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HomeMy WebLinkAboutAgenda - 10-04-2016 - 5-a - School Impact Fee Updates 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 4, 2016 Action Agenda Item No. 5-a SUBJECT: School Impact Fee Updates DEPARTMENT: Planning and Inspections ATTACHMENT(S): 1. Table Showing Maximum Supportable INFORMATION CONTACT: (919) Impact Fees at Various Percentage Craig Benedict, Planning Director, 245- Levels 2592 2. Code of General Ordinances - Perdita Holtz, Planner III, 245-2578 Educational Facilities Impact Fees 3. Legal Advertisement 4. Current School Impact Fees 5. Historical Impact Fee Activity 6. E-mail Regarding Housing Unit Assumptions and Information Received from Municipalities PURPOSE: To hold a public hearing on potential updates to current school impact fee levels and amendments to the General Code of Ordinances — Educational Facilities Impact Fees and to provide direction to staff on next steps. BACKGROUND: On September 6, 2016 the Board of County Commissioners received draft school impact fee studies for both school districts that had been completed by TischlerBise, a consulting firm retained by the County. Agenda materials from the meeting, including the draft studies, are available at http://server3.co.orange.nc.us:8088/weblink8/0/doc/42474/Pagel.aspx. Additionally, the reports are posted on the Planning Department's website: http://www.orangecountync.gov/departments/planning and inspections/current interes t projects.php School impact fees are fees charged to help defray the public costs of new development. The fee is charged once to all new residential development in both school districts. Fees charged must be proportional to the actual impact caused which is the reason a technical study is completed; the data-based study determines the proportional impact of housing types and the "maximum supportable impact fee" (MSIF) that can be charged for each type of housing. Proceeds from school impact fees can be used only to increase student membership capacity (e.g., Capital Facilities — new or expanded school buildings) in the school district in which the fee was collected. School impact fee proceeds cannot be used to fund operations or repairs of existing facilities. 2 Possible options for updated fee levels include: 1. As calculated, adopting at some percentage of the MSIF. 2. Collapsing the Single Family Detached category in the Orange County Schools district (due to an unexpected result in this category), charging the "Average" for this housing type in this district, charging fees as calculated for other housing types, and adopting at some percentage of the MSIF. 3. Collapsing all housing type categories in both or either school districts, charging the "Average" calculation by housing type, and adopting at some percentage of the MSIF. a. Note for this option: Accessory dwelling units (e.g., granny flats) are included in the multi-family category (0-2 bedrooms) so setting the fee for the "average" calculation may result in an increase for accessory dwelling units, depending on the percentage of MSIF chosen. 4. Options 1-3 can also be implemented by increasing the percentage of MSIF over a period of time (e.g., adopt at x% effective 2017, y% effective 2018, and z% effective 2019). It should be noted that the adopted percentage of MSIF must be the same for all housing types (e.g., fees cannot be adopted at 40% MSIF for one housing type and 60% MSIF for a different housing type). Attachment 2 is the section of the County's General Code of Ordinances that pertains to the Educational Facilities Impact Fee with proposed amendments shown in "track changes" format. Proposed amendments to this section of the Code of Ordinances include: • Adding definitions for the various housing types. • Adding language in Section 30-33 that would require age restricted units that do not remain age restricted for at least 20 years be required to pay the difference between the age restricted fee paid and the non-age-restricted fee in effect at the time a unit is no longer age restricted. • Adding language in Section 30-35(e) clarifying under what conditions a refund would be issued if impact fees were reduced for a particular housing unit type. • Adding language in Section 30-38 to recognize conditional zoning, which was adopted in 2011 when the Unified Development Ordinance (UDO) was adopted. Since 1995, Orange County has offered an impact fee reimbursement program for school impact fees paid on affordable housing units. From FY2009-10 through FY2015-16, $606,318 in collected impact fees was reimbursed for the 77 affordable single-family housing units and one apartment building containing 6 affordable multi-family units constructed in that time period. Planning staff held a public information meeting on September 26, beginning at 6:00 p.m. Despite publishing display ads in two newspapers, only one person (a staff member with the Town of Chapel Hill's Planning Department) attended the public information meeting. This topic was also discussed at the September 29 Joint BOCC/School Boards meeting. Staff from TischlerBise was in attendance at both of these meetings. At the September 6 BOCC meeting, the proposed schedule indicated that updated fee levels could potentially be adopted after the conclusion of the October 4 public hearing. Due to agenda preparation constraints, staff is recommending that adoption consideration occur at the October 18, 2016 BOCC meeting. 3 FINANCIAL IMPACT: There is minimal financial impact (staff time and legal advertisement) in holding a public hearing. Continued residential growth in both school districts is expected to result in school capital costs which can be recouped by charging new residential development for its proportional impacts on school facilities. Attachment 5 provides Historical Impact Fee Activity. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to this agenda item: • GOAL: ESTABLISH SUSTAINABLE AND EQUITABLE LAND-USE AND ENVIRONMENTAL POLICIES The fair treatment and meaningful involvement of people of all races, cultures, incomes and educational levels with respect to the development and enforcement of environmental laws, regulations, policies, and decisions. Fair treatment means that no group of people should bear a disproportionate share of the negative environmental consequences resulting from industrial, governmental and commercial operations or policies. RECOMMENDATION(S): The Manager recommends that the Board: 1. Conduct a public hearing on potential updates to current school impact fee levels and amendments to the General Code of Ordinances — Educational Facilities Impact Fees; 2. Discuss the topic as desired; 3. Close the public hearing; 4. Direct the consultant, TischlerBise, to finalize the draft school impact fee studies; and 5. Direct staff to bring back amendments to the Code of General Ordinances - Educational Facilities Impact Fees for adoption consideration on October 18, 2016. O 00 0 000 000 0 Q 000 0 000 000 0 Q • LL . 