BILL REQ. #: H-1530.1
| State of Washington | 61st Legislature | 2009 Regular Session |
READ FIRST TIME 02/03/09.
AN ACT Relating to the implementation of a regional transfer of development rights program; amending RCW 43.362.005 and 43.362.010; and adding new sections to chapter 43.362 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 43.362.005 and 2007 c 482 s 1 are each amended to read
as follows:
(1) The legislature finds that current concern over the rapid and
increasing loss of rural, agricultural, and forested land has led to
the exploration of creative approaches to preserving these important
lands((. The legislature finds also)), and that the creation of a
regional transfer of development rights marketplace will assist in
((slowing the conversion of)) conserving these lands.
((The legislature further finds that transferring)) (2) A transfer
of development rights is a market-based ((technique)) exchange
mechanism that encourages the voluntary transfer of ((growth))
development rights from ((places where a community would like to see
less development, referred to as sending areas, to places where a
community would like to see more development, referred to as receiving
areas. Under this technique)) sending areas with lower population
densities to receiving areas with higher population densities. When
development rights are transferred through a transfer of development
rights exchange, permanent deed restrictions are placed on the sending
area properties to ensure that the land will be used only for approved
activities ((such as)), activities that may include farming, forest
management, conservation, or passive recreation. ((Also under this
technique)) Additionally, in a transfer of development rights exchange,
the costs of purchasing the recorded development restrictions are borne
by the developers who receive the transferred right in the form of a
building credit or bonus.
(3) The legislature further finds that a successful transfer of
development rights program must consider housing affordable to all
economic segments of the population, and economic development programs
and policies in designated receiving areas. Counties, cities, and
towns that decide to participate in the regional transfer of
development rights program for central Puget Sound are encouraged to
adopt comprehensive plan policies and development regulations to
implement the program that do not compete or conflict with
comprehensive plan policies and development regulations that require or
encourage affordable housing. Participating cities and towns are also
encouraged to use the development of receiving areas to maximize
opportunities for economic development that supports the creation or
retention of jobs.
(4) Participation in a regional transfer of development rights
program by counties, cities, and towns should be as simple as possible.
(5) Accordingly, the legislature has determined that it is good
public policy to build upon existing transfer of development rights
programs, pilot projects, and private initiatives that foster effective
use of transferred development rights through the creation of a market-based program that focuses on the central Puget Sound region. A
regional transfer of development rights program in the central Puget
Sound should be voluntary, incentive-driven, and separate, but
compatible with existing local transfer of development rights programs.
The legislature further finds that additional counties may, in the
future, benefit from participation in a regional transfer of
development rights program. Therefore, the regional transfer of
development rights program should be established for the central Puget
Sound as the first phase of a program that can be expanded to other
counties, replicated in other regions, or, at a future date, expanded
statewide.
Sec. 2 RCW 43.362.010 and 2007 c 482 s 2 are each amended to read
as follows:
The definitions in this section apply throughout this chapter
unless the context clearly requires otherwise.
(1) "Receiving area ratio" means the number or character of
development rights that are assigned to a development right for use in
a receiving area. Development rights in a receiving area may be used
at the discretion of the receiving area jurisdiction, including but not
limited to additional residential density, additional building height,
additional commercial floor area, or to meet regulatory requirements.
(2) "Sending area ratio" means the number of development rights
that a sending area landowner can sell per acre.
(3) "By-right permitting" means that project applications for
permits that use transferable development rights would be subject to
administrative review. Administrative review allows a local planning
official to approve a project without noticed public hearings.
(4) "Department" means the department of community, trade, and
economic development.
(((2))) (5) "Nongovernmental entities" includes nonprofit or
membership organizations with experience or expertise in transferring
development rights.
(((3))) (6) "Receiving areas" are lands within and designated by a
city or town in which transferable development rights from the regional
program established by this chapter may be used.
(7) "Regional transfer of development rights program" or "regional
program" means the regional transfer of development rights program
established by section 3 of this act in central Puget Sound, including
King, Pierce, Kitsap, and Snohomish counties and the cities and towns
within these counties.
(8) "Sending area" includes those lands that meet conservation
criteria as described in section 4 of this act.
(9) "Transferable development right" means a right to develop one
or more residential units in a sending area that can be sold and
transferred for use consistent with a receiving ratio adopted for
development in a designated receiving area consistent with the regional
program.
(10) "Transfer of development rights" includes methods for
protecting land from development by voluntarily removing the
development rights from a sending area and transferring them to a
receiving area for the purpose of increasing development density or
intensity in the receiving area.
NEW SECTION. Sec. 3 (1) Subject to the availability of funds
appropriated for this specific purpose or another source of funding
made available for this specific purpose, the department shall
establish a regional transfer of development rights program in central
Puget Sound, including King, Kitsap, Snohomish, and Pierce counties and
the cities and towns within these counties. The program must be guided
by the Puget Sound regional council's multicounty planning policies
adopted under RCW 36.70A.210(7). The regional transfer of development
rights program in the central Puget Sound is established as the first
phase of a program that can be expanded to other counties, replicated
in other regions, or expanded statewide in the future with sufficient
funding.
(2) The purpose of the program is to foster voluntary county, city,
and town participation in the program so that interjurisdictional
transfers occur between the counties, cities, and towns, including
transfers from counties to cities and towns in other counties. Private
transactions between buyers and sellers of transferable development
rights are allowed and encouraged under this program. In fulfilling
the requirements of this chapter, the department shall work with the
Puget Sound regional council to implement a regional program.
