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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY PETRI, CALTAGIRONE, CLYMER, GRUCELA, HENNESSEY, MELIO, O'NEILL, SIPTROTH AND YOUNGBLOOD, FEBRUARY 13, 2009 |
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| REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, FEBRUARY 13, 2009 |
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| AN ACT |
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1 | Amending the act of July 31, 1968 (P.L.805, No.247), entitled, |
2 | as amended, "An act to empower cities of the second class A, |
3 | and third class, boroughs, incorporated towns, townships of |
4 | the first and second classes including those within a county |
5 | of the second class and counties of the second through eighth |
6 | classes, individually or jointly, to plan their development |
7 | and to govern the same by zoning, subdivision and land |
8 | development ordinances, planned residential development and |
9 | other ordinances, by official maps, by the reservation of |
10 | certain land for future public purpose and by the acquisition |
11 | of such land; to promote the conservation of energy through |
12 | the use of planning practices and to promote the effective |
13 | utilization of renewable energy sources; providing for the |
14 | establishment of planning commissions, planning departments, |
15 | planning committees and zoning hearing boards, authorizing |
16 | them to charge fees, make inspections and hold public |
17 | hearings; providing for mediation; providing for transferable |
18 | development rights; providing for appropriations, appeals to |
19 | courts and penalties for violations; and repealing acts and |
20 | parts of acts," in general provisions, further providing for |
21 | definitions; amending provisions relating to municipal |
22 | capital improvements; and providing for development impact |
23 | fees. |
24 | The General Assembly of the Commonwealth of Pennsylvania |
25 | hereby enacts as follows: |
26 | Section 1. The definition of "impact fee" in section 502-A |
27 | of the act of July 31, 1968 (P.L.805, No.247), known as the |
28 | Pennsylvania Municipalities Planning Code, reenacted and amended |
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1 | December 21, 1988 (P.L.1329, No.170) and added December 19, 1990 |
2 | (P.L.1343, No.209), is amended and the section is amended by |
3 | adding a definition to read: |
4 | Section 502-A. Definitions.--The following words and phrases |
5 | when used in this article shall have the meanings given to them |
6 | in this section unless the context clearly indicates otherwise: |
7 | * * * |
8 | ["Impact fee," a charge or fee imposed by a municipality |
9 | against new development in order to generate revenue for funding |
10 | the costs of transportation capital improvements necessitated by |
11 | and attributable to new development.] |
12 | * * * |
13 | "Transportation impact fee," a charge or fee imposed by a |
14 | municipality against new development in order to generate |
15 | revenue for funding the costs of transportation capital |
16 | improvements necessitated by and attributable to new |
17 | development. |
18 | * * * |
19 | Section 2. Section 503-A of the act, amended or added |
20 | December 19, 1990 (P.L.1343, No.209) and June 22, 2000 (P.L.495, |
21 | No.68), is amended to read: |
22 | Section 503-A. Grant of Power.--(a) The governing body of |
23 | each municipality other than a county, in accordance with the |
24 | conditions and procedures set forth in this act, may enact, |
25 | amend and repeal transportation impact fee ordinances and, |
26 | thereafter, may establish, at the time of municipal approval of |
27 | any new development or subdivision, the amount of [an] a |
28 | transportation impact fee for any of the offsite public |
29 | transportation capital improvements authorized by this act as a |
30 | condition precedent to final plat approval under the |
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1 | municipality's subdivision and land development ordinance. Every |
2 | ordinance adopted pursuant to this act shall include, but not be |
3 | limited to, provisions for the following: |
4 | (1) The conditions and standards for the determination |
5 | and imposition of transportation impact fees consistent with |
6 | the provisions of this act. |
7 | (2) The agency, body or office within the municipality |
8 | which shall administer the collection, disbursement and |
9 | accounting of transportation impact fees. |
10 | (3) The time, method and procedure for the payment of |
11 | transportation impact fees. |
12 | (4) The procedure for issuance of any credit against or |
13 | reimbursement of transportation impact fees which an |
14 | applicant may be entitled to receive consistent with the |
15 | provisions of this act. |
16 | (5) Exemptions or credits which the municipality may |
17 | choose to adopt. In this regard the municipality shall have |
18 | the power to: |
19 | (i) Provide a credit of up to 100% of the applicable |
20 | transportation impact fees for all new development and |
21 | growth which constitutes affordable housing to low- and |
22 | moderate-income persons. |
23 | (ii) Provide a credit of up to 100% of the |
24 | applicable transportation impact fees for growth which |
25 | are determined by the municipality to serve an overriding |
26 | public interest. |
27 | (iii) Exempt de [minimus] minimis applications from |
28 | transportation impact fee requirements. If such a policy |
29 | is adopted, the definition of de [minimus] minimis shall |
30 | be contained in the ordinance. |
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1 | (b) No municipality shall have the power to require as a |
2 | condition for approval of a land development or subdivision |
3 | application the construction, dedication or payment of any |
4 | offsite improvements or capital expenditures of any nature |
5 | whatsoever or impose any contribution in lieu thereof, exaction |
6 | fee, or any connection, tapping or similar fee except as may be |
7 | specifically authorized under this act. |
8 | (c) No municipality may levy [an] a transportation impact |
9 | fee prior to the enactment of a municipal transportation impact |
10 | fee ordinance adopted in accordance with the procedures set |
11 | forth in this act, except as may be specifically authorized by |
12 | the provisions of this act. A transportation impact fee shall be |
13 | imposed by a municipality within a service area or areas only |
14 | where such fees have been determined and imposed pursuant to the |
15 | standards, provisions and procedures set forth herein. |
16 | (d) [Impact] Transportation impact fees may be used for |
17 | those costs incurred for improvements designated in the |
18 | transportation capital improvement program which are |
19 | attributable to new development, including the acquisition of |
20 | land and rights-of-way; engineering, legal and planning costs; |
21 | and all other costs which are directly related to road |
22 | improvements within the service area or areas, including debt |
23 | service. [Impact] Transportation impact fees shall not be |
24 | imposed or used for costs associated with any of the following: |
25 | (1) Construction, acquisition or expansion of municipal |
26 | facilities other than capital improvements identified in the |
27 | transportation capital improvements plan required by this |
28 | act. |
29 | (2) Repair, operation or maintenance of existing or new |
30 | capital improvements. |
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1 | (3) Upgrading, updating, expanding or replacing existing |