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N C C Q 0 N V1 N C C Q 5 ORD-2016-033 Attachment 2 ARTICLE II. - EDUCATIONAL FACILITIES IMPACT FEE Sec. 30-31. - Legislative findings. The Orange County Board of Commissioners makes the following legislative findings: (1) Orange County public school facilities are vital to the health, safety, welfare, and economic prosperity of Orange County; (2) That public school facilities in Orange County must be expanded in order to maintain current levels of service if new development is to be accommodated without decreasing current levels of service; (3) To finance the expansion of the public school facilities in Orange County necessary to maintain current levels of service while accommodating new residential growth, several methods of finance will be employed, one of which will require new residential development to pay an appropriate share of the reasonably anticipated new educational facilities in the form of school impact fees; and (4) These school impact fees will provide, in a reasonable manner, for the public health, safety, and welfare of persons residing within Orange County by providing a portion of the costs of new school facilities which bears a relationship to the benefits of the new school facilities to the new residential growth in Orange County. (Ord. of 6-7-1993, § 1, eff 7-1-1993) Sec. 30-32. - Definitions. For the purposes of this Ordinance, the following terms shall have the following definitions: Accessory Dwelling Unit. A dwelling unit located on the same lot as another dwelling unit and recognized as an accessory use by the local zoning code. Certificate of Occupancy. A certificate issued by Orange County or a municipality located therein allowing the occupancy or use of a dwelling unit and certifying that the building or structure has been constructed and will be used in compliance with all applicable codes and ordinances. Dwelling Unit. A room or group of rooms forming a single independent habitable unit with facilities used or intended to be used for living, sleeping, cooking, and eating by one family. Types of dwelling units include Manufactured Homes, Multifamily, Single Family Attached, and Single Family Detached. Each dwelling type may be Aqe Restricted or not. Dwelling Unit, Age Restricted Unit. A dwelling unit, regardless of type (detached, attached, multi- family, etc.), located in a development that restricts the number of units with occupants aged under 55 years old and whereby the age restriction is achieved by deed restrictions, homeowners association documents, and/or restrictive covenants. Dwelling Unit, Manufactured Home. A dwelling unit built in a factory in accordance with the federal Manufactured Home Construction and Safety Standards, commonly referred to as the `HUD' Code. Dwelling Unit, Multifamily. A group of dwelling units which share a common floor-to-ceiling wall or share the wall of an attached garage or porch with an adjacent dwelling, but not otherwise defined as a Single Family Attached Dwelling Unit. Dwelling Unit, Single Family Attached. A group of dwelling units which share a common floor-to- ceiling wall or share the wall of an attached garage or porch with an adjacent dwelling and in which all units have a ground-floor living space. Units located above ground floor non-residential (i.e. retail or office) uses are not included in this definition. 6 Dwelling Unit, Single Family Detached. . A dwelling unit which is neither a Manufactured Home Dwelling Unit, Accessory Dwelling Unit, or attached to other dwelling units (as with Multifamily or Single Family Attached). Feepayer. The person constructing or responsible for having constructed a new dwelling unit or new dwelling units. In the case of a mobile home, the person installing or responsible for having installed a new mobile home or new mobile homes. (Ord. of 6-7-1993, § 2, eff 7-1-1993) Sec. 30-33. - School impact fees imposed on new residential dwelling units. In addition to all other charges prescribed by ordinance or resolution now or hereafter in effect, there shall be public school impact fees charged to new residential dwelling units located within Orange County, and within the municipalities and their extraterritorial planning jurisdictions located within Orange County. No person may occupy any new residential dwelling unit until all applicable public school impact fees contained in the following schedule have been paid in full. No certificate of occupancy or other type of occupancy permit shall be issued for any new residential dwelling unit until the public school impact fees hereby required have been paid in full. Payment of such fees shall not relieve the feepayer from the obligation to comply with applicable land development regulations of Orange County or the municipalities located within Orange County. Schedule of Public School Impact Fees The amount of public school impact fee shall be as shown in the following tables: Chapcl Hill Carrboro City Schools District Effcctivc January 1, Effcctivc January 1, Effcctivc January 1, Effcctivc January 1, 2449 2010 2011 2012 Singlc Family n +, r $6,092 $7,616 $9,520 $11,123 e4 Singlc Family Attachcd $3,525 $1,106 $5,508 $6,610 Multifamily8 $1,072 $1,286 r - - Manufacturcd $2,631 $3,293 $1,116 $1,939 Orangc County Schools District Effcctivc January Effcctivc January Effcctivc January Effcctivc January Page 2 7 1, 2009 1, 2010 1, 2011 1, 2012 Single Family Detached 37000 $3,719 $11,686 $5,623 Single Family Attached/ Multifamily $4-30 $1,162 $1,'153 $1,7'13 Manufactured Homes $1, 28 1 $1,785 1 $2,232 1 $2,678 [NOTE: The Tables below will be updated and/or completed after the public hearing and before adoption consideration. The precise levels of the impact fees are to be determined after the public hearing. The Tables below show the general fee classesl- Chapel Hill—Carrboro City Schools District Dwelling Unit Type Fee Single Family Detached Single Family Detached <800 sq. ft. Single Family Attached Multifamily&Accessory Dwelling Units Manufactured Home Aqe Restricted Unit Orange County Schools District Dwelling Unit Type Single Family Detached Single Family Detached <800 sq. ft. Single Family Attached Multifamily&Accessory Dwelling Units Manufactured Home Aqe Restricted Unit New residential dwelling units qualifying for the age restricted impact fee must remain age restricted for a minimum period of 20 years after the impact fee is paid. The owner of any age restricted dwelling unit changed to a non-age-restricted unit before the 20-year period expires shall be required to pay the difference between the age restricted impact fee paid and the impact fee in effect for the dwelling unit type at the time of the change. (Ord. of 6-7-1993, § 3, ef£ 7-1-1993; Amend. of 6-5-1995, ef£ 7-1-1995; Amend. of 6-26-1996, ef£ 7-1-1996; Amend. of 6-25-2001, ef£ 7-1-2001; Amend. of 12-11-2008, ef£ 1-1-2009, 6-1- 2009, 1-1-2011, and 1-1-2013) Sec. 30-34.