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Mello Roos or a Community Facilites District (CFD)

 

Special Taxes Raises Money For Infrastructure Financing

A governmental entity that may be formed by an existing local agency use of Public Financing for the purpose of providing certain designated additional public services or facilities. The CFD has the power to finance a broad range of public capital facilities by levying special taxes secured by the area where said services or facilities are being provided. Bonds may be issued for assisting in the financing of the public capital facilities.

The special tax, prior to being levied, must be approved by favorable two-thirds vote of the qualified electorate in the CFD. The CFD may include areas that are non-contiguous. "Local Agency" is any city, county, special district, school district, or joint powers district. Authorized Facilities and Services. Services.

Four categories of additional services may be provided through the Public Financing of a CFD Special District.
Police Services and Fire protection suppression, ambulance and paramedic services.

Library
Recreation program services including cost of maintenance
Flood amd storm protection services

The services that can be provided through a CFD must be new or in addition to those provided in the district before the district was created.

A CFD may not be used to replace existing services. Public Facilities. Any real or other tangible property with an estimated useful life of at least five years may be purchased, constructed, expanded, or rehabilitated through the use of a CFD.

Certain types of facilities are set forth in the Act, but are examples only and not a limit on the type of facilities for which a CFD may be used.

Public Financing Overview

What Improvements May Be Financed By Tax-Exempt Financing?

California assessment law and community facilities district law authorizes financing of the following:
Streets and Curbs
Water supply and distribution.
Gas, electric and telephone.
Sewers and drainage.
Parking.

Other public improvements that afford a direct benefit to the public.

Police, Fire Protection and other services with a useful life of over five years. Library and recreation program services including cost of maintenance and operation.
Flood and storm protection services including costs and expenses of operation Local park, recreation, or parkway facilities.
Elementary and secondary school sites and structures,
Natural gas, telephone, or electrical facilities for new areas,

What Interest Rates And Terms May Be Available If Tax-Exempt Financing is Used?

Interest rates are generally 2% to 3% less than conventional borrowing rates.

Public improvement costs may be spread over a 10 to 30 year period.

Community Facility Districts: A governmental entity that may be formed by an existing local agency for the purpose of providing certain designated additional public services or facilities.

The CFD has the power to finance a broad range of public capital facilities by levying special taxes secured by the area where said services or facilities are being provided. Bonds may be issued for assisting in the financing of the public capital facilities.

The special tax, prior to being levied, must be approved by favorable two-thirds vote of the qualified electorate in the CFD. The Community Facilities District or CFD may include areas that are non-contiguous.

 

   
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