2 | capital improvements to serve existing developments in order |
3 | to meet stricter safety, efficiency, environmental or |
4 | regulatory standards not attributable to new development. |
5 | (4) Upgrading, updating, expanding or replacing existing |
6 | capital improvements to remedy deficiencies in service to |
7 | existing development or fund deficiencies in existing |
8 | municipal capital improvements resulting from a lack of |
9 | adequate municipal funding over the years for maintenance or |
10 | capital construction costs. |
11 | (5) Preparing and developing the land use assumptions, |
12 | roadway sufficiency analysis and transportation capital |
13 | improvement plan, except that transportation impact fees may |
14 | be used for no more than a proportionate amount of the cost |
15 | of professional consultants incurred in preparing a roadway |
16 | sufficiency analysis of infrastructure within a specified |
17 | transportation service area, such allowable proportion to be |
18 | calculated by dividing the total costs of all road |
19 | improvements in the adopted transportation capital |
20 | improvement program within the transportation service area |
21 | attributable to projected future development within the |
22 | service area, as defined in section 504-A(e)(1)(iii), by the |
23 | total costs of all road improvements in the adopted |
24 | transportation capital improvement program within the |
25 | specific transportation service area, as defined in section |
26 | 504-A. |
27 | (e) Nothing in this act shall be deemed to alter or affect a |
28 | municipality's existing power to require an applicant for |
29 | municipal approval of any new development or subdivision from |
30 | paying for the installation of onsite improvements as provided |
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1 | for in a municipality's subdivision and land development |
2 | ordinance as authorized by this act. |
3 | (f) No municipality may delay or deny any application for |
4 | building permit, certificate-of-occupancy, development or any |
5 | other approval or permit required for construction, land |
6 | development, subdivision or occupancy for the reason that any |
7 | project of an approved capital improvement program has not been |
8 | completed. |
9 | (g) A municipality which has enacted an impact fee ordinance |
10 | on or before June 1, 1990, may for a period not to exceed one |
11 | year from the effective date of this article, adopt an impact |
12 | fee ordinance to conform with the standards and procedures set |
13 | forth in this article. Where a fee previously imposed pursuant |
14 | to an ordinance in effect on June 1, 1990, for transportation |
15 | improvements authorized by this article is greater than the |
16 | recalculated fee due under the newly adopted ordinance, the |
17 | individual who paid the fee is entitled to a refund of the |
18 | difference. If the recalculated fee is greater than the |
19 | previously paid fee, there shall be no additional charge. |
20 | (h) The powers provided by this section may be exercised by |
21 | two or more municipalities, other than counties, which have |
22 | adopted a joint municipal comprehensive plan pursuant to Article |
23 | XI through a joint municipal authority, subject to the |
24 | conditions and procedures set forth in this article. |
25 | Section 3. Sections 504-A(a), (b), (e), (f) and (g) and 505- |
26 | A of the act, amended June 22, 2000 (P.L.495, No.68), are |
27 | amended to read: |
28 | Section 504-A. Transportation Capital Improvements Plan.-- |
29 | (a) (1) A transportation capital improvements plan shall be |
30 | prepared and adopted by the governing body of the municipality |
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1 | prior to the enactment of any transportation impact fee |
2 | ordinance. |
3 | (2) In lieu of preparing a transportation capital |
4 | improvements plan, the governing body of the municipality may |
5 | elect to have the municipality's comprehensive plan and maps |
6 | serve as a transportation capital improvements plan, provided |
7 | that: |
8 | (i) the municipality's comprehensive plan and maps |
9 | contain the necessary information for the transportation |
10 | impact fee advisory committee and governing body to |
11 | perform the calculations, make the recommendations and |
12 | carry out other duties required by this article; and |
13 | (ii) the municipality's comprehensive plan and maps |
14 | have been adopted or revised within ten years of the date |
15 | of enactment of a transportation impact fee ordinance. |
16 | (3) The municipality shall provide qualified |
17 | professionals to assist the transportation impact fee |
18 | advisory committee or the planning commission in the |
19 | preparation of the transportation capital improvements plan |
20 | or the transportation elements of the municipality's |
21 | comprehensive plan and calculation of the transportation |
22 | impact fees to be imposed to implement the plan in accordance |
23 | with the procedures, provisions and standards set forth in |
24 | this act. |
25 | (b) (1) [An] A transportation impact fee advisory committee |
26 | shall be [created] established by resolution of a |
27 | municipality intending to adopt a transportation impact fee |
28 | ordinance. The resolution shall describe the geographical |
29 | area or areas of the municipality for which the advisory |
30 | committee shall develop the land use assumptions and conduct |
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1 | the roadway sufficiency analysis studies. |
2 | (2) The advisory committee shall consist of no fewer |
3 | than 7 nor more than 15 members, all of whom shall serve |
4 | without compensation. The governing body of the municipality |
5 | shall appoint as members of the advisory committee persons |
6 | who are either residents of the municipality or conduct |
7 | business within the municipality and are not employees or |
8 | officials of the municipality. Not less than [40%] 25% of the |
9 | members of the advisory committee shall be representatives of |
10 | the real estate, commercial and residential development, and |
11 | building industries. The municipality may also appoint |
12 | traffic or transportation engineers or planners to serve on |
13 | the advisory committee provided the appointment is made after |
14 | consultation with the advisory committee members. The traffic |
15 | or transportation engineers or planners appointed to the |
16 | advisory committee may not be employed by the municipality |
17 | for the development of or consultation on the roadways |
18 | sufficiency analysis which may lead to the adoption of the |
19 | transportation capital improvements plan. |
20 | (3) The governing body of the municipality may elect to |
21 | designate the municipal planning commission appointed |
22 | pursuant to Article II as the transportation impact fee |
23 | advisory committee. If the existing planning commission does |
24 | not include members representative of the real estate, |
25 | commercial and residential development, and building |
26 | industries at no less than [40%] 25% of the membership, the |
27 | governing body of the municipality shall appoint the |
28 | sufficient number of representatives of the aforementioned |
29 | industries who reside in the municipality or conduct business |
30 | within the municipality to serve as ad hoc voting members of |
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1 | the planning commission whenever such commission functions as |
2 | the impact fee advisory committee. |
