H-1944

AN ACT Relating to growth strategies; amending RCW 36.70A.030, 36.70A.020, 36.70A.070, 36.70A.140, 35.21.685, 36.32.415, 59.18.440, 82.02.050, 82.02.090, and 82.46.010; adding a new section to chapter 36.70A RCW; and adding a new section to chapter 8.26 RCW.

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

Sec. 1. RCW 36.70A.030 and 1990 1st ex.s. c 17 s 3 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Adjacent jurisdictions" include contiguous counties, cities, and federally recognized Indian tribes.

(2) "Adopt a comprehensive land use plan" means to enact a new comprehensive land use plan or to update an existing comprehensive land use plan.

((~~(2)~~)) (3) "Affordable housing" means housing for income groups who typically have difficulty renting or purchasing market rate housing, and who have incomes that do not exceed eighty percent of the median income for the area. In order for housing to be affordable, total housing costs must not exceed thirty percent of the household's gross monthly income.

(4) "Agricultural land" means land primarily devoted to the commercial production of horticultural, viticultural, floricultural, dairy, apiary, vegetable, or animal products or of berries, grain, hay, straw, turf, seed, Christmas trees not subject to the excise tax imposed by RCW 84.33.100 through 84.33.140, or livestock, and that has long-term commercial significance for agricultural production.

((~~(3)~~)) (5) "Board" means the growth management board established to review plans and regulations established under this chapter.

(6) "City" means any city or town, including a code city.

((~~(4)~~)) (7) "Committee" means the interagency committee for outdoor recreation established under chapter 43.99 RCW.

(8) "Comprehensive land use plan," "comprehensive plan," or "plan" means a generalized coordinated land use policy statement of the governing body of a county or city that is adopted pursuant to this chapter.

((~~(5)~~)) (9) "Critical areas" include the following areas and ecosystems: (a) Wetlands; (b) areas with a critical recharging effect on aquifers used for potable water; (c) critical fish and wildlife habitat ((~~conservation areas~~)); (d) frequently flooded areas; and (e) geologically hazardous areas.

((~~(6)~~)) (10) "Department" means the department of community development.

((~~(7)~~)) (11) "Development regulations" means any controls placed on development or land use activities by a county or city, including, but not limited to, zoning ordinances, official controls, planned unit development ordinances, subdivision ordinances, and binding site plan ordinances.

((~~(8)~~)) (12) "Fair share housing" means housing of various types and densities, located within a community, that is affordable and available to low-income persons and persons with special needs, in proportion to the county or regional need. For purposes of fair share housing, a community is defined as an urban area and adjacent land within an adopted ten-year urban growth boundary, and may include more than one city.

(13) "Forest land" means land primarily useful for growing trees, including Christmas trees subject to the excise tax imposed under RCW 84.33.100 through 84.33.140, for commercial purposes, and that has long-term commercial significance for growing trees commercially.

((~~(9)~~)) (14) "Geologically hazardous areas" means areas that because of their susceptibility to erosion, sliding, earthquake, or other geological events, are not suited to the siting of commercial, residential, or industrial development consistent with public health or safety concerns.

((~~(10)~~)) (15) "Long-term commercial significance" includes the growing capacity, productivity, and soil composition of the land for long-term commercial production, in consideration with the land's proximity to population areas, and the possibility of more intense uses of the land.

((~~(11)~~)) (16) "Mineral((s)) resource lands" include those lands identified and devoted to the long-term commercial extraction of gravel, sand, rock, and valuable metallic substances.

(17) "Natural resource lands" means agricultural lands, forest lands, and mineral resource lands.

(18) "New community" means a comprehensive development providing for a mixture of land uses which includes the following: (a) A mix of jobs, housing, and public facilities needed for a self-contained community, including a fair share of affordable housing; (b) preservation of open spaces within and around the community; (c) an internal and external transportation system supportive of pedestrian access and mass transit; (d) the new infrastructure needed to serve the proposed community; and (e) the mitigation of off-site impacts.

(19) "Open space lands" include land areas, the protection of which would: (a) Conserve and enhance scenic, or viewshed resources; (b) provide scenic amenities and community identity within and between areas of urban development; (c) protect physical and/or visual buffers within and between areas of urban and rural development, or along transportation corridors; (d) protect lakes, rivers, streams, watersheds, or water supply; (e) promote conservation of critical areas, natural resource lands, soils, geologically hazardous areas, or tidal marshes, beaches, or other shoreline areas; (f) enhance the value to the public of abutting or neighboring parks, forests, wildlife habitat, trails, or other open space; (g) enhance visual enjoyment and recreation opportunities, including public access to shoreline areas; (h) protect natural areas and environmental features with significant educational, scientific, wildlife habitat, historic, or scenic value; or (i) retain in its natural state tracts of land not less than five acres situated in an urban environment.

