The cap on fees will bring down the cost of new homes in Sacramento County. Photo courtesy of Sacramento County

SACRAMENTO COUNTY, CA (MPG) - The Sacramento County Water Agency Board of Directors approved a new cap on Initial Water Development Fee Payments required at the Improvement Plan approval stage of the development process. The Development Fee Program pays for water infrastructure projects within the county’s Zone 40 area.

The fees are paid by developers and have been set at $21,399 per home being built. The Sacramento County Water Agency collects the fee during the development process. The initial payment is 15% of the total fee, with the remainder collected when the building permit is issued. 

Zone 40 was formed nearly 40 years ago as a capital development fund. The funds help build new water systems and ensure there is an adequate water supply for development within Zone 40.

Changing this Sacramento County Water Agency section, known as Title 4, allows the water agency discretion to cap the initial payment of 15% to a maximum of $200,000 per subdivision. Capping the fee will reduce one of the larger upfront costs typically financed by developers and help bring down the cost of building homes in Sacramento County.

The cap can be removed during an annual review if Sacramento County Water Agency finds a potential reduction in cash flow. Less money would impact the water agency’s ability to plan, design and construct new water supply facilities needed within Zone 40 for future development.

Sacramento County Water Agency has partnered with the Building Industry Association on these changes with a mutual goal of removing the barriers to building cost-effective housing in Sacramento County.