Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Community Development, Housing & Tribal Affairs Committee

HB 1997

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Authorizing the creation and use of community facilities districts in limited areas of more intensive rural development.

Sponsors: Representatives Tharinger and Tarleton.

Brief Summary of Bill

  • Allows Community Facility Districts to be created within Limited Areas of More Intensive Rural Development, as designated under the Growth Management Act.

Hearing Date: 1/11/16

Staff: Sean Flynn (786-7124).

Background:

Growth Management Act.

The Growth Management Act (GMA) is the comprehensive land use-planning framework for counties and cities in Washington. The GMA establishes land use designation and environmental protection requirements for all counties and cities, and a significantly wider array of planning duties for the 29 counties and the cities within that are obligated to satisfy all planning requirements of the GMA.

Under the GMA, lands are generally classified in one of three categories:

Certain development is expressly permitted in rural areas if prescribed requirements are met. For example, counties may permit Limited Areas of More Intensive Rural Development (LAMIRDs) providing for the following kinds of development:

Community Facilities Districts.

In 2010 legislation was enacted that authorized the creation of community facilities districts (CFDs), which are independent special purpose districts that may finance community facilities and local, subregional, and regional infrastructure. A CFD may only include land located within an UGA, as designated under the GMA.

A CFD may only be created by a petition signed by all of the private landowners within a proposed district area, requesting to subject their property to certain assessment amounts proposed in the petition. The petition must be approved by the county, city, or town in which the district is located. Once approved, the county, city, or town must appoint a board of supervisors to govern the CFD.

A CFD is authorized to collect revenue by imposing special assessments on privately owned real property within the district, issuing revenue and assessment bonds, borrowing money, and receiving donations. A CFD may acquire, purchase and sell real and personal property, either inside or outside the boundaries of the district, so long as it serves the facilities or benefits the properties within the district.

A CFD also may finance the costs and expenses for certain facilities, including:

A CFD may not finance residential dwellings, health care facilities, higher education institutions, or certain economic development activities related to the functions of the Economic Development Finance Authority.

Summary of Bill:

In addition to land located within a UGA, CFDs may be located within LAMIRDs, as designated pursuant to the GMA. The new provision does not modify any requirements under the GMA.

Appropriation: None.

Fiscal Note: Requested.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.