IMPACT FEES – Amends existing law to revise provisions regarding minimum standards and requirements for development impact fees ordinances.

LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
626
BY
LOCAL
GOVERNMENT
COMMITTEE
AN
ACT
1
RELATING
TO
DEVELOPMENT
IMPACT
FEES;
AMENDING
SECTION
67
-
8204,
IDAHO
CODE,
2
TO
REVISE
PROVISIONS
REGARDING
MINIMUM
STANDARDS
AND
REQUIREMENTS
FOR
3
DEVELOPMENT
IMPACT
FEES
ORDINANCES
AND
TO
MAKE
TECHNICAL
CORRECTIONS;
4
AND
DECLARING
AN
EMERGENCY
AND
PROVIDING
AN
EFFECTIVE
DATE.
5
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
6
SECTION
1.
That
Section
67
-
8204,
Idaho
Code,
be,
and
the
same
is
hereby
7
amended
to
read
as
follows:
8
67
-
8204.
MINIMUM
STANDARDS
AND
REQUIREMENTS
FOR
DEVELOPMENT
IMPACT
9
FEES
ORDINANCES.
Governmental
entities
which
that
comply
with
the
require
-
10
ments
of
this
chapter
may
impose
by
ordinance
development
impact
fees
as
a
1
1
condition
of
development
approval
on
all
developments.
12
(1)
A
development
impact
fee
shall
not
exceed
a
proportionate
share
13
of
the
cost
of
system
improvements
determined
in
accordance
with
section
14
67
-
8207,
Idaho
Code.
Development
impact
fees
shall
be
based
on
actual
system
15
improvement
costs
or
reasonable
estimates
of
such
costs.
16
(2)
A
development
impact
fee
shall
be
calculated
on
the
basis
of
levels
17
of
service
for
public
facilities
adopted
in
the
development
impact
fee
ordi
-
18
nance
of
the
governmental
entity
that
are
applicable
to
existing
development
19
as
well
as
new
growth
and
development.
The
construction,
improvement,
ex
-
20
pansion
,
or
enlargement
of
new
or
existing
public
facilities
for
which
a
de
-
21
velopment
impact
fee
is
imposed
must
shall
be
attributable
to
the
capacity
22
demands
generated
by
the
new
development.
23
(3)
A
development
impact
fee
ordinance
shall
specify
the
point
in
the
24
development
process
at
which
the
development
impact
fee
shall
be
collected.
25
The
development
impact
fee
may
shall
be
collected
no
earlier
than
the
com
-
26
mencement
of
construction
of
the
development,
or
the
issuance
of
a
building
27
permit
or
a
manufactured
home
installation
permit,
or
as
may
be
agreed
by
the
28
developer
and
the
governmental
entity.
29
(4)
A
development
impact
fee
ordinance
shall
be
adopted
in
accordance
30
with
the
procedural
requirements
of
section
67
-
8206,
Idaho
Code.
31
(5)
A
development
impact
fee
ordinance
shall
include
a
process
whereby
32
the
governmental
agency
shall
allow
the
developer,
upon
request
by
the
de
-
33
veloper,
to
provide
a
written
individual
assessment
of
the
proportionate
34
share
of
development
impact
fees
under
the
guidelines
established
by
this
35
chapter
,
which
shall
be
set
forth
in
the
ordinance.
The
individual
assess
-
36
ment
process
shall
permit
consideration
of
studies,
data,
and
any
other
37
relevant
information
submitted
by
the
developer
to
adjust
the
amount
of
the
38
fee.
The
decision
by
the
governmental
agency
on
an
application
for
an
in
-
39
dividual
assessment
shall
include
an
explanation
of
the
calculation
of
the
40
impact
fee,
including
an
explanation
of
factors
considered
under
pursuant
41

2
to
section
67
-
8207,
Idaho
Code,
and
shall
specify
the
system
improvement(s)
1
improvements
for
which
the
impact
fee
is
intended
to
be
used.
2
(6)
A
development
impact
fee
ordinance
shall
provide
a
process
whereby
3
a
developer
shall
receive,
upon
request,
a
written
certification
of
the
4
development
impact
fee
schedule
or
individual
assessment
for
a
particular
5
project,
which
shall
establish
the
development
impact
fee
so
as
long
as
there
6
is
no
material
change
to
the
particular
project
as
identified
in
the
individ
-
7
ual
assessment
application
,
or
the
impact
fee
schedule.
The
certification
8
shall
include
an
explanation
of
the
calculation
of
the
impact
fee
including
9
an
explanation
of
factors
considered
under
section
67
-
8207,
Idaho
Code.
The
10
certification
shall
also
specify
the
system
improvement(s)
improvements
for
1
1
which
the
impact
fee
is
intended
to
be
used.
