Meritage Homes has delayed the city Planning Commission’s review of a proposed 305-home subdivision.

The commission was scheduled to review the proposal for the Sedan Avene project in southeast Manteca on Thursday when the nation’s fifth largest public home builder postponed the project’s consideration at the last minute.

The company cited market conditions but indicated they would assess the situation before the end of the year with the hope of moving forward in the first quarter of 2027.

The timing — and the relatively short time period for the market assessment — prompted speculation that the delay could be driven by local politics.

Meritage Homes has asked for continuances of scheduled public hearings twice since earlier this year when Mayor Gary Singh and Councilman Mike Morowit, serving on the council’s economic subcommittee, negotiated a development agreement with the builder where they agreed to pay up to an additional $16,000 per home for community benefits.

The previous continuances were sought well in advance of the commission meetings they were scheduled for review.

In addition, this marked the third consecutive week that long-term mortgage rates have dropped

Several developers have resisted, although unsuccessfully, efforts by the city led by Singh to secure additional funding for community benefits on top of the required growth fees and connection fees for water and wastewater service.

The project requires annexation to the city that provided a leverage for the negotiation of a development agreement.

Thursday’s agenda item was a continued public hearing to determine if the project was exempt from further review under the California Environmental Quality Act.

Once a development agreement is adopted that is tied to development entitlements the terms can’t be changed unless the project is scrapped by the private sector party and is started all over again.

Such entitlements accompany the map once it gains city approval and then the applicant opts to sell it to another developer.

There was no indication outside of the request for the third continuance that Meritage Homes might be entertaining a change in the development agreement.

That said, the action comes less than a month after the California Homeowners Association Political Action Committee (PAC) — whose largest contributors have been the Building Industry Association — launched a $15,000 negative social media campaign blitz to defeat Singh.

The BIA of Southern California board membership includes representatives of Pulte Group, Taylor Morrison, Trumark and Lennar Homes that are home builders in Manteca.

Lennar is building the Cedar Point neighborhood on Austin Road.

Pulte as well as Tayor Morrison has new homes in Oakwood Trails in Southwest Manteca.

Trumark is building new homes in The Collective on Louise Avenue east of Highway 99.

Singh has accepted no campaign donations this election cycle from developers.

The $15,000 effort targeting Manteca’s incumbent mayor, according to filings required by the California Fair Political Practices Commission, was for the purpose of producing digital videos in opposition to Singh and buying placement across various platforms.

The Meritage project consists of 58.45 acres that abuts the west side of Sedan Avenue between the two 90 degree curves that takes the primarily east-west road on a north-south alignment for a short distance.

The community benefit could generate $4.86 million of if is paid at the time a building permit is issued.

The community benefit per home is reduced to $12,000 if paid when a phase of the project starts.

The community benefits condition is a carbon copy of what Singh and Morowit negotiated for a 147-home subdivision in north Manteca along Airport Way that could contribute up to $2,352,000 for the city to use for community benefit projects.

The 39-acre subdivision is north of the Indelicato neighborhood Kiper Homes is now building and west of Del Webb at Woodbridge.

To contact Dennis Wyatt, email dwyatt@mantecabulletin.com