3 | (4) No transportation impact fee ordinance may be |
4 | invalidated as a result of any legal action challenging the |
5 | composition of the advisory committee which is not brought |
6 | within 90 days following the first public meeting of [said] |
7 | the advisory committee. |
8 | (5) The advisory committee shall serve in an advisory |
9 | capacity and shall have the following duties: |
10 | (i) To make recommendations with respect to land use |
11 | assumptions, the development of comprehensive road |
12 | improvements and transportation impact fees. |
13 | (ii) To make recommendations to approve, disapprove |
14 | or modify a capital improvement program by preparing a |
15 | written report containing these recommendations to the |
16 | municipality. |
17 | (iii) To monitor and evaluate the implementation of |
18 | a capital improvement program and the assessment of |
19 | transportation impact fees, and report annually to the |
20 | municipality with respect to the same. |
21 | (iv) To advise the municipality of the need to |
22 | revise or update the land use assumptions, capital |
23 | improvement program or transportation impact fees. |
24 | * * * |
25 | (e) (1) Utilizing the information provided by the land |
26 | use assumption and the roadway sufficiency analysis as the |
27 | basis for determination of the need for road improvements to |
28 | remedy existing deficiencies and accommodate future projected |
29 | traffic volumes, the advisory committee shall identify those |
30 | capital projects which the municipality should consider for |
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1 | adoption in its transportation capital improvements plan and |
2 | shall recommend the delineation of the transportation service |
3 | area or areas. The capital improvement plan shall be |
4 | developed in accordance with generally accepted engineering |
5 | and planning practices. The capital improvement program shall |
6 | include projections of all designated road improvements in |
7 | the capital improvement program. The total cost of the road |
8 | improvements shall be based upon estimated costs, using |
9 | standard traffic engineering standards, with a 10% maximum |
10 | contingency which may be added to said estimate. These costs |
11 | shall include improvements to correct existing deficiencies |
12 | with identified anticipated sources of funding and timetables |
13 | for implementation. The transportation capital improvements |
14 | plan shall include the following components: |
15 | (i) A description of the existing highways, roads |
16 | and streets within the transportation service area and |
17 | the road improvements required to update, improve, expand |
18 | or replace such highways, roads and streets in order to |
19 | meet the preferred level of service and usage and |
20 | stricter safety, efficiency, environmental or regulatory |
21 | standards not attributable to new development. |
22 | (ii) A plan specifying the road improvements within |
23 | the transportation service area attributable to |
24 | forecasted pass-through traffic so as to maintain the |
25 | preferred level of service after existing deficiencies |
26 | identified by the roadway sufficiency analysis have been |
27 | remedied. |
28 | (iii) A plan specifying the road improvements or |
29 | portions thereof within the transportation service area |
30 | attributable to the projected future development, |
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1 | consistent with the adopted land use assumptions, in |
2 | order to maintain the preferred level of service after |
3 | accommodation for pass-through traffic and after existing |
4 | deficiencies identified in the roadway sufficiency |
5 | analysis have been remedied. |
6 | (iv) The projected costs of the road improvements to |
7 | be included in the transportation capital improvements |
8 | plan, calculating separately for each project by the |
9 | following categories: |
10 | (A) The costs or portion thereof associated with |
11 | correcting existing deficiencies as specified in |
12 | subparagraph (i). |
13 | (B) The costs or portions thereof attributable |
14 | to providing road improvements to accommodate |
15 | forecasted pass-through trips as specified in |
16 | subparagraph (ii). |
17 | (C) The costs of providing necessary road |
18 | improvements or portions thereof attributable to |
19 | projected future development as specified in |
20 | subparagraph (iii), provided that no more than 50% of |
21 | the cost of the improvements to any highway, road or |
22 | street which qualifies as a State highway or portion |
23 | of the rural State highway system as provided in |
24 | section 102 of the act of June 1, 1945 (P.L.1242, No. |
25 | 428), known as the "State Highway Law," may be |
26 | included. |
27 | (v) A projected timetable and proposed budget for |
28 | constructing each road improvement contained in the plan. |
29 | (vi) The proposed source of funding for each capital |
30 | improvement included in the road plan. This shall include |
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1 | anticipated revenue from the Federal Government, State |
2 | government, municipality, transportation impact fees and |
3 | any other source. The estimated revenue for each capital |
4 | improvement in the plan which is to be provided by |
5 | transportation impact fees shall be identified separately |
6 | for each project. |
7 | (2) The source of funding required for projects to |
8 | remedy existing deficiencies as set forth in paragraph (1)(i) |
9 | and the road improvements attributable to forecasted pass- |
10 | through traffic as set forth in paragraph (1)(ii) shall be |
11 | exclusive of funds generated from the assessment of |
12 | transportation impact fees. |
13 | (3) Upon the completion of the transportation capital |
14 | improvements plan and prior to its adoption by the governing |
15 | body of the municipality and the enactment of a municipal |
16 | transportation impact fee ordinance, the advisory committee |
17 | shall hold at least one public hearing for consideration of |
18 | the plan. Notification of the public hearing shall comply |
19 | with the requirement of section 107. The plan shall be |
20 | available for public inspection at least ten working days |
21 | prior to the date of the public hearing. After presentation |
22 | of the recommendation by the advisory committee or its |
23 | representatives at a public meeting of the governing body, |
24 | the governing body may make such changes to the plan prior to |
25 | its adoption as the governing body deems appropriate |
26 | following review of the public comments made at the public |
27 | hearing. |
28 | (4) The governing body may periodically, but no more |
29 | frequently than annually, request the transportation impact |
30 | fee advisory committee to review the capital improvements |
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1 | plan and transportation impact fee charges and make |
2 | recommendations for revisions for subsequent consideration |
3 | and adoption by the governing body based only on the |
4 | following: |
5 | (i) New subsequent development which has occurred in |
6 | the municipality. |
7 | (ii) Capital improvements contained in the capital |
8 | improvements plan, the construction of which has been |
9 | completed. |
10 | (iii) Unavoidable delays beyond the responsibility |
11 | or control of the municipality in the construction of |
12 | capital improvements contained in the plan. |
13 | (iv) Significant changes in the land use |
14 | assumptions. |