((~~(12)~~)) (20) "Public facilities" include streets, roads, highways, sidewalks, street and road lighting systems, traffic signals, domestic water systems, storm and sanitary sewer systems, parks and recreational facilities, and schools.

((~~(13)~~)) (21) "Public services" include fire protection and suppression, law enforcement, public health, education, recreation, environmental protection, and other governmental services.

(22) "Region" means one or more counties and the cities within the county or counties, including multicounty regions.

(23) "Special district" means every municipal and quasi-municipal corporation other than a county or city. Special districts shall include, but are not limited to: Water districts, sewer districts, public transportation benefit areas, fire protection districts, port districts, library districts, school districts, public utility districts, county park and recreation service areas, flood control zone districts, irrigation districts, diking districts, and drainage improvement districts.

(24) "State agencies" means all departments, boards, commissions, institutions of higher education, and offices of state government, except those in the legislative or judicial branches, except to the extent otherwise required by law.

((~~(14)~~)) (25) "Urban growth" refers to growth that makes intensive use of land for the location of buildings, structures, and impermeable surfaces to such a degree as to be incompatible with the primary use of such land for the production of food, other agricultural products, or fiber, or the extraction of mineral resources. When allowed to spread over wide areas, urban growth typically requires urban governmental services. "Characterized by urban growth" refers to land having urban growth located on it, or to land located in relationship to an area with urban growth on it as to be appropriate for urban growth.

((~~(15)~~)) (26) "Urban growth areas" means those areas designated by a county pursuant to RCW 36.70A.110.

((~~(16)~~)) (27) "Urban governmental services" include those governmental services historically and typically delivered by cities, and include storm and sanitary sewer systems, domestic water systems, street cleaning services, fire and police protection services, public transit services, and other public utilities associated with urban areas and normally not associated with nonurban areas.

((~~(17)~~)) (28) "Wetland" or "wetlands" means areas that are inundated or saturated by surface water or ground water at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted for life in saturated soil conditions. Wetlands generally include swamps, marshes, bogs, and similar areas. Wetlands do not include those artificial wetlands intentionally created from nonwetland sites, including, but not limited to, irrigation and drainage ditches, grass-lined swales, canals, detention facilities, wastewater treatment facilities, farm ponds, and landscape amenities. However, wetlands may include those artificial wetlands intentionally created from nonwetland areas created to mitigate conversion of wetlands, if permitted by the county or city.

PART I

PLANNING GOALS

Sec. 2. RCW 36.70A.020 and 1990 1st ex.s. c 17 s 2 are each amended to read as follows:

The following goals are adopted to guide the development and adoption of comprehensive plans and development regulations of those counties and cities that are required or choose to plan under RCW 36.70A.040. The following goals are not listed in order of priority and shall be used ((~~exclusively~~)) for the purpose of guiding the development of comprehensive plans and development regulations. However, plans, regulations, and actions, including expenditures of state-appropriated funds, of state agencies, counties, and cities required or choosing to plan, and special districts shall conform to and support these goals:

(1) Urban growth areas. ((~~Encourage~~)) Urban development shall occur in urban growth areas where adequate public facilities and services exist or can be provided in an efficient manner.

Urban growth areas should be compact, have concentrated employment centers, and provide opportunities for people to live in a variety of housing types close to where they work. Plans should ensure an adequate supply of land for the number of jobs located in the urban growth area for the next ten years, as projected by the city or county, considering the nature and diversity of economic activity and for a variety of housing types. Development densities should be sufficient to: (a) Protect open space, natural features and parks, natural resource lands and critical areas within and outside of urban growth areas; (b) promote affordable housing; and (c) promote transit. Large land areas characterized by significant natural limitations such as steep slopes, seismic hazard areas, flood plains, and wetlands should not be designated for urban growth.

New development should be designed to respect the planned and existing character of neighborhoods. Open spaces and natural features should be preserved within urban areas.

(2) Reduce sprawl. Reduce the inappropriate conversion of undeveloped land into sprawling, low-density development.

