made to the SCIP Trustee at times and amounts as
necessary to pay debt service on the Bonds;
• the invested funds are available for withdrawal without penalty or premium, at
any time for purposes identified in the SCIP Manual of Procedures other than
acquisition of alternative investment property upon not more than seven days
prior notice;
• the Investment Agreement shall state that it is the unconditional and general
obligation of, and is not subordinated to any other obligation of, the provider
thereof;
• the SCIP Trustee and the Authority shall receive the opinion of domestic
counsel (which opinion shall be addressed to the Authority) that such
Investment Agreement is legal, valid and binding and enforceable against the
provider in accordance with its terms and of foreign counsel (if applicable);
• the Investment Agreement shall provide that if during its terms (a) the
provider’s or the guarantor’s rating by either S&P or Moody’s is withdrawn or
suspended or falls below “AA” or “Aa2”, respectively, or, with respect to a
foreign bank, below the ratings of such provider at the delivery date of the
investment agreement, the provider must, at the direction of the Authority or
the SCIP Trustee within 10 days of receipt of such direction, either (1)
collateralize the investment agreement by delivering or transferring in
accordance with applicable state and federal laws (other than by means of
entries on the provider’s books) to the SCIP Trustee or a Holder of the
Collateral, United States Treasury Obligations at 104% of the invested
balance which are free and clear of any third-party liens or claims and which
meets the Further Collateral Requirements below; or (2) repay the principal of
and accrued but unpaid interest on the investment (the choice of (1) or (2)
above shall be that of the SCIP Trustee), and (B) the provider’s or the
guarantor’s rating by either Moody’s or S&P is withdrawn or suspended or
falls below “A”, or, with respect to a foreign bank, below, “AA” or “Aa2” by
S&P or Moody’s, as appropriate, the provider must, at the direction of the
Program Administrator or the SCIP Trustee, within 10 days of receipt of such
direction, repay the principal of and accrued but unpaid interest on the
investment, in either case with no penalty or premium to the Program
Administrator or SCIP Trustee.
• The investment agreement shall state, and an opinion of counsel shall be
rendered to the effect, that the SCIP Trustee has perfected first priority
security interest in the collateral, any substituted collateral and all proceeds
thereof (in the case of bearer securities, this means the SCIP Trustee is in
possession); and
• The investment agreement must provide that if during its term (A) the
provider shall default in its payment obligations, the provider’s obligation
under the investment agreement shall, a the direction of the Program
Administrator or the SCIP Trustee, be accelerated and amounts invested and
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accrued but unpaid interest thereon shall be repaid to the Program
Administrator or SCIP Trustee, as appropriate, and (B) the provider shall
become insolvent, not pay its debts as they become due, be declared or
petition to be declared bankrupt, etc. (“event of insolvency”), the provider’s
obligations shall automatically be accelerated and amounts invested and
accrued but unpaid interest thereon shall be repaid to the Program
Administrator or SCIP Trustee, as appropriate.
Prohibited Investments
This Policy specifically prohibits the investment of any funds in the following
derivative securities as defined in Gov. Code Sec. 53601.6:
Any security that derives its value from an underlying instrument, index, or formula.
The derivative universe includes, but is not limited to, structured and range notes,
securities that could result in zero interest accrual if held to maturity, variable rate,
floating rate or inverse floating rate investments, and mortgage derived interest or
principal only strips.
Reporting Requirements
The Program Administrator shall submit quarterly investment reports to the
Authority. The Reports shall include, at a minimum, the following information for each
individual investment:
• Description of investment instrument
• Issuer Name
• Yield on cost
• Purchase Date
• Maturity Date
• Purchase Price
• Par Value
• Current market value and the source of the valuation
The quarterly report shall also state compliance of the portfolio to the statement of
investment policy, or manner in which the portfolio is not in compliance. The quarterly
report shall be submitted within thirty days following the end of the quarter.
The Program Administrator shall also provide quarterly reports to the Local
Agencies detailing each Local Agency’s funds on deposit with SCIP.
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Safekeeping and Custody
The assets of SCIP shall be secured through the third-party custody and
safekeeping procedures. Bearer instruments shall be held only through third-party
institutions. All securities transactions shall settle “delivery versus payment” through the
safekeeping agent.
Review of Policy
The Policy and compliance of the investment portfolio with the Policy shall b e
reviewed annually by the Authority.
