The bill aims to improve the consistency and transparency of impact fees imposed by local jurisdictions in Washington State. It introduces a requirement for jurisdictions to implement a deferral system for impact fees on single-family residential construction, allowing payments to be postponed until specific milestones are met, such as final inspections or the first sale closing. Additionally, it mandates that updates to impact fee schedules cannot exceed the percentage increase in the consumer price index since the last update. The bill also requires that impact fee receipts be kept in special interest-bearing accounts, with annual reporting to the Department of Commerce on the sources and uses of these funds, and establishes an administrative appeals process for impact fees.

Moreover, the legislation includes provisions to enhance housing capacity and affordability while protecting rural character. It specifies that ordinances improving housing outside critical areas are not subject to appeal unless they significantly affect fish habitats. A capital facilities plan element is required, detailing existing facilities, future needs, and financing plans for impact fees. The bill also mandates sellers of improved residential real property to disclose any impact fees paid, while clarifying that this does not create new rights for buyers beyond existing legal protections. Overall, the bill seeks to ensure effective use of impact fees, enhance local planning, and maintain accountability in development practices.

Statutes affected:
Original Bill: 82.02.050, 82.02.070, 43.31.980, 36.70A.070, 64.06.070