Development fees are charges imposed on developers to pay for public improvements, such as new parks, traffic signals, and schools. The fees are typically a percentage of the total construction cost, usually between 2% and 5%. 

A development fee deferral allows developers to make payments after securing long-term financing, which is usually lower cost than short-term construction loans. This arrangement benefits the community by avoiding budget shortfalls and collecting the expected revenue. 

Regulations will specify when deferred fees are due, and any penalties for not meeting the promised timeframe. For example, a fee may be due when a certificate of occupancy is issued or when permanent financing is secured. 

If a deferred fee is not paid within the allowed time period, a general partner guarantee may require a capital contribution to retire the obligation.