15 | (v) Changes in the estimated costs of the proposed |
16 | transportation capital improvements, which may be |
17 | recalculated by applying the construction cost index as |
18 | published in the American City/County magazine or the |
19 | Engineering News Record. |
20 | (vi) Significant changes in the projected revenue |
21 | from all sources listed needed for the construction of |
22 | the transportation capital improvements. |
23 | (f) Any improvements to Federal-aid or State highways to be |
24 | funded in part by transportation impact fees shall require the |
25 | approval of the Department of Transportation and, if necessary, |
26 | the United States Department of Transportation. Nothing in this |
27 | act shall be deemed to alter or diminish the powers, duties or |
28 | jurisdiction of the Department of Transportation with respect to |
29 | State highways or the rural State highway system. |
30 | (g) Two or more municipalities may, upon agreement, appoint |
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1 | a joint transportation impact fee advisory committee which may |
2 | develop roadway sufficiency analyses and transportation capital |
3 | improvements plans for the participating municipalities. The |
4 | members of the joint advisory committee must be either residents |
5 | of or conduct business within one of the participating |
6 | municipalities. |
7 | Section 505-A. Establishment and Administration of Impact |
8 | Fees.-- |
9 | (a) (1) The transportation impact fee for transportation |
10 | capital improvements shall be based upon the total costs of |
11 | the road improvements included in the adopted capital |
12 | improvement plan within a given transportation service area |
13 | attributable to and necessitated by new development within |
14 | the service area as calculated pursuant to section 504-A(e) |
15 | (1)(iv)(C), divided by the number of anticipated peak hour |
16 | trips generated by all new development consistent with the |
17 | adopted land use assumptions and calculated in accordance |
18 | with the Trip Generation Manual published by the Institute of |
19 | Transportation Engineers, fourth or subsequent edition as |
20 | adopted by the municipality by ordinance or resolution to |
21 | equal a per trip cost for transportation improvements within |
22 | the service area. |
23 | (2) The specific transportation impact fee for a |
24 | specific new development or subdivision within the service |
25 | area for road improvements shall be determined as of the date |
26 | of preliminary land development or subdivision approval by |
27 | multiplying the per trip cost established for the service |
28 | area as determined in section 503-A(a) by the estimated |
29 | number of peak hour trips to be generated by the new |
30 | development or subdivision using generally accepted traffic |
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1 | engineering standards. |
2 | (3) A municipality may authorize or require the |
3 | preparation of a special transportation study in order to |
4 | determine traffic generation or circulation for a new |
5 | nonresidential development to assist in the determination of |
6 | the amount of the transportation impact fee for such |
7 | development or subdivision. The municipality shall set forth |
8 | by ordinance the circumstances in which such a study should |
9 | be authorized or required, provided however, that no special |
10 | transportation study shall be required when there is no |
11 | deviation from the land use assumptions resulting in |
12 | increased density, intensity or trip generation by a |
13 | particular development. A developer or municipality may, |
14 | however, at any time, voluntarily prepare and submit a |
15 | traffic study for a proposed development or may have such a |
16 | study prepared at its expense after the development is |
17 | completed to include actual trips generated by the |
18 | development for use in any appeal as provided for under this |
19 | act. The special transportation study shall be prepared by a |
20 | qualified traffic or transportation engineer using procedures |
21 | and methods established by the municipality based on |
22 | generally accepted transportation planning and engineering |
23 | standards. The study, where required by the municipality, |
24 | shall be submitted prior to the imposition of [an] a |
25 | transportation impact fee and shall be taken into |
26 | consideration by the municipality in increasing or reducing |
27 | the amount of the transportation impact fee for the new |
28 | development for the amount shown on the transportation impact |
29 | fee schedule adopted by the municipality. |
30 | (b) The governing body shall enact [an] a transportation |
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1 | impact fee ordinance setting forth a description of the |
2 | boundaries and a transportation impact fee schedule for each |
3 | transportation service area. At least ten working days prior to |
4 | the adoption of the ordinance at a public meeting, the ordinance |
5 | shall be available for public inspection. The transportation |
6 | impact fee ordinance shall include, but not be limited to, those |
7 | provisions set forth in section 503-A(a) and conform with the |
8 | standards, provisions and procedures set forth in this act. |
9 | (c) (1) A municipality may give notice of its intention to |
10 | adopt [an] a transportation impact fee ordinance by |
11 | publishing a statement of such intention twice in one |
12 | newspaper of general circulation in the municipality. The |
13 | first publication shall not occur before the adoption of the |
14 | resolution by which the municipality establishes its |
15 | transportation impact fee advisory committee. The second |
16 | publication shall occur not less than one nor more than three |
17 | weeks thereafter. |
18 | (2) A municipal transportation impact fee ordinance |
19 | adopted under and pursuant to this act may provide that the |
20 | provisions of the ordinance may have retroactive application, |
21 | for a period not to exceed 18 months after the adoption of |
22 | the resolution [creating an] establishing a transportation |
23 | impact fee advisory committee pursuant to section 504-A(b) |
24 | (1), to preliminary or tentative applications for land |
25 | development, subdivision or PRD with the municipality on or |
26 | after the first publication of the municipality's intention |
27 | to adopt [an] a transportation impact fee ordinance; |
28 | provided, however, that the transportation impact fee imposed |
29 | on building permits for construction of new development |
30 | approved pursuant to such applications filed during the |
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1 | period of [pendancy] pendency shall not exceed $1,000 per |
2 | anticipated peak hour trip as calculated in accordance with |
3 | the generally accepted traffic engineering standards as set |
4 | forth under the provisions of subsection (a)(1) or the |
5 | subsequently adopted fee established by the ordinance, |
6 | whichever is less. |
7 | (3) No action upon an application for land development, |
8 | subdivision or PRD shall be postponed, delayed or extended by |
9 | the municipality because adoption of a municipal |
10 | transportation impact fee ordinance is being considered. |
11 | Furthermore, the adoption of [an] a transportation impact fee |
12 | ordinance more than 18 months after adoption of a resolution |
13 | [creating the] establishing the transportation impact fee |
14 | advisory committee shall not be retroactive or applicable to |
15 | plats submitted for preliminary or tentative approval prior |
