Bill Text: PA HB429 | 2009-2010 | Regular Session | Introduced

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Bill Title: In general provisions, further providing for definitions; amending provisions relating to municipal capital improvements; and providing for development impact fees.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2009-02-13 - Referred to LOCAL GOVERNMENT [HB429 Detail]

Download: Pennsylvania-2009-HB429-Introduced.html

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PRINTER'S NO. 473
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 429 Session of2009
INTRODUCED BY PETRI, CALTAGIRONE, CLYMER, GRUCELA, HENNESSEY, MELIO, O'NEILL, SIPTROTH AND YOUNGBLOOD, FEBRUARY 13, 2009
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, FEBRUARY 13, 2009
AN ACT
Amending the act of July 31, 1968 (P.L.805, No.247), entitled,
as amended, "An act to empower cities of the second class A,
and third class, boroughs, incorporated towns, townships of
the first and second classes including those within a county
of the second class and counties of the second through eighth
classes, individually or jointly, to plan their development
and to govern the same by zoning, subdivision and land
development ordinances, planned residential development and
other ordinances, by official maps, by the reservation of
certain land for future public purpose and by the acquisition
of such land; to promote the conservation of energy through
the use of planning practices and to promote the effective
utilization of renewable energy sources; providing for the
establishment of planning commissions, planning departments,
planning committees and zoning hearing boards, authorizing
them to charge fees, make inspections and hold public
hearings; providing for mediation; providing for transferable
development rights; providing for appropriations, appeals to
courts and penalties for violations; and repealing acts and
parts of acts," in general provisions, further providing for
definitions; amending provisions relating to municipal
capital improvements; and providing for development impact
fees.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "impact fee" in section 502-A
of the act of July 31, 1968 (P.L.805, No.247), known as the
Pennsylvania Municipalities Planning Code, reenacted and amended
December 21, 1988 (P.L.1329, No.170) and added December 19, 1990
(P.L.1343, No.209), is amended and the section is amended by
adding a definition to read:
Section 502-A. Definitions.--The following words and phrases
when used in this article shall have the meanings given to them
in this section unless the context clearly indicates otherwise:
* * *
["Impact fee," a charge or fee imposed by a municipality
against new development in order to generate revenue for funding
the costs of transportation capital improvements necessitated by
and attributable to new development.]
* * *
"Transportation impact fee," a charge or fee imposed by a
municipality against new development in order to generate
revenue for funding the costs of transportation capital
improvements necessitated by and attributable to new
development.
* * *
Section 2. Section 503-A of the act, amended or added
December 19, 1990 (P.L.1343, No.209) and June 22, 2000 (P.L.495,
No.68), is amended to read:
Section 503-A. Grant of Power.--(a) The governing body of
each municipality other than a county, in accordance with the
conditions and procedures set forth in this act, may enact,
amend and repeal transportation impact fee ordinances and,
thereafter, may establish, at the time of municipal approval of
any new development or subdivision, the amount of [an] a
transportation impact fee for any of the offsite public
transportation capital improvements authorized by this act as a
condition precedent to final plat approval under the
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municipality's subdivision and land development ordinance. Every
ordinance adopted pursuant to this act shall include, but not be
limited to, provisions for the following:
(1) The conditions and standards for the determination
and imposition of transportation impact fees consistent with
the provisions of this act.
(2) The agency, body or office within the municipality
which shall administer the collection, disbursement and
accounting of transportation impact fees.
(3) The time, method and procedure for the payment of
transportation impact fees.
(4) The procedure for issuance of any credit against or
reimbursement of transportation impact fees which an
applicant may be entitled to receive consistent with the
provisions of this act.
(5) Exemptions or credits which the municipality may
choose to adopt. In this regard the municipality shall have
the power to:
(i) Provide a credit of up to 100% of the applicable
transportation impact fees for all new development and
growth which constitutes affordable housing to low- and
moderate-income persons.
(ii) Provide a credit of up to 100% of the
applicable transportation impact fees for growth which
are determined by the municipality to serve an overriding
public interest.
(iii) Exempt de [minimus] minimis applications from
transportation impact fee requirements. If such a policy
is adopted, the definition of de [minimus] minimis shall
be contained in the ordinance.
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(b) No municipality shall have the power to require as a
condition for approval of a land development or subdivision
application the construction, dedication or payment of any
offsite improvements or capital expenditures of any nature
whatsoever or impose any contribution in lieu thereof, exaction
fee, or any connection, tapping or similar fee except as may be
specifically authorized under this act.
(c) No municipality may levy [an] a transportation impact
fee prior to the enactment of a municipal transportation impact
fee ordinance adopted in accordance with the procedures set
forth in this act, except as may be specifically authorized by
the provisions of this act. A transportation impact fee shall be
imposed by a municipality within a service area or areas only
where such fees have been determined and imposed pursuant to the
standards, provisions and procedures set forth herein.
