FROM:
Development Services
SUBJECT:
Title
A Resolution of the City Council of the City of Fontana Approving a Development Impact Fee Deferral Agreement Between the City of Fontana and SA Golden Investments Inc. for a Multi-Family Residential Apartment Complex Project and Authorizing the City Manager to Enter into the Agreement and Take Certain Actions to Complete the Transaction.
End
RECOMMENDATION:
Recommendation
Adopt Resolution No. 2026-056, approving a Development Impact Fee Deferral Agreement between the City of Fontana and SA Golden Investments Inc. for a multi-family residential apartment complex project, and authorizing the City Manager to enter into the agreement and take certain actions to complete the transaction.
End
COUNCIL GOALS:
• To promote affordable housing by construction of high-quality multi-family housing which also serves to address the affordability needs of this community.
• To promote affordable housing by acquisition, substantial rehabilitation, and professional management of selected multi-family properties as a vehicle to reduce crime and code enforcement activity and to address the affordability needs of this community.
• To preserve the local environment for generations to come and to create a healthy economic and environmental future by adopting policies that promote compact and efficient development in new and existing communities.
• To assure that the Project is financially feasible, and that the Owner is able to deliver the needed affordable housing and supportive services.
DISCUSSION:
SA Golden Investments Inc. (“Owner”) owns a multi-family residential development located at 8423 Tamarind Avenue, Fontana, California 92335 (“Property”). The Property consists of a three-story apartment complex with two buildings totaling nine (9) units and associated amenities on approximately 36,400 square feet of land. The Owner has requested a deferral of development impact fees, and the City is willing to defer payment of such fees pursuant to the terms and conditions of a Development Impact Fee Deferral Agreement (“DIF Deferral Agreement”). The deferral applies only to development impact fees imposed by the City and does not apply to other City fees or to fees imposed by the County, school districts, or any other public agency. The key terms of the DIF Deferral Agreement are as follows:
1. The deferral applies only to development impact fees levied by the City and does not apply to any other City fees or to fees levied by the County, school districts, or any other public entity.
2. Deferred fees shall accrue simple interest at a rate of ten percent (10%) per year if not paid by the maturity date.
3. The Owner shall pay the principal amount of the deferred fees: (a) within thirty (30) days following issuance of the final Certificate of Occupancy (“COO”) for Building Nos. 1 and 2 (Permit Nos. BLD-25-00801 and BLD-25-00802), or (b) upon the close of escrow if the Property or Project is sold, whichever occurs first. In no event shall payment be made later than September 21, 2026.
4. The Owner shall execute the DIF Deferral Agreement with the City, which establishes the terms and conditions governing the deferral.
5. The City shall record the Agreement against the Property upon full execution and shall release the lien upon full payment of all deferred fees, including any applicable interest, charges, and fees.
FISCAL IMPACT:
Deferral of the impact fees will delay receipt of such revenues by the City until up to ninety (90) days after issuance of the final Certificate of Occupancy, or until the close of escrow if the Property or Project is sold, but no later than September 21, 2026.
MOTION:
Approve staff’s recommendation.