Chapter 16.76
IMPACT FEE DEFERRAL
Sections:
16.76.030 Impact fee deferral.
16.76.050 Deferred impact fee lien.
16.76.060 Limitation on deferrals.
16.76.010 Purpose.
The purpose of this chapter is to comply with the requirements of RCW 82.02.050, as amended by ESB 5923, Chapter 241, Laws of 2015, to provide an impact fee deferral process for single-family residential construction, in order to promote economic recovery in the construction industry. (Ord. 1244-16 § 3 (Exh. A))
16.76.020 Applicability.
A. The provisions of this chapter shall apply to all impact fees established and adopted by the city pursuant to Chapter 82.02 RCW, including park and traffic impact fees (Chapter 16.72 SMC) and school impact fees (Chapter 16.74 SMC).
B. Subject to the limitations imposed in SMC 16.76.060, the provisions of this chapter shall apply to all building permit applications for single-family detached and single-family attached residential construction. For the purposes of this chapter, an “applicant” includes an entity that controls the named applicant, is controlled by the named applicant, or is under common control with the named applicant. (Ord. 1244-16 § 3 (Exh. A))
16.76.030 Impact fee deferral.
A. Deferral Request Authorized. Applicants for single-family attached or single-family detached residential building permits may request to defer payment of required impact fees until the closing of the first sale of the property occurring after the issuance of the applicable building permit, which request shall be granted so long as the requirements of this chapter are satisfied. If a deferral request is granted under this section, payment of the impact fees shall be due to the city within seven calendar days after the date of sale or transfer of ownership of the property. Unless an agreement to the contrary is reached between the buyer and seller, the payment of impact fees due at closing of a sale must be made from the seller’s proceeds. In the absence of an agreement to the contrary, the seller bears strict liability for the payment of the impact fees.
B. Method of Request. A request for impact fee deferral shall be made in writing on a form provided by the city, and submitted contemporaneously with the associated building permit application. Any request for impact fee deferral must be accompanied by an administrative fee in an amount determined by resolution of the city council.
C. Calculation of Impact Fees. The amount of impact fees to be deferred under this chapter shall be determined as of the date the request for deferral is submitted. (Ord. 1244-16 § 3 (Exh. A))
16.76.040 Deferral term.
The term of an impact fee deferral granted under this chapter may not exceed 12 months from the date the building permit is issued (“deferral term”). If the condition triggering payment of the deferred impact fees does not occur prior to the expiration of the deferral term, then full payment of the impact fees shall be due on the last date of the deferral term. Payment of impact fees deferred under this chapter shall be made by cash, escrow company check, cashier’s check, or certified check. (Ord. 1244-16 § 3 (Exh. A))
16.76.050 Deferred impact fee lien.
A. Applicant’s Duty to Record Lien. An applicant requesting a deferral under this chapter must, at his or her own expense, grant and record a deferred impact fee lien, in an amount equal to the deferred impact fees as determined under SMC 16.76.030(C), against the property in favor of the city in accordance with the requirements of RCW 82.02.050(3)(c). The applicant or seller shall provide written disclosure of the deferred impact fee lien to a purchaser or prospective purchaser of the property, including the amount of impact fees payable and the requirement that the impact fees be paid at the time of sale.
B. Satisfaction of Lien. Upon receipt of final payment of all deferred impact fees for the property, the city shall execute a release of deferred impact fee lien for the property. The property owner at the time of the release is responsible, at his or her own expense, for recording the lien release. (Ord. 1244-16 § 3 (Exh. A))
16.76.060 Limitation on deferrals.
The deferral entitlements allowed under this chapter shall be limited to the first 20 single-family residential construction building permits per applicant, as identified by contractor registration number or other unique identification number, per year. (Ord. 1244-16 § 3 (Exh. A))