BILL REQ. #: S-1562.1
State of Washington | 62nd Legislature | 2011 Regular Session |
READ FIRST TIME 02/17/11.
AN ACT Relating to establishing a process for the payment of impact fees through provisions stipulated in recorded covenants; and amending RCW 82.02.050 and 36.70A.070.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 82.02.050 and 1994 c 257 s 24 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)(a) Counties, cities, and towns collecting impact fees must make
available, in addition to other fee deferral ordinances that may have
been adopted, to applicants for building permits issued for a lot or
unit created by a subdivision, short subdivision, site development
permit, or condominium either:
(i)(A) A process by which the applicant may record a covenant,
which must also serve as a lien, against title to the lot or unit that
requires payment equal to one hundred percent of the impact fee
applicable to that lot or unit at the rates in effect at the time of
issuance of the building permit, less a credit for any deposits paid.
(B) Covenants recorded in accordance with this subsection (3)(a)(i)
must provide for payment through escrow of the impact fee at the time
of closing of sale of the unit that is the subject of the building
permit or within eighteen months after issuance of the building permit,
whichever is earlier. Payment of fees due at closing of a sale must be
made from seller's proceeds, unless an agreement to the contrary is
reached between buyer and seller. In the absence of such agreement to
the contrary, the seller bears strict liability for payment of such
fees; or
(ii) A process by which an applicant may apply for deferral of
impact fee payment until final inspection or certificate of occupancy,
or equivalent certification.
(b) A seller, and/or agents of a seller, of property subject to a
covenant authorized under this subsection (3) must provide written
disclosure of such covenant to a purchaser or prospective purchaser as
provided in chapter 64.06 RCW. Disclosure of such covenant must
include the amount of fees payable, and the government(s) or
district(s) to which fees are to be paid at closing.
(c) In the event the lot or unit is leased or rented rather than
sold, all impact fees applicable to such lot or unit must be paid in
full upon issuance of a certificate of occupancy or equivalent final
occupancy approval.
(d) This subsection (3) does not apply to dwellings built on land
owned or otherwise controlled by a party who contracts for the
construction of a dwelling.
(e) Notwithstanding the provisions of this section, any portion of
an impact fee necessary for school facilities must be paid at the time
any impact fee without a deferral would ordinarily be due.
(4) The impact fees:
(a) ((Shall)) Must only be imposed for system improvements that are
reasonably related to the new development;
(b) ((Shall)) May not exceed a proportionate share of the costs of
system improvements that are reasonably related to the new development;
and
(c) ((Shall)) Must be used for system improvements that will
reasonably benefit the new development.
(((4))) (5)(a) 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 the date a county, city, or town is required to
adopt its development regulations under chapter 36.70A RCW, continued
authorization to collect and expend impact fees ((shall be)) is
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))) (i) Deficiencies in public facilities serving existing
development and the means by which existing deficiencies will be
eliminated within a reasonable period of time;
(((b))) (ii) Additional demands placed on existing public
facilities by new development; and
(((c))) (iii) Additional public facility improvements required to
serve new development.
(b) 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.
Sec. 2 RCW 36.70A.070 and 2010 1st sp.s. c 26 s 6 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, general aviation airports, public
utilities, public facilities, and other land uses. The land use
element shall include population densities, building intensities, and
estimates of future population growth. The land use element shall
provide for protection of the quality and quantity of groundwater used
for public water supplies. Wherever possible, the land use element
should consider utilizing urban planning approaches that promote
physical activity. 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 ensuring the vitality and character of
established residential neighborhoods that: (a) Includes an inventory
and analysis of existing and projected housing needs that identifies
the number of housing units necessary to manage projected growth; (b)
includes a statement of goals, policies, objectives, and mandatory
provisions for the preservation, improvement, and development of
housing, including single-family residences; (c) identifies sufficient
land for housing, including, but not limited to, government-assisted
housing, housing for low-income families, manufactured housing,
multifamily housing, and group homes and foster care facilities; and
(d) makes adequate provisions for existing and projected needs of all
economic segments of the community.
(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. Park and
recreation facilities shall be included in the capital facilities plan
element.
(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) Rural element. Counties shall include a rural element
including lands that are not designated for urban growth, agriculture,
forest, or mineral resources. The following provisions shall apply to
the rural element:
(a) Growth management act goals and local circumstances. Because
circumstances vary from county to county, in establishing patterns of
rural densities and uses, a county may consider local circumstances,
but shall develop a written record explaining how the rural element
harmonizes the planning goals in RCW 36.70A.020 and meets the
requirements of this chapter.