(3) Transportation. ((~~Encourage~~)) Develop efficient multimodal transportation systems that are based on regional priorities and coordinated with county and city comprehensive plans. Provide alternatives to single-occupant automobile travel in congested urban areas. Housing should be of sufficient density and employment centers should be concentrated to enable greater efficiency and affordability of transit service.

(4) Housing. Encourage ((~~the availability of affordable~~)) housing ((to)) for all economic segments of the population of this state, participate in making available a fair share of affordable housing, including affordable housing for people with special needs, promote zoning classifications which allow a variety of residential densities and housing types, ((~~and~~)) encourage preservation of existing housing stock, and assure that housing complies with local, state, and federal fair housing laws.

(5) Economic development. Encourage economic development throughout the state that is consistent with adopted comprehensive plans, promote economic opportunity for all citizens of this state, especially for unemployed and for disadvantaged persons, build a network of strong regional economies, identify and focus assistance on priority economic development areas where there is a need for growth and where there is the realistic capacity and broad local support for such growth, and encourage growth in areas experiencing insufficient economic growth, all within the capacities of the state's natural resources, public services, and public facilities.

(6) Property rights. Private property shall not be taken for public use without just compensation having been made. The property rights of landowners shall be protected from arbitrary and discriminatory actions.

(7) Permits. Applications for both state and local government permits should be processed in a timely and fair manner to ensure predictability.

(8) Natural resource industries. Maintain and enhance natural resource-based industries, including productive timber, agricultural, and fisheries industries. Encourage the conservation of productive forest lands and productive agricultural lands, and discourage incompatible uses.

(9) Open space and recreation. ((~~Encourage the retention of open space and development of recreational opportunities, conserve fish and wildlife habitat, increase access to natural resource lands and water, and develop parks.~~)) Protect open space and where possible link open space into regional and state-wide networks. Permanent open space networks should separate neighboring cities, where possible, and define distinct urban growth areas to prevent their merging into large continuous urban areas. Open space should be used to: Protect fish and wildlife habitat; protect environmentally sensitive land and water areas; provide park and outdoor recreational opportunities; protect scenic areas and viewsheds; accommodate nonmotorized recreational corridors and trails; and protect views and vistas within and around cities.

(10) Environment. Protect the environment and enhance the state's high quality of life, including air and water quality, and the availability of water. The protection of air and water quality shall be safeguarded for the general good health of all the residents of the jurisdiction. All waste and refuse shall be disposed of through sanitary methods to ensure the protection of air and water quality.

(11) Citizen participation and coordination. ((~~Encourage~~)) Ensure the involvement of citizens in the planning process and ensure coordination between communities and jurisdictions to reconcile conflicts.

(12) Public facilities and services. Ensure that those public facilities and services necessary to support development shall be adequate to serve the development at the time the development is available for occupancy and use without decreasing current service levels below locally established minimum standards. Ensure the siting of regional and state public facilities, so that each county and its cities accepts their fair share of public facilities and no community is overburdened.

(13) Historic preservation. Identify and encourage the preservation of lands, sites, and structures, that have historical or archaeological significance.

(14) Water Resources. Land use planning and permit decisions that will both protect water and create demand for water must be compatible with water resource plans. New growth must be related to water availability. New growth using water for domestic or industrial purposes should be located in the vicinity of where sufficient water resources exist without transporting water significant distances. Each county and its cities must integrate water resource planning for consumptive and nonconsumptive uses into its land use plan to, foremost, ensure the continuous ready supply of fresh and potable water in the amounts necessary to sustain the general good health of all its residents. Water is key for fish, wildlife, domestic use, industrial use, power, agriculture, aesthetics, and recreation.

PART II

LOCAL PLANNING

Sec. 3. RCW 36.70A.070 and 1990 1st ex.s. c 17 s 7 are each amended to read as follows:

The comprehensive plan of a county or city that is required or chooses to plan under RCW 36.70A.040 shall consist of a map or maps, and descriptive text covering objectives, principles, and standards used to develop the comprehensive plan. The plan shall be an internally consistent document and all elements shall be consistent with the future land use map. A comprehensive plan shall be adopted and amended with public participation as provided in RCW 36.70A.140.

