Background:

Comprehensive Planning Under the Growth Management Act.

The Growth Management Act (GMA or Act) directs each jurisdiction planning under the Act to adopt a comprehensive land use plan, which is a generalized, coordinated land use policy statement of the governing body. Comprehensive plans must include specified planning elements, including a capital facilities plan. Each planning jurisdiction (jurisdiction) must also adopt development regulations that implement and conform with its comprehensive plan.

Impact Fees.

Jurisdictions may impose impact fees on development activity to help finance public facilities. Developers must pay impact fees as a condition of development approval. In determining strategies to finance system improvements, a local government must balance financing between impact fees and other public funds.

Jurisdictions must ensure that impact fees:

are used only for system improvements that are reasonably related to a development's impact on public facilities;
do not exceed a proportionate share of the cost of system improvements made necessary by a development; and
are used for system improvements that reasonably benefit a development.

A number of provisions for local ordinances regarding impact fees are specified under state law. Among these is a requirement for an impact fee schedule for each type of development activity, specifying the value of the impact fee imposed for each type of system improvement. The schedule must be based upon a formula or another calculation method.

Only certain types of capital facilities owned or operated by government entities may receive funding from impact fees. Such facilities are limited to the following:

public streets and roads;
publicly owned parks, open spaces, and recreation facilities;
school facilities; and
certain fire protection facilities.

Limitations on Impact Fees.

A jurisdiction must:

specifically earmark impact fees and retain them in interest-bearing accounts, establishing a separate account for each type of facility receiving fees;
report annually on each account;
expend fees only in conformance with the capital facilities plan element of the comprehensive plan; and
expend or encumber fees within six years of receipt, unless there is an extraordinary and compelling reason to hold them longer.

In the event a jurisdiction holds fees for more than six years, it must identify the reasons for doing so in the written findings of its governing body.

Each jurisdiction must provide an administrative appeals process for applicants wishing to appeal an impact fee. A jurisdiction may also provide for the resolution of such disputes by arbitration.