(d) [Impact] Transportation impact fees may be used for
those costs incurred for improvements designated in the
transportation capital improvement program which are
attributable to new development, including the acquisition of
land and rights-of-way; engineering, legal and planning costs;
and all other costs which are directly related to road
improvements within the service area or areas, including debt
service. [Impact] Transportation impact fees shall not be
imposed or used for costs associated with any of the following:
(1) Construction, acquisition or expansion of municipal
facilities other than capital improvements identified in the
transportation capital improvements plan required by this
act.
(2) Repair, operation or maintenance of existing or new
capital improvements.
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(3) Upgrading, updating, expanding or replacing existing
capital improvements to serve existing developments in order
to meet stricter safety, efficiency, environmental or
regulatory standards not attributable to new development.
(4) Upgrading, updating, expanding or replacing existing
capital improvements to remedy deficiencies in service to
existing development or fund deficiencies in existing
municipal capital improvements resulting from a lack of
adequate municipal funding over the years for maintenance or
capital construction costs.
(5) Preparing and developing the land use assumptions,
roadway sufficiency analysis and transportation capital
improvement plan, except that transportation impact fees may
be used for no more than a proportionate amount of the cost
of professional consultants incurred in preparing a roadway
sufficiency analysis of infrastructure within a specified
transportation service area, such allowable proportion to be
calculated by dividing the total costs of all road
improvements in the adopted transportation capital
improvement program within the transportation service area
attributable to projected future development within the
service area, as defined in section 504-A(e)(1)(iii), by the
total costs of all road improvements in the adopted
transportation capital improvement program within the
specific transportation service area, as defined in section
504-A.
(e) Nothing in this act shall be deemed to alter or affect a
municipality's existing power to require an applicant for
municipal approval of any new development or subdivision from
paying for the installation of onsite improvements as provided
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for in a municipality's subdivision and land development
ordinance as authorized by this act.
(f) No municipality may delay or deny any application for
building permit, certificate-of-occupancy, development or any
other approval or permit required for construction, land
development, subdivision or occupancy for the reason that any
project of an approved capital improvement program has not been
completed.
(g) A municipality which has enacted an impact fee ordinance
on or before June 1, 1990, may for a period not to exceed one
year from the effective date of this article, adopt an impact
fee ordinance to conform with the standards and procedures set
forth in this article. Where a fee previously imposed pursuant
to an ordinance in effect on June 1, 1990, for transportation
improvements authorized by this article is greater than the
recalculated fee due under the newly adopted ordinance, the
individual who paid the fee is entitled to a refund of the
difference. If the recalculated fee is greater than the
previously paid fee, there shall be no additional charge.
(h) The powers provided by this section may be exercised by
two or more municipalities, other than counties, which have
adopted a joint municipal comprehensive plan pursuant to Article
XI through a joint municipal authority, subject to the
conditions and procedures set forth in this article.
Section 3. Sections 504-A(a), (b), (e), (f) and (g) and 505-
A of the act, amended June 22, 2000 (P.L.495, No.68), are
amended to read:
Section 504-A. Transportation Capital Improvements Plan.--
(a) (1) A transportation capital improvements plan shall be
prepared and adopted by the governing body of the municipality
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prior to the enactment of any transportation impact fee
ordinance.
(2) In lieu of preparing a transportation capital
improvements plan, the governing body of the municipality may
elect to have the municipality's comprehensive plan and maps
serve as a transportation capital improvements plan, provided
that:
(i) the municipality's comprehensive plan and maps
contain the necessary information for the transportation
impact fee advisory committee and governing body to
perform the calculations, make the recommendations and
carry out other duties required by this article; and
(ii) the municipality's comprehensive plan and maps
have been adopted or revised within ten years of the date
of enactment of a transportation impact fee ordinance.
(3) The municipality shall provide qualified
professionals to assist the transportation impact fee
advisory committee or the planning commission in the
preparation of the transportation capital improvements plan
or the transportation elements of the municipality's
comprehensive plan and calculation of the transportation
impact fees to be imposed to implement the plan in accordance
with the procedures, provisions and standards set forth in
this act.
(b) (1) [An] A transportation impact fee advisory committee
shall be [created] established by resolution of a
municipality intending to adopt a transportation impact fee
ordinance. The resolution shall describe the geographical
area or areas of the municipality for which the advisory
committee shall develop the land use assumptions and conduct
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the roadway sufficiency analysis studies.
(2) The advisory committee shall consist of no fewer
than 7 nor more than 15 members, all of whom shall serve
without compensation. The governing body of the municipality
shall appoint as members of the advisory committee persons
who are either residents of the municipality or conduct
business within the municipality and are not employees or
officials of the municipality. Not less than [40%] 25% of the
members of the advisory committee shall be representatives of
the real estate, commercial and residential development, and
building industries. The municipality may also appoint
traffic or transportation engineers or planners to serve on
the advisory committee provided the appointment is made after
consultation with the advisory committee members. The traffic
or transportation engineers or planners appointed to the
advisory committee may not be employed by the municipality
for the development of or consultation on the roadways
sufficiency analysis which may lead to the adoption of the
transportation capital improvements plan.
