COMMITTEE SUBSTITUTE

FOR

H. B. 3185

(By Delegates Lawrence and Manchin)

(Originating in the House Committee on the Judiciary)

[February 25, 2011]

A BILL to amend and reenact §7-20-3 and §7-20-4 of the Code of West Virginia, 1931, as amended, all relating to preservation of affordable housing in counties with county impact fees.

Be it enacted by the Legislature of West Virginia:

    That §7-20-3 and §7-20-4 of the Code of West Virginia, 1931, as amended, be amended and reenacted; all to read as follows:

CHAPTER 7. COUNTY COMMISSIONS AND OFFICERS.

ARTICLE 20. FEES AND EXPENDITURES FOR COUNTY DEVELOPMENT.

§7-20-3. Definitions.

    (a) "Affordable housing" means a single-family detached housing unit that has above-ground living space that does not exceed 1,800 square feet and a cost that is less than 60% of the average cost of a single-family residential house in the county in which it is located, as determined by the annual study of average cost of new single-family homes required by section two-b, article one, chapter eleven of this code; 

    (a) (b) "Capital improvements" means the following public facilities or assets that are owned, supported or established by county government:

    (1) Water treatment and distribution facilities;

    (2) Wastewater treatment and disposal facilities;

    (3) Sanitary sewers;

    (4) Storm water, drainage, and flood control facilities;

    (5) Public primary and secondary school facilities;

    (6) Public road systems and rights-of-way;

    (7) Parks and recreational facilities; and

    (8) Police, emergency medical, rescue, and fire protection facilities.

    "Capital improvements" as defined herein is are limited to those improvements that are treated as capitalized expenses according to generally accepted governmental accounting principles and that have an expected useful life of no less than three years. "Capital improvement" does not include costs associated with the operation, repair, maintenance, or full replacement of capital improvements. "Capital improvement" does include reasonable costs for planning, design, engineering, land acquisition, and other costs directly associated with the capital improvements described herein.

    (b) (c) "County services" means the following:

    (1) Services provided by administration and administrative personnel, law enforcement and its support personnel;

    (2) Street light service;

    (3) Firefighting service;

    (4) Ambulance service;

    (5) Fire hydrant service;

    (6) Roadway maintenance and other services provided by roadway maintenance personnel;

    (7) Public utility systems and services provided by public utility systems personnel, water; and

    (8) All other direct and indirect county services authorized by this code.

    (c) (d) "Direct county services" means those public services authorized and provided by various county agencies or departments.

    (d) "Indirect county services" means those public services authorized and provided by commissioned agents, agencies or departments of the county.

    (e) (e) "Growth county" means any county within the state with an averaged population growth rate in excess of 1% per year as determined from the most recent decennial census counts and forecasted, within decennial census count years, by official records of government or generally approved standard statistical estimate procedures: Provided, That once "growth county" status is achieved it is permanent in nature and the powers derived hereby are continued.

    (f) "User" means any member of the public who uses or may have occasion to use county facilities and services as defined herein.

    (g) (f) "Impact fees" means any charge, fee, or assessment levied as a condition of the following:

    (1) Issuance of a subdivision or site plan approval;

    (2) Issuance of a building permit; and

    (3) Approval of a certificate of occupancy, or other development or construction approval when any portion of the revenues collected is intended to fund any portion of the costs of capital improvements for any public facilities or county services not otherwise permitted by law.

    An impact fee does not include charges for remodeling, rehabilitation, or other improvements to an existing structure or rebuilding a damaged structure, provided there is no increase in gross floor area or in the number of dwelling units that result therefrom.

    (g) "Indirect county services" means those public services authorized and provided by commissioned agents, agencies or departments of the county.

    (h) “Manufactured home” as that term is defined in section two, article one, chapter eight-a.

    (i) “Multi-family dwelling” means multiple separate housing units for residential inhabitants that are contained within one building.

    (h) "Proportionate share" means the cost of capital improvements that are reasonably attributed to new development less any credits or offsets for construction or dedication of land or capital improvements, past or future payments made or reasonably anticipated to be made by new development in the form of user fees, debt service payments, taxes or other payments toward capital improvement costs.

    (i) "Reasonable benefit" means a benefit received from the provision of a capital improvement greater than that received by the general public located within the county wherein an impact fee is being imposed.

    (j) "Plan" means a county, comprehensive, general, master or other land use plan as described herein.

    (k) "Program" means the capital improvements program described herein.

    (l) "Proportionate share" means the cost of capital improvements that are reasonably attributed to new development less any credits or offsets for construction or dedication of land or capital improvements, past or future payments made or reasonably anticipated to be made by new development in the form of user fees, debt service payments, taxes or other payments toward capital improvement costs.

    (m) "Reasonable benefit" means a benefit received from the provision of a capital improvement greater than that received by the general public located within the county wherein an impact fee is being imposed.

    (l) (n) "Unincorporated area" and "total unincorporated area" means all lands and resident estates of a county that are not included within the corporate, annexed areas or legal service areas of an incorporated or chartered municipality, city, town or village located in the State of West Virginia.

    (o) "User" means any member of the public who uses or may have occasion to use county facilities and services as defined herein.

§7-20-4. Counties authorized to collect fees.

    County governments affected by the construction of new development projects are hereby authorized to A county commission may require the payment of fees for any new development projects constructed, therein in the event any if the costs associated with capital improvements or the provision of other services are attributable to such the project. Such The fees shall may not exceed a proportionate share of such the costs required to accommodate any such the new development. Before requiring payment of any fee a impact or capital improvement fee, authorized hereunder, it must shall be evident that some reasonable benefit from any such the capital improvements will be realized by any such the development project.

    (b) A county commission or other body may not impose or collect an impact or capital improvement fee for an affordable housing unit, that exceeds 15% of the amount that would otherwise be imposed on the developer, owner or renter of the affordable housing unit.

    (c) A county commission or other body may not impose or collect a impact or capital improvement fee for a manufactured home or a multi-family dwelling unit that exceeds 20% of the fee or $3,000 whichever is less, that would otherwise be imposed on the developer, owner or renter of the manufactured home or multi-family dwelling unit.

    (d) A county commission shall approve an increase to an impact fee by majority vote.