- Public school impact fee exceptions. Public school impact fees as provided in Section 30-33 shall not be imposed in the following circumstances: Page 3 8 (1) Buildings or structures, including alterations, repairs, renovations or additions thereto, which are to be occupied and used solely for non-residential purposes. (2) Residential dwelling units for which a building permit was obtained prior to the effective date of this Ordinance. (3) Alterations, repairs, renovations or additions to a residential dwelling unit. (4) Replacement of a building, structure or mobile home used for residential purposes, including the following: a. Installation of a replacement mobile home on a separate lot or mobile home park space when an educational facilities impact fee for such lot or space has been previously paid pursuant to this Ordinance or where a residential mobile home legally existed on such lot or space on or before the effective date of this Ordinance. For the purposes of this Ordinance, "legally existed" shall mean that a mobile home was located on the lot or space during the five-year period prior to the date of adoption of this Ordinance. b. Replacement of a building, structure or mobile home damaged, destroyed or partially destroyed by: the exercise of eminent domain; human acts, such as riot, fire, accident, explosion; or flood, lightning, wind or other natural calamity, with a new building, structure or mobile home. A residential building, structure or mobile home may be replaced with a new building, structure or mobile home of the same or dissimilar dwelling type. For example, a mobile home may be replaced with a mobile home. Likewise, a mobile home may be replaced with a stick-built structure. In either case, however, the number of dwelling units may not be increased. (5) Accessory buildings and structures, including, but not limited to, garages, decks, storage buildings, and similar structures, provided they are not used for residential purposes. (6) Temporary buildings and structures, provided they are not used for residential purposes. However, public school impact fees shall not be levied in the following cases: a. A mobile home being used to provide custodial care under the provisions of an approved Special Use Permit. b. A mobile home being used as a temporary residential dwelling during the installation of a replacement mobile home or the construction of a stick-built dwelling unit. (Ord. of 6-7-1993, § 4, eff 7-1-1993; Amend. of 6-5-1995, eff 7-1-1995) Sec. 30-35. -Collection of fees. (a) Creation of public school benefit area trust funds. Public school impact fees collected by Orange County pursuant to this Ordinance shall be kept separate from other revenue of the County. There shall be one trust fund established for each of the benefit areas. The benefit areas correspond to the school district boundaries as determined by the School Districts and as illustrated on the attached map labeled Public School Benefit Areas. (b) Responsibility for fee collection. (1) All public school impact fees are due to Orange County and shall be paid to Orange County prior to a certificate of occupancy being issued for a dwelling unit. The fees will be collected by Orange County and/or by interlocal agreement between Orange County and a municipality located therein. All public school impact fees shall be properly identified by the appropriate benefit area and transferred for deposit in the appropriate trust account. (2) Where there is an interlocal agreement in effect for collection of the public school impact fees by a municipality, the municipality shall remit the fees to Orange County as provided in the agreement, including a report of the amount of funds collected and the benefit area from which Page 4 9 the fees were collected. Upon receipt, the County shall deposit the fees in the appropriate trust fund. (c) Limitation on expenditure of funds. Funds withdrawn from public school impact fee trust accounts shall be used solely in accordance with the following provisions: (1) Funds shall be used for capital costs associated with the construction of new public school space, including new buildings or additions to existing buildings or otherwise converting existing buildings into new public school space where the expansion is related to new residential growth. Such capital costs include actual building construction; design, engineering, and/or legal fees; land acquisition and site development; equipment and furnishings; infrastructure improvements; and/or debt service payments and payments under leases through which to finance such costs. (2) Funds shall be used exclusively for capital improvements within the benefit area from which the funds were collected. (3) Funds may be used for providing reimbursements as permitted in subsection (e) of this Section. (4) No funds shall be used for public school operating expenses, periodic or routine maintenance, or the administration of this public school impact fee program. (5) Following their collection, funds shall be expended within ten (10) years, the time frame coinciding with the public school facilities capital improvements program (CIP) school impact fee period. The disbursal of public school impact fee funds shall require the approval of the Board of County Commissioners upon recommendation of the County Manager. (d) Interest on fees. Any public school impact fee funds on deposit and not immediately necessary for expenditure shall be invested as allowed in N.C. General Statute 159-30 for other public moneys. All income derived shall be deposited in the applicable trust fund. (e) Reimbursement of fees. (1) Any funds not expended within the time frame established in subsection (c)(5) of this Section. shall be returned to the feepayer, or the land owner if the address of the feepayer provided to Orange County is not current, with interest at a rate not to exceed that being paid on public school impact fees deposited in accordance with subsection (d) of this Section. (2) If the Schedule of Public School Impact Fees as contained in Section 30-33 is reduced due to an updated school impact fee study that results in changes to impact fee levels charged, no refund of previously paid fees shall be made. If the Schedule of Public School Impact Fees as contained in Section 30-33 is reduced due to reasons other than an updated school impact fee study, the difference between the old and new fees shall be returned to the feepayer, or the land owner if the address of the feepayer provided to Orange County is not current, with interest at a rate not to exceed that being paid on public school impact fees deposited in accordance with subsection (d) of this Section. If the Schedule of Public School Impact Fees as contained in Section 30-33 is increased, no additional fees shall be collected from new construction for which certificates of occupancy have been issued. (3) Where an impact fee has been collected erroneously, or where an impact fee has been paid, and the feepayer subsequently files for and is granted an exception as permitted in Section 30- 34, the fee shall be returned to the feepayer. (f) Annual report. A report shall be made to the Board of County Commissioners each year showing where public school impact fees have been collected, what projects have been