(3) The department shall encourage participation by the cities,
towns, and counties in the regional program. The regional program
shall not be implemented in a manner that negatively impacts existing
local programs. The department shall encourage and work to enhance the
efforts in any of these counties, cities, or towns to develop local
transfer of development rights programs or enhance existing programs.
(4) Subject to the availability of funds appropriated for this
specific purpose or another source of funding made available for this
specific purpose, the department shall do the following to implement a
regional transfer of development rights program in central Puget Sound:
(a) Serve as the central coordinator for state government in the
implementation of sections 3 through 7 of this act.
(b) Offer technical assistance to cities, towns, and counties
planning for participation in the regional transfer of development
rights program. The department's technical assistance shall:
(i) Include written guidance for local development and
implementation of the regional transfer of development rights program;
(ii) Include guidance for and encourage permitting or environmental
review incentives for developers to participate. Activities may
include, but are not limited to, provision for by-right permitting,
substantial environmental review of a subarea plan for the receiving
area that includes the use of transferable development rights, adoption
of a categorical exemption for infill under RCW 43.21C.229 for a
receiving area, or adoption of a planned action under RCW 43.21C.240;
(iii) Provide guidance to counties, cities, and towns to negotiate
receiving area ratios and foster private transactions;
(iv) Provide guidance and encourage planning for receiving areas
that do not compete or conflict with comprehensive plan policies and
development regulations that require or encourage affordable housing;
and
(v) Provide guidance and encourage planning for receiving areas
that maximizes opportunities for economic development through the
creation or retention of jobs.
(c) Work with counties, cities, and towns to inform elected
officials, planning commissions, and the public regarding the regional
transfer of development rights program. The information provided by
the department shall discuss the importance of preserving farmland and
farming, and forest land and forestry, to cities and towns and the
local economy.
(d) Based on information provided by the counties, cities, and
towns, post on a web site information regarding transfer of development
rights transactions and a list of interested buyers and sellers of
transferable development rights.
(e) Coordinate with and provide resources to state and local
agencies and stakeholders to provide public outreach.
NEW SECTION. Sec. 4 (1) Counties shall use the following
criteria to guide the designation of sending areas for participation in
the regional transfer of development rights program:
(a) Land designated as agricultural or forest land of long-term
commercial significance;
(b) Land designated rural that is being farmed or managed for
forestry; and
(c) Land whose conservation meets other state and regionally
adopted priorities.
Nothing in these criteria limits a county's authority to designate
additional lands as a sending area for conservation under a local
county transfer of development rights program.
(2) Upon purchase of a transferable development right from land
designated rural that is being farmed or managed for forestry, a county
must include the land from which the right was purchased in any
programs it administers for conservation of agricultural land or forest
land.
(3) The designation of receiving areas is limited to incorporated
cities or towns. Prior to designating a receiving area, a city or town
should have adequate infrastructure planned and funding identified for
development in the receiving area at densities or intensities
consistent with what can be achieved under the local transfer of
development rights program. Nothing in this subsection limits a
city's, town's, or county's authority to designate additional lands for
a receiving area under a local intrajurisdictional transfer of
development rights program that is not part of the regional program.
(4) Cities and towns participating in the regional transfer of
development rights program shall have discretion to determine which
sending areas they receive development rights from to be used in their
designated receiving areas.
(5) Designation of sending and receiving areas should include a
process for public outreach consistent with the public participation
requirements in chapter 36.70A RCW.
NEW SECTION. Sec. 5 (1) To facilitate participation, the
department shall develop and adopt by rule terms and conditions of an
interlocal agreement for transfers of development rights between
counties, cities, and towns. Counties, cities, and towns participating
in the regional program have the option of adopting the rule by
reference to transfer development rights across jurisdictional
boundaries as an alternative to entering into an interlocal agreement
under chapter 39.34 RCW.
(2) This section and the rules adopted under this section shall be
deemed to provide an alternative method for the implementation of a
regional transfer of development rights program, and shall not be
construed as imposing any additional condition upon the exercise of any
other powers vested in municipalities.
(3) Nothing in this section prohibits a county, city, or town from
entering into an interlocal agreement under chapter 39.34 RCW to
transfer development rights under the regional program.
NEW SECTION. Sec. 6 (1) Counties, cities, and towns that choose
to participate in the regional transfer of development rights program
must:
(a) Enter into an interlocal agreement or adopt a resolution
adopting by reference the provisions in the department rule authorized
in section 5 of this act; and
(b) Adopt transfer of development rights policies or implement
development regulations that:
(i) Comply with chapter 36.70A RCW;
(ii) Designate sending or receiving areas consistent with sections
3 through 7 of this act; and
(iii) Adopt a sending or receiving area ratio in cooperation with
the sending or receiving jurisdiction.
(2) Cities and towns that choose to participate in the regional
transfer of development rights program are encouraged to provide
permitting or environmental review incentives for developers to
participate. Such incentives may include, but are not limited to,
provision for by-right permitting, substantial environmental review of
a subarea plan for the receiving area that includes the use of
transferable development rights, adoption of a categorical exemption
for infill under RCW 43.21C.229 for a receiving area, or adoption of a
planned action under RCW 43.21C.240.
NEW SECTION. Sec. 7 The department will develop quantitative and
qualitative performance measures for monitoring the regional transfer
of development rights program. The performance measures may address
conservation of land and creation of compact communities, as well as
other measures identified by the department. The department may
require cities, towns, and counties to report on these performance
measures biannually. The department shall compile any performance
measure information that has been reported by the counties, cities, and
towns and post it on a web site.
NEW SECTION. Sec. 8 Sections 3 through 7 of this act are each
added to chapter