(b) Rural development. The rural element shall permit rural
development, forestry, and agriculture in rural areas. The rural
element shall provide for a variety of rural densities, uses, essential
public facilities, and rural governmental services needed to serve the
permitted densities and uses. To achieve a variety of rural densities
and uses, counties may provide for clustering, density transfer, design
guidelines, conservation easements, and other innovative techniques
that will accommodate appropriate rural densities and uses that are not
characterized by urban growth and that are consistent with rural
character.
(c) Measures governing rural development. The rural element shall
include measures that apply to rural development and protect the rural
character of the area, as established by the county, by:
(i) Containing or otherwise controlling rural development;
(ii) Assuring visual compatibility of rural development with the
surrounding rural area;
(iii) Reducing the inappropriate conversion of undeveloped land
into sprawling, low-density development in the rural area;
(iv) Protecting critical areas, as provided in RCW 36.70A.060, and
surface water and groundwater resources; and
(v) Protecting against conflicts with the use of agricultural,
forest, and mineral resource lands designated under RCW 36.70A.170.
(d) Limited areas of more intensive rural development. Subject to
the requirements of this subsection and except as otherwise
specifically provided in this subsection (5)(d), the rural element may
allow for limited areas of more intensive rural development, including
necessary public facilities and public services to serve the limited
area as follows:
(i) Rural development consisting of the infill, development, or
redevelopment of existing commercial, industrial, residential, or
mixed-use areas, whether characterized as shoreline development,
villages, hamlets, rural activity centers, or crossroads developments.
(A) A commercial, industrial, residential, shoreline, or mixed-use
area ((shall be)) is subject to the requirements of (d)(iv) of this
subsection, but ((shall)) is not ((be)) subject to the requirements of
(c)(ii) and (iii) of this subsection.
(B) Any development or redevelopment other than an industrial area
or an industrial use within a mixed-use area or an industrial area
under this subsection (5)(d)(i) must be principally designed to serve
the existing and projected rural population.
(C) Any development or redevelopment in terms of building size,
scale, use, or intensity shall be consistent with the character of the
existing areas. Development and redevelopment may include changes in
use from vacant land or a previously existing use so long as the new
use conforms to the requirements of this subsection (5);
(ii) The intensification of development on lots containing, or new
development of, small-scale recreational or tourist uses, including
commercial facilities to serve those recreational or tourist uses, that
rely on a rural location and setting, but that do not include new
residential development. A small-scale recreation or tourist use is
not required to be principally designed to serve the existing and
projected rural population. Public services and public facilities
shall be limited to those necessary to serve the recreation or tourist
use and shall be provided in a manner that does not permit low-density
sprawl;
(iii) The intensification of development on lots containing
isolated nonresidential uses or new development of isolated cottage
industries and isolated small-scale businesses that are not principally
designed to serve the existing and projected rural population and
nonresidential uses, but do provide job opportunities for rural
residents. Rural counties may allow the expansion of small-scale
businesses as long as those small-scale businesses conform with the
rural character of the area ((as defined by the local government
according to RCW 36.70A.030(15))). Rural counties may also allow new
small-scale businesses to utilize a site previously occupied by an
existing business as long as the new small-scale business conforms to
the rural character of the area ((as defined by the local government
according to RCW 36.70A.030(15))). Public services and public
facilities shall be limited to those necessary to serve the isolated
nonresidential use and shall be provided in a manner that does not
permit low-density sprawl. For the purposes of this subsection, "rural
character" has the same meaning as provided in RCW 36.70A.030;
(iv) A county shall adopt measures to minimize and contain the
existing areas or uses of more intensive rural development, as
appropriate, authorized under this subsection. Lands included in such
existing areas or uses shall not extend beyond the logical outer
boundary of the existing area or use, thereby allowing a new pattern of
low-density sprawl. Existing areas are those that are clearly
identifiable and contained and where there is a logical boundary
delineated predominately by the built environment, but that may also
include undeveloped lands if limited as provided in this subsection.
The county shall establish the logical outer boundary of an area of
more intensive rural development. In establishing the logical outer
boundary, the county shall address (A) the need to preserve the
character of existing natural neighborhoods and communities, (B)
physical boundaries, such as bodies of water, streets and highways, and
land forms and contours, (C) the prevention of abnormally irregular
boundaries, and (D) the ability to provide public facilities and public
services in a manner that does not permit low-density sprawl;
(v) For purposes of (d) of this subsection, an existing area or
existing use is one that was in existence:
(A) On July 1, 1990, in a county that was initially required to
plan under all of the provisions of this chapter;
(B) On the date the county adopted a resolution under RCW
36.70A.040(2), in a county that is planning under all of the provisions
of this chapter under RCW 36.70A.040(2); or
(C) On the date the office of financial management certifies the
county's population as provided in RCW 36.70A.040(5), in a county that
is planning under all of the provisions of this chapter pursuant to RCW
36.70A.040(5).