constructed with such fees, and what reimbursements have been made. The report shall also include an evaluation of this Ordinance, including its effectiveness and enforcement, and the methods and data used to calculate the Schedule of Public School impact Fees contained in Section 30-33. The Board of County Commissioners shall review the report to determine if, within each benefit area, all areas of new construction are being benefited by the fees. If the Board of County Commissioners Page 5 10 determines that areas of new construction are not being benefited, then it shall readjust the capital improvements program to correct this condition. If, after review of the methods and data used to calculate the Schedule of Public School Impact Fees, the Board of County Commissioners determines that adjustments are required in the Schedule, then it shall direct the County Manager and staff to prepare a report which outlines recommended changes for its consideration. (Ord. of 6-7-1993, § 5, eff 7-1-1993; Amend. of 6-5-1995, eff 7-1-1995; Amend. of 6-26-1996, eff 7-1-1996) Sec. 30-36. -Credits. (a) Any conveyance of land for a public school site or construction of new school facilities received and accepted by Orange County, a municipality located in Orange County, and/or the Orange County or Chapel Hill-Carrboro School Board from a landowner may, at the election of the landowner, be credited against the public school impact fee due if the conveyance or construction meets the same needs as the public school impact fee in providing new public school facilities. If the landowner elects to receive credit against the amount of the public school impact fee due for such conveyance or construction, the landowner shall, prior to the agreement to convey land for or construct new public school facilities, or the conveyance of land for or construction of new school facilities, enter into a fee agreement with the County. The fee agreement shall provide for the establishment of credits and payment of the fee in a specified manner and time, and shall, upon its execution by the landowner and the County, be binding upon the heirs and assigns of the landowner. (b) The value of land conveyed or facilities constructed by a landowner and accepted by the County, municipality or school board for purposes of this Section shall be determined by an appraisal based on the fair market value of the land or facilities as established by the County. Construction shall be in accordance with applicable County, municipal, school board, and State standards. Any land conveyed for credit under this Section shall be conveyed no later than the time at which public school impact fees are required to be paid. The portion of the public school impact fee represented by a credit for construction shall be deemed paid when the construction is completed and accepted for maintenance or when adequate security for the completion of the construction has been provided. (Ord. of 6-7-1993, § 6, eff 7-1-1993; Amend. of 6-26-1996, eff 7-1-1996) Sec. 30-37. - Penalties. (a) In addition to any other remedy allowed by N.C. General Statute 153A-123, the failure to pay a public school impact fee is hereby declared to subject the person responsible for payment of the public school impact fee to a civil penalty. The amount of the penalty shall be equal to the amount of the unpaid school impact fee, plus an interest charge of one-half percent (1/2%) per month compounded monthly and a service charge of one hundred dollars ($100.00). (b) The County may assess this penalty against the landowner whereon new construction has occurred without payment of the public school impact fee. However, no service charge will be assessed when the County staff has made an error in the fee determination. Furthermore, no penalty shall be assessed until the person or persons alleged to be in violation are served by registered mail, certified mail - return receipt requested, or personal service with notice to pay. (c) The County Attorney is hereby authorized to institute a civil action in the name of Orange County in the appropriate division of the General Court of Justice in Orange County for recovery of the penalty. All moneys recovered shall be deposited in the appropriate trust fund. (Ord. of 6-7-1993, § 7, eff 7-1-1993) Page 6 11 Sec. 30-38. - Legal status provisions. (a) All ordinances and clauses in conflict herewith are hereby repealed to the extent of said conflict. If any clause or Section of this Ordinance or application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or application of this ordinance which can be given separate effect, and, to this end, the provisions of this Ordinance are declared to be severable. I (b) This Ordinance shall not diminish any prior contractual, conditional zoning, or special or conditional use district zoning obligation to pay for or install road, park or other improvements required by Orange County or a municipality located therein, nor shall the fulfillment of those obligations diminish any applicable public school impact fee owed to the County. This Ordinance shall not diminish any prior obligation of the County or a municipality located therein to reimburse persons for road, parks or other improvements, nor shall the fulfillment of those obligations by the County or a municipality diminish any applicable credit owed to the feepayer. 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N. u 0 0 V5 0 0 N Ib N N ND W N N O '6 CD m f0 *0 CD m rro CO m 03 In,h .O m m N .O m m r�6 CO m r`�6 2 O/ m + N d y N + N N + N j 0 N m + N d y N + N N + N ° U ° a' Q u U ° M Q ° m Q N ° U ° a' Q u U O' M Q O' m Q N u XI M o o a I o o a O > > > v v C > > > v v > '5 t = - - > u i o 0 o E U o 0 o E ti LL LL LL Ip 16 Q1 LL LL LL Ip R a m v 0) - z as m v 0) - = z c C c 5 ORD-2016-033 Attachment 2 ARTICLE II. - EDUCATIONAL FACILITIES IMPACT FEE Sec. 30-31. - Legislative findings. The Orange County Board of Commissioners makes the following legislative findings: (1) Orange County public school facilities are vital to the health, safety, welfare, and economic prosperity of Orange County; (2) That public school facilities in Orange County must be expanded in order to maintain current levels of service if new development is to be accommodated without decreasing current levels of service; (3) To finance the expansion of the public school facilities in Orange County necessary to maintain current levels of service while accommodating new residential growth, several methods of finance will be employed, one of which will require new residential development to pay an appropriate share of the reasonably anticipated new educational facilities in the form of school impact fees; and (4) These school impact fees will provide, in a reasonable manner, for the public health, safety, and welfare of persons residing within Orange County by providing a portion of the costs of new school facilities which bears a relationship to the benefits of the new school facilities to the new residential growth in Orange County. (Ord. of 6-7-1993, § 1, ef£ 7-1-1993) Sec. 