The Richmond Redevelopment Agency fee is a one-time charge of 1.5% of the sale price that some Marina Bay homes pay when they sell. It is not an annual tax, and it is not a reason a home is hard to finance. It comes due at closing on homes that are subject to it, and it traces back to the redevelopment that built the neighborhood.
What the Richmond Redevelopment Agency Fee Is
Marina Bay sits on Richmond’s waterfront, on land that was once the Kaiser Shipyards. When the area was redeveloped, some homes took on the Richmond Redevelopment Agency fee, a one-time charge equal to 1.5% of the gross sale price, collected at close of escrow when the property is sold. On a $500,000 sale, for example, that comes to $7,500.
Not every Marina Bay home is subject to the fee, so ask your agent to confirm whether a specific property is subject before you write an offer.
What the Fee Pays For
The fee supports the city’s affordable housing and community-development work, part of the same redevelopment effort that turned the blighted former shipyards into the waterfront neighborhood it is today, with its parks, the San Francisco Bay Trail, a marina, and thousands of homes.
The fee stays with the property for up to 50 years, so it is part of the home’s history rather than a charge tied to any one owner.
Is the Richmond Redevelopment Fee a Lien?
Yes. The Richmond Redevelopment Agency fee is a lien recorded against the property, so it is tied to the home rather than to you personally. You do not pay it while you own the home. It comes due when the property is sold and is settled through escrow at closing, alongside your other closing costs, and it stays attached to the home until it is handled at the next sale.
How the Fee Affects Financing
The Richmond Redevelopment Agency fee does not affect your standard financing options. What can get in the way is that some lenders carry overlays, their own added rules on top of the standard guidelines, that limit their ability to lend on a home tied to this program. Always check with your lender upfront.
JVM Lending is able to lend on these homes. We have stepped in on several deals at the eleventh hour, on properties in Marina Bay and other Richmond Community Redevelopment areas, after a national lender could not finish the job. Our Marina Bay financing guide covers the lender side in more detail.
Frequently Asked Questions
How much is the Richmond Redevelopment Agency fee?
It is 1.5% of the gross sale price, collected through escrow when the home sells. On a $500,000 sale, for example, that is $7,500.
Is the fee annual or one-time?
One-time. It is owed only when a home subject to it is sold. It is not an annual charge on the property tax bill.
Does every Marina Bay home have the fee?
No. Only some homes are subject to it, so ask your agent to confirm whether a specific property is subject before you write an offer.
Is the Richmond Redevelopment fee a lien?
Yes. It is a lien recorded against the property, so it is tied to the home rather than the owner. You do not pay it during ownership. It comes due when the home is sold and is settled through escrow at closing.
Does the fee make a home hard to finance?
No. The fee does not affect your standard financing options. Some lenders carry overlays that limit their ability to lend on a home tied to this program, so check with your lender upfront. JVM Lending is able to lend on these homes. See our guide to living in Marina Bay for more on the neighborhood.
The Bottom Line on the Richmond Redevelopment Agency Fee
The Richmond Redevelopment Agency fee is a one-time 1.5% charge that some Marina Bay homes pay at sale, and it supports the community that redevelopment built. If you are buying or selling one of these homes, confirm whether the fee applies and work with a lender who knows how it is handled.
Buying or selling a home in Marina Bay or another Richmond Community Redevelopment area? Reach out to JVM Lending. We know the Richmond Redevelopment Agency fee, and we have closed deals that other lenders could not.
Sources
- City of Richmond purchase agreement addendum (Contra Costa Association of REALTORS): Richmond Redevelopment Agency Fee upon transfer of home ownership, 1.5% of the gross sale price at close of escrow
- Richmond Community Redevelopment Agency, “What Redevelopment Means to Richmond” (redevelopment history and community benefits tied to the Marina Bay project)
- Escrow instructions for a Marina Bay conveyance (fee collected at close of escrow)
