Chapter 17.32
DEVELOPMENT FEE DEFERRAL AND FINANCING

Sections:

17.32.010    Development fee deferral program.

17.32.020    Development fee financing program.

17.32.010 Development fee deferral program.

A.    Upon application for approval of an entitlement described in HMC 17.08.350, or the filing of an application for new or increased water and/or sewer capacity privileges pursuant to Chapter 17.12 HMC, the applicant may file an application and a nonrefundable processing fee with the planning and building director to request deferral of one or more of the following development fees:

1.    Water capacity charge.

2.    Sewer capacity charge.

3.    Residential drainage.

4.    Commercial and industrial drainage.

5.    Residential parks.

6.    Commercial and industrial parks.

7.    Residential street development.

8.    Commercial and industrial street development.

9.    Electric development.

10.    Fire development.

B.    Prior to obtaining City approval of an entitlement described in HMC 17.08.350, or City approval of new or increased water and/or sewer capacity privileges pursuant to Chapter 17.12 HMC, a property owner may enter into an agreement with the City to defer the payment of one or more of the development fees described in subsection (A) of this section. Deferral of such fees shall be acknowledged by a recordable memorandum, agreement, or other writing satisfactory to the City and approved by the City attorney that provides for the enforcement of the provisions of this chapter and which shall be recorded against each parcel of record in the development subject to the fees prior to, and as a condition of, approval of the entitlement and/or water/sewer capacity privileges. All costs of recordation of documents required pursuant to this chapter shall be paid by the property owner.

C.    Upon recordation of the agreement described in subsection (B) of this section, any development fees for which a deferral has been granted shall not become due before the earlier of (1) the issuance of the first certificate of occupancy for the development or (2) 24 months following the date of recordation.

D.    In addition to the requirements of subsection (B) of this section, if the value of the deferred development fees exceeds $250,000, the property owner shall also be required to submit a surety bond or letter of credit in favor of the City in an amount equal to the amount of the deferred development fees.

E.    In the event the deferred development fees are not paid in full by the date due, a penalty equal to six percent of the amount due, compounded annually from the date of the recordation of the agreement described in subsection (B) of this section, shall be due and payable and the City shall have the right to pursue the collection of the amounts due including, but not limited to, enforcement of the City’s rights under any surety bond or letter of credit. (Ord. 1128 § 1, 2013.)

17.32.020 Development fee financing program.

On or before the date any deferred development fees become due under HMC 17.32.010(C), the property owner may submit an application and a nonrefundable processing fee to the City planning and building director to finance the payment of such fees over a period of no more than five years at an annual rate of interest equal to that earned by the City on its pooled funds. Payments of fees and interest shall be made in equivalent monthly installments over the life of the loan and shall be secured by a promissory note and deed of trust in a form acceptable to the City and the City attorney and shall be recorded against each parcel of record in the development subject to the fees. (Ord. 1128 § 1, 2013.)