(3) The governing body of the municipality may elect to
designate the municipal planning commission appointed
pursuant to Article II as the transportation impact fee
advisory committee. If the existing planning commission does
not include members representative of the real estate,
commercial and residential development, and building
industries at no less than [40%] 25% of the membership, the
governing body of the municipality shall appoint the
sufficient number of representatives of the aforementioned
industries who reside in the municipality or conduct business
within the municipality to serve as ad hoc voting members of
20090HB0429PN0473 - 8 -
the planning commission whenever such commission functions as
the impact fee advisory committee.
(4) No transportation impact fee ordinance may be
invalidated as a result of any legal action challenging the
composition of the advisory committee which is not brought
within 90 days following the first public meeting of [said]
the advisory committee.
(5) The advisory committee shall serve in an advisory
capacity and shall have the following duties:
(i) To make recommendations with respect to land use
assumptions, the development of comprehensive road
improvements and transportation impact fees.
(ii) To make recommendations to approve, disapprove
or modify a capital improvement program by preparing a
written report containing these recommendations to the
municipality.
(iii) To monitor and evaluate the implementation of
a capital improvement program and the assessment of
transportation impact fees, and report annually to the
municipality with respect to the same.
(iv) To advise the municipality of the need to
revise or update the land use assumptions, capital
improvement program or transportation impact fees.
* * *
(e) (1) Utilizing the information provided by the land
use assumption and the roadway sufficiency analysis as the
basis for determination of the need for road improvements to
remedy existing deficiencies and accommodate future projected
traffic volumes, the advisory committee shall identify those
capital projects which the municipality should consider for
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adoption in its transportation capital improvements plan and
shall recommend the delineation of the transportation service
area or areas. The capital improvement plan shall be
developed in accordance with generally accepted engineering
and planning practices. The capital improvement program shall
include projections of all designated road improvements in
the capital improvement program. The total cost of the road
improvements shall be based upon estimated costs, using
standard traffic engineering standards, with a 10% maximum
contingency which may be added to said estimate. These costs
shall include improvements to correct existing deficiencies
with identified anticipated sources of funding and timetables
for implementation. The transportation capital improvements
plan shall include the following components:
(i) A description of the existing highways, roads
and streets within the transportation service area and
the road improvements required to update, improve, expand
or replace such highways, roads and streets in order to
meet the preferred level of service and usage and
stricter safety, efficiency, environmental or regulatory
standards not attributable to new development.
(ii) A plan specifying the road improvements within
the transportation service area attributable to
forecasted pass-through traffic so as to maintain the
preferred level of service after existing deficiencies
identified by the roadway sufficiency analysis have been
remedied.
(iii) A plan specifying the road improvements or
portions thereof within the transportation service area
attributable to the projected future development,
20090HB0429PN0473 - 10 -
consistent with the adopted land use assumptions, in
order to maintain the preferred level of service after
accommodation for pass-through traffic and after existing
deficiencies identified in the roadway sufficiency
analysis have been remedied.
(iv) The projected costs of the road improvements to
be included in the transportation capital improvements
plan, calculating separately for each project by the
following categories:
(A) The costs or portion thereof associated with
correcting existing deficiencies as specified in
subparagraph (i).
(B) The costs or portions thereof attributable
to providing road improvements to accommodate
forecasted pass-through trips as specified in
subparagraph (ii).
(C) The costs of providing necessary road
improvements or portions thereof attributable to
projected future development as specified in
subparagraph (iii), provided that no more than 50% of
the cost of the improvements to any highway, road or
street which qualifies as a State highway or portion
of the rural State highway system as provided in
section 102 of the act of June 1, 1945 (P.L.1242, No.
428), known as the "State Highway Law," may be
included.
(v) A projected timetable and proposed budget for
constructing each road improvement contained in the plan.
(vi) The proposed source of funding for each capital
improvement included in the road plan. This shall include
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anticipated revenue from the Federal Government, State
government, municipality, transportation impact fees and
any other source. The estimated revenue for each capital
improvement in the plan which is to be provided by
transportation impact fees shall be identified separately
for each project.
(2) The source of funding required for projects to
remedy existing deficiencies as set forth in paragraph (1)(i)
and the road improvements attributable to forecasted pass-
through traffic as set forth in paragraph (1)(ii) shall be
exclusive of funds generated from the assessment of
transportation impact fees.
(3) Upon the completion of the transportation capital
improvements plan and prior to its adoption by the governing
body of the municipality and the enactment of a municipal
transportation impact fee ordinance, the advisory committee
shall hold at least one public hearing for consideration of
the plan. Notification of the public hearing shall comply
with the requirement of section 107. The plan shall be
available for public inspection at least ten working days
prior to the date of the public hearing. After presentation
of the recommendation by the advisory committee or its
representatives at a public meeting of the governing body,
the governing body may make such changes to the plan prior to
its adoption as the governing body deems appropriate
following review of the public comments made at the public
hearing.
(4) The governing body may periodically, but no more
frequently than annually, request the transportation impact
fee advisory committee to review the capital improvements
20090HB0429PN0473 - 12 -
plan and transportation impact fee charges and make
recommendations for revisions for subsequent consideration
and adoption by the governing body based only on the
following:
(i) New subsequent development which has occurred in
the municipality.
