SEARCH SITE
VIRGINIA LAW PORTAL
- Code of Virginia
- Virginia Administrative Code
- Constitution of Virginia
- Charters
- Authorities
- Compacts
- Uncodified Acts
- RIS Users (account required)
SEARCHABLE DATABASES
- Bills & Resolutions
session legislation - Bill Summaries
session summaries - Reports to the General Assembly
House and Senate documents - Legislative Liaisons
State agency contacts
ACROSS SESSIONS
- Subject Index: Since 1995
- Bills & Resolutions: Since 1994
- Summaries: Since 1994
Developed and maintained by the Division of Legislative Automated Systems.
2008 SESSION
082037552Be it enacted by the General Assembly of Virginia:
1. That §§ 15.2-2317 through 15.2-2327 of the Code of Virginia are amended and reenacted as follows:
§ 15.2-2317. Applicability of article.
This article shall apply to any locality that has
adopted zoning pursuant to Article
7 (§ 15.2-2280 et seq.) of Chapter 22 of Title 15.2 and that (i) has a
population of at least 20,000
and has a population growth rate of at least 5% or (ii) has population growth
of 15% or more. For the purposes of this
section, population growth shall be the difference in population from the next-to-latest
to the latest decennial census year, based on population reported by the United
States Bureau of the Census(i)
any county having a population of 500,000 or more as determined by the
most recent U.S. Census, (ii) any county or city adjacent thereto, (iii) any
city contiguous to such adjacent
county or city, (iv) any town within such county or an adjacent county, (v) Stafford
County, (vi) Fauquier County, (vii)
Spotsylvania County, and
(viii) Frederick County.
§ 15.2-2318. Definitions.
As used in this article, unless the context requires a different meaning:
"Cost" includes, in addition to all labor, materials, machinery and equipment for construction, (i) acquisition of land, rights-of-way, property rights, easements and interests, including the costs of moving or relocating utilities, (ii) demolition or removal of any structure on land so acquired, including acquisition of land to which such structure may be moved, (iii) survey, engineering, and architectural expenses, (iv) legal, administrative, and other related expenses, and (v) interest charges and other financing costs if impact fees are used for the payment of principal and interest on bonds, notes or other obligations issued by the locality to finance the road improvement.
"Impact fee" means a charge or assessment imposed
against new development in order to generate revenue to fund or recover the
costs of reasonable road improvements benefiting necessitated
by and attributable to the new development. Impact fees may not be
assessed and imposed for road repair, operation and maintenance, nor to expand
existing roads to meet demand which existed prior to the new development.
"Impact fee service area" means an area designated within the comprehensive plan of a locality land designated by
ordinance within a locality having clearly defined
boundaries and clearly related traffic needs and within which development is to
be subject to the assessment of impact fees.
"Road improvement" includes construction of new
roads or improvement or expansion of existing roads and related
appurtenances as required by applicable construction standards
of the Virginia Department of Transportation, or the applicable
standards of a locality with road maintenance responsibilities, to
meet increased demand attributable to new development. Road improvements do not
include on-site construction of roads which a developer may be required to
provide pursuant to §§ 15.2-2241 through 15.2-2245.
§ 15.2-2319. Authority to assess and impose impact fees.
Any applicable locality may, by ordinance pursuant to the
procedures and requirements of this article, assess and impose impact fees on
new development to pay all or a part of the cost of reasonable road
improvements that benefit attributable
in substantial part to the new development.
Prior to the adoption of the ordinance, a locality shall
establish an impact fee advisory committee. The committee shall be composed of
not less than five nor more than ten 10
members appointed by the governing body of the locality and at least forty 40 percent of the membership shall be
representatives from the development, building or real estate industries. The
planning commission or other existing committee that meets the membership
requirements may serve as the impact fee advisory committee. The committee
shall serve in an advisory capacity to assist and advise the governing body of
the locality with regard to the ordinance. No action of the committee shall be
considered a necessary prerequisite for any action taken by the locality in
regard to the adoption of an ordinance.
§ 15.2-2320. Impact fee service areas to be established.
The locality shall delineate one or more impact fee service
areas within its comprehensive plan jurisdiction.
Impact fees collected from new development within an impact fee service area
shall be expended for road improvements benefiting within that impact fee service area.
An impact fee service area may encompass more than one road improvement
project. A locality may exclude urban development areas designated
pursuant to § 15.2-2223.1 from impact fee service areas.
§ 15.2-2321. Adoption of road improvements program.
Prior to adopting a system of impact fees, the locality shall
conduct an assessment of road improvement needs benefiting within
an impact fee service area and in the locality and shall adopt a road
improvements plan for the area showing the new roads proposed to be constructed
and the existing roads to be improved or expanded and the schedule for
undertaking such construction, improvement or expansion. The road improvements
plan shall be adopted as an amendment to the required comprehensive plan and
shall be incorporated into the capital improvements program or, in the case of the
counties where applicable, the six-year plan for secondary road construction
pursuant to § 33.1-70.01.
The locality shall adopt the road improvements plan after holding a duly advertised public hearing. The public hearing notice shall identify the impact fee service area or areas to be designated, and shall include a summary of the needs assessment and the assumptions upon which the assessment is based, the proposed amount of the impact fee, and information as to how a copy of the complete study may be examined. A copy of the complete study shall be available for public inspection and copying at reasonable times prior to the public hearing.
