2016/07/13 Council Agenda Packet

?` Agenda Subject: Impact Fee Deferral and Exemption Amendments Date: 6/14/2016 Staff Report to Planning Commission - Impact fees in Everett are collected for public streets and roads (Chapters 18.36 and 18.40),and for school facilities(Chapter 18.44). Impact Fee Deferrals: Section 82.02.050(3)(a)(i) requires the city to adopt and maintain a system for the deferred collection of impact fees for single-family detached and attached residential construction by September 1, 2016. The deferral system offered by the City must include one or more of the following options for when payment would be due: 1. Final inspection; 2. Issuance of the certificate of occupancy or equivalent certification; and/or 3. The closing of the first sale of the property. Deferral of these fees is for 18 months from issuance of the building permit and can be limited to the first 20 single-family homes.Any deferral must grant and record a lien against the property in favor of the City.The City may collect a reasonable administrative fee from the applicant seeking the deferral. CRITERION: Impact Fee Exemption: Section 82.02.060(3)authorizes the city to provide an exemption of not more than eighty percent of impact fees for low-income housing with no explicit requirement to pay the exempted portion of the fee from public funds. An exemption under this provision requires it to be conditioned to require the developer to record a covenant that prohibits use of the property for any purpose other than for low-income housing.The covenant must address price restrictions and household income, and that if the property is converted to a use other than for low-income housing,the property owner must pay applicable impact fees in effect at the time of conversion. A school district who receives school impact fees must approve any exemption under this section. Page 3 of 7 28