Each comprehensive plan shall include a plan, scheme, or design for each of the following:

(1) A land use element designating the proposed general distribution and general location and extent of the uses of land, where appropriate, for agriculture, timber production, housing, commerce, industry, recreation, open spaces, public utilities, public facilities, and other land uses. The land use element shall provide for sufficient developable land and densities for a range of housing types. The land use element shall include population densities, building intensities, and estimates of future population growth. The land use element shall include designation of natural resource lands and lands for outdoor recreation as provided in RCW 36.70A.060. Each county shall include urban growth areas as established in RCW 36.70A.110 in its comprehensive land use plan. The land use element shall provide for protection of the quality and quantity of ground and surface water used for public water supplies and shall recognize that water availability and quality are key factors in determining the extent, location, distribution, and intensity of land uses. Where applicable, the land use element shall review drainage, flooding, and storm water run-off in the area and nearby jurisdictions and provide guidance for corrective actions to mitigate or cleanse those discharges that pollute waters of the state, including Puget Sound or waters entering Puget Sound.

(2) A housing element recognizing the vitality and character of established residential neighborhoods that: (a) Includes an inventory and analysis of existing and projected housing needs including a jobs-housing balance consisting of at least a comparison between the supply of housing and the number of jobs projected in the next ten years in the community, as well as an assessment of whether the housing is affordable to the workers; (b) includes a statement of goals, policies, and objectives for the preservation, improvement, and development of housing and for meeting fair share affordable housing goals within the county and/or jurisdictions; (c) identifies sufficient land and densities for housing; (d) identifies and accommodates a fair share accommodation of low-income and moderate-income housing, including, but not limited to, government-assisted housing, housing for people with special needs, housing for low-income families, manufactured housing, multifamily housing, and group homes and foster care facilities; ((~~and (d)~~)) (e) makes adequate provisions for existing and projected needs of all economic segments of the community; (f) promotes housing that is affordable; (g) identifies zoning restrictions that unduly limit density or which unreasonably increase housing development costs; (h) includes at least a ten-year plan for financing the preservation and development of affordable housing and for meeting the community's fair share affordable housing goals. The plan shall realistically project the amount of low-income housing units that will be needed in the community in the next ten years, and how much money could be raised to meet the housing need from bond sales, excess levies, real estate excise tax collections, impact fees, grants, and other funding sources; and (i) minimizes the displacement of residents from housing. In furtherance of affordable housing objectives, for land use and zoning purposes manufactured housing that meets the definition of a designated manufactured home, as provided in RCW 35.63.160, shall be permitted as single-family housing. Cities and counties are also encouraged to facilitate the siting of mobile home parks in furtherance of affordable housing objectives by decreasing lot size and setback requirements, and by allowing mobile home parks to be sited the same as other residential subdivisions.

(3) A capital facilities plan element consisting of: (a) An inventory of existing capital facilities owned by public entities, showing the locations and capacities of the capital facilities; (b) a forecast of the future needs for such capital facilities; (c) the proposed locations and capacities of expanded or new capital facilities; (d) at least a six-year plan that will finance such capital facilities within projected funding capacities and clearly identifies sources of public money for such purposes; and (e) a requirement to reassess the land use element if probable funding falls short of meeting existing needs and to ensure that the land use element, capital facilities plan element, and financing plan within the capital facilities plan element are coordinated and consistent.

(4) A utilities element consisting of the general location, proposed location, and capacity of all existing and proposed utilities, including, but not limited to, electrical lines, telecommunication lines, and natural gas lines.

(5) Counties shall include a rural element including lands that

are not designated for urban growth, agriculture, forest, or mineral resources. The rural element shall permit land uses that are compatible with the rural character of such lands and provide for a variety of rural densities and do not foster urban growth.

(6) A transportation element that implements, and is consistent with, the land use element. The transportation element shall include the following subelements:

(a) Land use assumptions used in estimating travel;

(b) Facilities and services needs, including:

(i) An inventory of air, water, and land transportation facilities and services, including transit alignments, to define existing capital facilities and travel levels as a basis for future planning;

(ii) Level of service standards for all arterials and transit routes to serve as a gauge to judge performance of the system. These standards should be regionally coordinated;

(iii) Specific actions and requirements for bringing into compliance any facilities or services that are below an established level of service standard;

(iv) Forecasts of traffic for at least ten years based on the adopted land use plan to provide information on the location, timing, and capacity needs of future growth;

(v) Identification of system expansion needs and transportation system management needs to meet current and future demands;

(i) An analysis of funding capability to judge needs against probable funding resources;

(ii) A multiyear financing plan based on the needs identified in the comprehensive plan, the appropriate parts of which shall serve as the basis for the six-year street, road, or transit program required by RCW 35.77.010 for cities, RCW 36.81.121 for counties, and RCW 35.58.2795 for public transportation systems;

(iii) If probable funding falls short of meeting identified needs, a discussion of how additional funding will be raised, or how land use assumptions will be reassessed to ensure that level of service standards will be met;

(d) Intergovernmental coordination efforts, including an assessment of the impacts of the transportation plan and land use assumptions on the transportation systems of adjacent jurisdictions;

(e) Demand-management strategies.

