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Published on Friday, April 17, 2015

Impact fee deferral bill headed to the Governor

The impact fee deferral bill that cities have been fighting for many years looks poised to pass into law. AWC efforts have been focused on maximizing the protections ensuring ultimate payment of deferred impact fees.

Elements of the final bill (ESB 5923) include:

  • Requires filing a lien to access the deferral
  • Authorizes cities to choose whether to defer until certificate of occupancy, final inspection, or closing
  • Cities are authorized to withhold certificate of occupancy or final inspection until payment
  • Provides for a limited grandfathering if local systems don’t fully match the state mandate so long as all impact fees are deferred
  • Limits deferrals to 20 per builder per jurisdiction, and has provisions meant to limit the “spin-off LLC” issue.