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2024 Impact Fee Deferral Report — Annual Report to the Legislature (Commerce, January 8, 2024)

Summary

2024 Impact Fee Deferral Report, an annual report pursuant to RCW 43.31.980, dated January 8, 2024, from the Local Government Division, Growth Management Services, of the Washington State Department of Commerce. The report states that Commerce collected data using Smartsheet in September 2024 and sent the survey to 182 counties, cities and towns fully planning under the Growth Management Act, of which 68 responded (37% response rate). It states that forty-two respondents required impact fees and six reported issuing deferrals. Table 1 reports total impact fees of 1,043 deferrals requested and 1,043 issued for 2023, with 2 not paid fully or timely to date.

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“2024 Impact Fee Deferral Report — Annual Report to the Legislature (Commerce, January 8, 2024).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-commercereports-2024-lgd-impact-fee-deferral-legreport-final-5fff-9856735744/, SHA-256 c3f36ca594751d1236502a96a63c139130fcd65436b08e88fb65404ffbdf57cb.

Full text

2024 Impact Fee Deferral
Report
Annual report pursuant to RCW 43.31.980




                                          January 8, 2024

     LOCAL GOVERNMENT DIVISION            Report to the Legislature
     GROWTH MANAGEMENT
     SERVICES                             Interim Director Diane Klontz

v3.5.1
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

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 7-1-1 and ask to be connected to 360-725-4000.




2024 IMPACT FEE DEFERRAL REPORT                             2
Table of contents
Introduction ................................................................................................................................................. 4

Deferral data................................................................................................................................................ 5




2024 IMPACT FEE DEFERRAL REPORT                                                                                                                               3
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 deferrals 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 fees 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 deferrals 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 three options to pay the
impact fee within that timeframe:

   •   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 Smartsheet in September 2024. There were 20 questions.
Planning directors, permitting departments and Commerce notified city administrators of the survey by email.

Survey responses
Commerce sent the survey to 182 counties, cities and towns that are fully planning under the Growth
Management Act (GMA). Of those, 68 responded (37% response rate). Forty-two respondents required impact
fees and six reported issuing deferrals. All reported deferral requests were granted and only one responding
jurisdiction indicated that deferrals were not paid fully or timely.




2024 IMPACT FEE DEFERRAL REPORT                                                                                           4
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.

   •      Deferrals requested identifies the deferrals requested in 2023.
   •      Deferrals issued reflects deferrals issued from requests in 2023.
   •      Deferrals not paid fully or timely reflects incomplete or late payments from deferrals in 2023.


Table 1: Total deferrals by type of impact fee
Type of impact fee             2023 deferrals requested    2023 deferrals issued    All deferrals not paid fully or timely to date


Fire protection facility       17                          17                       0


Parks                          360                         360                      0


Schools                        332                         332                      2


Transportation                 334                         334                      0


Total impact fees              1,043                       1,043                    2




Table 2: Fire protection facility impact fee deferrals
Jurisdiction                   2023 deferrals requested   2023 deferrals issued    All deferrals not paid fully or timely to date


City of Redmond                17                         17                       0


Total impact fees              17                         17                       0




2024 IMPACT FEE DEFERRAL REPORT                                                                                                     5
Table 3: Parks impact fee deferrals
Jurisdiction             2023 deferrals requested   2023 deferrals issued   All deferrals not paid fully or timely to date


City of Bellingham       19                         19                      0


City of Marysville       294                        294                     0


City of Redmond          17                         17                      0


City of Ridgefield       30                         30                      0


Total impact fees        360                        360                     0




Table 4: Schools impact fee deferrals
Type of impact fee       2023 deferrals requested   2023 deferrals issued   All deferrals not paid fully or timely to date


City of Bellingham       19                         19                      0


King County              1                          1                       2


City of Marysville       294                        294                     0


City of Redmond          17                         17                      0


City of Ridgefield       1                          1                       0


Total impact fees        332                        332                     2




2024 IMPACT FEE DEFERRAL REPORT                                                                                              6
Table 5: Transportation impact fee deferrals
Type of impact fee         2023 deferrals requested   2023 deferrals issued   All deferrals not paid fully or timely to date


City of Bellingham         19                         19                      0


City of Marysville         294                        294                     0


City of Redmond            17                         17                      0


City of Ridgefield         2                          2                       0


City of University Place   2                          2                       0


Total impact fees          334                        334                     0




2024 IMPACT FEE DEFERRAL REPORT                                                                                            7


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