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Home My WebLink AboutAgenda - 12-05-2016 - 6-i - Technical Resolution Regarding Grandfathering of Projects for School Impact Fee Collection Purposes 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 5, 2016 Action Agenda Item No. 6-i SUBJECT: Technical Resolution Regarding Grandfathering of Projects for School Impact Fee Collection Purposes DEPARTMENT: Planning and Inspections ATTACHMENT(S): INFORMATION CONTACT: (919) 1. Resolution Craig Benedict, Planning Director, 245- 2. Adopted School Impact Fee Levels 2592 3. Flowcharts Perdita Holtz, Planner III, 245-2578 PURPOSE: To consider adoption of a technical resolution regarding grandfathering of projects for collection of recently adopted updates to school impact fees. BACKGROUND: On November 15 the Board of County Commissioners (BOCC) adopted updated school impact fees which will become effective January 1, 2017 (see Attachment 2) with incremental increases each year through 2021. This represented a starting point of 43% of the "maximum supportable impact fee" (MSIF) with increases of 7.5 percentage points each year for four years. At the time of adoption, the BOCC directed staff to return with language that would allow for projects that have reached certain project development milestones prior to January 1, 2017 to be "grandfathered" for the 2016 fee levels but to have an outer time limit for the grandfathering. This provision was requested primarily by multi-family developers because the impact fee for multi-family units with 3+ bedrooms will increase on January 1, 2017 by $6,847 per unit in the Chapel Hill-Carrboro City Schools district (CHCCS) and by $8,596 per unit in the Orange County Schools district (OCS). Developers are concerned that projects that have already gone through a lengthy project approval process but are not yet ready to begin construction will be adversely impacted by these increases because financial analyses of these projects took into account the existing impact fee levels ($1,286 in CHCCS and $1,743 in OCS). The attached resolution would allow "grandfathering" for the 2016 fee levels if a building permit application is submitted prior to January 1, 2017, the permit is issued within 180 days, and a Certificate of Compliance (aka, Certificate of Occupancy) is issued within 365 days of building permit issuance. This essentially gives builders one year after a building permit is issued to complete construction and qualify for the 2016 fee levels. (This provision is applicable for any projects that do not have an approved Zoning Compliance Permit - see paragraph below.) Also within the attached resolution, projects with an approved Zoning Compliance Permit (ZCP) would be given until December 31, 2017 to apply for a building permit(s) and a Certificate of Compliance would have to be issued within 365 days of building permit issuance in order to 2 qualify for 2016 fee levels. A building permit would have to be issued within 180 days of the application date; this provision is included to deter applicants from submitting extremely inadequate permit applications, perhaps in an attempt to "game the system". Most building permits are issued within 30 days of the application date if the plans are done well and require no or only minor revisions. Under the timelines proposed in the attached resolution, the outer- most date limit for projects with a ZCP by January 1, 2017 is June 30, 2019 and this would apply only if building permit issuance takes the full 180 day limit. Attachment 3 contains graphical presentations of these timeframes. FINANCIAL IMPACT: Allowing for grandfathering of projects may result in a lesser amount of school impact fee collections than might be collected if grandfathering, particularly for projects with an approved ZCP, were not allowed. 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 adopt the attached resolution. Attachment 1 3 Resolution #: RES-2016-077 RESOLUTION REGARDING GRANDFATHERING OF PROJECTS FOR SCHOOL IMPACT FEE COLLECTION PURPOSES WHEREAS, on November 15, 2016 the Orange County Board of Commissioners adopted amendments to Chapter 30, Article II — Educational Facilities Impact Fee of the Orange County Code of Ordinances, and WHEREAS, the Orange County Board of Commissioners hereby provides technical guidance on "grandfathering," for school impact fee purposes, of projects that are currently in later stages of project development. BE IT RESOLVED THAT persons submitting a building permit application prior to January 1, 2017 may choose to pay either the public school impact fee that was in effect for 2016 for the housing type(s) proposed in the application or the fee required by the public school impact fee schedule in section 30-33 of Chapter 30, Article II of the Orange County Code of Ordinances, provided the building permit is issued no more than 180 calendar days after the application submittal date and a Certificate of Compliance (aka, Certificate of Occupancy) is issued no later than 365 calendar days after issuance of a building permit. If a building permit is not issued within 180 calendar days after the application submittal date or if a Certificate of Compliance is not issued within 365 calendar days of building permit issuance, the fee shall be the fee listed in section 30-33 of Chapter 30, Article