30-32. - Definitions. For the purposes of this Ordinance, the following terms shall have the following definitions: Accessory Dwelling Unit. A dwelling unit located on the same lot as another dwelling unit and recognized as an accessory use by the local zoning code. Certificate of Occupancy. A certificate issued by Orange County or a municipality located therein allowing the occupancy or use of a dwelling unit and certifying that the building or structure has been constructed and will be used in compliance with all applicable codes and ordinances. Dwelling Unit. A room or group of rooms forming a single independent habitable unit with facilities used or intended to be used for living, sleeping, cooking, and eating by one family. Types of dwelling units include Manufactured Homes, Multifamily, Single Family Attached, and Single Family Detached. Each dwelling type may be Age Restricted or not. Dwelling Unit, Age Restricted Unit. A dwelling unit, regardless of type (detached, attached, multi- family, etc.), located in a development that restricts the number of units with occupants aged under 55 years old and whereby the age restriction is achieved by deed restrictions, homeowners association documents, and/or restrictive covenants. Dwelling Unit, Manufactured Home. A dwelling unit built in a factory in accordance with the federal Manufactured Home Construction and Safety Standards, commonly referred to as the `THUD' Code. Dwelling Unit, Multifamily. A group of dwelling units which share a common floor-to-ceiling wall or share the wall of an attached garage or porch with an adjacent dwelling, but not otherwise defined as a Single Family Attached Dwelling Unit. Dwelling Unit, Single Family Attached. A group of dwelling units which share a common floor-to- ceiling wall or share the wall of an attached garage or porch with an adjacent dwelling and in which all units have a ground-floor living space. Units located above ground floor non-residential (i.e. retail or office) uses are not included in this definition. 6 Dwelling Unit, Single Family Detached. . A dwelling unit which is neither a Manufactured Home Dwelling Unit, Accessory Dwelling Unit, or attached to other dwelling units (as with Multifamily or Single Family Attached). Feepayer. The person constructing or responsible for having constructed a new dwelling unit or new dwelling units. In the case of a mobile home, the person installing or responsible for having installed a new mobile home or new mobile homes. (Ord. of 6-7-1993, § 2, eff. 7-1-1993) Sec. 30-33. -School impact fees imposed on new residential dwelling units. In addition to all other charges prescribed by ordinance or resolution now or hereafter in effect, there shall be public school impact fees charged to new residential dwelling units located within Orange County, and within the municipalities and their extraterritorial planning jurisdictions located within Orange County. No person may occupy any new residential dwelling unit until all applicable public school impact fees contained in the following schedule have been paid in full. No certificate of occupancy or other type of occupancy permit shall be issued for any new residential dwelling unit until the public school impact fees hereby required have been paid in full. Payment of such fees shall not relieve the feepayer from the obligation to comply with applicable land development regulations of Orange County or the municipalities located within Orange County. Schedule of Public School Impact Fees The amount of public school impact fee shall be as shown in the following tables: Chapel Hill Carrboro City Schools District Effective January 1, Effective January 1, Effective January 1, Effective January 1, • 2010 2012 Single Family $6,092 $7,616 $9,520 , Single ........ Si Famil y $3,525 $5,508 , Attached -Ma It ifa m i l y $858 $1,072 $1,286 -Manufactured $2,634 $3,293 $4,116 $4,939 Orange County Schools District Effective January ,',, ,y w Effective January -. ,:<, ,y. Page 2 7 1, 2009 1, 2010 1, 2011 1, 2012 Single Family Attached / $930 $1,162 $1,453 $1,743 -Manufactured Homes $1,428 $1,785 $2,232 [NOTE: The Tables below will be updated and/or completed after the public hearing and before adoption consideration. The precise levels of the impact fees are to be determined after the public hearing. The Tables below show the general fee dassesl- Chapel Hill—Carrboro City Schools District Dwellina Unit Type Fee Sinqle Family Detached Sinqle Family Detached <800 s . ft. Sinqle Family Attached Multifamily& Accessory Dwellinq Units Manufactured Home Age Restricted Unit Orancie County Schools District Dwellina Unit Type Fee Sinqle Family Detached Sinqle Family Detached <800 s . ft. Sinqle Family Attached Multifamily& Accessory Dwellinq Units Manufactured Home Age Restricted Unit New residential dwellina units Qualifyina for the aqe restricted impact fee must remain aae restricted for a minimum period of 20 years after the impact fee is paid. The owner of any aqe restricted dwellina unit changed to a non-age-restricted unit before the 20-year period expires shall be required to pay the difference between the age restricted impact fee paid and the impact fee in effect for the dwelling unit type at the time of the chancie. (Ord. of 6-7-1993, § 3, eff. 7-1-1993; Amend. of 6-5-1995, eff. 7-1-1995; Amend. of 6-26-1996, efF7-l-l99h� �u��o� of eff. of �fF 1-1-2009, h-l- , Amend. 6-25-2001, 7-1-2001; Amend. 12-11-2008, , 2009, 1-1-2011, and 1-1-2013) Sec. 30-34. Public school impact fee exceptions. Public school impact fees as provided in Section 30-33 shall not be imposed in the following circumstances: Page 3 8 (1) Buildings or structures, including alterations, repairs, renovations or additions thereto, which are to be occupied and used solely for non-residential purposes. (2) Residential dwelling units for which a building permit was obtained prior to the effective date of this Ordinance. (3) Alterations, repairs, renovations or additions to a residential dwelling unit. (4) Replacement of a building, structure or mobile home used for residential purposes, including the following: a. Installation of a replacement mobile home on a separate lot or mobile home park space when an educational facilities impact fee for such lot or space has been previously paid pursuant to this Ordinance or where a residential mobile home legally existed on such lot or space on or before the effective date of this Ordinance. For the purposes of this Ordinance, "legally existed" shall mean that a mobile home was located on the lot or space during the five-year period prior to the date of adoption of this Ordinance. b. Replacement of a building, structure or mobile home damaged, destroyed or partially destroyed by: the exercise of eminent domain; human acts, such as riot, fire, accident, explosion; or flood, lightning, wind or other natural calamity, with a new building, structure or mobile home. A residential building, structure or mobile home may be replaced with a new building, structure or mobile home of the same or dissimilar dwelling type. For example, a mobile