(ii) Capital improvements contained in the capital
improvements plan, the construction of which has been
completed.
(iii) Unavoidable delays beyond the responsibility
or control of the municipality in the construction of
capital improvements contained in the plan.
(iv) Significant changes in the land use
assumptions.
(v) Changes in the estimated costs of the proposed
transportation capital improvements, which may be
recalculated by applying the construction cost index as
published in the American City/County magazine or the
Engineering News Record.
(vi) Significant changes in the projected revenue
from all sources listed needed for the construction of
the transportation capital improvements.
(f) Any improvements to Federal-aid or State highways to be
funded in part by transportation impact fees shall require the
approval of the Department of Transportation and, if necessary,
the United States Department of Transportation. Nothing in this
act shall be deemed to alter or diminish the powers, duties or
jurisdiction of the Department of Transportation with respect to
State highways or the rural State highway system.
(g) Two or more municipalities may, upon agreement, appoint
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a joint transportation impact fee advisory committee which may
develop roadway sufficiency analyses and transportation capital
improvements plans for the participating municipalities. The
members of the joint advisory committee must be either residents
of or conduct business within one of the participating
municipalities.
Section 505-A. Establishment and Administration of Impact
Fees.--
(a) (1) The transportation impact fee for transportation
capital improvements shall be based upon the total costs of
the road improvements included in the adopted capital
improvement plan within a given transportation service area
attributable to and necessitated by new development within
the service area as calculated pursuant to section 504-A(e)
(1)(iv)(C), divided by the number of anticipated peak hour
trips generated by all new development consistent with the
adopted land use assumptions and calculated in accordance
with the Trip Generation Manual published by the Institute of
Transportation Engineers, fourth or subsequent edition as
adopted by the municipality by ordinance or resolution to
equal a per trip cost for transportation improvements within
the service area.
(2) The specific transportation impact fee for a
specific new development or subdivision within the service
area for road improvements shall be determined as of the date
of preliminary land development or subdivision approval by
multiplying the per trip cost established for the service
area as determined in section 503-A(a) by the estimated
number of peak hour trips to be generated by the new
development or subdivision using generally accepted traffic
20090HB0429PN0473 - 14 -
engineering standards.
(3) A municipality may authorize or require the
preparation of a special transportation study in order to
determine traffic generation or circulation for a new
nonresidential development to assist in the determination of
the amount of the transportation impact fee for such
development or subdivision. The municipality shall set forth
by ordinance the circumstances in which such a study should
be authorized or required, provided however, that no special
transportation study shall be required when there is no
deviation from the land use assumptions resulting in
increased density, intensity or trip generation by a
particular development. A developer or municipality may,
however, at any time, voluntarily prepare and submit a
traffic study for a proposed development or may have such a
study prepared at its expense after the development is
completed to include actual trips generated by the
development for use in any appeal as provided for under this
act. The special transportation study shall be prepared by a
qualified traffic or transportation engineer using procedures
and methods established by the municipality based on
generally accepted transportation planning and engineering
standards. The study, where required by the municipality,
shall be submitted prior to the imposition of [an] a
transportation impact fee and shall be taken into
consideration by the municipality in increasing or reducing
the amount of the transportation impact fee for the new
development for the amount shown on the transportation impact
fee schedule adopted by the municipality.
(b) The governing body shall enact [an] a transportation
20090HB0429PN0473 - 15 -
impact fee ordinance setting forth a description of the
boundaries and a transportation impact fee schedule for each
transportation service area. At least ten working days prior to
the adoption of the ordinance at a public meeting, the ordinance
shall be available for public inspection. The transportation
impact fee ordinance shall include, but not be limited to, those
provisions set forth in section 503-A(a) and conform with the
standards, provisions and procedures set forth in this act.
(c) (1) A municipality may give notice of its intention to
adopt [an] a transportation impact fee ordinance by
publishing a statement of such intention twice in one
newspaper of general circulation in the municipality. The
first publication shall not occur before the adoption of the
resolution by which the municipality establishes its
transportation impact fee advisory committee. The second
publication shall occur not less than one nor more than three
weeks thereafter.
(2) A municipal transportation impact fee ordinance
adopted under and pursuant to this act may provide that the
provisions of the ordinance may have retroactive application,
for a period not to exceed 18 months after the adoption of
the resolution [creating an] establishing a transportation
impact fee advisory committee pursuant to section 504-A(b)
(1), to preliminary or tentative applications for land
development, subdivision or PRD with the municipality on or
after the first publication of the municipality's intention
to adopt [an] a transportation impact fee ordinance;
provided, however, that the transportation impact fee imposed
on building permits for construction of new development
approved pursuant to such applications filed during the
20090HB0429PN0473 - 16 -
period of [pendancy] pendency shall not exceed $1,000 per
anticipated peak hour trip as calculated in accordance with
the generally accepted traffic engineering standards as set
forth under the provisions of subsection (a)(1) or the
subsequently adopted fee established by the ordinance,
whichever is less.