The locality at a minimum shall include the following items in assessing road improvement needs and preparing a road improvements plan:
1. An analysis of the existing capacity, current usage and
existing commitments to future usage of existing roads, as indicated by (i) current and projected service levels, (ii) current
valid building permits outstanding, (ii) approved
conditional rezonings, special exceptions, and special use permits,
and (iii) approved and pending site plans
and subdivision plats. If the current usage and commitments exceed the existing
capacity of the roads, the locality also shall determine the costs of improving
the roads to meet the demand. The analysis shall include any off-site road improvements or
cash payments for road improvements accepted by the locality and shall include
a plan to fund the current usages and commitments that exceed the existing
capacity of the roads.
2. The projected need for and costs of construction of new
roads or improvement or expansion of existing roads attributable in whole or in
part to projected new development. Road improvement needs shall be projected
for the impact fee service area when fully developed in accord with the comprehensive
plan and, if full development is projected to occur more than 20 10 years
in the future, at the end of a 20-year 10-year
period. The assumptions with regard to land uses, densities, intensities, and
population upon which road improvement projections are based shall be
presented.
3. The total number of new service units projected for the
impact fee service area when fully developed and, if full development is
projected to occur more than 20 10
years in the future, at the end of a 20-year 10-year
period. A "service unit" is a standardized measure of traffic use or
generation. The locality shall develop a table or method for attributing
service units to various types of development and land use, including but not
limited to residential, commercial and industrial uses. The table shall be based
upon the ITE manual (published by the Institute of Transportation Engineers) or
locally conducted trip generation studies, and consistent with the traffic analysis
standards adopted pursuant to § 15.2-2222.1.
§ 15.2-2322. Adoption of impact fee and schedule.
After adoption of a road improvement program, the locality may
adopt an ordinance establishing a system of impact fees to fund or recapture
all or any part of the cost of providing reasonable road improvements benefiting required by
new development. The ordinance shall set forth the schedule of impact fees.
§ 15.2-2323. When impact fees assessed and imposed.
The amount of impact fees to be imposed on a specific
development or subdivision shall be determined before or at the time the site
plan or subdivision is approved. The ordinance shall specify that the fee is to
be collected at the time of the issuance of a building permit certificate
of occupancy. The ordinance shall provide that fees (i) may be
paid in lump sum or (ii) be paid on installment at a reasonable rate of
interest for a fixed number of years. The locality by ordinance may provide for
negotiated agreements with the owner of the property as to the time and method
of paying the impact fees.
The maximum impact fee to be imposed shall be determined (i)
by dividing projected road improvement costs in the impact fee service
area when fully developed by the number of projected service units when fully
developed, or (ii) for a reasonable period of time, but not less than ten
10
years, by dividing the projected costs necessitated by development
in the next ten 10 years
by the service units projected to be created in the next ten 10 years.
The ordinance shall provide for appeals from administrative determinations, regarding the impact fees to be imposed, to the governing body or such other body as designated in the ordinance. The ordinance may provide for the resolution of disputes over an impact fee by arbitration or otherwise.
No impact fees shall be assessed or imposed upon a development or subdivision if the subdivider or developer has proffered conditions pursuant to § 15.2-2298 or 15.2-2303 for off-site road improvements and the proffered conditions have been accepted by the local government.
§ 15.2-2324. Credits against impact fee.
The value of any dedication, contribution or construction from
the developer for off-site road or other transportation improvements
benefiting within
the impact fee service area shall be treated as a credit against
the impact fees imposed on the developer's project. The
locality shall treat as a credit any off-site transportation dedication,
contribution, or construction, whether it is a condition of a rezoning or
otherwise committed to the locality. The locality
may by ordinance provide for credits for approved on-site transportation improvements in excess
of those required by the development.
The locality also shall calculate and credit against impact
fees the extent to which (i) other developments
have already contributed to the cost of existing roads which will benefit serve the
development, (ii) new development will contribute to the cost of existing
roads, and (iii) new development will contribute to the cost of road
improvements in the future other than through impact fees, including any special taxing districts, special assessments,
or community development authorities.
§ 15.2-2325. Updating plan and amending impact fee.
The locality shall update the needs assessment and the
assumptions and projections at least once every two years. The road improvement
plan shall be updated at least every two years to reflect current assumptions
and projections. The impact fee schedule may be amended to reflect any
substantial changes in such assumptions and projections. Any impact fees not yet paid shall be assessed at the updated
rate.
§ 15.2-2326. Use of proceeds.
A separate road improvement account shall be established for
the impact fee service area and all funds collected through impact fees shall
be deposited in the interest-bearing account. Interest earned on deposits shall
become funds of the account. The expenditure of funds from the account shall be
only for road improvements benefiting within
the impact fee service area as set out in the road improvement plan for the
impact fee service area.
§ 15.2-2327. Refund of impact fees.
The locality shall refund any impact fee or portion thereof
for which construction of a project is not completed within a reasonable period
of time, not to exceed fifteen 15 years.
In the event that impact fees are not committed to road
improvements benefiting the impact fee service area within seven years from the
date of collection, the locality may commit any such impact fees to the
secondary or urban system construction program of that locality for road
improvements that benefit the impact fee service area.
Upon completion of a project, the locality shall recalculate
the impact fee based on the actual cost of the improvement. It shall refund the
difference if the impact fee paid exceeds actual cost by more than fifteen
15
percent. Refunds shall be made to the record owner of the property
at the time the refund is made.
2. That §§ 15.2-2328 and 15.2-2329 of the Code of Virginia are repealed.