16 | to the legal publication of the proposed transportation |
17 | impact fee ordinance and any transportation impact fees |
18 | collected pursuant to this subsection shall be refunded to |
19 | the payor of such fees; provided the adoption of the |
20 | transportation impact fee ordinance was not delayed due to |
21 | the initiation of any litigation challenging the adoption of |
22 | such ordinance. |
23 | (d) Any transportation impact fees collected by a |
24 | municipality pursuant to a municipal transportation impact fee |
25 | ordinance shall be deposited by the municipality into an |
26 | interest-bearing fund account designated solely for |
27 | transportation impact fees, clearly identifying the |
28 | transportation service area from which the transportation impact |
29 | fee was received. Funds collected in one transportation service |
30 | area must be accounted for and expended within that |
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1 | transportation service area, and such funds shall only be |
2 | expended for that portion of the transportation capital |
3 | improvements identified as being funded by transportation impact |
4 | fees under the transportation capital improvements plan. |
5 | Notwithstanding any other provisions of this act, municipalities |
6 | may expend transportation impact fees paid by an applicant on |
7 | projects not contained in the adopted transportation capital |
8 | improvement plan or may provide credit against transportation |
9 | impact fees for the value of any construction projects not |
10 | contained in the transportation capital improvement plan which |
11 | are performed at the applicant's expense if all of the following |
12 | criteria are met: |
13 | (1) The applicant has provided written consent to use of |
14 | its collected transportation impact fees or the provision of |
15 | such credit against the applicant's transportation impact |
16 | fees for specific transportation projects which are not |
17 | included in the transportation capital improvement plan. |
18 | (2) The alternative transportation projects, whether |
19 | highway or multimodal, have as their purpose the reduction of |
20 | traffic congestion or the removal of vehicle trips from the |
21 | roadway network. |
22 | (3) The municipality amends its transportation capital |
23 | improvement plan components required by section 504-A(e)(1) |
24 | (vi) to provide replacement of the collected transportation |
25 | impact fees transferred to transportation projects outside |
26 | the approved transportation capital improvement plan from |
27 | sources other than transportation impact fees or developer |
28 | contributions within three years of completion of the |
29 | alternative projects to which the transferred transportation |
30 | impact fees were applied or for which credit was provided. |
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1 | All interest earned on such funds shall become funds of that |
2 | account. The municipality shall provide that an accounting be |
3 | made annually for any fund account containing transportation |
4 | impact fee proceeds and earned interest. Such accounting |
5 | shall include, but not be limited to, the total funds |
6 | collected, the source of the funds collected, the total |
7 | amount of interest accruing on such funds and the amount of |
8 | funds expended on specific transportation improvements. |
9 | Notice of the availability of the results of the accounting |
10 | shall be included and published as part of the annual audit |
11 | required of municipalities. A copy of the report shall also |
12 | be provided to the transportation advisory committee. |
13 | (e) All transportation impact fees imposed under the terms |
14 | of this act shall be payable at the time of the issuance of |
15 | building permits for the applicable new development or |
16 | subdivision. The municipality may not require the applicant to |
17 | provide a guarantee of financial security for the payment of any |
18 | transportation impact fees, except the municipality may provide |
19 | for the deposit with the municipality of financial security in |
20 | an amount sufficient to cover the cost of the construction of |
21 | any road improvement contained in the transportation capital |
22 | improvement plan which is performed by the applicant. |
23 | (f) An applicant shall be entitled to a credit against the |
24 | transportation impact fee in the amount of the fair market value |
25 | of any land dedicated by the applicant to the municipality for |
26 | future right-of-way, realignment or widening of any existing |
27 | roadways or for the value of any construction of road |
28 | improvements contained in the transportation capital improvement |
29 | program which is performed at the applicant's expense. The |
30 | amount of such credit for any capital improvement constructed |
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1 | shall be the amount allocated in the capital improvement |
2 | program, including contingency factors, for such work. The fair |
3 | market value of any land dedicated by the applicant shall be |
4 | determined as of the date of the submission of the land |
5 | development or subdivision application to the municipality. |
6 | (g) [Impact] Transportation impact fees previously collected |
7 | by a municipality shall be refunded, together with earned |
8 | accrued interest thereon, to the payor of [such] the |
9 | transportation impact fees from the date of payment under any of |
10 | the following circumstances: |
11 | (1) In the event that a municipality terminates or |
12 | completes an adopted capital improvements plan for a |
13 | transportation service area and there remains at the time of |
14 | termination or completion undispersed funds in the accounts |
15 | established for that purpose, the municipality shall provide |
16 | written notice by certified mail to those persons who |
17 | previously paid the transportation impact fees which remain |
18 | undispersed of the availability of said funds for refund of |
19 | the person's proportionate share of the fund balance. The |
20 | allocation of the refund shall be determined by generally |
21 | accepted accounting practices. In the event that any of the |
22 | funds remain unclaimed following one year after the notice, |
23 | which notice shall be provided to the last known address |
24 | provided by the payor of the transportation impact fees to |
25 | the municipality, the municipality shall be authorized to |
26 | transfer any funds so remaining to any other fund in the |
27 | municipality without any further obligation to refund said |
28 | funds. |
29 | (2) If the municipality fails to commence construction |
30 | of any transportation service area road improvements within |
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1 | three years of the scheduled construction date set forth in |
2 | the transportation capital improvements plan, any person who |
3 | paid any transportation impact fees pursuant to that |
4 | transportation capital improvements plan shall, upon written |
5 | request to the municipality, receive a refund of that portion |
6 | of the transportation impact fee attributable to the |
7 | contribution for the uncommenced road improvement, plus the |
8 | interest accumulated thereon from the date of payment. |
9 | (3) If, upon completion of any road improvements |
10 | project, the actual expenditures of the capital project are |
11 | less than 95% of the costs properly allocable to the |
12 | transportation impact fee paid within the transportation |