home may be replaced with a mobile home. Likewise, a mobile home may be replaced with a stick-built structure. In either case, however, the number of dwelling units may not be increased. (5) Accessory buildings and structures, including, but not limited to, garages, decks, storage buildings, and similar structures, provided they are not used for residential purposes. (6) Temporary buildings and structures, provided they are not used for residential purposes. However, public school impact fees shall not be levied in the following cases: a. A mobile home being used to provide custodial care under the provisions of an approved Special Use Permit. b. A mobile home being used as a temporary residential dwelling during the installation of a replacement mobile home or the construction of a stick-built dwelling unit. (Ord. of 6-7-1993, § 4, eff. 7-1-1993; Amend. of 6-5-1995, eff. 7-1-1995) Sec. 30-35. -Collection of fees. (a) Creation of public school benefit area trust funds. Public school impact fees collected by Orange County pursuant to this Ordinance shall be kept separate from other revenue of the County. There shall be one trust fund established for each of the benefit areas. The benefit areas correspond to the school district boundaries as determined by the School Districts and as illustrated on the attached map labeled Public School Benefit Areas. (b) Responsibility for fee collection. (1) All public school impact fees are due to Orange County and shall be paid to Orange County prior to a certificate of occupancy being issued for a dwelling unit. The fees will be collected by Orange County and/or by interlocal agreement between Orange County and a municipality located therein. All public school impact fees shall be properly identified by the appropriate benefit area and transferred for deposit in the appropriate trust account. (2) Where there is an interlocal agreement in effect for collection of the public school impact fees by a municipality, the municipality shall remit the fees to Orange County as provided in the agreement, including a report of the amount of funds collected and the benefit area from which Page 4 9 the fees were collected. Upon receipt, the County shall deposit the fees in the appropriate trust fund. (c) Limitation on expenditure of funds. Funds withdrawn from public school impact fee trust accounts shall be used solely in accordance with the following provisions: (1) Funds shall be used for capital costs associated with the construction of new public school space, including new buildings or additions to existing buildings or otherwise converting existing buildings into new public school space where the expansion is related to new residential growth. Such capital costs include actual building construction; design, engineering, and/or legal fees; land acquisition and site development; equipment and furnishings; infrastructure improvements; and/or debt service payments and payments under leases through which to finance such costs. (2) Funds shall be used exclusively for capital improvements within the benefit area from which the funds were collected. (3) Funds may be used for providing reimbursements as permitted in subsection (e)of this Section. (4) No funds shall be used for public school operating expenses, periodic or routine maintenance, or the administration of this public school impact fee program. (5) Following their collection, funds shall be expended within ten (10) years, the time frame coinciding with the public school facilities capital improvements program (CIP)school impact fee period. The disbursal of public school impact fee funds shall require the approval of the Board of County Commissioners upon recommendation of the County Manager. (d) Interest on fees. Any public school impact fee funds on deposit and not immediately necessary for expenditure shall be invested as allowed in N.C. General Statute 159-30 for other public moneys. All income derived shall be deposited in the applicable trust fund. (e) Reimbursement of fees. (1) Any funds not expended within the time frame established in subsection (c)(5) of this Section. shall be returned to the feepayer, or the land owner if the address of the feepayer provided to Orange County is not current, with interest at a rate not to exceed that being paid on public school impact fees deposited in accordance with subsection (d)of this Section. (2) If the Schedule of Public School Impact Fees as contained in Section 30-33 is reduced due to an updated school impact fee study that results in changes to impact fee levels charged, no refund of previously paid fees shall be made. if the Schedule of Public School impact Fees as contained in Section 30-33 is reduced due to reasons other than an updated school impact fee study, the difference between the old and new fees shall be returned to the feepayer, or the land owner if the address of the feepayer provided to Orange County is not current, with interest at a rate not to exceed that being paid on public school impact fees deposited in accordance with subsection (d)of this Section. If the Schedule of Public School Impact Fees as contained in Section 30-33 is increased, no additional fees shall be collected from new construction for which certificates of occupancy have been issued. (3) Where an impact fee has been collected erroneously, or where an impact fee has been paid, and the feepayer subsequently files for and is granted an exception as permitted in Section 30- 34, the fee shall be returned to the feepayer. (f) Annual report. A report shall be made to the Board of County Commissioners each year showing where public school impact fees have been collected, what projects have been constructed with such fees, and what reimbursements have been made. The report shall also include an evaluation of this Ordinance, including its effectiveness and enforcement, and the methods and data used to calculate the Schedule of Public School impact Fees contained in Section 30-33. The Board of County Commissioners shall review the report to determine if, within each benefit area, all areas of new construction are being benefited by the fees. If the Board of County Commissioners Page 5 10 determines that areas of new construction are not being benefited, then it shall readjust the capital improvements program to correct this condition. If, after review of the methods and data used to calculate the Schedule of Public School Impact Fees, the Board of County Commissioners determines that adjustments are required in the Schedule, then it shall direct the County Manager and staff to prepare a report which outlines recommended changes for its consideration. (Ord. of 6-7-1993, § 5, eff. 7-1-1993; Amend. of 6-5-1995, eff. 7-1-1995; Amend. of 6-26-1996, eff. 7-1-1996) Sec. 30-36. -Credits. (a) Any conveyance of land for a public school site or construction of new school facilities received and accepted by Orange County, a municipality located in Orange County, and/or the Orange County or Chapel Hill-Carrboro School Board from a landowner may, at the election of the landowner, be