The bill amends existing laws regarding the collection and use of impact fees by counties, cities, and towns in Washington State. It emphasizes the need for a balanced approach to financing public facilities, stating that impact fees should not be the primary source of funding for system improvements. The legislation introduces a deferral system for impact fees on single-family residential construction, allowing developers to postpone payment until certain milestones are reached, such as final inspection or the closing of the first sale. Additionally, it establishes a lien process for deferred fees and outlines the conditions under which counties, cities, and towns can initiate foreclosure proceedings for unpaid fees.

Furthermore, the bill mandates that impact fees be earmarked in special interest-bearing accounts, with separate accounts for different types of public facilities. It sets specific timeframes for the expenditure of impact fees, requiring that fees collected before July 1, 2024, be spent within ten years, while those collected after this date must be spent within five years, unless extraordinary circumstances justify a longer holding period. The bill also provides for the refund of impact fees if they are not expended within the specified timeframes and outlines the process for notifying potential claimants about refunds. Overall, the legislation aims to ensure timely and equitable use of impact fees while providing flexibility for developers.

Statutes affected:
Original Bill: 82.02.050, 82.02.070, 82.02.080