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Report - 2023 Commerce Reports Impact Fee Deferral Report 2023 2Fa94A57 7A2D 4606 97

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2023 Commerce Reports Impact Fee Deferral Report 2023 2Fa94A57 7A2D 4606 97

Summary

The 2023 Impact Fee Deferral Report, an annual report to the Legislature by the Washington State Department of Commerce under RCW 43.31.980, dated December 1, 2023. The report describes the deferral program for impact fees that the Legislature established in Chapter 241, Laws of 2015 (SB 5923), under which deferrals can last no longer than 18 months. The report states that Commerce surveyed 182 counties, cities and towns in September 2023 and that 37 responded (20.3% response rate). Its Table 1 reports 1,475 deferrals requested, 1,463 issued and 6 not paid fully or on time across all impact fee types. Further tables break out park, school and transportation deferrals by jurisdiction, including Kitsap County, the City of Ridgefield and the City of Olympia.

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“Report - 2023 Commerce Reports Impact Fee Deferral Report 2023 2Fa94A57 7A2D 4606 97.” Original at app.leg.wa.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-commerce-reports-impact-fee-deferral-report-2023-2fa94a57-7a2d-4606-97/, SHA-256 586258b53aaca5f11c851a68ce03a512b04b9acbbc05193c432bc998ca4bab34.

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Annual report pursuant to RCW 43.31.980




                                          December 1, 2023
       LOCAL GOVERNMENT DIVISION
       GROWTH MANAGEMENT
       SERVICES                           Report to the Legislature

                                          Director Mike Fong
v3.4
 Acknowledgments
 Washington State Department of Commerce
 Mark K. Barkley, Assistant Director
 Local Government Division

 Growth Management Services
 Dave Andersen, AICP, Managing Director

 Valerie Smith, Deputy Managing Director

 Paul Johnson, Operations Manager

 Matt Ojennus, Senior Planner

 1011 Plum St. SE
 P.O. Box 42525
 Olympia, WA 98504-2525

 www.commerce.wa.gov

 For people with disabilities, this report is available on
 request in other formats. To submit a request, please
 call 360-725-4000 (TTY 360-586-0772)




      2023 IMPACT FEE REFERRAL REPORT
2.0
Table of Contents
Introduction ................................................................................................................................................. 2

Deferral data................................................................................................................................................ 3




  2023 IMPACT FEE DEFERRAL REPORT                                                                                                                           1
Introduction
Authorizing legislation
Per RCW 43.31.980, the Department of Commerce (Commerce) must annually report on the deferral process
for impact fees as follows:

1) Beginning December 12, 2018, and each year thereafter, the department of commerce must prepare an
   annual report on the impact fee deferral process established in RCW 82.02.050(3). The report must include
   (a) the number of deferral requested of and issued by counties, cities, and towns; (b) the number of
   deferrals that were not fully and timely paid; and (c) other information as deemed appropriate.

2) The report required by this section must, in accordance with RCW 43.01.036, be submitted to the
   appropriate committees of the house of representatives and the senate.

Commerce published its first report in 2018. This is the sixth annual report.

Background
During the 2015 session, the Washington State Legislature passed Chapter 241, Laws of 2015 (SB 5923),
which in part established a deferral program for impact fees. Local governments fully planning under RCW
36.70A (the Growth Management Act) can collect impact fees for fire protection facilities, transportation
facilities, parks and schools. Local governments can choose to charge different rates for different classes of
construction, such as residential, commercial and retail. Local governments can also choose to collect impact
fees on only a single type of construction. Except under specific circumstances, a local government must
refund fess not expended or dedicated within 10 years of collection.

All local governments imposing impact fees were required to establish an impact fee deferral program by
September 1, 2016.

The deferral program applies to builders. Local governments can allow for a minimum of 20 deferral of single-
family homes built per year by a builder, and have the option to permit more. The deferral can last no longer
than 18 months. At minimum, the local government must offer builders at least one of the following options to
defer impact fee payment until after:

      Payment of the final property inspection
      Issuance of a certificate of occupancy or similar certificate
      Closing of the first sale of the property occurring after issuance of the applicable building permit

Report methodology
Commerce collected data for this report using SurveyMonkey in September 2023. There were 17 questions.
Planning directors, permitting departments and city administrators were notified of the survey by email.

Survey responses
Commerce sent the survey to 182 counties, cities and towns. Of those, 37 responded (20.3% response rate).
Twenty-six respondents required impact fees and nine reported issuing deferrals. All but four deferral requests
were granted and only two communities did not have deferrals fully paid or on time.



 2023 IMPACT FEE DEFERRAL REPORT                                                                              2
Deferral data
Impact fee deferrals may last up to 18 months, which means the data represented in the tables below may
reflect activities from different timeframes and may not align.

         Deferrals requested identifies the deferrals that were requested in 2022.
         Deferrals issued reflects deferrals that were issued from requests in 2022, requests that were made in
          2021 but were not issued until 2022, and requests that were made in 2022 but were not acted on until
          2023.
         Deferrals not paid fully or on time reflects incomplete or late payments from deferrals that were made,
          due to the 18-month deferral period, from 2020 through 2022.

Table 1: Total deferral by type of impact fee
Type of impact fee             Deferrals requested         Deferrals issued        Deferrals not paid fully or on time


Fire protection facility       0                           0                       0


Parks                          501                         497                     2


Schools                        474                         470                     0


Transportation                 500                         496                     4


Total impact fees              1,475                       1,463                   6




Table 2: Park deferrals
Jurisdiction                   Deferrals requested        Deferrals issued         Deferrals not paid fully or on time


City of Bellingham             4                          0                        0


City of Edgewood               4                          4                        0


City of Ferndale               17                         17                       0


Kitsap County                  363                        363                      0


City of Olympia                6                          6                        2


City of Ridgefield             107                        107                      0


Total impact fees              501                        497                      2




 2023 IMPACT FEE DEFERRAL REPORT                                                                                         3
Table 3: School deferrals
Type of impact fee         Deferrals requested   Deferrals issued   Deferrals not paid fully or on time


City of Bellingham         4                     0                  0


City of Edgewood           4                     4                  0


City of Ferndale           17                    17                 0


King County                4                     4                  0


Kitsap County              363                   363                0


City of Olympia            3                     3                  0


City of Ridgefield         79                    79                 0


Total impact fees          474                   470                0




Table 4: Transportation deferrals
Type of impact fee         Deferrals requested   Deferrals issued   Deferrals not paid fully or on time


City of Bellingham         4                     0                  0


City of Edgewood           4                     4                  0


City of Ferndale           17                    17                 0


Kitsap County              363                   363                0


City of Nooksack           1                     1                  0


City of Olympia            5                     5                  3


City of Ridgefield         105                   105                0


City of University Place   1                     1                  1


Total impact fees          500                   496                4




2023 IMPACT FEE DEFERRAL REPORT                                                                           4


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