13 | service area in which the completed road improvement was |
14 | adopted, the municipality shall refund the pro rata |
15 | difference between the budgeted costs and the actual |
16 | expenditures, including interest accumulated thereon from the |
17 | date of payment, to the person or persons who paid the |
18 | transportation impact fees for such improvements. |
19 | (4) If the new development for which transportation |
20 | impact fees were paid is not commenced prior to the |
21 | expiration of building permits issued for the new development |
22 | within the time limits established by applicable building |
23 | codes within the municipality or if the building permit as |
24 | issued for the new development is altered and the alteration |
25 | results in a decrease in the amount of the transportation |
26 | impact fee due in accordance with the calculations set forth |
27 | in subsection (a)(1). |
28 | (h) Where [an] a transportation impact fee ordinance has |
29 | been adopted pursuant to the other provisions of this act, the |
30 | ordinance may impose an additional transportation impact fee |
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1 | upon new developments which generate 1,000 or more new peak hour |
2 | trips, net of pass-by trips as defined by the current edition of |
3 | the Institute of Transportation Engineers Trip Generation |
4 | Manual, during the peak hour period designated in the ordinance. |
5 | In such case, the transportation impact fee ordinance adopted |
6 | under this act may require the applicant for such a development |
7 | to perform a traffic analysis of development traffic impact on |
8 | highways, roads or streets outside the transportation service |
9 | area in which the development site is located but within the |
10 | boundaries of the municipality or municipalities adopting a |
11 | joint municipal transportation impact fee ordinance or |
12 | municipalities which are participating in a joint municipal |
13 | authority authorized to impose transportation impact fees by |
14 | this article. Any such highways, roads or streets or parts |
15 | thereof outside the transportation service area which will |
16 | accommodate 10% or more of development traffic and 100 or more |
17 | new peak hour trips may be required to be studied, and the |
18 | ordinance may require the applicant to mitigate the traffic |
19 | impacts of the development on such highways, roads and streets |
20 | to maintain the predevelopment conditions after completion of |
21 | the development. |
22 | Section 4. Section 506-A of the act, added December 19, 1990 |
23 | (P.L.1343, No.209), is amended to read: |
24 | Section 506-A. Appeals.--(a) Any person required to pay |
25 | [an] a transportation impact fee shall have the right to contest |
26 | the land use assumptions, the development and implementation of |
27 | the transportation capital improvement program, the imposition |
28 | of transportation impact fees, the periodic updating of the |
29 | transportation capital improvement program, the refund of |
30 | transportation impact fees and all other matters relating to |
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1 | transportation impact fees, including the constitutionality or |
2 | validity of the transportation impact fee ordinance by filing an |
3 | appeal with the court of common pleas. |
4 | (b) A master may be appointed by the court to hear testimony |
5 | on the issues and return the record and a transcript of the |
6 | testimony, together with a report and recommendations, or the |
7 | court may appoint a master to hold a nonrecord hearing and to |
8 | make recommendations and return the same to the court, in which |
9 | case either party may demand a hearing de novo before the court. |
10 | (c) Any cost incurred by parties in such an appeal shall be |
11 | the separate responsibility of the parties. |
12 | Section 5. Section 508-A of the act, added June 22, 2000 |
13 | (P.L.495, No.68), is amended to read: |
14 | Section 508-A. Joint Municipal Transportation Impact Fee |
15 | Ordinance.--(a) For the purpose of permitting municipalities |
16 | which cooperatively plan for their future to also provide for |
17 | transportation capital improvements in a cooperative manner, the |
18 | governing bodies of each municipality which has adopted a joint |
19 | municipal comprehensive plan pursuant to Article XI in |
20 | accordance with the conditions and procedures set forth in this |
21 | article may cooperate with one or more municipalities to enact, |
22 | amend and repeal joint transportation impact fee ordinances to |
23 | accomplish the purposes of this act in accordance with this |
24 | article. |
25 | (b) The procedures set forth in this article shall be |
26 | applicable to the enactment of a joint municipal transportation |
27 | impact fee ordinance. |
28 | (c) Each municipality party to a joint municipal |
29 | transportation impact fee ordinance shall approve the advisory |
30 | committee and shall adopt the land use assumptions, roadway |
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1 | sufficiency analysis, capital improvement plan and ordinances |
2 | and amendments thereto in accordance with the procedures in this |
3 | article, and no such ordinance shall become effective until it |
4 | has been properly adopted by all the participating |
5 | municipalities. |
6 | Section 6. The act is amended by adding an article to read: |
7 | ARTICLE V-B |
8 | DEVELOPMENT IMPACT FEES |
9 | Section 501-B. Legislative findings and intent. |
10 | The General Assembly finds and declares as follows: |
11 | (1) It is the public policy of this Commonwealth to |
12 | protect the public health, safety and general welfare of its |
13 | citizens by providing an equitable program for the planning |
14 | and financing of public facilities to serve new growth and |
15 | development and to authorize school districts and |
16 | municipalities to assess, impose, levy and collect fees as |
17 | defined in this article as development impact fees for all |
18 | new development within their jurisdictional limits. |
19 | (2) By enacting this article, the General Assembly |
20 | intends to encourage and promote each of the following: |
21 | (i) Adequate public facilities to serve new growth |
22 | and development. |
23 | (ii) Orderly growth and development that does not |
24 | place an undue financial burden upon existing taxpayers. |
25 | (iii) Standards for apportioning the fair share of |
26 | the cost of new or upgraded public facilities that serve |
27 | new growth and development among those who will benefit |
28 | by permitting school districts and municipalities to: |
29 | (A) adopt development impact fee ordinances; and |
30 | (B) impose development impact fees. |
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1 | Section 502-B. Definitions. |
2 | The following words and phrases when used in this article |
3 | shall have the meanings given to them in this section unless the |
4 | context clearly indicates otherwise: |
5 | "Capital improvement costs." Costs incurred to provide |
6 | public facilities and capital improvements to serve new |
7 | development, including costs for planning, design and |
8 | construction, land acquisition, improvement, design and |
9 | engineering related thereto, including, but not limited to, the |
10 | construction contract price, surveying and engineering fees, |
11 | related land acquisition costs, including land purchases, court |
12 | awards and costs, attorney fees and expert witness fees and |
13 | expenses incurred for qualified staff of any engineer, planner, |