(3) No action upon an application for land development,
subdivision or PRD shall be postponed, delayed or extended by
the municipality because adoption of a municipal
transportation impact fee ordinance is being considered.
Furthermore, the adoption of [an] a transportation impact fee
ordinance more than 18 months after adoption of a resolution
[creating the] establishing the transportation impact fee
advisory committee shall not be retroactive or applicable to
plats submitted for preliminary or tentative approval prior
to the legal publication of the proposed transportation
impact fee ordinance and any transportation impact fees
collected pursuant to this subsection shall be refunded to
the payor of such fees; provided the adoption of the
transportation impact fee ordinance was not delayed due to
the initiation of any litigation challenging the adoption of
such ordinance.
(d) Any transportation impact fees collected by a
municipality pursuant to a municipal transportation impact fee
ordinance shall be deposited by the municipality into an
interest-bearing fund account designated solely for
transportation impact fees, clearly identifying the
transportation service area from which the transportation impact
fee was received. Funds collected in one transportation service
area must be accounted for and expended within that
20090HB0429PN0473 - 17 -
transportation service area, and such funds shall only be
expended for that portion of the transportation capital
improvements identified as being funded by transportation impact
fees under the transportation capital improvements plan.
Notwithstanding any other provisions of this act, municipalities
may expend transportation impact fees paid by an applicant on
projects not contained in the adopted transportation capital
improvement plan or may provide credit against transportation
impact fees for the value of any construction projects not
contained in the transportation capital improvement plan which
are performed at the applicant's expense if all of the following
criteria are met:
(1) The applicant has provided written consent to use of
its collected transportation impact fees or the provision of
such credit against the applicant's transportation impact
fees for specific transportation projects which are not
included in the transportation capital improvement plan.
(2) The alternative transportation projects, whether
highway or multimodal, have as their purpose the reduction of
traffic congestion or the removal of vehicle trips from the
roadway network.
(3) The municipality amends its transportation capital
improvement plan components required by section 504-A(e)(1)
(vi) to provide replacement of the collected transportation
impact fees transferred to transportation projects outside
the approved transportation capital improvement plan from
sources other than transportation impact fees or developer
contributions within three years of completion of the
alternative projects to which the transferred transportation
impact fees were applied or for which credit was provided.
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All interest earned on such funds shall become funds of that
account. The municipality shall provide that an accounting be
made annually for any fund account containing transportation
impact fee proceeds and earned interest. Such accounting
shall include, but not be limited to, the total funds
collected, the source of the funds collected, the total
amount of interest accruing on such funds and the amount of
funds expended on specific transportation improvements.
Notice of the availability of the results of the accounting
shall be included and published as part of the annual audit
required of municipalities. A copy of the report shall also
be provided to the transportation advisory committee.
(e) All transportation impact fees imposed under the terms
of this act shall be payable at the time of the issuance of
building permits for the applicable new development or
subdivision. The municipality may not require the applicant to
provide a guarantee of financial security for the payment of any
transportation impact fees, except the municipality may provide
for the deposit with the municipality of financial security in
an amount sufficient to cover the cost of the construction of
any road improvement contained in the transportation capital
improvement plan which is performed by the applicant.
(f) An applicant shall be entitled to a credit against the
transportation impact fee in the amount of the fair market value
of any land dedicated by the applicant to the municipality for
future right-of-way, realignment or widening of any existing
roadways or for the value of any construction of road
improvements contained in the transportation capital improvement
program which is performed at the applicant's expense. The
amount of such credit for any capital improvement constructed
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shall be the amount allocated in the capital improvement
program, including contingency factors, for such work. The fair
market value of any land dedicated by the applicant shall be
determined as of the date of the submission of the land
development or subdivision application to the municipality.
(g) [Impact] Transportation impact fees previously collected
by a municipality shall be refunded, together with earned
accrued interest thereon, to the payor of [such] the
transportation impact fees from the date of payment under any of
the following circumstances:
(1) In the event that a municipality terminates or
completes an adopted capital improvements plan for a
transportation service area and there remains at the time of
termination or completion undispersed funds in the accounts
established for that purpose, the municipality shall provide
written notice by certified mail to those persons who
previously paid the transportation impact fees which remain
undispersed of the availability of said funds for refund of
the person's proportionate share of the fund balance. The
allocation of the refund shall be determined by generally
accepted accounting practices. In the event that any of the
funds remain unclaimed following one year after the notice,
which notice shall be provided to the last known address
provided by the payor of the transportation impact fees to
the municipality, the municipality shall be authorized to
transfer any funds so remaining to any other fund in the
municipality without any further obligation to refund said
funds.
(2) If the municipality fails to commence construction
of any transportation service area road improvements within
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three years of the scheduled construction date set forth in
the transportation capital improvements plan, any person who
paid any transportation impact fees pursuant to that
transportation capital improvements plan shall, upon written
request to the municipality, receive a refund of that portion
of the transportation impact fee attributable to the
contribution for the uncommenced road improvement, plus the
interest accumulated thereon from the date of payment.
