In 2016, the City created the Underground Utility Assessment Loan Program to assist property owners facing significant financial difficulty when paying assessment and private connection costs associated with underground utility assessment districts.  The Loan Program offers relief to property owners who meet specific criteria such as the affected property must be their primary residence, and they meet age, income, and asset requirements as stipulated in the program guidelines.

Under the Loan Program, qualified residents can postpone their assessment by borrowing from the City.  The borrowed amount is equal to the annual assessments, which include their share of the bond and related interest payments as they become due, along with the one-time private connection costs.  The borrowing carries an annual interest rate of 1% above the interest rate assigned on the bonds for the assessment district.  The loan generally becomes due, plus accrued interest, upon the property’s sale or transfer of ownership.

In 2023, City Council revised the Loan Program to broaden the applicant criteria by lowering the age requirement from 62 to 55 and increasing the income threshold thereby allowing a larger number of residents to qualify for relief.

In 2025, City Council authorized the City Manager to provide discretionary approval for applicants of the Loan Program who do not meet the age requirements of the program, but otherwise meet all the other requirements such as income and asset requirements.

The Loan Program operates on a first-come, first-served basis subject to the availability of City funds.  Click below to view the program guidelines and 2025 State Income Limits.  Please contact the Finance Department at (949) 497-0793 for more information and/or to request an application form.

Assessment District Deferment Loan Program Guidelines

2025 State Income Limits

Deferment Loan Application Form

Loan Deferment Required Documents

SAMPLE - Loan Agreement

SAMPLE - Promissory Note

SAMPLE - Deed of Trust