14 | architect, landscape architect or financial consultant for |
15 | preparing or updating the capital improvement program and |
16 | administrative costs related thereto, provided that such |
17 | administrative costs shall not exceed 3% of the total amount of |
18 | the costs. Projected interest charges and other finance costs |
19 | may be included if the development impact fees are to be used |
20 | for the payment of principal and interest on bonds, notes or |
21 | other financial obligations issued by or on behalf of the |
22 | governmental entity to finance capital improvements. The term |
23 | may include up to one year's start-up costs related to the |
24 | operation of public facilities or capital improvements, |
25 | including the costs of hiring and training additional personnel, |
26 | acquiring additional insurance and providing additional |
27 | transportation. The term also includes routine and periodic |
28 | maintenance expenditures or other operating costs for public |
29 | facilities or capital improvements attributed to new |
30 | development. |
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1 | "Capital improvement program." A plan adopted by a |
2 | governmental entity setting out the need for public facilities |
3 | or capital improvements, the costs of the improvements and |
4 | proposed funding sources and which plan covers at least a five- |
5 | year period and is reviewed at least every five years. |
6 | "Capital improvements." Improvements and equipment that |
7 | increase or improve the service capacity of a public facility |
8 | and have a useful life to ten years or more. |
9 | "Development impact fee." A charge imposed upon new |
10 | development by a governmental entity to fund all or a portion of |
11 | the public facility's capital improvement costs affected by the |
12 | new development from which it is collected. |
13 | "Governmental entity." A municipality or a school district. |
14 | "Municipal facilities." |
15 | (1) Police, emergency medical, rescue and fire |
16 | protection facilities and equipment. |
17 | (2) Park and recreational facilities and equipment. The |
18 | authority to impose development impact fees for park and |
19 | recreation purposes in accordance with this article shall be |
20 | in addition to and shall not restrict the power of a |
21 | municipality to require the construction of recreational |
22 | facilities or the dedication of land, or fees in lieu |
23 | thereof, in accordance with section 503(11). |
24 | "Municipality." A municipality, excluding a county, as those |
25 | terms are defined in section 107. |
26 | "New development." A commercial, industrial or residential |
27 | or other project that involves new construction, enlargement, |
28 | reconstruction, redevelopment, relocation or structural |
29 | alteration that is reasonably expected to generate additional |
30 | need for public facility capital improvements. |
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1 | "Ordinance." A legislative act of a municipality and a |
2 | resolution of a school district adopted under this article and |
3 | enacted pursuant to the procedures provided in section 608. |
4 | "Proportionate share." That portion of capital improvement |
5 | costs that reasonably relates to the service demands and needs |
6 | of new development. |
7 | "Public facilities." School facilities and municipal |
8 | facilities. |
9 | "School district." A school district of any class, except a |
10 | school district of the first class or a school district of the |
11 | first class A. |
12 | "School facilities." Public schools and equipment. |
13 | Section 503-B. Grant of power. |
14 | The governing body of a governmental entity, in accordance |
15 | with the conditions and procedures set forth in this article, |
16 | may enact, amend and repeal an ordinance authorizing the |
17 | assessment and collection of development impact fees. |
18 | Section 504-B. Calculation of development impact fees. |
19 | (a) Needs assessment.--The governmental entity considering |
20 | the adoption of development impact fees shall conduct a needs |
21 | assessment for the type of public facilities or capital |
22 | improvements for which development impact fees are to be levied. |
23 | The needs assessment shall identify levels of service standards |
24 | and projected public facilities or capital improvements needs |
25 | and distinguish existing needs and deficiencies from future |
26 | needs. The findings of this document shall be adopted by |
27 | ordinance of the governmental entity. |
28 | (b) Public availability.--The data sources and methodology |
29 | upon which needs assessments and development impact fees are |
30 | based shall be made available to the public upon request. |
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1 | (c) Accounting principles.--The amount of each development |
2 | impact fee imposed shall be based upon the actual cost of public |
3 | facility expansion or capital improvements or reasonable |
4 | estimates of the cost to be incurred by the governmental entity |
5 | as a result of new development. The calculation of each |
6 | development impact fee shall be in accordance with generally |
7 | accepted accounting principles. |
8 | (d) Requirements.--A development impact fee shall meet the |
9 | following requirements: |
10 | (1) The amount of the development impact fee shall be |
11 | reasonably related or reasonably attributable to the new |
12 | development's share of the cost of public facilities and |
13 | capital improvements made necessary by the new development. |
14 | (2) The development impact fee imposed shall not exceed |
15 | a proportionate share of the costs incurred or to be incurred |
16 | by the governmental entity in accommodating the development. |
17 | The following factors shall be considered in determining a |
18 | proportionate share of public facilities and capital |
19 | improvement costs: |
20 | (i) The need for public facilities and capital |
21 | improvements required to serve new development, based on |
22 | a capital improvements program that shows deficiencies in |
23 | public facilities serving existing development, and the |
24 | means, other than development impact fees, by which any |
25 | existing deficiencies will be eliminated within a |
26 | reasonable period of time and that shows additional |
27 | demands anticipated to be placed on specified public |
28 | facilities and capital improvements by new development. |
29 | (ii) The extent to which new development is required |
30 | to contribute to the cost of system improvements in the |
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1 | future. |
2 | Section 505-B. Collection and expenditure of development impact |
3 | fees. |
4 | (a) Related to benefits.--The collection and expenditure of |
5 | development impact fees shall be reasonably related to the |
6 | benefits accruing to the development against which the |
7 | development impact fees are assessed. The ordinance shall impose |
8 | the following requirements: |
9 | (1) Upon collection, development impact fees shall be |
10 | deposited in a special proprietary trust fund and invested |
11 | with all interest accruing to that fund. |
12 | (2) Within eight years of the date of collection, |
13 | development impact fees shall be expended or encumbered for |
14 | the construction of public facilities or capital improvements |
15 | that are of reasonable benefit to the development for which |
16 | the fees were paid and that are consistent with the capital |
17 | improvement program. |
18 | (3) Where the expenditure or encumbrance of development |