Delegation of Authority
Responsibility for the implementation of the investment program is hereby
delegated to the Program Administrator, who shall establish and act in accordance with
written procedures and internal controls for the operation of the investment program
consistent with this investment policy. The Program Administrator shall be responsible
for all transactions undertaken and shall establish a system of controls to regulate the
activities of any subordinate officials, including the establishment of an investment
committee. The Program Administrator may also retain and consult with legal, financial
and other investment professionals and advisors.
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APPENDIX S
Form of Initial Demand Letter of Delinquent Property Owner
Date
Property Owner Name
Address
City, State ZIP
Re:
California Statewide Communities Development Authority
Statewide Community Infrastructure Program
CSCDA SCIP Assessment District No.________
County of __________ Assessor’s Parcel Number ___________
Dear Property Owner:
Your property identified by the referenced assessor’s parcel number (the “Parcel”)
is part of the referenced Assessment District. The California Statewide Communities
Development Authority (the “Authority”) formed the Assessment District under the
Municipal Improvement Act of 1913 and sold bonds under the Revenue Bond Act to
finance improvements benefiting the Parcel, and each year your assessment for these
improvements is placed on your County (the “County”) property tax bill. Please notify
this office immediately if you no longer own the Parcel.
According to data obtained from the County Tax Collector’s Office, the first
[and/or second] installment of the ______tax year assessments for the Parcel were not
paid as of _____________. If you have recently paid this installment to the County,
please disregard this reminder.
If, however, this installment is still unpaid, kindly remit payment of same to the
County Tax Collector’s Office, [Address] [, or you may pay on-line at
www.__________________]. For information about your tax bill, please contact the
County Tax Collector at [Phone Number]. If you have any other questions, please contact
the undersigned at (___) _________.
Very truly yours,
[Assessment Administrator]
Delinquency Management
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APPENDIX T
Form of Second Letter of Delinquent Owner
Date
Property Owner Name
Address
City, State ZIP
Re: California Statewide Communities Development Authority
Statewide Community Infrastructure Program
CSCDA SCIP Assessment District Number ____________
County of ___________ Assessor’s Parcel Number ____________
Dear Property Owner:
Your property, identified by the referenced assessor’s parcel number (the
“Parcel”), is part of the referenced Assessment District. The California Statewide
Communities Development Authority (the “Authority”) formed the Assessment
District under the Municipal Improvement Act of 1913 and sold bonds under the
Revenue Bond Act to finance improvements benefiting the Parcel, and each year your
assessment for these improvements is placed on your County (the “County”) property tax
bill. Please notify this office immediately if you no longer own the Parcel.
According to data obtained from the County Tax Collector’s Office, the
installment(s) of your Tax Bill for the Parcel for the ______ tax year, were not paid as of
________. If you have recently paid these installment(s) to the County Tax Collector,
please disregard this demand. If, however, these installment(s) are still unpaid, you are
being advised that if payment is not made to the County Tax Collector within thirty (30)
days from the date of this letter, the Authority may authorize the removal of the
delinquent special assessment portion of your Tax Bill from the County tax roll in order
to start a judicial foreclosure action against the Parcel to collect the special assessment
portion of your Tax Bill, in accordance with applicable law. The costs of the removal and
the legal fees and expenses occasioned by the judicial foreclosure action are substantial,
and will be added to the amounts required for you to redeem (cure) the delinquent special
assessments. It is to your advantage to pay your taxes promptly so that you will not incur
these expenses.
You can prevent the removal and foreclosure from taking place by paying your
entire Tax Bill to the County Tax Collector within thirty (30) days from the date of this
letter. Kindly remit your tax payment to the County Tax Collector’s Office, [Address]
[, or you may pay on-line at www.__________________]. For information about your
tax bill, please contact the County Tax Collector at [Phone Number].
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Your immediate attention to this matter is urged. Should you need further
assistance, please contact the undersigned at (___) _________.
Very truly yours,
[Assessment Administrator]
Delinquency Management
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APPENDIX U
Form of Lender Demand Letter
Date
Lender Name
Address
City, State ZIP
Re: California Statewide Communities Development Authority
Statewide Community Infrastructure Program
CSCDA SCIP Assessment District Number ____________
County of _________, Assessor’s Parcel Number ____________
Ladies and Gentlemen:
Our firm is the special assessment administrator of the California Statewide Communities
Development Authority (the “Authority”) with respect to the [name of assessment district] (the
“District”). The property described above is subject to a lien in the District that is delinquent in
the amount of $________. The Authority has issued bonds secured by this lien, and has
covenanted for the benefit of the bondholders to foreclose any delinquent assessment liens in
order to provide funds to pay debt service on the bonds.