After adoption of the comprehensive plan by jurisdictions required to plan or who choose to plan under RCW 36.70A.040, local jurisdictions must adopt and enforce ordinances which prohibit development approval if the development causes the level of service on a transportation facility to decline below the standards adopted in the transportation element of the comprehensive plan, unless transportation improvements or strategies to accommodate the impacts of development are made concurrent with the development. These strategies may include increased public transportation service, ride sharing programs, demand management, and other transportation systems management strategies. For the purposes of this subsection (6) "concurrent with the development" shall mean that improvements or strategies are in place at the time of development, or that a financial commitment is in place to complete the improvements or strategies within six years.

The transportation element described in this subsection, and the six-year plans required by RCW 35.77.010 for cities, RCW 36.81.121 for counties, and RCW 35.58.2795 for public transportation systems, must be consistent.

(7) A design element that enables communities to harmoniously fit new development with planned or existing community character and vision.

(8) An environmental management element that minimizes development and growth impacts on the environment and enhances the quality of air, water, and land resources.

(9) An open space and outdoor recreation element that provides for local and regional parks, outdoor recreation facilities, trails, resource conservation, natural vistas, and open space.

(10) An annexation element for cities and incorporation element for counties to clearly delineate a local government service delivery plan.

(11) A fair share element for siting state and regional public facilities.

PART III

HOUSING

NEW SECTION. Sec. 4. A new section is added to chapter 36.70A RCW to read as follows:

(1) The department shall establish by rule in consultation with local governments the process for determining a community's fair share housing goal. The process shall utilize county-wide data provided by the office of financial management to establish the fair share affordable housing goal in each community in the county, except that the department may aggregate data from more than one county where it deems appropriate. The process shall include a review of the amount and condition of existing housing stock, the projected need for affordable housing in the community, per capita income, population density, amount of developable land in the urban growth area, and the projected number of jobs in the community in the next ten years. The department may add additional criteria as deemed necessary. Each community's fair share affordable housing goal shall include housing that is affordable to very low-income and low-income households, and persons with special housing needs. The department shall also encourage cooperative efforts between communities to meet their fair share affordable housing goal.

(2) The department shall require each community to submit a report every four years that describes the progress that is being made to meet its fair share affordable housing goal. Communities that exceed their fair share affordable housing goals shall receive preference points in applications for grants or loans under the public works assistance account and the housing trust fund. In determining whether a community is making a good faith effort to meet its fair share affordable housing goals, the department may consider a community's effort in reducing minimum lot and frontage sizes, the amount of local effort compared to the tax capacity, the submission of any bond and levy measures to the voters for affordable housing, the identification and elimination of restrictive zoning or regulations that impact affordable housing, the enactment of density bonuses and land use techniques such as cluster housing and planned unit developments, the adoption of a current use classification for assessing low-income housing, and efforts to preserve federally assisted housing developments.

Sec. 5. RCW 36.70A.140 and 1990 1st ex.s. c 17 s 14 are each amended to read as follows:

Each county and city that is required or chooses to plan under RCW 36.70A.040 shall establish procedures providing for early and continuous public participation in the development and amendment of comprehensive land use plans and development regulations implementing such plans. The procedures shall provide for broad dissemination of proposals and alternatives, opportunity for written comments, public meetings after effective notice, provision for open discussion, communication programs, information services, and consideration of and response to public comments. Errors in exact compliance with the established procedures shall not render the comprehensive land use plan or development regulations invalid if the spirit of the procedures is observed.

Every city with a population of twenty-five thousand or more that plans under RCW 36.70A.040 shall establish a neighborhood inclusion process. The process shall allow neighborhood groups an opportunity to develop a neighborhood plan that addresses how their neighborhood can help the city meet its overall goals and requirements for growth management. The neighborhood plan must be consistent with the goals, requirements, and priorities of the city. The city shall: (1) Provide neighborhood groups with a listing of what the city is required to do in order to comply with growth management provisions; (2) assist neighborhood groups with the development of the neighborhood plan when possible; (3) establish timelines for when the neighborhood plans must be submitted to the city for review; and (4) help in the development of impact mitigation measures for the neighborhood when a neighborhood increases its density, or when state or regional public facilities are sited in the neighborhood. If the neighborhood plan does not proceed in a timely manner, the city may assume control over the process and complete the plan.

