3.739 Deferral of System Development Charges.
(1) Notwithstanding other provisions to the contrary, including Section 3.876, builders and developers may defer payment of street, sewer, storm drain, and parks system development charges (SDCs) as follows.
(2) To seek deferral of SDCs under this section, a builder or developer must file an application in a form provided by the City at the time of building permit application, and must pay a fee established by Council resolution.
(3) When SDCs are deferred as set forth in this section, the SDCs will be calculated at the time the deferral application is filed. All timelines for challenging the calculation of SDCs run from this date of calculation, and not from the due date for payment of SDCs as set forth below.
(4) The amount of SDCs which may be deferred as provided in this section is as follows:
(a) For single-family residential development, the full amount of SDCs can be deferred as set forth in subsection (5). The deferral mechanism set forth in this section shall not be available if the total SDCs for a particular property are calculated to be over $500,000.
(b) For multi-family residential development, commercial development, and industrial development, if the total SDCs are $250,000 or less, the full amount of SDCs can be deferred as set forth in subsection (5). If the total SDCs are between $250,001 and $500,000, then 30% of the SDCs shall be paid at time of building permit issuance, and the remainder can be deferred as set forth in subsection (5). The deferral mechanism set forth in this section shall not be available if the total SDCs for a particular property are calculated to be over $500,000.
(5) The length of the deferral provided for in this section is as follows:
(a) For single-family residential development, payment of SDCs shall be deferred to time of sale, or time of actual occupancy, whichever occurs first. For purposes of this section, “time of sale” refers to sale of a structure, not sale of a bare lot.
(b) For multi-family residential development, commercial development, and industrial development, payment of SDCs shall be deferred to issuance of certificate of occupancy, time of sale, or time of actual occupancy, whichever occurs first.
(c) In circumstances where payment of SDCs has been deferred until time of sale, the SDCs shall be paid by the seller as opposed to the buyer.
(6) Whenever SDCs are deferred as set forth in this section, the City shall place a lien in the amount of the deferred SDCs on the property as per the mechanism specified in Section 3.440. The lien shall be entered at least sixty days after approval of the application for SDC deferral.
(7) SDCs deferred under this section do not accrue interest until they are due as set forth in subsection (5) of this section. If not paid when due, SDCs will accrue interest from that due date at the rate established in the most recent fee schedule approved by resolution of the City Council. The City Recorder shall have the authority to adjust the rate under the circumstances set forth in Section 3.470(2).