12
(7)
A
development
impact
fee
ordinance
shall
include
a
provision
for
13
credits
in
accordance
with
the
requirements
of
section
67
-
8209,
Idaho
Code.
14
(8)
A
development
impact
fee
ordinance
shall
include
a
provision
pro
-
15
hibiting
the
expenditure
of
development
impact
fees
except
in
accordance
16
with
the
requirements
of
section
67
-
8210,
Idaho
Code.
17
(9)
A
development
impact
fee
ordinance
may
provide
for
the
imposition
18
of
a
development
impact
fee
for
system
improvement
costs
incurred
subsequent
19
to
adoption
of
the
ordinance
to
the
extent
that
new
growth
and
development
20
will
be
served
by
the
system
improvements.
21
(10)
A
development
impact
fee
ordinance
may
exempt
all
or
part
of
a
par
-
22
ticular
development
project
from
development
impact
fees
provided
that
such
23
project
is
determined
to
create
affordable
housing,
provided
that
the
public
24
policy
which
that
supports
the
exemption
is
contained
in
the
governmental
25
entity's
comprehensive
plan
and
provided
that
the
exempt
development's
pro
-
26
portionate
share
of
system
improvements
is
funded
through
a
revenue
source
27
other
than
development
impact
fees.
28
(11)
A
development
impact
fee
ordinance
shall
provide
that
development
29
impact
fees
shall
only
be
spent
only
for
the
category
of
system
improvements
30
for
which
the
fees
were
collected
and
either
within
or
for
the
benefit
of
the
31
service
area
in
which
the
project
is
located.
32
(12)
A
development
impact
fee
ordinance
shall
provide
for
a
refund
of
33
development
impact
fees
in
accordance
with
the
requirements
of
section
34
67
-
8211,
Idaho
Code.
35
(13)
A
development
impact
fee
ordinance
shall
establish
for
a
procedure
36
for
timely
processing
of
applications
for
determination
by
the
governmental
37
entity
regarding
development
impact
fees
applicable
to
a
project,
individ
-
38
ual
assessment
of
development
impact
fees,
credits
or
reimbursements
to
be
39
allowed
or
paid
under
pursuant
to
section
67
-
8209,
Idaho
Code,
and
extraor
-
40
dinary
impact.
41
(14)
A
development
impact
fee
ordinance
shall
specify
when
an
applica
-
42
tion
for
an
individual
assessment
of
development
impact
fees
shall
be
per
-
43
mitted
to
be
made
by
a
developer
or
fee
payer.
An
application
for
an
individ
-
44
ual
assessment
of
development
impact
fees
shall
be
permitted
sufficiently
in
45
advance
of
the
time
that
the
developer
or
fee
payer
may
seek
a
building
permit
46
or
related
permits
so
that
the
issuance
of
a
building
permit
or
related
per
-
47
mits
will
not
be
delayed.
48

3
(15)
A
development
impact
fee
ordinance
shall
provide
for
appeals
re
-
1
garding
development
impact
fees
in
accordance
with
the
requirements
of
sec
-
2
tion
67
-
8212,
Idaho
Code.
3
(16)
A
development
impact
fee
ordinance
must
shall
provide
a
detailed
4
description
of
the
methodology
by
which
costs
per
service
unit
are
deter
-
5
mined.
The
development
impact
fee
per
service
unit
may
shall
not
exceed
6
the
amount
determined
by
dividing
the
costs
of
the
capital
improvements
7
described
in
section
67
-
8208(1)(f),
Idaho
Code,
by
the
total
number
of
pro
-
8
jected
service
units
described
in
section
67
-
8208(1)(g),
Idaho
Code.
If
the
9
number
of
new
service
units
projected
over
a
reasonable
period
of
time
is
10
less
than
the
total
number
of
new
service
units
shown
by
the
approved
land
use
1
1
assumptions
at
full
development
of
the
service
area,
the
maximum
impact
fee
12
per
service
unit
shall
be
calculated
by
dividing
the
costs
of
the
part
of
the
13
capital
improvements
necessitated
by
and
attributable
to
the
projected
new
14
service
units
described
in
section
67
-
8208(1)(g),
Idaho
Code,
by
the
total
15
projected
new
service
units
described
in
that
section.
16
(17)
A
development
impact
fee
ordinance
shall
include
a
schedule
of
de
-
17
velopment
impact
fees
for
various
land
uses
per
unit
of
development.