Every city with a population of twenty-five thousand or more shall establish citizen advisory councils to assist in the development of the comprehensive land use plans and development regulations. Other jurisdictions may establish citizen advisory councils. The councils shall be consulted on the development of methods to meet fair share housing goals, and be consulted at key planning milestones.

The department shall hold community forums throughout the state in order to disseminate information concerning neighborhood participation in growth management. These forums may be held jointly with a city or county. Information may include community options for increasing densities including impact mitigation measures when greater densities are accepted, the implementation of design and review standards, and working with government to minimize conflicts over the siting of public facilities in the community.

NEW SECTION. Sec. 6. A new section is added to chapter 8.26 RCW to read as follows:

Whenever the state or a local public agency demolishes or otherwise eliminates low-income housing as defined in RCW 36.32.415 for a public works project, it shall deposit moneys in a local jurisdiction housing replacement fund in an amount equal to the cost of providing an equal number of new low-income rental housing units in the same location. The moneys may only be used for acquiring, constructing, or rehabilitating low-income housing stock. Nothing in this section shall require a state or local public agency to pay an impact fee for demolishing housing that constitutes a nuisance or a health or safety hazard to the community.

Sec. 7. RCW 35.21.685 and 1986 c 248 s 1 are each amended to read as follows:

A city or town may assist in the development or preservation of publicly or privately owned housing for persons of low income by providing loans or grants ((~~of general municipal funds~~)) to the owners or developers of the housing. The loans or grants shall be pursuant to a plan or program authorized by the legislative authority of the city or town((~~. They may be made~~)) to finance all or a portion of the cost of construction, reconstruction, acquisition, or rehabilitation of housing that will be occupied by ((a)) one or more persons or ((~~family~~)) families of low income or relocation assistance for such persons or families. As used in this section, "low income" means income that does not exceed eighty percent of the median income for the county or, if applicable, the standard metropolitan statistical area in which the city or town is located. For the purpose of this section, "owner" includes a lessee under a ground lease or a master lease. Housing constructed or rehabilitated with loans or grants made under this section shall not be considered public works or improvements subject to competitive bidding or a purchase of services subject to the prohibition against advance payment for services: PROVIDED, That whenever feasible the borrower or grantee shall make every reasonable and practicable effort to utilize a competitive public bidding process.

Sec. 8. RCW 36.32.415 and 1986 c 248 s 2 are each amended to read as follows:

A county may assist in the development or preservation of publicly or privately owned housing for persons of low income by providing loans or grants ((~~of general county funds~~)) to the owners or developers of the housing. The loans or grants shall be made pursuant to a plan or program authorized by the legislative authority of a county((~~. They may be made~~)) to finance all or a portion of the cost of construction, reconstruction, acquisition, or rehabilitation of housing that will be occupied by ((a)) one or more persons or ((~~family~~)) families of low income or relocation assistance for such persons or families. As used in this section, "low income" means income that does not exceed eighty percent of the median income for the county or, if applicable, the standard metropolitan statistical area in which the county is located. For the purpose of this section, "owner" includes a lessee under a ground lease or master lease. Housing constructed or rehabilitated with loans or grants made under this section shall not be considered public works or improvements subject to competitive bidding or a purchase of services subject to the prohibition against advance payment for services: PROVIDED, That whenever feasible the borrower or grantee shall make every reasonable and practicable effort to utilize a competitive public bidding process.

Sec. 9. RCW 59.18.440 and 1990 1st ex.s. c 17 s 49 are each amended to read as follows:

(1) Any city, town, county, or municipal corporation that ((~~is required to~~)) develops a comprehensive plan under RCW ((~~36.70A.040(1)~~)) 36.70A.040 is authorized to require, after reasonable notice to the public and a public hearing, property owners to provide their portion of reasonable relocation assistance to low-income tenants upon the demolition, substantial rehabilitation whether due to code enforcement or any other reason, or change of use of residential property, or upon the removal of use restrictions in an assisted-housing development. No city, town, county, or municipal corporation may require property owners to provide relocation assistance to low-income tenants, as defined in this chapter, upon the demolition, substantial rehabilitation, upon the change of use of residential property, or upon the removal of use restrictions in an assisted-housing development, except as expressly authorized herein or when authorized or required by state or federal law. As used in this section, "assisted housing development" means a multifamily rental housing development that either receives government assistance and is defined as federally assisted housing in RCW 59.28.020, or that receives other federal, state, or local government assistance and is subject to use restrictions.