Official records show that you have made a loan to the owner of this property, which is secured
by a mortgage or deed of trust on the property. We have sent reminder and demand letters to the
owner of record of this property on [dates] and the delinquency remains unpaid. We hereby
inform you that if the delinquent amount is not cured within 30 days of the date of th is letter, the
Authority will engage counsel and commence a foreclosure action in Superior Court to enforce
the lien. This assessment lien is senior to your mortgage or deed of trust by operation of
law, and if the lien is foreclosed, your mortgage or deed of trust will be extinguished. If the
Authority is forced to commence foreclosure, there will be immediate legal, title and filing costs
attached to this lien in an amount estimated to be approximately $________, and further legal
and other costs will be incurred as the foreclosure process continues. All of these costs are
recoverable in the foreclosure judgment and will be added to the delinquent assessment amount.
In addition, the delinquent assessment bears interest at the rate of 1.5% per month (18 % per
year).
Should you wish to cure this delinquency and forestall the actions described above, you can pay
the delinquent amount and remain free to proceed against your borrower. For information about
your borrower’s tax bill, please contact the County Tax Collector at [Phone Number]. If you
have any other questions, please contact the undersigned at (___) _________.
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Please take prompt action in order to avoid additional fees and expenses and protect your
security interest in the property.
Sincerely,
[Assessment Administrator]
Cc: [Property Owners]
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APPENDIX V
Form of Disclosure Notice to Subsequent Purchasers
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM
ASSESSMENT DISTRICT NO. ______
(COUNTY OF ________, CALIFORNIA)
TO: The prospective purchaser of the real property known as:
Lot No.___________ Tract No. __________.
THIS IS A NOTIFICATION TO YOU PROVIDED PRIOR TO, OR AT THE
TIME OF, PURCHASE OF THIS PROPERTY. THE SELLER IS REQUIRE D TO GIVE
YOU THIS NOTICE, AND TO OBTAIN A COPY SIGNED BY YOU TO INDICATE
THAT YOU HAVE RECEIVED AND READ A COPY OF THIS NOTICE.
The California Statewide Communities Development Authority has established an
Assessment District which includes the area in which the new home you are considering
purchasing is located. The purpose of the Assessment District is to pay for certain public capital
improvements and certain development impact fees imposed as a condition to the development
of your prospective new home. Those fees have paid or will pay for the design and construction
of major infrastructure such as streets, sewers, storm drain improvements, water systems, parks,
a fire station, utilities, and other improvements which benefit the community in general, and the
property you are considering purchasing in particular. These improvements may not yet have
been constructed or acquired and it is possible that some may not be constructed or acquired.
The amount of the Assessment District lien is directly proportional to the estimated
benefit your property receives from the public capital improvements plus the amount of the
development impact fees which were imposed on your prospective new home and which were
financed through the Assessment District. The Assessment District lien is in addition to the
regular property taxes and other charges and benefit assessments on the parcel. The Assessment
District lien will be added to the real estate property tax bill distributed annually to each property
owner within the Assessment District boundary. The maximum annual amount of this
assessment in fiscal years 20__ to 20__ and following will be approximately
$_______________. If you fail to pay the Assessment District lien when due, the property may
be foreclosed upon and sold.
The estimated total principal amount of Assessment District lien applicable to your home
(approximately $____________) will be fully amortized over a period of _________ years
through payments on your real estate tax bill with interest at a rate e qual to approximately
____% per year [insert bond rate]. This assessment is used to finance the above mentioned
public capital improvements and development impact fees, which were required to be paid in
order to allow development on your parcel and which were used to pay for public capital
improvements. YOU SHOULD TAKE THIS LIEN AND THE BENEFITS FROM THE
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PAYMENT OF THE DEVELOPMENT IMPACT FEES, PUBLIC CAPITAL
IMPROVEMENTS AND THE PUBLIC FACILITIES INTO ACCOUNT IN DECIDING
WHETHER TO PURCHASE THIS PROPERTY.
