What types of utility receivables does UCG purchase?

Utility Capital Group acquires front foot benefit charges (FFBCs), private water and sewer assessments, utility line extension agreements, homebuilder infrastructure receivables, stormwater management assessments, and special taxing district receivables. We work with receivables from single-family, townhome, condominium, 55+ active adult, self-storage, and industrial developments.

What geographic areas does UCG serve?

Utility Capital Group actively acquires utility receivables across the Mid-Atlantic, including Maryland and Delaware. We are expanding into additional jurisdictions and welcome conversations about opportunities outside our core markets.

How quickly can UCG close on a receivable portfolio?

For existing portfolios where homes have already sold and assessments are in place, we typically respond with a competitive offer within one week of receiving the details. Closing timelines depend on complexity but are generally measured in weeks, not months.

Can UCG commit to purchasing receivables before homes are built?

Yes. Forward purchase commitments are one of our two acquisition tracks. Before homes close, we commit to purchasing the receivables as they are created, giving you certainty on capital flows before you break ground.

Why would a developer sell utility receivables instead of collecting them?

Most developers sell because their capital is better deployed in land acquisition and vertical construction, they lack collections infrastructure, they want to protect community reputation in neighborhoods where they are still selling, and they need clean balance sheets to wind down LLCs or strengthen their borrowing base.

What information does UCG need to evaluate a receivable portfolio?

We need the community name, declaration, assessment structure, payment history, and remaining balance. We also look at the underlying utility company, rate structure, and jurisdiction. Contact us at acquisitions@utilitycapitalgroup.com with your details.

Does UCG only work with large developers?

No. Utility Capital Group is just as interested in a 5-unit deal as a 5,000-unit portfolio. We work with individual developers, regional homebuilders, and national builders like Toll Brothers, Brookfield, and Tri Pointe Homes.

What are front foot benefit charges (FFBCs)?

Front foot benefit charges are assessments levied against properties to finance the construction of water and sewer infrastructure. They are typically charged on a per-linear-foot basis along the property’s frontage and collected over a multi-year period, often 20 to 40 years. FFBCs are one of the most common utility receivable types that Utility Capital Group purchases.

Can UCG help set up the declaration and utility company?

Yes. Utility Capital Group can structure and set up the declaration and private utility company on your behalf, making the entire process hands-off for the developer. From entity formation through declaration recordation, we handle the details so you can stay focused on building.

Resources

Industry context for developers and homebuilders working with utility infrastructure receivables.

What Are Front Foot Benefit Charges?

Front foot benefit charges (FFBCs) are assessments levied against residential properties to finance the construction of private water and sewer infrastructure. They are one of the primary mechanisms by which developers fund utility buildout in new communities across Maryland.

How FFBCs Work

When a developer plans a residential community that requires new water or sewer infrastructure, they typically form a private utility company to build and own that infrastructure. Once constructed, the utility company records a Declaration of Front Foot Benefit Charges in the county land records. This declaration identifies the subdivision, the lots subject to the charge, the annual assessment amount, and the term over which it will be collected.

Upon recordation, the FFBC attaches to each lot as an obligation that runs with the land. When a homebuyer purchases a lot, they take title subject to the charge. The annual assessment is then paid by the homeowner — either billed directly by the utility company or collected as a line item on the county property tax bill, depending on the arrangement. A typical FFBC term runs 20 to 40 years, after which the charge expires. Ongoing utility service charges exist regardless of the FFBC.

Maryland Statutory Framework

Maryland is the state with the most established statutory framework governing FFBCs. The mechanism is rooted in the Maryland Code — principally the Real Property Article, which governs how front foot benefit charges attach to land, transfer with title, and are enforceable against successive property owners. The Environment Article addresses water quality and sewerage standards, while the Public Utilities Article establishes Maryland Public Service Commission (PSC) oversight of private utility companies, including approval of FFBC rate structures.

The private utility model became established in Maryland during the post-war suburban expansion of the mid-20th century, particularly in rapidly developing counties around Washington, D.C. and Baltimore. Today, there are more than 400 private water companies operating across over 1,000 communities in the state.

Why Developers Sell FFBCs

For developers, FFBCs represent long-dated receivables — capital that trickles back over decades while their business demands liquidity for the next land deal or vertical construction phase. Selling these receivables to a dedicated acquirer like Utility Capital Group allows developers to redeploy capital immediately, eliminate collections overhead, and maintain clean balance sheets.

Frequently Asked Questions

Common questions from developers and homebuilders about selling utility infrastructure receivables.

What types of utility receivables does UCG purchase?: Utility Capital Group acquires front foot benefit charges (FFBCs), private water and sewer assessments, utility line extension agreements, homebuilder infrastructure receivables, stormwater management assessments, and special taxing district receivables. We work with receivables from single-family, townhome, condominium, 55+ active adult, self-storage, and industrial developments.
What geographic areas does UCG serve?: Utility Capital Group actively acquires utility receivables across the Mid-Atlantic, including Maryland and Delaware. We are expanding into additional jurisdictions and welcome conversations about opportunities outside our core markets.
How quickly can UCG close on a receivable portfolio?: For existing portfolios where homes have already sold and assessments are in place, we typically respond with a competitive offer within one week of receiving the details. Closing timelines depend on complexity but are generally measured in weeks, not months.
Can UCG commit to purchasing receivables before homes are built?: Yes. Forward purchase commitments are one of our two acquisition tracks. Before homes close, we commit to purchasing the receivables as they are created, giving you certainty on capital flows before you break ground.
Why would a developer sell utility receivables instead of collecting them?: Most developers sell because their capital is better deployed in land acquisition and vertical construction, they lack collections infrastructure, they want to protect community reputation in neighborhoods where they are still selling, and they need clean balance sheets to wind down LLCs or strengthen their borrowing base.
What information does UCG need to evaluate a receivable portfolio?: We need the community name, declaration, assessment structure, payment history, and remaining balance. We also look at the underlying utility company, rate structure, and jurisdiction. Contact us at [email protected] with your details.
Does UCG only work with large developers?: No. Utility Capital Group is just as interested in a 5-unit deal as a 5,000-unit portfolio. We work with individual developers, regional homebuilders, and national builders like Toll Brothers, Brookfield, and Tri Pointe Homes.
What are front foot benefit charges (FFBCs)?: Front foot benefit charges are assessments levied against properties to finance the construction of water and sewer infrastructure. They are typically charged on a per-linear-foot basis along the property’s frontage and collected over a multi-year period, often 20 to 40 years. FFBCs are one of the most common utility receivable types that Utility Capital Group purchases.
Can UCG help set up the declaration and utility company?: Yes. Utility Capital Group can structure and set up the declaration and private utility company on your behalf, making the entire process hands-off for the developer. From entity formation through declaration recordation, we handle the details so you can stay focused on building.

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