(2) As used in this section, "low-income tenants" means tenants whose combined total income per dwelling unit is at or below fifty percent of the median income, adjusted for family size, in the county where the tenants reside.

The department of community development shall adopt rules defining county median income in accordance with the definitions promulgated by the federal department of housing and urban development.

(3) A requirement that property owners provide relocation assistance shall include the amounts of such assistance to be provided to low-income tenants. In determining such amounts, the jurisdiction imposing the requirement shall evaluate, and receive public testimony on, what relocation expenses displaced tenants would reasonably incur in that jurisdiction including:

(a) Actual physical moving costs and expenses;

(b) Advance payments required for moving into a new residence such as the cost of first and last month's rent and security and damage deposits;

(d) Anticipated additional rent and utility costs in the residence for one year after relocation.

(4)(a) Relocation assistance provided to low-income tenants under this section shall not exceed two thousand dollars for each dwelling unit displaced by actions of the property owner under subsection (1) of this section. A city, town, county, or municipal corporation may make future annual adjustments to the maximum amount of relocation assistance required under this subsection in order to reflect any changes in the housing component of the consumer price index as published by the United States department of labor, bureau of labor statistics.

(b) The property owner's portion of any relocation assistance provided to low-income tenants under this section shall not exceed one-half of the required relocation assistance under (a) of this subsection in cash or services. A city, town, county, or municipal corporation may authorize the cash portion of the relocation assistance provided by the property owner to be in the form of foregone rent, and may establish a value on services provided by the landlord, such as moving, that assist the tenants to relocate.

(c) The portion of relocation assistance not covered by the property owner under (b) of this subsection shall be paid by the city, town, county, or municipal corporation authorized to require relocation assistance under subsection (1) of this section. The relocation assistance may be paid from proceeds collected from the excise tax imposed under RCW 82.46.010.

(5) A city, town, county, or municipal corporation requiring the provision of relocation assistance under this section shall adopt policies, procedures, or regulations to implement such requirement. Such policies, procedures, or regulations shall include provisions for administrative hearings to resolve disputes between tenants and property owners relating to relocation assistance or unlawful detainer actions during relocation, and shall require a decision within thirty days of a request for a hearing by either a tenant or property owner.

Judicial review of an administrative hearing decision relating to relocation assistance may be had by filing a petition, within ten days of the decision, in the superior court in the county where the residential property is located. Judicial review shall be confined to the record of the administrative hearing and the court may reverse the decision only if the administrative findings, inferences, conclusions, or decision is:

(a) In violation of constitutional provisions;

(b) In excess of the authority or jurisdiction of the administrative hearing officer;

(d) Arbitrary and capricious.

(6) Any city, town, county, or municipal corporation may require relocation assistance, under the terms of this section, for otherwise eligible tenants whose living arrangements are exempted from the provisions of this chapter under RCW 59.18.040(3) and if the living arrangement is considered to be a rental or lease pursuant to RCW 67.28.180(1).

(7)(a) Persons who move from a dwelling unit prior to the application by the owner of the dwelling unit for any governmental permit necessary for the demolition, substantial rehabilitation, or change of use of residential property or prior to any notification or filing required for condominium conversion shall not be entitled to the assistance authorized by this section.

(b) Persons who move into a dwelling unit after the application for any necessary governmental permit or after any required condominium conversion notification or filing shall not be entitled to the assistance authorized by this section if such persons receive written notice from the property owner prior to taking possession of the dwelling unit that specifically describes the activity or condition that may result in their temporary or permanent displacement and advises them of their ineligibility for relocation assistance.

Sec. 10. 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 that new development reducing the supply of low-income housing contribute to the cost to the community of the development of replacement low-income housing; 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

(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, or for replacement housing. 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.

(5) Any jurisdiction authorized to impose impact fees under this section may also impose, on any development activity that involves the demolition of a structure previously used as low-income housing, or the conversion of any such structure to use other than low-income housing, a housing replacement fee. The housing replacement fee may not exceed the estimated cost to the jurisdiction of offsetting the impact of the development activity on the supply of low-income housing in the area in which the development is located. Any housing replacement fee shall be calculated by the jurisdiction in accordance with standards adopted by ordinance or regulation. All replacement housing fees shall be used to provide or finance low-income housing in the manner authorized by RCW 35.21.685 or 36.32.415.