(3) If, upon completion of any road improvements
project, the actual expenditures of the capital project are
less than 95% of the costs properly allocable to the
transportation impact fee paid within the transportation
service area in which the completed road improvement was
adopted, the municipality shall refund the pro rata
difference between the budgeted costs and the actual
expenditures, including interest accumulated thereon from the
date of payment, to the person or persons who paid the
transportation impact fees for such improvements.
(4) If the new development for which transportation
impact fees were paid is not commenced prior to the
expiration of building permits issued for the new development
within the time limits established by applicable building
codes within the municipality or if the building permit as
issued for the new development is altered and the alteration
results in a decrease in the amount of the transportation
impact fee due in accordance with the calculations set forth
in subsection (a)(1).
(h) Where [an] a transportation impact fee ordinance has
been adopted pursuant to the other provisions of this act, the
ordinance may impose an additional transportation impact fee
20090HB0429PN0473 - 21 -
upon new developments which generate 1,000 or more new peak hour
trips, net of pass-by trips as defined by the current edition of
the Institute of Transportation Engineers Trip Generation
Manual, during the peak hour period designated in the ordinance.
In such case, the transportation impact fee ordinance adopted
under this act may require the applicant for such a development
to perform a traffic analysis of development traffic impact on
highways, roads or streets outside the transportation service
area in which the development site is located but within the
boundaries of the municipality or municipalities adopting a
joint municipal transportation impact fee ordinance or
municipalities which are participating in a joint municipal
authority authorized to impose transportation impact fees by
this article. Any such highways, roads or streets or parts
thereof outside the transportation service area which will
accommodate 10% or more of development traffic and 100 or more
new peak hour trips may be required to be studied, and the
ordinance may require the applicant to mitigate the traffic
impacts of the development on such highways, roads and streets
to maintain the predevelopment conditions after completion of
the development.
Section 4. Section 506-A of the act, added December 19, 1990
(P.L.1343, No.209), is amended to read:
Section 506-A. Appeals.--(a) Any person required to pay
[an] a transportation impact fee shall have the right to contest
the land use assumptions, the development and implementation of
the transportation capital improvement program, the imposition
of transportation impact fees, the periodic updating of the
transportation capital improvement program, the refund of
transportation impact fees and all other matters relating to
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transportation impact fees, including the constitutionality or
validity of the transportation impact fee ordinance by filing an
appeal with the court of common pleas.
(b) A master may be appointed by the court to hear testimony
on the issues and return the record and a transcript of the
testimony, together with a report and recommendations, or the
court may appoint a master to hold a nonrecord hearing and to
make recommendations and return the same to the court, in which
case either party may demand a hearing de novo before the court.
(c) Any cost incurred by parties in such an appeal shall be
the separate responsibility of the parties.
Section 5. Section 508-A of the act, added June 22, 2000
(P.L.495, No.68), is amended to read:
Section 508-A. Joint Municipal Transportation Impact Fee
Ordinance.--(a) For the purpose of permitting municipalities
which cooperatively plan for their future to also provide for
transportation capital improvements in a cooperative manner, the
governing bodies of each municipality which has adopted a joint
municipal comprehensive plan pursuant to Article XI in
accordance with the conditions and procedures set forth in this
article may cooperate with one or more municipalities to enact,
amend and repeal joint transportation impact fee ordinances to
accomplish the purposes of this act in accordance with this
article.
(b) The procedures set forth in this article shall be
applicable to the enactment of a joint municipal transportation
impact fee ordinance.
(c) Each municipality party to a joint municipal
transportation impact fee ordinance shall approve the advisory
committee and shall adopt the land use assumptions, roadway
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sufficiency analysis, capital improvement plan and ordinances
and amendments thereto in accordance with the procedures in this
article, and no such ordinance shall become effective until it
has been properly adopted by all the participating
municipalities.
Section 6. The act is amended by adding an article to read:
ARTICLE V-B
DEVELOPMENT IMPACT FEES
Section 501-B. Legislative findings and intent.
The General Assembly finds and declares as follows:
(1) It is the public policy of this Commonwealth to
protect the public health, safety and general welfare of its
citizens by providing an equitable program for the planning
and financing of public facilities to serve new growth and
development and to authorize school districts and
municipalities to assess, impose, levy and collect fees as
defined in this article as development impact fees for all
new development within their jurisdictional limits.
(2) By enacting this article, the General Assembly
intends to encourage and promote each of the following:
(i) Adequate public facilities to serve new growth
and development.
(ii) Orderly growth and development that does not
place an undue financial burden upon existing taxpayers.
(iii) Standards for apportioning the fair share of
the cost of new or upgraded public facilities that serve
new growth and development among those who will benefit
by permitting school districts and municipalities to:
(A) adopt development impact fee ordinances; and
(B) impose development impact fees.
