5898

AN ACT Relating to impact fees; amending RCW 82.02.050; and adding a new section to chapter 82.02 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. A new section is added to chapter 82.02 RCW to read as follows:

(1) When an impact fee is imposed upon development activity, the party concerned may pay that impact fee on or before the date required by the county, city, or town imposing the fee or may elect in his or her discretion to pay the fee, after occupancy of any structures constructed on the property upon which the relevant development activity occurred, in equal annual principal installments together with interest on the outstanding balance. The election to pay an impact fee over time shall be in the form of a written notice to the county, city, or town imposing the fee, and that election must be made before the date fixed for payment of the fee by that jurisdiction. The county, city, or town shall determine the rate of interest, which shall not exceed the then prevailing tax-exempt municipal bond interest rate, to be paid on any such impact fees paid over time, and shall also determine the number of years for payment, which number shall not be fewer than five nor more than fifteen. The county, city, or town also may determine the timing and manner of payment, may determine such other matters as it may deem relevant to the administration and collection of such payments, and may prescribe penalties for late payment.

(2) If a party chooses to pay an impact fee over time, those fees shall be a lien on the property upon which the relevant development activity occurred. The lien shall attach thirty days after the party's filing with the county, city, or town the written election to pay the impact fee over time. The lien shall be on a parity with the lien of local improvement assessments and shall be paramount and superior to any other lien or encumbrance theretofore or thereafter created except a lien for general taxes. The enforcement and validity or any such lien, including the foreclosure of any such lien, shall be in the same manner and subject to the same rights of redemption provided by law for cities and towns with respect to local improvement district assessments.

(3) Whenever any property on which an impact fee has been imposed and is being paid over time shall have been sold in part or subdivided, the legislative authority of the county, city, or town shall have the power to order a segregation of the fee. Any such segregation shall be made in the manner as provided in RCW 35.44.410 for the segregation of local improvement district assessments.

(4) The owner of any property upon which an impact fee has been imposed and is being paid over time may prepay all or any portion of the outstanding principal balance thereof by paying such portion with interest thereon to the date of the installment next falling due.

Sec. 2. RCW 82.02.050 and 1990 1st ex.s. c 17 s 43 are each amended to read as follows:

(1) It is the intent of the legislature:

(a) To ensure that adequate facilities are available to serve new growth and development;

(b) To promote orderly growth and development by establishing standards by which counties, cities, and towns may require, by ordinance, that new growth and development pay a proportionate share of the cost of new facilities needed to serve new growth and development; and

(c) To ensure that impact fees are imposed through established procedures and criteria so that specific developments do not pay arbitrary fees or duplicative fees for the same impact.

(2) Counties, cities, and towns that are required or choose to plan under RCW 36.70A.040 are authorized to impose impact fees on development activity as part of the financing for public facilities, provided that the financing for system improvements to serve new development must provide for a balance between impact fees and other sources of public funds and cannot rely solely on impact fees.

(3) The impact fees:

(a) Shall only be imposed for system improvements that are reasonably related to the new development;

(b) Shall not exceed a proportionate share of the costs of system improvements that are reasonably related to the new development; and

The total amount of any impact fees and any sewer or water hookup charges shall not exceed five percent of the value of the structure as indicated on the building permit.

(4) Impact fees may be collected and spent only for the public facilities defined in RCW 82.02.090 which are addressed by a capital facilities plan element of a comprehensive land use plan adopted pursuant to the provisions of RCW 36.70A.070 or the provisions for comprehensive plan adoption contained in chapter 36.70, 35.63, or 35A.63 RCW. After July 1, 1993, continued authorization to collect and expend impact fees shall be contingent on the county, city, or town adopting or revising a comprehensive plan in compliance with RCW 36.70A.070, and on the capital facilities plan identifying:

(a) Deficiencies in public facilities serving existing development and the means by which existing deficiencies will be eliminated within a reasonable period of time;

(b) Additional demands placed on existing public facilities by new development; and

If the capital facilities plan of the county, city, or town is complete other than for the inclusion of those elements which are the responsibility of a special district, the county, city, or town may impose impact fees to address those public facility needs for which the county, city, or town is responsible.