After July 1, 1993, continued authorization to collect housing replacement fees shall be contingent on the jurisdiction adopting or revising a comprehensive plan in compliance with RCW 36.70A.070, and in compliance with the local jurisdiction's fair share affordable housing goal pursuant to chapter 36.70A RCW.

Sec. 11. RCW 82.02.090 and 1990 1st ex.s. c 17 s 48 are each amended to read as follows:

Unless the context clearly requires otherwise, the following definitions shall apply in RCW 82.02.050 through 82.02.090:

(1) "Development activity" means any construction or expansion of a building, structure, or use, any change in use of a building or structure, or any changes in the use of land, that creates additional demand and need for public facilities.

(2) "Development approval" means any written authorization from a county, city, or town which authorizes the commencement of development activity.

(3) "Impact fee" means a payment of money imposed upon development as a condition of development approval to pay for public facilities needed to serve new growth and development, and that is reasonably related to the new development that creates additional demand and need for public facilities, that is a proportionate share of the cost of the public facilities, and that is used for facilities that reasonably benefit the new development. "Impact fee" does not include a reasonable permit or application fee.

(4) "Owner" means the owner of record of real property, although when real property is being purchased under a real estate contract, the purchaser shall be considered the owner of the real property if the contract is recorded.

(5) "Proportionate share" means that portion of the cost of public facility improvements that are reasonably related to the service demands and needs of new development.

(6) "Project improvements" mean site improvements and facilities that are planned and designed to provide service for a particular development project and that are necessary for the use and convenience of the occupants or users of the project, and are not system improvements. No improvement or facility included in a capital facilities plan approved by the governing body of the county, city, or town shall be considered a project improvement.

(7) "Public facilities" means the following capital facilities owned or operated by government entities: (a) Public streets and roads; (b) publicly owned parks, open space, and recreation facilities; (c) school facilities; (d) low-income housing; and ((~~(d)~~)) (e) fire protection facilities in jurisdictions that are not part of a fire district.

(8) "Service area" means a geographic area defined by a county, city, town, or intergovernmental agreement in which a defined set of public facilities provide service to development within the area. Service areas shall be designated on the basis of sound planning or engineering principles.

(9) "System improvements" mean public facilities that are included in the capital facilities plan and are designed to provide service to service areas within the community at large, in contrast to project improvements.

Sec. 12. RCW 82.46.010 and 1990 1st ex.s. c 17 s 36 are each amended to read as follows:

(1) The governing body of any county or any city may impose an excise tax on each sale of real property in the unincorporated areas of the county for the county tax and in the corporate limits of the city for the city tax at a rate not exceeding one-quarter of one percent of the selling price. The revenues from this tax shall be used by the respective jurisdictions for local capital improvements, including those listed in RCW 35.43.040.

After July 1, 1990, revenues generated from the tax imposed under this subsection in counties and cities that are required or choose to plan under RCW 36.70A.040 shall be used primarily for financing capital projects specified in a capital facilities plan element of a comprehensive plan, housing projects, and housing relocation assistance under RCW 59.18.440 and 59.18.450. However, revenues (a) pledged by such counties and cities to debt retirement prior to July 1, 1990, may continue to be used for that purpose until all outstanding debt is retired, or (b) committed prior to July 1, 1990, by such counties or cities to a capital project may continue to be used for that purpose until the project is completed.

(2) In lieu of imposing the tax authorized in RCW 82.14.030(2), the governing body of any county or any city may impose an additional excise tax on each sale of real property in the unincorporated areas of the county for the county tax and in the corporate limits of the city for the city tax at a rate not exceeding one-half of one percent of the selling price.

(3) Taxes imposed under this section shall be collected from persons who are taxable by the state under chapter 82.45 RCW upon the occurrence of any taxable event within the unincorporated areas of the county or within the corporate limits of the city, as the case may be.

(4) Taxes imposed under this section shall comply with all applicable rules, regulations, laws, and court decisions regarding real estate excise taxes as imposed by the state under chapter 82.45 RCW.

(5) As used in this section, "city" means any city or town; and "housing project" includes the construction, reconstruction, acquisition, or rehabilitation of housing to serve low-income persons by the city or county, or as provided in RCW 35.21.685 and 36.32.415.