If a Cape Coral home sits in a Utilities Extension Project (UEP) area, the owner pays an assessment for new city water, sewer and irrigation lines. In North 1 East, approved in November 2025, a standard lot costs $32,288 paid up front or about $3,385 a year for 30 years on the tax bill. Any unpaid balance passes to the buyer, so check it before you make an offer.
What the UEP is
Large parts of Cape Coral were built on wells and septic tanks. The UEP extends city water, sewer and irrigation to those areas. The work includes the pipes, fire hydrants, lift stations and pump stations, plus rebuilt roads and storm drains.
Owners in each project area pay for it through a special assessment. It shows up as its own line on the property tax bill, separate from regular property taxes.
Where it is right now (November 2026)
| Area | Status | Standard lot |
|---|---|---|
| North 1 West | Approved March 2023. Construction substantially complete. First tax bill 2024. | $33,367 prepaid or $35,930 financed at 6.50% |
| North 1 East | Approved Nov 19, 2025. Construction Dec 2025 to end of 2027. First tax bill Nov 2026. | $32,288 ($25,538 assessment + $6,750 capacity charge) |
| North 3 | Not final. Council voted Nov 2, 2026 to rescind the plan while costs are recalculated. | Earlier estimates: $35,264 east of Burnt Store Rd, $41,029 west |
| North 5, North 6 | Study only | Not set |
Larger lots pay more. A standard residential lot in North 1 East is one 10,000 sq ft equivalent parcel.
How owners pay it
North 1 East shows the choices. The prepay windows have closed, so most owners there now pay yearly on the tax bill.
| Option | Standard lot |
|---|---|
| Prepay, first window (closed Mar 31, 2026) | $32,288 |
| Prepay, second window (closed Jul 31, 2026) | $33,142 |
| 20 years on the tax bill | $3,961 a year |
| 25 years on the tax bill | $3,616 a year |
| 30 years on the tax bill (default) | $3,385 a year |
The city lists 6.25% as the estimated maximum interest rate on the yearly option. Installments can be escrowed with your mortgage payment. You can pay off the balance later: the payoff is the current year's installment to the Lee County Tax Collector plus the remaining principal to the city.
The costs on top of the assessment
- Plumber to connect the house: $2,000 to $3,000, per the city's estimate. Cape Coral Breeze reported about $3,000 on average for North 1 East.
- Septic abandonment permit: about $100. The tank is pumped, collapsed and abandoned, not removed.
- Water meter and deposit: about $325 and $225 (city estimates).
- Deadline: owners must connect within 180 days of the Notice of Availability.
- Help: income-eligible owners can get a connection grant of up to $2,000.
What it does to your monthly cost
$3,385 a year is about $282 a month, on top of the mortgage, taxes and insurance. Put it in the math before you fall for the house.
How to check a property before you offer
- Request a payoff from the city. CapeIMS "Assessments & Payoffs" is free for any parcel. You can also email payoff@capecoral.gov. It shows UEP balances, open utility balances, code cases and permits.
- Read the tax bill. UEP installments sit in the non-ad valorem section, paid to the Lee County Tax Collector.
- Ask the seller and the listing agent whether the assessment is prepaid, on the tax bill, or in a project area that hasn't been assessed yet.
- Price it into the offer. Who pays is negotiable. I pull the payoff number before we write the offer so you can decide with the real figure.
Who pays at closing
The city says any unpaid balance passes to the new owner and stays with the property. Some lenders require it paid in full, and hardship deferral liens must be paid at closing. The purchase contract decides who pays what.
Questions buyers ask me
Is the UEP assessment a lien?
The city says it is generally not a lien. It is recorded as a notice with the Lee County Clerk, and the balance stays with the property.
Do I have to connect to city water and sewer?
Yes. Owners must connect within 180 days of the Notice of Availability. In North 1 East the notice also requires the irrigation connection.
Can I keep my well?
Usually yes. Whether you can use it for irrigation depends on the area.
Is there a senior or veteran discount?
No. The city's FAQ says there isn't one. There is a hardship deferral program and a connection grant for income-eligible owners.
Figures come from the City of Cape Coral and Cape Coral Breeze as of November 2026. Assessments, rates and deadlines change. Confirm every number with the city before you buy. This article is general information, not legal or financial advice.