credited against the public school impact fee due if the conveyance or construction meets the same needs as the public school impact fee in providing new public school facilities. If the landowner elects to receive credit against the amount of the public school impact fee due for such conveyance or construction, the landowner shall, prior to the agreement to convey land for or construct new public school facilities, or the conveyance of land for or construction of new school facilities, enter into a fee agreement with the County. The fee agreement shall provide for the establishment of credits and payment of the fee in a specified manner and time, and shall, upon its execution by the landowner and the County, be binding upon the heirs and assigns of the landowner. (b) The value of land conveyed or facilities constructed by a landowner and accepted by the County, municipality or school board for purposes of this Section shall be determined by an appraisal based on the fair market value of the land or facilities as established by the County. Construction shall be in accordance with applicable County, municipal, school board, and State standards. Any land conveyed for credit under this Section shall be conveyed no later than the time at which public school impact fees are required to be paid. The portion of the public school impact fee represented by a credit for construction shall be deemed paid when the construction is completed and accepted for maintenance or when adequate security for the completion of the construction has been provided. (Ord. of 6-7-1993, § 6, eff. 7-1-1993; Amend. of 6-26-1996, eff. 7-1-1996) Sec. 30-37. - Penalties. (a) In addition to any other remedy allowed by N.C. General Statute 153A-123, the failure to pay a public school impact fee is hereby declared to subject the person responsible for payment of the public school impact fee to a civil penalty. The amount of the penalty shall be equal to the amount of the unpaid school impact fee, plus an interest charge of one-half percent (1/2%) per month compounded monthly and a service charge of one hundred dollars ($100.00). (b) The County may assess this penalty against the landowner whereon new construction has occurred without payment of the public school impact fee. However, no service charge will be assessed when the County staff has made an error in the fee determination. Furthermore, no penalty shall be assessed until the person or persons alleged to be in violation are served by registered mail, certified mail - return receipt requested, or personal service with notice to pay. (c) The County Attorney is hereby authorized to institute a civil action in the name of Orange County in the appropriate division of the General Court of Justice in Orange County for recovery of the penalty. All moneys recovered shall be deposited in the appropriate trust fund. (Ord. of 6-7-1993, § 7, eff. 7-1-1993) Page 6 11 Sec. 30-38. - Legal status provisions. (a) All ordinances and clauses in conflict herewith are hereby repealed to the extent of said conflict. If any clause or Section of this Ordinance or application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or application of this ordinance which can be given separate effect, and, to this end, the provisions of this Ordinance are declared to be severable. (b) This Ordinance shall not diminish any prior contractual, conditional zoning, or special or conditional use district zoning obligation to pay for or install road, park or other improvements required by Orange County or a municipality located therein, nor shall the fulfillment of those obligations diminish any applicable public school impact fee owed to the County. This Ordinance shall not diminish any prior obligation of the County or a municipality located therein to reimburse persons for road, parks or other improvements, nor shall the fulfillment of those obligations by the County or a municipality diminish any applicable credit owed to the feepayer. (Ord. of 6-7-1993, § 8, eff. 7-1-1993) Secs. 30-39-30-70. -Appeal to the Orange County Board of Adjustment [Reserved]. Sec. 30-80. - Effective date. This Ordinance shall be effective from and after the 1st day of July, 1993. This Ordinance shall only apply to residential dwelling units for which building permits are issued on and after the effective date of the Ordinance or any amendment thereto. (Ord. of 6-7-1993, eff. 6-7-1993) Page 7 12 Attachment 3 NOTICE OF PUBLIC HEARING ORANGE COUNTY BOARD OF COMMISSIONERS A public hearing will be held at the Whitted Building, 300 West Tryon Street, 2nd Floor, Hillsborough, North Carolina, on Tuesday, October 4, 2016 at 7:00 PM for the purpose of giving all interested citizens an opportunity to speak for or against the following item: 1. Draft Educational Facilities (School) Impact Fee Studies Effective July 1, 1993, the Board of County Commissioners established a system of impact fees to help fund a portion of the school capital needs created by growth in the county. Since that date, an impact fee has been collected for each new housing unit constructed or installed in the county. Fees collected in each of the two school districts within the county (Chapel Hill — Carrboro City Schools and Orange County Schools) are deposited into separate special accounts and used exclusively for increasing capacity (e.g., constructing new school facilities) in the school district in which the fee was collected. The impact fee supplements funds provided by the County from sales tax and property tax revenues for school capital projects. The educational facilities impact fee currently collected (last updated in 2008) in each district for each new residential unit is as follows: Chapel Hill — Carrboro City Schools Adopted School Impact Fees (2008) Effective Effective Effective Effective January 1, January 1, January 1, January 1, 2009 2010 2011 2012 (32% MSIF) (40% MSIF) (50% MSIF) (60% MSIF) Single-Family Detached $6,092 $7,616 $9,520 $11,423 Single-Family Attached $3,525 $4,406 $5,508 $6,610 Multifamily $686 $858 $1,072 $1,286 Manufactured Homes $2,634 $3,293 $4,116 $4,939 Orange County Schools Adopted School Impact Fees (2008) Effective Effective Effective Effective January 1, January 1, January 1, January 1, 2009 2010 2011 2012 (32% MSIF) (40% MSIF) (50% MSIF) (60% MSIF) Single-Family Detached $3,000 $3,749 $4,686 $5,623 Single-Family Attached / $930 $1,162 $1,453 $1,743 Multifamily Manufactured Homes $1,428 $1,785 $2,232 $2,678 The Board of County Commissioners contracted with a consultant to evaluate impact fee levels and determine the maximum legally defensible fee for new residential 13 development in each of the school districts with the County to subsequently decide what percentage of the maximum justifiable fee it will to charge. The full draft reports (one for each school district) are available on the Orange County website at: http://www.orangecountync.gov/departments/planning_and_inspections/current_interest _projects.php The 2016 Technical Reports determined the Maximum Supportable Impact Fees (MSIF) as follows: Chapel Hill-Carrboro