You have the option to pay off the total amount of the Assessment District lien at any
time, plus a bond redemption fee. If you wish to pay off the lien in total prior to escrow closing,
please notify your escrow officer. If an impound account for taxes and assessments is a
requirement of your home loan, you should notify your lender of the total annual amount of the
assessment. The annual cost of the special assessments when added to other amounts on your
consolidated property tax bill, may exceed the amount collected for the impound account.
You may contact the Authority by calling its Assessment Administrator,
___________________ at telephone number (___) __________ for information concerning the
Assessment District or about early assessment district lien retirement after escrow closing.
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Please acknowledge receipt of this information at or prior to the time of purchase by
signing your name in the space provided below.
Acknowledged:
Date Prospective Buyer
Date Prospective Buyer
Lot No. _______ Tract No. _________________________________
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APPENDIX W
Form of Fee Collection Agreement
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM
This FEE COLLECTION AND DISBURSEMENT AGREEMENT (this “Agreement”),
dated as of ______ 1, 20__, by and among the [FEE RECIPIENT] (“Fee Recipient”), a
California special district, the [SCIP PARTICIPANT LOCAL AGENCY], a municipal
corporation of the State of California (the “SCIP Participant”) and the CALIFORNIA
STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY (“CSCDA”);
W I T N E S S E T H:
WHEREAS, the Fee Recipient is entitled to receive from time to time certain amounts
paid by developers of real property (each a “Developer”) within the jurisdiction of the SCIP
Participant as impact fees, connection fees or other capital charges;
WHEREAS, the SCIP Participant is a participant in CSCDA’s Statewide Community
Infrastructure Program (“SCIP”);
WHEREAS, as a participant in SCIP, the SCIP Participant has established an account
with CSCDA held by Wilmington Trust, National Association, as trustee (the “SCIP Trustee”)
and administered by BLX Group LLC (the “SCIP Program Administrator”) in which certain
amounts collected on behalf of the SCIP Participant in connection with SCIP are held (the “SCIP
Participant SCIP Account”);
WHEREAS, certain fees or capital charges collected by Fee Recipient (the “Fees”) are
eligible for financing through SCIP, subject to approval of Bond Counsel (as defined herein);
WHEREAS, the Fees may be paid to Fee Recipient by Developers, for subsequent
reimbursement from the proceeds of bonds (the “Bonds”) issued through SCIP, or the Fees may
be paid directly to Fee Recipient from proceeds of the Bonds;
WHEREAS, in order to allow the Fees to be financed through SCIP, Fee Recipient has
requested that for any Developer which applies for SCIP financing with respect to Fees payable
with respect to a development project within the SCIP Participant, SCIP Participant collect the
Fees and remit them to CSCDA for deposit in a separate subaccount within the SCIP Participant
SCIP Account;
WHEREAS, in accordance with Fee Recipient’s request, and in order to allow the Fees to
be financed through SCIP, the SCIP Participant has determined to collect the Fees on Fee
Recipient’s behalf and to remit the Fees to CSCDA to be held in a separate subaccount within
the SCIP Participant SCIP Account, and to make or cause to be made disbursements from such
subaccount in accordance with properly executed requisitions of the Fee Recipient in the form
attached as Exhibit B hereto;
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NOW, THEREFORE, THE PARTIES HERETO MUTUALLY AGREE AS FOLLOWS:
Section 1. Definitions. As used herein, the following capitalized terms shall have the
meanings ascribed to them below:
“Authorized Officer” means (a) when used with respect to CSCDA, any member of the
governing board of CSCDA and such additional person or persons, if any, duly designated by
CSCDA in writing to act on its behalf, and (b) when used with respect to Fee Recipient, any
person or persons duly designated by Fee Recipient in writing to act on its behalf.
“Bond Counsel” means Orrick, Herrington & Sutcliffe LLP, or any other nationally
recognized firm appointed by CSCDA to serve as bond counsel in connection with the issuance
of Bonds.
“Bonds” means bonds issued by CSCDA to finance development impact fees, including
the Fees, in connection with SCIP.
“CSCDA” means the California Statewide Communities Development Authority, its
successors and assigns.
“Fee Recipient” means the [Fee Recipient], a California special district.
“Fees” means those certain development-related fees to be financed through SCIP,
approved by Bond Counsel and payable from time to time to Fee Recipient.
“SCIP” means the Statewide Community Infrastructure Program, a program of CSCDA.