II of the Orange County Code of Ordinances. BE IT FURTHER ORDAINED THAT projects for which a Zoning Compliance Permit has been issued prior to January 1, 2017 and for which a building permit application has been submitted prior to January 1, 2018 may choose to pay either the public school impact fee that was in effect for 2016 for the housing type(s) proposed in the application or the fee required by the public school impact fee schedule in section 30-33 of Chapter 30, Article II of the Orange County Code of Ordinances, provided the building permit is issued no more than 180 calendar days after the application submittal date and a Certificate of Compliance (aka, Certificate of Occupancy) is issued within 365 calendar days of building permit issuance. If a building permit is not issued within 180 calendar days after the application submittal date or if a Certificate of Compliance is not issued within 365 calendar days of building permit issuance, the fee shall be the fee listed in section of Chapter 30, Article II of the Orange County Code of Ordinances. Upon motion of Commissioner , seconded by Commissioner , the foregoing ordinance was adopted this day of , 2016. I, Donna S. Baker, Clerk to the Board of Commissioners for Orange County, DO HEREBY CERTIFY that the foregoing is a true copy of so much of the proceedings of said Board at a meeting held on , 2016 as relates in any way to the adoption of the foregoing and that said proceedings are recorded in the minutes of the said Board. 1 4 WITNESS my hand and the seal of said County, this day of , 2016. SEAL Clerk to the Board of Commissioners 5 Attachment 2 School Impact Fees, as adopted on November 15, 2016 Chapel Hill-Carrboro City Schools District Fee Fee Fee Fee Fee Dwelling Unit Type Effective Effective Effective Effective Effective January 1, January 1, January 1, January 1, January 1, 2017 2018 2019 2020 2021 of MSIF1 43% 50.5% 58% 65.5% 73% Single Family Detached, 0-3 $5,639 $6,623 $7,606 $8,590 $9,573 Bedrooms Single Family Detached, 4+ $10,810 $12,695 $14,581 16,466 $18,351 Bedrooms Single Family Detached <800 $1,655 $1,943 $2,232 $2,520 $2,809 sq. ft. Single Family Attached, 0-2 $4,414 $5,184 $5,954 $6,724 $7,494 Bedrooms Single Family Attached, 3+ $7,058 $8,289 $9,520 $10,751 $11,982 Bedrooms Multifamily, 0-2 Bedrooms & Accessory Dwelling Units, 0-2 $1,910 $2,243 $2,576 $2,909 $3,242 Bedrooms Multifamily, 3+ Bedrooms & Accessory Dwelling Units, 3+ $8,133 $9,552 $10,970 $12,389 $13,807 Bedrooms Manufactured Home $3,010 $3,534 $4,059 $4,584 $5,109 Age Restricted Unit $325 $382 $438 $495 $552 1 MSIF=Maximum Supportable Impact Fee,as calculated in the 2016 school impact fee studies 6 Orange County Schools District Fee Fee Fee Fee Fee Dwelling Unit Type Effective Effective Effective Effective Effective January 1, January 1, January 1, January 1, January 1, 2017 2018 2019 2020 2021 of MSIF 43% 50.5% 58% 65.5% 73% Single Family Detached, 0-3 $5,179 $6,082 $6,986 $7,889 $8.792 Bedrooms Single Family Detached, 4+ $3,849 $4,521 $5,192 $5,864 $6,535 Bedrooms Single Family Detached $1,426 $1,675 $1,924 $2,173 $2,421 <800 sq. ft. Single Family Attached, 0-2 $1,576 $1,851 $2,126 $2,401 $2,675 Bedrooms Single Family Attached, 3+ $2,390 $2,807 $3,224 $3,640 $4,057 Bedrooms Multifamily, 0-2 Bedrooms & Accessory Dwelling Units, $1,142 $1,341 $1,540 $1,740 $1,939 0-2 Bedrooms Multifamily, 3+ Bedrooms & Accessory Dwelling Units, $8,891 $10,442 $11,993 $13,543 $15,094 3+ Bedrooms Manufactured Home $3,495 $4,104 $4,714 $5,323 $5,933 Age Restricted Unit $268 $315 $361 $408 $455 7 Attachment 3 Flowcharts for School Impact Fees Building Permit Applications Application submitted prior to Application submitted on or January 1, 2017 after January 1, 2017 Permit issued within Permit issued more than Impact fee due in accordance 180 days of application 180 days from application with adopted schedule submittal date submittal date Impact fee due in accordance with adopted schedule Certificate of Certificate of Compliance issued Compliance issued more within 365 days of than 365 days from building permit issuance building permit issuance date date Applicant can choose to pay Impact fee due in accordance either impact fee in effect in with adopted schedule 2016 for the housing type constructed or can pay the impact fee in accordance with the adopted schedule 8 Zoning Compliance Permits Zoning Compliance Permit Zoning Compliance Permit issued issued prior to January 1, 2017 on or after January 1, 2017 V V Building Permit Building Permit application Impact fee due in accordance application submitted submitted on or after with adopted schedule prior to January 1, 2018 January 1, 2018 Impact fee due in accordance with adopted schedule 1 / Building permit issued Building permit issued within 180 days of more than 180 days building permit from building permit application submittal application submittal date date V Impact fee due in accordance with adopted schedule V W Certificate of Certificate of Compliance issued Compliance issued more within 365 days of than 365 days from building permit issuance building permit issuance date date W V Applicant can choose to pay Impact fee due in accordance either impact fee in effect in with adopted schedule 2016 for the housing type constructed or can pay the impact fee in accordance with the adopted schedule