(e) Exception. This subsection shall not be interpreted to permit
in the rural area a major industrial development or a master planned
resort unless otherwise specifically permitted under RCW 36.70A.360 and
36.70A.365.
(6) A transportation element that implements, and is consistent
with, the land use element.
(a) The transportation element shall include the following
subelements:
(i) Land use assumptions used in estimating travel;
(ii) Estimated traffic impacts to state-owned transportation
facilities resulting from land use assumptions to assist the department
of transportation in monitoring the performance of state facilities, to
plan improvements for the facilities, and to assess the impact of land-use decisions on state-owned transportation facilities;
(iii) Facilities and services needs, including:
(A) An inventory of air, water, and ground transportation
facilities and services, including transit alignments and general
aviation airport facilities, to define existing capital facilities and
travel levels as a basis for future planning. This inventory must
include state-owned transportation facilities within the city or
county's jurisdictional boundaries;
(B) Level of service standards for all locally owned arterials and
transit routes to serve as a gauge to judge performance of the system.
These standards should be regionally coordinated;
(C) For state-owned transportation facilities, level of service
standards for highways, as prescribed in chapters 47.06 and 47.80 RCW,
to gauge the performance of the system. The purposes of reflecting
level of service standards for state highways in the local
comprehensive plan are to monitor the performance of the system, to
evaluate improvement strategies, and to facilitate coordination between
the county's or city's six-year street, road, or transit program and
the office of financial management's ten-year investment program. The
concurrency requirements of (b) of this subsection do not apply to
transportation facilities and services of statewide significance except
for counties consisting of islands whose only connection to the
mainland are state highways or ferry routes. In these island counties,
state highways and ferry route capacity must be a factor in meeting the
concurrency requirements in (b) of this subsection;
(D) Specific actions and requirements for bringing into compliance
locally owned transportation facilities or services that are below an
established level of service standard;
(E) 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;
(F) Identification of state and local system needs to meet current
and future demands. Identified needs on state-owned transportation
facilities must be consistent with the statewide multimodal
transportation plan required under chapter 47.06 RCW;
(iv) Finance, including:
(A) An analysis of funding capability to judge needs against
probable funding resources;
(B) 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. The multiyear financing plan should
be coordinated with the ten-year investment program developed by the
office of financial management as required by RCW 47.05.030;
(C) 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;
(v) Intergovernmental coordination efforts, including an assessment
of the impacts of the transportation plan and land use assumptions on
the transportation systems of adjacent jurisdictions;
(vi) Demand-management strategies;
(vii) Pedestrian and bicycle component to include collaborative
efforts to identify and designate planned improvements for pedestrian
and bicycle facilities and corridors that address and encourage
enhanced community access and promote healthy lifestyles.
(b) 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 locally owned 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" means 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. If the collection of impact fees is delayed under RCW
82.02.050(3), the six-year period required by this subsection (6)(b)
must begin after the county or city receives full payment of all impact
fees due.
(c) The transportation element described in this subsection (6),
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, and
the ten-year investment program required by RCW 47.05.030 for the
state, must be consistent.
(7) An economic development element establishing local goals,
policies, objectives, and provisions for economic growth and vitality
and a high quality of life. The element shall include: (a) A summary
of the local economy such as population, employment, payroll, sectors,
businesses, sales, and other information as appropriate; (b) a summary
of the strengths and weaknesses of the local economy defined as the
commercial and industrial sectors and supporting factors such as land
use, transportation, utilities, education, workforce, housing, and
natural/cultural resources; and (c) an identification of policies,
programs, and projects to foster economic growth and development and to
address future needs. A city that has chosen to be a residential
community is exempt from the economic development element requirement
of this subsection.
(8) A park and recreation element that implements, and is
consistent with, the capital facilities plan element as it relates to
park and recreation facilities. The element shall include: (a)
Estimates of park and recreation demand for at least a ten-year period;
(b) an evaluation of facilities and service needs; and (c) an
evaluation of intergovernmental coordination opportunities to provide
regional approaches for meeting park and recreational demand.
(9) It is the intent that new or amended elements required after
January 1, 2002, be adopted concurrent with the scheduled update
provided in RCW 36.70A.130. Requirements to incorporate any such new
or amended elements ((shall be)) are null and void until funds
sufficient to cover applicable local government costs are appropriated
and distributed by the state at least two years before local government
must update comprehensive plans as required in RCW 36.70A.130.