“SCIP Participant” means the [SCIP Participant Local Agency], California.
“SCIP Participant SCIP Account” means the SCIP Participant’s account with CSCDA
held by the SCIP Trustee and administered by the SCIP Program Administrator in which certain
amounts collected on behalf of the SCIP Participant in connection with SCIP are held.
“SCIP Funds” means payments of Fees received by Fee Recipient, as more fully
described in Section 3, together with all of the investment earnings on such Fees.
“SCIP Program Administrator” means BLX Group LLC, its successors and assigns or
any other administrator appointed by CSCDA as the administrator of SCIP.
“SCIP Trustee” means Wilmington Trust, National Association, its successors and
assigns.
Section 2. Collection of Fees; SCIP Financing.
(a) Fee Recipient acknowledges that it has the authority to collect and use the Fees
for its own benefit. Fee Recipient acknowledges that, subject to approval as set forth in
Section 3, the Fees may be financed through SCIP, and agrees to allow the SCIP Participant to
collect the Fees from time to time with respect to Developers applying for SCIP financing on the
Fee Recipient’s behalf (i) from such Developers prior to the issuance of a particular series of
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Bonds, or (ii) from proceeds of a particular series of Bonds following the issuance of such
Bonds.
(b) For any Developer applying for SCIP financing of Fees pertaining to a project
within the jurisdiction of the SCIP Participant, the SCIP Participant agrees to collect the Fees
from time to time for the Fee Recipient’s benefit. Upon collection, the SCIP Participant shall
remit the Fees to CSCDA, to be deposited as set forth in Section 4.
Section 3. Approval of Fees. The Authorized Officers of Fee Recipient, or their
designees, are authorized under this Agreement to approve the financing of Fees through SCIP.
No Fee may be financed through SCIP except with the written approval of an Authorized Officer
of Fee Recipient or his designee, which approval shall be evidenced by the signature of such
Authorized Officer next to each such Fee shown on Exhibit A attached hereto or in such other
written form as may be acceptable to the parties hereto. The written approval of an Authorized
Officer shall be required only once rather than on a project-by-project basis, and such approval
shall constitute approval for the financing of such authorized fees for any and all applications
which may be received by CSCDA requesting financing of such authorized fees for a given
project.
Section 4. Agreement to Hold Fees in SCIP Participant SCIP Account. CSCDA
agrees to receive or cause to be received by the SCIP Trustee the Fees collected by the SCIP
Participant on behalf of the Fee Recipient. CSCDA shall establish or cause to be established
within the SCIP Participant SCIP Account a separate subaccount (the “[Fee Recipient]
Subaccount”). The Fees financed using Bond proceeds shall be deposited in the [Fee Recipient]
Subaccount and held there by the SCIP Trustee and segregated from all other funds within the
SCIP Participant SCIP Account, and except for investment purposes, shall not be commingled
with any other funds held by the SCIP Trustee. Investment earnings on the [Fee
Recipient]Subaccount shall be retained in the such subaccount for the benefit of the Fee
Recipient except to the extent a portion of such earnings are requested to pay rebate or yield
reduction payments to the U.S. Treasury pursuant to the Internal Revenue Code. Amounts on
deposit in the [Fee Recipient]Subaccount shall be disbursed only in accordance with Section 5 of
this Agreement. All Fees funded through Bond proceeds shall be deemed paid by the Developer
in the amount of the Bond proceeds on the date that such Bond proceeds are deposited in the
SCIP Participant SCIP Account.
Section 5. Disbursements from SCIP Participant SCIP Account. CSCDA shall
disburse or cause to be disbursed moneys on deposit in the [Fee Recipient]Subaccount only as
provided herein. Moneys on deposit in the [Fee Recipient]Subaccount shall be disbursed
pursuant to written requisitions of the Fee Recipient, in substantially the form attached hereto as
Exhibit B and executed by an Authorized Officer of the Fee Recipient. CSCDA, the SCIP
Program Administrator and the SCIP Trustee may conclusively rely on such requisitions for
purposes of making such disbursements.
All disbursements from the [Fee Recipient] Subaccount to the Fee Recipient shall be
made by wire transfer of immediately available funds or by check payable to the Fee Recipient’s
bank account number at a bank located within the United States on file with the SCIP Trustee,
unless another method of payment is requested in writing by the Fee Recipient.