The
or
-
18
dinance
shall
provide
that
a
developer
shall
have
the
right
to
elect
to
pay
a
19
project's
proportionate
share
of
system
improvement
costs
by
payment
of
de
-
20
velopment
impact
fees
according
to
the
fee
schedule
as
full
and
complete
pay
-
21
ment
of
the
development
project's
proportionate
share
of
system
improvement
22
costs,
except
as
provided
in
section
67
-
8214(3),
Idaho
Code.
23
(18)
After
payment
of
the
development
impact
fees
or
execution
of
an
24
agreement
for
payment
of
development
impact
fees,
additional
development
25
impact
fees
or
increases
in
fees
may
shall
not
be
assessed
unless
the
num
-
26
ber
of
service
units
increases
or
the
scope
or
schedule
of
the
development
27
changes.
In
the
event
of
an
increase
in
the
number
of
service
units
or
sched
-
28
ule
of
the
development
changes,
the
additional
development
impact
fees
to
29
be
imposed
are
shall
be
limited
to
the
amount
attributable
to
the
additional
30
service
units
or
change
in
scope
of
the
development.
31
(19)
No
system
for
the
calculation
of
development
impact
fees
shall
32
be
adopted
which
that
subjects
any
development
to
double
payment
of
impact
33
fees.
34
(20)
A
development
impact
fee
ordinance
shall
exempt
from
development
35
impact
fees
the
following
activities:
36
(a)
Rebuilding
the
same
amount
of
floor
space
of
a
structure
which
that
37
was
destroyed
by
fire
or
other
catastrophe,
providing
provided
that
the
38
structure
is
rebuilt
and
ready
for
occupancy
within
two
(2)
years
of
its
39
destruction;
40
(b)
Remodeling
or
repairing
a
structure
which
that
does
not
increase
41
the
number
of
service
units;
42
(c)
Replacing
a
residential
unit,
including
a
manufactured
home,
with
43
another
residential
unit
on
the
same
lot,
provided
that
the
number
of
44
service
units
does
not
increase;
45
(d)
Placing
a
temporary
construction
trailer
or
office
on
a
lot;
46
(e)
Constructing
an
addition
on
a
residential
structure
which
that
does
47
not
increase
the
number
of
service
units;
and
48
(f)
Adding
uses
that
are
typically
accessory
to
residential
uses,
49
such
as
tennis
courts
or
clubhouse
clubhouses
,
unless
it
can
be
clearly
50

4
demonstrated
that
the
use
creates
a
significant
impact
on
the
capacity
1
of
system
improvements.
2
(21)
A
development
impact
fee
will
shall
be
assessed
for
installation
of
3
a
modular
building,
manufactured
home
,
or
recreational
vehicle
unless
the
4
fee
payer
can
demonstrate
by
documentation
,
such
as
utility
bills
and
tax
5
records,
either:
6
(a)
That
a
modular
building,
manufactured
home
,
or
recreational
vehi
-
7
cle
was
legally
in
place
on
the
lot
or
space
prior
to
the
effective
date
8
of
the
development
impact
fee
ordinance;
or
9
(b)
That
a
development
impact
fee
has
been
paid
previously
for
the
in
-
10
stallation
of
a
modular
building,
manufactured
home
,
or
recreational
1
1
vehicle
on
that
same
lot
or
space.
12
(22)
A
development
impact
fee
ordinance
shall
include
a
process
for
13
dealing
with
a
project
which
that
has
extraordinary
impacts.
14
(23)
A
development
impact
fee
ordinance
shall
provide
for
the
calcula
-
15
tion
of
a
development
impact
fee
in
accordance
with
generally
accepted
ac
-
16
counting
principles.
A
development
impact
fee
shall
not
be
deemed
invalid
17
because
payment
of
the
fee
may
result
in
an
incidental
benefit
to
owners
or
18
developers
within
the
service
area
other
than
the
person
paying
the
fee.
19
(24)
A
development
impact
fee
ordinance
shall
include
a
description
of
20
acceptable
levels
of
service
for
system
improvements.
21
(25)
A
development
impact
fee
ordinance
adopted
by
a
county
that
im
-
22
poses
a
development
impact
fee
for
a
county
courthouse
or
a
county
jail
shall
23
require
any
cities
within
the
county
to
collect
such
impact
fee.
24
(25)
(26)
Any
provision
of
a
development
impact
fee
ordinance
that
is
25
inconsistent
with
the
requirements
of
this
chapter
shall
be
null
and
void
and
26
that
provision
shall
have
no
legal
effect.
A
partial
invalidity
of
a
devel
-
27
opment
impact
fee
ordinance
shall
not
affect
the
validity
of
the
remaining
28
portions
of
the
ordinance
that
are
consistent
with
the
requirements
of
this
29
chapter.
30
SECTION
2.
An
emergency
existing
therefor,
which
emergency
is
hereby
31
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
32
July
1,
2026.
33