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Section 502-B. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Capital improvement costs." Costs incurred to provide
public facilities and capital improvements to serve new
development, including costs for planning, design and
construction, land acquisition, improvement, design and
engineering related thereto, including, but not limited to, the
construction contract price, surveying and engineering fees,
related land acquisition costs, including land purchases, court
awards and costs, attorney fees and expert witness fees and
expenses incurred for qualified staff of any engineer, planner,
architect, landscape architect or financial consultant for
preparing or updating the capital improvement program and
administrative costs related thereto, provided that such
administrative costs shall not exceed 3% of the total amount of
the costs. Projected interest charges and other finance costs
may be included if the development impact fees are to be used
for the payment of principal and interest on bonds, notes or
other financial obligations issued by or on behalf of the
governmental entity to finance capital improvements. The term
may include up to one year's start-up costs related to the
operation of public facilities or capital improvements,
including the costs of hiring and training additional personnel,
acquiring additional insurance and providing additional
transportation. The term also includes routine and periodic
maintenance expenditures or other operating costs for public
facilities or capital improvements attributed to new
development.
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"Capital improvement program." A plan adopted by a
governmental entity setting out the need for public facilities
or capital improvements, the costs of the improvements and
proposed funding sources and which plan covers at least a five-
year period and is reviewed at least every five years.
"Capital improvements." Improvements and equipment that
increase or improve the service capacity of a public facility
and have a useful life to ten years or more.
"Development impact fee." A charge imposed upon new
development by a governmental entity to fund all or a portion of
the public facility's capital improvement costs affected by the
new development from which it is collected.
"Governmental entity." A municipality or a school district.
"Municipal facilities."
(1) Police, emergency medical, rescue and fire
protection facilities and equipment.
(2) Park and recreational facilities and equipment. The
authority to impose development impact fees for park and
recreation purposes in accordance with this article shall be
in addition to and shall not restrict the power of a
municipality to require the construction of recreational
facilities or the dedication of land, or fees in lieu
thereof, in accordance with section 503(11).
"Municipality." A municipality, excluding a county, as those
terms are defined in section 107.
"New development." A commercial, industrial or residential
or other project that involves new construction, enlargement,
reconstruction, redevelopment, relocation or structural
alteration that is reasonably expected to generate additional
need for public facility capital improvements.
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"Ordinance." A legislative act of a municipality and a
resolution of a school district adopted under this article and
enacted pursuant to the procedures provided in section 608.
"Proportionate share." That portion of capital improvement
costs that reasonably relates to the service demands and needs
of new development.
"Public facilities." School facilities and municipal
facilities.
"School district." A school district of any class, except a
school district of the first class or a school district of the
first class A.
"School facilities." Public schools and equipment.
Section 503-B. Grant of power.
The governing body of a governmental entity, in accordance
with the conditions and procedures set forth in this article,
may enact, amend and repeal an ordinance authorizing the
assessment and collection of development impact fees.
Section 504-B. Calculation of development impact fees.
(a) Needs assessment.--The governmental entity considering
the adoption of development impact fees shall conduct a needs
assessment for the type of public facilities or capital
improvements for which development impact fees are to be levied.
The needs assessment shall identify levels of service standards
and projected public facilities or capital improvements needs
and distinguish existing needs and deficiencies from future
needs. The findings of this document shall be adopted by
ordinance of the governmental entity.
(b) Public availability.--The data sources and methodology
upon which needs assessments and development impact fees are
based shall be made available to the public upon request.
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(c) Accounting principles.--The amount of each development
impact fee imposed shall be based upon the actual cost of public
facility expansion or capital improvements or reasonable
estimates of the cost to be incurred by the governmental entity
as a result of new development. The calculation of each
development impact fee shall be in accordance with generally
accepted accounting principles.
(d) Requirements.--A development impact fee shall meet the
following requirements:
(1) The amount of the development impact fee shall be
reasonably related or reasonably attributable to the new
development's share of the cost of public facilities and
capital improvements made necessary by the new development.
(2) The development impact fee imposed shall not exceed
a proportionate share of the costs incurred or to be incurred
by the governmental entity in accommodating the development.
The following factors shall be considered in determining a
proportionate share of public facilities and capital
improvement costs:
(i) The need for public facilities and capital
improvements required to serve new development, based on
a capital improvements program that shows deficiencies in
public facilities serving existing development, and the
means, other than development impact fees, by which any
existing deficiencies will be eliminated within a
reasonable period of time and that shows additional
demands anticipated to be placed on specified public
facilities and capital improvements by new development.
(ii) The extent to which new development is required
to contribute to the cost of system improvements in the
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future.
Section 505-B. Collection and expenditure of development impact
fees.
(a) Related to benefits.--The collection and expenditure of
development impact fees shall be reasonably related to the
benefits accruing to the development against which the
development impact fees are assessed. The ordinance shall impose
the following requirements:
(1) Upon collection, development impact fees shall be
deposited in a special proprietary trust fund and invested
with all interest accruing to that fund.
(2) Within eight years of the date of collection,
development impact fees shall be expended or encumbered for
the construction of public facilities or capital improvements
that are of reasonable benefit to the development for which
the fees were paid and that are consistent with the capital
improvement program.