19 | impact fees is not feasible within eight years, the |
20 | governmental entity may retain development impact fees for a |
21 | longer period of time if there are compelling reasons for the |
22 | longer period. In no case shall development impact fees be |
23 | retained longer than 12 years. |
24 | (b) Restrictions.--The following restrictions shall apply to |
25 | the assessment and collection of development impact fees: |
26 | (1) Development impact fees shall be assessed upon the |
27 | issuance of a building permit or other appropriate permission |
28 | to proceed with development. |
29 | (2) Except as provided in paragraph (3), development |
30 | impact fees shall be collected in full upon the issuance of |
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1 | certificate of occupancy or other final action authorizing |
2 | the intended use of a structure. |
3 | (3) If a development impact fee is assessed against a |
4 | residential development in which one or more dwellings are to |
5 | be conveyed to a purchaser or purchasers other than the |
6 | developer, the governmental entity shall assess a portion of |
7 | the development impact fee on a pro rata basis upon each |
8 | dwelling to be conveyed to a purchaser other than the |
9 | developer, and the prorated amount shall be collected from |
10 | the purchaser of the dwelling at the time of closing or |
11 | settlement. |
12 | (4) Assessed development impact fees shall constitute a |
13 | lien in accordance with this paragraph: |
14 | (i) Except as provided in subparagraph (ii), an |
15 | assessed development impact fee shall constitute a lien |
16 | on the new development against which it is imposed, and |
17 | the lien shall continue until the development impact fee |
18 | is paid in full. |
19 | (ii) If a development impact fee is to be collected |
20 | on a pro rata basis in accordance with paragraph (3), |
21 | only the prorated amount of the development impact fee to |
22 | be paid by the purchaser of a dwelling shall constitute a |
23 | lien on that dwelling, and the lien shall continue until |
24 | the prorated amount is paid in full. |
25 | (c) Recoupment of costs.--A governmental entity may recoup |
26 | costs of excess capacity in public facilities or capital |
27 | improvements constructed after the effective date of this |
28 | article, where the excess capacity has been provided in |
29 | anticipation of the needs of new development, by requiring |
30 | development impact fees for that portion of the facilities |
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1 | constructed for future users. The need to recoup costs for |
2 | excess capacity must have been documented by a preconstruction |
3 | assessment that demonstrated the need for the excess capacity. |
4 | The fees imposed to recoup the costs to provide the excess |
5 | capacity shall be based on the governmental entity's actual cost |
6 | of acquiring, constructing or upgrading the facility and shall |
7 | be no more than a proportionate share of the costs to provide |
8 | the excess capacity. That portion of a development impact fee |
9 | deemed recoupment is exempt from the provisions of section 504- |
10 | B(d)(2). |
11 | (d) In lieu of payments.--Governmental entities may accept |
12 | the dedication of land or the construction of public facilities |
13 | or capital improvements in lieu of payment of development impact |
14 | fees provided that: |
15 | (1) The need for the dedication or construction is |
16 | clearly documented in the governmental entity's capital |
17 | improvement program or comprehensive plan. |
18 | (2) The land proposed for dedication for the public |
19 | facilities to be constructed is determined to be appropriate |
20 | for the proposed use by the governmental entity. |
21 | (3) Formulas or procedures for determining the worth of |
22 | proposed dedications or constructions are established. |
23 | (e) Exemptions.--The following exemptions shall apply: |
24 | (1) Development impact fees shall not be imposed for |
25 | remodeling, rehabilitation or similar improvements to an |
26 | existing structure or rebuilding a damaged structure unless |
27 | there is an increase in the number of dwelling units or any |
28 | other measurable unit for which a development impact fee is |
29 | collected. Development impact fees may be imposed when |
30 | property which is owned or controlled by Federal or State |
|
1 | government is converted to private ownership or control. |
2 | (2) Nothing in this article shall prevent a governmental |
3 | entity from granting any exemptions which it deems |
4 | appropriate, including reducing or eliminating development |
5 | impact fees on affordable housing units for low-income or |
6 | moderate-income individuals. |
7 | Section 506-B. Refund of development impact fees. |
8 | (a) Amount of refund.--If development impact fees are not |
9 | expended or encumbered within the period established in section |
10 | 504-B, the governmental entity shall refund to the current |
11 | property owner the amount of the development impact fee paid and |
12 | accrued interest. The governmental entity shall send the refund |
13 | to the current property owner by any form of mail requiring a |
14 | receipt signed by the current property owner or an authorized |
15 | agent within one year of the date on which the right to claim a |
16 | refund arises. If the refund is returned unclaimed, the |
17 | governmental entity shall publish notice of the refund once a |
18 | week for two consecutive weeks in a newspaper of general |
19 | circulation in the county in which the governmental entity is |
20 | located. All refunds due and not claimed within one year after |
21 | notification as provided in this section shall be retained by |
22 | the municipality and may be transferred to the municipality's |
23 | general fund and used for any public purpose. |
24 | (b) Refund upon termination.-- |
25 | (1) A governmental entity that terminates the collection |
26 | of development impact fees for any or all categories of |
27 | public facilities shall refund all unexpended or unencumbered |
28 | funds collected in accordance with the notice provisions of |
29 | subsection (a) and, in addition, shall place a notice of the |
30 | termination and availability of refunds in a newspaper of |
|
1 | general circulation in the county of the governmental entity |
2 | once a week for at least two consecutive weeks. |
3 | (2) This subsection shall not apply if there are no |
4 | unexpended or unencumbered balances within a fund or funds |
5 | being terminated. |
6 | Section 507-B. Severability. |
7 | If any portion of this article or any rule, regulation or |
8 | determination made under this article, or the application of |
9 | this article to any person, agency or circumstance is held |
10 | invalid by a court of competent jurisdiction, the remainder of |
11 | this article, rule, regulation or determination and the |
12 | application of those provisions to other persons, agencies or |
13 | circumstances shall not be affected. The invalidity of any |
14 | section or sections, or parts of any section or sections of this |
15 | article, shall not affect the validity of the remainder of this |
16 | article. |
17 | Section 508-B. Limitation on development impact fees. |
18 | No municipality may include any transportation-related |
19 | improvement or expenditure already included under Article V-A in |
20 | any development impact fee adopted under this article. |
21 | Section 7. This act shall take effect in 60 days. |
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