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HomeMy WebLinkAboutOrdinance 2016-018 Adopting a New Section 20.90.420 to the Arlington Municipal Code Regarding a Process for Deferral of Impact Fees Pursuant to ESB 5923 ORDINANCE NO. 2016-018 AN ORDINANCE OF THE CITY OF ARLINGTON, WASHINGTON ADOPTING A NEW SECTION 20.90.420 TO THE ARLINGTON MUNICIPAL CODE REGARDING A PROCESS FOR DEFERRAL OF IMPACT FEES PURSUANT TO ESB 5923 WHEREAS,the Washington state legislature adopted ESB 5923 in 2015,which mandates that counties and cities adopt processes for the deferral of impact fees; and WHEREAS,the City wishes to provide a process for deferral of impact fees for single family residential construction as required by ESB 5923; NOW, THEREFORE, the City Council of the City of Arlington do hereby ordain as follows: Section 1. A new section 20.90.420 is hereby added to the Arlington Municipal Code (AMC)to read as follows: Part V. - Impact Fee Deferral 20.90.420—Deferred collection of Impact Fees. (a) An applicant for a building permit for a single-family detached or attached residence may, upon payment of an application fee, request a deferral of any or all impact fee payments under this chapter until the earliest of the following dates: (1) Issuance of the Certificate of Occupancy for completion of the single- family residence; (2) At the time of closing of the first sale of any portion of the property covered by the building permit; or (3) Eighteen (18) months from the date of issuance of the building permit. The City may withhold certification of final inspection, certification of occupancy, or any equivalent certification, and the extension of utilities until the impact fees are paid in full. (b) The amount of impact fees that may be deferred under this section will be determined by the fees in effect at the time the applicant applies for the deferral. (c) Each applicant for a single-family residential construction permit, in accordance with his or her contractor registration number, social security number, or other unique identification number, is entitled to annually receive deferrals under this section for only the first twenty single-family residential construction building permits. A separate application and fee payment shall be required for each single-family residence being constructed. For purposes of this section, the term "applicant" as defined in AMC 20.08.010 shall also include any entity which controls the applicant, is controlled by the ORDINANCE NO. 2016-018 1 applicant, or is under common control with the applicant. (d) Unless a written agreement between the buyer and the seller is received at the time of closing, the payment of impact fees due at closing of the 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 all impact fees. (e) An applicant seeking a deferral under this section must grant and record a deferred impact fee lien against the property in favor of the city in the amount of the deferred impact fee prior to issuance of a building permit. The deferred impact fee lien, which must include the legal description, tax account number, and address of the property, must also be: (1) In a form approved by the city; (2) Signed by all owners of the property and persons or entities holding any interest in the property, with all signatures acknowledged as required for a deed, and recorded in Snohomish County; (3) Binding on all successors in title after the recordation; and (4) Junior and subordinate to one mortgage for the purpose of construction upon the same real property granted by the person who applied for the deferral of impact fees. (f) If the impact fees are not paid in accordance with a deferral authorized by this section, and in accordance with the term provisions in subparagraph (a) above, the city may institute foreclosure proceedings in accordance with Chapter 61.12 RCW. If the impact fee is a school impact fee collected under AMC 20.90.230, then the city may institute foreclosure proceedings in accordance with Chapter 61.12 RCW upon request by the school district for which the fee is collected, and if the city does not do so within forty-five (45) days, the school district may institute foreclosure proceedings in accordance with Chapter 61.12 RCW. In the event of foreclosure by either the City or the affected school district, interest shall accrue from the date of the recording of the lien at the statutory rate of interest. (g) Upon receipt of final payment of all deferred impact fees for a property, the city will execute a release of the deferred impact fee lien for the property. The property owner at the time of the release, at the property owner's sole expense, shall be responsible for recording the lien release. (h) The extinguishment of a deferred impact fee lien by the foreclosure of a lien having priority does not affect the obligation to pay the impact fees as a condition of final inspection, certificate of occupancy, or at the time of closing of the first sale. Section 2. A new section 20.90.430 is hereby added to the Arlington Municipal Code (AMC)to read as follows: 20.90.430 Fees. Fees for the administration of the deferred impact fee program are established by the city's fee resolution. The fee shall be paid at the time of application for deferral and is non-refundable. ORDINANCE NO. 2016-018 2 Section 3. Severability. If any provision, section, or part of this ordinance shall be adjudged to be invalid or unconstitutional, such adjudication shall not affect the validity of the ordinance as a whole or any section, provision or part thereof not adjudged invalid or unconstitutional. Section 4. Effective Date. This ordinance shall be effective five days from its adoption and publication as required by law. PASSED BY the City Council and APPROVED by the Mayor this 3rd day of October, 2016. CITY OF ARLINGTON d�k Ll - :LL11 - Barbara Tolbert,Mayor Attest: isti Banfield, City Clerk Approved as to form: *9L;- Ste4mi-13eyfle City Attorney ORDINANCE NO. 2016-018 3 CERTIFICATION OF ORDINANCE I, Kristin Banfield, being the duly appointed and acting Clerk of the City of Arlington, Washington, a municipal corporation, do hereby certify that the following Ordinance No. 2016- 018 was approved at the October 3, 2016 City Council meeting. ORDINANCE NO. 2016-018 "AN ORDINANCE OF THE CITY OF ARLINGTON, WASHINGTON ADOPTING A NEW SECTION 20.90.420 TO THE ARLINGTON MUNICIPAL CODE REGARDING A PROCESS FOR DEFERRAL OF IMPACT FEES PURSUANT TO ESB 5923" A true and correct copy of the original ordinance is attached. Dated this 41" day of October, 2016. r Kri in nfield City Clerk for the City of Arlington