City Schools Orange County Schools Single Family Detached MSIF Single Family Detached MSIF 0-3 BR $13,114 0-3 BR $12,044 4+ BR $25,139 4+ BR $8,952 Average $17,492 Average $10,959 Single Family Detached<800 sq.ft. Single Family Detached<800 sq.ft. $3,848 $3,317 Single Family Attached Single Family Attached 0-2 BR $10,266 0-2 BR $3,665 3+ BR $16,414 3+ BR $5,558 Average $14,608 Average $5,319 Multifamily Multifamily 0-2 BR $4,441 0-2 BR $2,656 3+ BR $18,914 3+ BR $20,677 Average $6,990 Average $5,498 Manufactured Home $6,999 Manufactured Home $8,127 Age Restricted Unit $756 Age Restricted Unit $623 The Board of Commissioners will consider whether or not to change educational facilities impact fees after the public hearing. The maximum legally permissable fees calculated in the reports of the consultant are not a proposal to charge those levels of fees. Any change in the present fees will be determined by the Board of Commissioners following public comment at the public hearing and otherwise. In no event will educational facilities impact fees be changed to an amount(s) that exceed the maximums determined by the 2016 Technical Reports. Purpose: To receive public comment on the Draft School Impact Fee Studies. 14 Changes may be made in the advertised proposal that reflect comment and discussion at the hearing. Accommodations for individuals with physical disabilities can be provided if the request is made to the Planning Director at least 48 hours prior to the Public Hearing by calling the one of the phone numbers below. Questions regarding the proposal may be directed to the Orange County Planning Department located on the second floor of the County Office Building at 131 West Margaret Lane, Suite 201, Hillsborough, North Carolina. Office hours are from 8:00 a.m. to 5:00 p.m. Monday through Friday. You may also call (919)245-2575 or (919)245-2585 and you will be directed to a staff member who will answer your questions or you may e- mail questions to planningdept @orangecountync.gov. PUBLISH: News of Orange The Herald Sun September 21, 2016 September 21, 2016 September 28, 2016 September 28, 2016 15 Attachment 4 Current School Impact Fees (Adopted December 2008) [The amount shown for the effective date of January 12, 2012 is 60% of the Maximum Supportable Impact Fee, as calculated during the study/analysis completed in 2007-08] Chapel Hill — Carrboro City Schools District Effective Effective Effective Effective January 1, January 1, January 1, January 1, 2009 2010 2011 2012 Single-Family Detached $6,092 $7,616 $9,520 $11,423 Single-Family Attached $3,525 $4,406 $5,508 $6,610 Multifamily $686 $858 $1,072 $1,286 Manufactured Homes $2,634 $3,293 $4,116 $4,939 Orange County Schools District Effective Effective Effective Effective January 1, January 1, January 1, January 1, 2009 2010 2011 2012 Single-Family Detached $3,000 $3,749 $4,686 $5,623 Single-Family Attached / $930 $1,162 $1,453 $1,743 Multifamily Manufactured Homes $1,428 $1,785 $2,232 $2,678 Attachment 5 16 Historical Impact Fee Activity Revenues: Orange Chapel Hill- Fiscal Year County Carrboro City Total Schools Schools Prior Year Balances 6,988,747 18,009,757 24,998,504 2005-06 873,017 991,880 1,864,897 2006-07 1,372,354 648,046 2,020,400 2007-08 1,049,731 454,791 1,504,522 2008-09 714,544 523,950 1,238,494 2009-10 658,148 556,671 1,214,819 2010-11 727,701 732,200 1,459,901 2011-12 646,733 1,001,502 1,648,235 2012-13 1,002,583 1,018,621 2,021,204 2013-14 874,549 937,395 1,811,944 2014-15 1,421,027 1,342,729 2,763,756 2015-16 1,649,205 1,063,735 2,712,940 Interest Earned 198,123 231,338 429,461 Total Revenues 18,176,462 27,512,615 45,689,077 Expenditures: Prior Year Balances 5,658,796 17,091,602 22,750,398 2005-06 970,000 1,600,000 2,570,000 2006-07 970,000 1,600,000 2,570,000 2007-08 970,000 1,100,000 2,070,000 2008-09 1,090,000 563,900 1,653,900 2009-10 660,663 557,093 1,217,756 2010-11 400,000 400,000 800,000 2011-12 520,000 520,000 1,040,000 2012-13 520,000 1,320,000 1,840,000 2013-14 520,000 1,020,000 1,540,000 2014-15 520,000 520,000 1,040,000 2015-16 1,063,831 686,169 1,750,000 Total Expenditures 13,863,290 26,978,764 40,842,054 Available Balance 4,313,172 533,851 4,847,023 Attachment 6 17 From: Perdita Holtz To: Barry Jacobs Cc: Earl McKee;Bernadette Pelissier; Miia Burroughs; Penny Rich;Renee Price; Mark Dorosin; Travis Myren;Bonnie Hammersley;Craig(Benedict;John Roberts Subject: School Impact Fees-Housing Units Projected for Future Date: Wednesday,September 07,2016 4:58:00 PM Hello Commissioner Jacobs, At last night's meeting, you inquired as to the number of units approved that are not yet built. I'm writing draw your attention to Appendix A of the reports, particularly pages 25, 26, 34, and 35 of the CHCCS report (Appendix A is the same for both school districts) which contains information and assumptions on housing growth for the next ten years. In summary, the reports assume the following(based on both past data and staff knowledge of recent permitting activity and approved but unbuilt units)for the next 10 years: OCS CHCCS 332 = avg. annual residential unit growth 273 = avg. annual residential unit growth 2004-2013 2004-2013 20%= assumed annual increase, based on 25%= assumed annual increase, based on large number of approved but unbuilt units large number of approved but unbuilt units and recent increases in permitting activity and recent increases in permitting activity 398= projected future annual residential 341 = projected future annual residential unit growth unit growth Projected Future Unit Mix: Projected Future Unit Mix: 60%Single family detached 20%Single family detached 15%Single family attached 15%Single family attached 20% Multi-family 65% Multi-family 5% Manufactured home 0% Manufactured home 3,980= Projected increase in housing units 3,410 = Projected increase in housing units over next 10 years over next 10 years We are also attempting to collect data from the other planning jurisdictions regarding approved but unbuilt projects and hope to have this information available for the October 4th meeting date. When I discussed this issue with Town of Chapel Hill staff earlier this year, I learned that the projects in Chapel Hill associated with Development Agreements will be phased in over a period of 10-15 years, possibly longer. I hope you find this information helpful and please let me know if you have any questions. Perdita Holtz, AICP Planning Systems Coordinator Orange County, NC Planning Department 919.245.2578 co o $ 7 a - E 2 :44 k _ fn _ In ° n f m m \ 0 0 / = ZS e e N e d- o $ I f k § k u = C ) 0 E N 7 /)o ■ # %C & _ \ o 2 E c �I c E 2 k o z o a) o = m = o o@ o@ m 03 @ e o e e m e e e m N d- N m »/ f 0. / = O CI z LL 2 o k 0 U) .S2 >. E E z \z k C \ E ® -0 I w 2 / C ® - � < w -E E $ / / E 2 e 0 ... 0. w ¥ o § § x n / $ & R 2 E \ / ju ca E / / / K cm 2 co -0 / a. _ m e c •- $ E Q \ \ \ © > z o u c ® 5 z / o / ° n _n k % § � 2 [ k c % -o . y m \ 5 c .0 & c 0 u E § f e E ) ƒ E a) ƒ ? 7 3 \ n o n CL o e 2 ƒ u % 2 � •- e » y u = m % # y . 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