(3) Where the expenditure or encumbrance of development
impact fees is not feasible within eight years, the
governmental entity may retain development impact fees for a
longer period of time if there are compelling reasons for the
longer period. In no case shall development impact fees be
retained longer than 12 years.
(b) Restrictions.--The following restrictions shall apply to
the assessment and collection of development impact fees:
(1) Development impact fees shall be assessed upon the
issuance of a building permit or other appropriate permission
to proceed with development.
(2) Except as provided in paragraph (3), development
impact fees shall be collected in full upon the issuance of
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certificate of occupancy or other final action authorizing
the intended use of a structure.
(3) If a development impact fee is assessed against a
residential development in which one or more dwellings are to
be conveyed to a purchaser or purchasers other than the
developer, the governmental entity shall assess a portion of
the development impact fee on a pro rata basis upon each
dwelling to be conveyed to a purchaser other than the
developer, and the prorated amount shall be collected from
the purchaser of the dwelling at the time of closing or
settlement.
(4) Assessed development impact fees shall constitute a
lien in accordance with this paragraph:
(i) Except as provided in subparagraph (ii), an
assessed development impact fee shall constitute a lien
on the new development against which it is imposed, and
the lien shall continue until the development impact fee
is paid in full.
(ii) If a development impact fee is to be collected
on a pro rata basis in accordance with paragraph (3),
only the prorated amount of the development impact fee to
be paid by the purchaser of a dwelling shall constitute a
lien on that dwelling, and the lien shall continue until
the prorated amount is paid in full.
(c) Recoupment of costs.--A governmental entity may recoup
costs of excess capacity in public facilities or capital
improvements constructed after the effective date of this
article, where the excess capacity has been provided in
anticipation of the needs of new development, by requiring
development impact fees for that portion of the facilities
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constructed for future users. The need to recoup costs for
excess capacity must have been documented by a preconstruction
assessment that demonstrated the need for the excess capacity.
The fees imposed to recoup the costs to provide the excess
capacity shall be based on the governmental entity's actual cost
of acquiring, constructing or upgrading the facility and shall
be no more than a proportionate share of the costs to provide
the excess capacity. That portion of a development impact fee
deemed recoupment is exempt from the provisions of section 504-
B(d)(2).
(d) In lieu of payments.--Governmental entities may accept
the dedication of land or the construction of public facilities
or capital improvements in lieu of payment of development impact
fees provided that:
(1) The need for the dedication or construction is
clearly documented in the governmental entity's capital
improvement program or comprehensive plan.
(2) The land proposed for dedication for the public
facilities to be constructed is determined to be appropriate
for the proposed use by the governmental entity.
(3) Formulas or procedures for determining the worth of
proposed dedications or constructions are established.
(e) Exemptions.--The following exemptions shall apply:
(1) Development impact fees shall not be imposed for
remodeling, rehabilitation or similar improvements to an
existing structure or rebuilding a damaged structure unless
there is an increase in the number of dwelling units or any
other measurable unit for which a development impact fee is
collected. Development impact fees may be imposed when
property which is owned or controlled by Federal or State
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government is converted to private ownership or control.
(2) Nothing in this article shall prevent a governmental
entity from granting any exemptions which it deems
appropriate, including reducing or eliminating development
impact fees on affordable housing units for low-income or
moderate-income individuals.
Section 506-B. Refund of development impact fees.
(a) Amount of refund.--If development impact fees are not
expended or encumbered within the period established in section
504-B, the governmental entity shall refund to the current
property owner the amount of the development impact fee paid and
accrued interest. The governmental entity shall send the refund
to the current property owner by any form of mail requiring a
receipt signed by the current property owner or an authorized
agent within one year of the date on which the right to claim a
refund arises. If the refund is returned unclaimed, the
governmental entity shall publish notice of the refund once a
week for two consecutive weeks in a newspaper of general
circulation in the county in which the governmental entity is
located. All refunds due and not claimed within one year after
notification as provided in this section shall be retained by
the municipality and may be transferred to the municipality's
general fund and used for any public purpose.
(b) Refund upon termination.--
(1) A governmental entity that terminates the collection
of development impact fees for any or all categories of
public facilities shall refund all unexpended or unencumbered
funds collected in accordance with the notice provisions of
subsection (a) and, in addition, shall place a notice of the
termination and availability of refunds in a newspaper of
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general circulation in the county of the governmental entity
once a week for at least two consecutive weeks.
(2) This subsection shall not apply if there are no
unexpended or unencumbered balances within a fund or funds
being terminated.
Section 507-B. Severability.
If any portion of this article or any rule, regulation or
determination made under this article, or the application of
this article to any person, agency or circumstance is held
invalid by a court of competent jurisdiction, the remainder of
this article, rule, regulation or determination and the
application of those provisions to other persons, agencies or
circumstances shall not be affected. The invalidity of any
section or sections, or parts of any section or sections of this
article, shall not affect the validity of the remainder of this
article.
Section 508-B. Limitation on development impact fees.
No municipality may include any transportation-related
improvement or expenditure already included under Article V-A in
any development impact fee adopted under this article.
Section 7. This act shall take effect in 60 days.
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