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Section 6. Term of this Agreement. This Agreement shall be in full force and effect
from this date to and including its termination by mutual written agreement of the parties hereto.
CSCDA agrees to terminate this agreement upon request of Fee Recipient upon delivery to
CSCDA of an opinion Bond Counsel to the effect that the termination of this Agreement will not
adversely affect the exclusion from gross income of interest on the Bonds for federal income tax
purposes.
Section 7. Amendment of this Agreement. This Agreement may be amended only by
a written instrument executed by the parties hereto; provided that any such amendment shall be
conditioned upon delivery to CSCDA of an opinion of Bond Counsel to the effect that such
amendment will not adversely affect the exclusion from gross income of interest on the Bonds
for federal income tax purposes.
Section 8. Successors in Interest. This Agreement and all of the provisions hereof
shall be binding on the parties hereto and their successors and assigns.
Section 9. Third Party Beneficiaries. The SCIP Program Administrator is expressly
declared to be a third party beneficiary of this Agreement. No other third party beneficiary of
this Agreement is intended or implied. Except as to the express third party beneficiary identified
herein, nothing contained in the Agreement shall give or allow any claim or right of action
whatsoever by any other third party.
Section 10. Severability. If any section, paragraph, sentence, clause or provision of
this Agreement shall for any reason be held to be invalid or unenforceable, the invalidity or
unenforceability of such section, paragraph, sentence, clause or provision shall not affect any of
the remaining provisions of this Agreement.
Section 11. Choice of Law; Venue. This Agreement shall be governed by and
interpreted in accordance with the laws of the State of California. Any legal action arising out of
this Agreement shall be filed in and adjudicated by a court of competent jurisdiction in the [SCIP
Participant Local Agency], State of California.
Section 12. Execution. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all together shall constitute but
one and the same agreement.
Section 13. Notices. Any notice, request, complaint, demand, communication or other
paper required or permitted to be delivered to this Agreement shall be addressed to the
appropriate party at the addresses set forth below.
Fee Recipient: [Fee Recipient Address]
SCIP Participant: [SCIP Participant Local Agency Address]
CSCDA: California Statewide Communities Development Authority
1100 K Street, Suite 101
Sacramento, CA 95814
Attention: Treasurer
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IN WITNESS WHEREOF, each Party has executed this Agreement as of the date set
forth beside their signatures below.
Dated: __________, 20___
[FEE RECIPIENT]
Authorized Officer
[LOCAL AGENCY SCIP PARTICIPANT]
Authorized Officer
CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY
Authorized Signatory
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EXHIBIT A TO FORM OF AGREEMENT
Approved Fees
Fee Project
Expected
Amount Approved by Authorized Officer Date
$
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EXHIBIT B TO FORM OF AGREEMENT
SCIP Disbursement Form
To: BLX Group LLC
SCIP Program Administrator
777 S. Figueroa St., Suite 3200
Los Angeles, California 90017
Attention: Vo Nguyen
Phone: 213-612-2152
Fax: 213-612-2499
Re: Statewide Community Infrastructure Program
The undersigned, a duly authorized officer of the [Fee Recipient] hereby requests a
disbursement from the [Fee Recipient] Subaccount associated with the above captioned
financing and certifies that the amounts of development impact fees financed thereby and listed
below have been or will be spent by the [Fee Recipient] for public capital improvements as of
the date indicated below or within 5 days thereafter:
Subaccount(s) Amount
Total:
Wiring Instructions:
The undersigned hereby additionally certifies as follows:
1. The use to which these funds have been or will be put is a permitted use pursuant
to the fees indicated for public capital improvements, and this disbursement is not being made
for the purpose of reinvestment.
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2. None of the expenditures for which payment is requested have been reimbursed
previously from other sources of funds.
3. If the Total amount above is greater than the funds held by SCIP on behalf of the
[Fee Recipient], the Program Administrator is authorized to amend the amount requested to be
equal to the amount of such funds.
4. To the extent the disbursement is being made prior to the date the bonds have
been issued, this disbursement form serves as the declaration of official intent of the [Fee
Recipient], pursuant to Treasury Regulations 1.150-2, to reimburse itself with respect to
expenditures made from the Fees Sub-accounts referenced above in the amount requested.
