A tenth of the first 219 homes that will be built in Villa Ticino West on the southwest corner of Airport Way and Louise Avenue are already in escrow.
The firm handing the sale of more than $5 million in community facilities district bonds for the expressed purpose of paying for the sewer, water, and storm lines, as well as roads, sidewalks, and underground utilities for the new neighborhood told the City Council Tuesday that 20 homes are already in escrow.
Richmond American recently finished the model homes.
The overall Villa Ticino West development will have 760 homes.
The 20 homes in escrow reflects the fact the new home market in Manteca is still fairly strong.
And if you consider what Tuesday’s action by the City Council to allow the bond sales to proceed, it also reflects the specific household income dynamics in play.
Richmond American is building two neighborhoods.
*Seasons at Villa Ticino priced from the mid-$700,000s feature 1,520 to 3,040 square feet with three to six bedroom floorplans.
*Villa Ticino priced from the mid-$600,000s feature 2,100 to 3,200 square feet with two to six bedroom floorplans.
The property tax with school bond payments for Manteca Unified and Delta College means buyers of the lowest priced homes in each neighborhood can expect a basic yearly tax cost of between $6,800 and $7,400.
The CFD for infrastructure will range from $1,225 to $1,806 per home
That’s for starters.
They also will need to pay for a community facilities district to supplement police and fire personnel financing that will also cover upkeep of roads, street lighting, and park amenities within their neighborhood.
That is in addition to a Manteca Unified community facilities district tax.
When all is said and done, the minimum annual property tax bill — that has a maximum annual escalation of 2 percent — will start at around $10,500.
The CFD for infrastructure finalized Tuesday as well as the MUSD school facilities CFD have limited 30-year lifespans.
The bonds are secured by the homes in the neighborhood and not the city.
That isolates the city from any risk should there be an issue on bond repayments.
The state allows the bond option to be exercised with the approval of the city in a bid to spur more housing to be built.
Funding for infrastructure is a large upfront cost that can be difficult at times for developers to obtain.
Homes without such CFDs have the cost of infrastructure collapsed into the price of the home.
In the case of Villa Ticino West, buyers — and subsequent owners on the resale market – will be paying for the initial infrastructure for 30 years.
Why city approval is needed is the fact it uses a chunk of the maximum CFD property tax load of 2 percent the state allows on the assessed value of a home. As such, it reduces what the city could use the CFD tax mechanism for other purposes.
To contact Dennis Wyatt, email dwyatt@mantecabulletin.com