5. The amounts being disbursed pursuant to this request are being used to finance or
refinance certain public infrastructure and facilities (the “Improvements”). [Fee Recipient] will
own, and for the entire useful life of such Improvements reasonably expects to own, all of such
Improvements. To the extent any of such Improvements are sold to an entity that is not a state or
local government agency, [Fee Recipient] will seek the advice and approval of bond counsel to
the Authority prior to any such sale. [Fee Recipient] will not allow any of such Improvements to
be used (for example, by lease or other contract) in the trade or business of any nongovernmental
persons (other than in their roles as members of the general public). All of such Improvements
will be used in the performance of essential governmental functions of [Fee Recipient] or another
state or local government agency. The average expected useful life of such Improvements is at
least 20 years. The representations and covenants contained in this paragraph are intended to
support the conclusion that the interest paid on the bonds issued to finance the Improvements is
excluded from gross income for federal income tax purposes under Section 103 of the Internal
Revenue Code of 1986 (the “Code”).
Dated: _________________________
Signature: _________________________
Print Name: _________________________
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EXHIBIT C TO FORM OF AGREEMENT
SCIP Tax Representations
The Fee Recipient hereby makes the following representations of facts and expectations
and covenants to comply with the requirements of this Tax Certification in connection with its
participation in the Statewide Community Infrastructure Program (the “Program”) Revenue
Bonds, Series ____, in an aggregate amount (including allocable costs, capitalized interest,
reserve fund and original issue premium) of $___________ (the “Participation”). The
representations and covenants contained in this Tax Certification are in furtherance of the
requirements of the Program and are designed to support the conclusion that the interest paid on
the bonds issued to fund the Program and the Participation (the “Bonds”) is excluded from gross
income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986
(the “Code”).
1.1 Use of Facilities. The proceeds of the Participation (the “Proceeds”) will be used
to finance the construction or acquisition of certain public improvements (the “Facilities”). The
Fee Recipient or another state or local government agency will own, and for the entire useful life
of the Facilities reasonably expects to own, all of the Facilities. To the extent any of the
Facilities are sold to an entity that is not a state or local government agency, the procedures
outlined in the SCIP Reference Manual will be followed. The Fee Recipient will not allow any
of the Proceeds or any of the Facilities to be used (for example, by lease or other contract) in the
trade or business of any nongovernmental persons (other than in their roles as members of the
general public) and will not loan any of the Proceeds. All of the Facilities will be used in the
performance of essential governmental functions of the Fee Recipient or another state or local
government agency.
The average expected useful life of the Facilities is at least 20 years.
1.2 Timing of Expenditures. The Fee Recipient reasonably expects that all of the
Proceeds will be spent for the governmental purpose of the Participation within three years. In
addition, the Fee Recipient reasonably expects that at least 5% of the Proceeds will be spent, or
that the Fee Recipient will incur a binding obligation to a third party involving an expenditure of
such amount, within six months. The Fee Recipient reasonably expects that construction or
acquisition of the Facilities will proceed with due diligence to completion and that th e allocation
of proceeds to expenditures for the Facilities will proceed with due diligence. None of the
Proceeds will be used to pay principal of or interest on any obligations.
1.3 Expenditure of Proceeds. Proceeds and other deposits under the Program are not
treated as spent on the Facilities until the Local Agency makes a transfer to a person unrelated to
the Local Agency and such transfer represents a payment for the Facilities. A payment for the
Facilities will occur if Proceeds or other deposits under the Program are transferred from the
Local Agency Accounts (as defined in the Trust Agreement relating to the Participation) either
(a) to the Local Agency and actually used to make a payment to a person unrelated to the Local
Agency no later than three days after the transfer or (b) directly to a third party at the direction of
the Local Agency to pay the cost of the Facilities, or (c) to the Local Agency to reimburse the
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Local Agency of costs of the Facilities paid before the date of the transfer. To the extent
Proceeds or other deposits under the Program are transferred to the Local Agency to reimburse
the Local Agency for costs of Facilities paid before the date of the transfer, Proceeds will only be
treated as spent if (i) such costs were originally paid no earlier than 60 days before the date of the
respective reimbursement declaration related to such transfer attached hereto as Schedule I, and
(ii) the disbursement of Proceeds to reimburse for such costs occurs within 18 months of the date
the costs were paid or 18 months of the date the respective Facilities was placed in service
(whichever is later), but in no case more than 3 years after the date the costs were paid by the
Local Agency.