Property owners/projects

AN ACT Relating to reimbursement by property owners for street, 1
road, and water or sewer projects; amending RCW 57.22.020, 35.91.020, 2
and 35.72.020. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 57.22.020 and 2006 c 88 s 3 are each amended to read 5
as follows: 6
(1) Except as otherwise provided in subsection (2) of this 7
section, the contract shall also provide, subject to the terms and 8
conditions in this section, for the reimbursement to the owner or the 9
owner's assigns for a period not to exceed ((fifteen)) 20 years of a 10
portion of the costs of the facilities constructed pursuant to such 11
contract from connection charges received by the district from other 12
property owners who subsequently connect to or use the facilities 13
within the period of time that the contract is effective and who did 14
not contribute to the original cost of such facilities.15
(2)(a) The contract may provide for ((an extension)) one or more 16
extensions of the ((fifteen-year)) 20-year reimbursement period, each 17
for a time not to exceed the duration of ((any)):18
(i) Any moratorium, phasing ordinance, concurrency designation, 19
or other governmental action that prevents making applications for, 20
or the approval of, any new development for a period of six months or 21
H-0490.1
HOUSE BILL 1305
State of Washington 69th Legislature 2025 Regular Session
By Representatives Donaghy and Duerr
Read first time 01/15/25. Referred to Committee on Local Government.
p. 1 HB 1305
more within the benefit area of the system extensions authorized 1
under this chapter;2
(ii) Any national economic recession as declared by the national 3
bureau of economic research business cycle dating committee.4
(b) For those contracts approved prior to February 29, 2020, an 5
extension equal to the time between February 29, 2020, and October 6
28, 2022, during which the state of Washington was under a state of 7
emergency as a result of the COVID-19 pandemic, shall be granted 8
provided a request for this extension is received by the district 9
prior to March 31, 2026.10
(c) Upon the extension of the reimbursement period pursuant to 11
(a) or (b) of this subsection, the contract must specify the duration 12
of the contract extension and must be filed and recorded with the 13
county auditor. ((Property owners who are subject to the 14
reimbursement obligations under subsection (1) of this section shall 15
be notified by the water -sewer district of the extension filed under 16
this subsection.))17
(3) Each contract shall include a provision requiring that every 18
two years from the date the contract is executed a property owner 19
entitled to reimbursement under this section provide the water -sewer 20
district with information regarding the current contract name, 21
address, and telephone number of the person, company, or partnership 22
that originally entered into the contract. If the property owner 23
fails to comply with the notification requirements of this subsection 24
within ((sixty)) 60 days of the specified time, then the water -sewer 25
district may collect any reimbursement funds owed to the property 26
owner under the contract. Such funds must be deposited in the capital 27
fund of the water-sewer district. 28
Sec. 2. RCW 35.91.020 and 2013 c 243 s 3 are each amended to 29
read as follows: 30
(1)(a) At the owner's request, a municipality must contract with 31
the owner of real estate for the construction or improvement of water 32
or sewer facilities that the owner elects to install solely at the 33
owner's expense. The owner must submit a request for a contract to 34
the municipality prior to approval of the water or sewer facility by 35
the municipality. The owner's request may only require a contract 36
under this subsection (1)(a) in locations where a municipality's 37
ordinances require the facilities to be improved or constructed as a 38
prerequisite to further property development. Water or sewer 39
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facilities improved or constructed in accordance with this subsection 1
(1)(a) must be located within the municipality's corporate limits or, 2
except as provided otherwise by this subsection (1)(a), within 3
((ten)) 10 miles of the municipality's corporate limits. Water or 4
sewer facilities improved or constructed in accordance with this 5
subsection (1)(a) may not be located outside of the county that is 6
party to the contract. The contract must be filed and recorded with 7
the county auditor and must contain conditions required by the 8
municipality in accordance with its adopted policies and standards. 9
Unless the municipality provides written notice to the owner of its 10
intent to request a comprehensive plan approval, the owner must 11
request a comprehensive plan approval for a water or sewer facility, 12
if required, and connection of the water or sewer facility to the 13
municipal system must be conditioned upon: 14
(i) Construction of the water or sewer facility according to 15
plans and specifications approved by the municipality;16
(ii) Inspection and approval of the water or sewer facility by 17
the municipality; 18
(iii) Transfer to the municipality of the water or sewer 19
facility, without cost to the municipality, upon acceptance by the 20
municipality of the water or sewer facility; 21
(iv) Full compliance with the owner's obligations under the 22
contract and with the municipality's rules and regulations;23
(v) Provision of sufficient security to the municipality to 24
ensure completion of the water or sewer facility and other 25
performance under the contract; 26
(vi) Payment by the owner to the municipality of all of the 27
municipality's costs associated with the water or sewer facility 28
including, but not limited to, engineering, legal, and administrative 29
costs; and 30
(vii) Verification and approval of all contracts and costs 31
related to the water or sewer facility. 32
(b) If authorized by ordinance or contract, a municipality may 33
participate in financing water or sewer facilities development 34
projects authorized and improved or constructed in accordance with 35
(a) of this subsection. Unless otherwise provided by ordinance or 36
contract, municipalities that participate in the financing of water 37
or sewer facilities improved or constructed in accordance with (a) of 38
this subsection: 39
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(i) Have the same rights to reimbursement as owners of real 1
estate who make contributions as authorized under this section; and2
(ii) Are entitled to a pro rata share of the reimbursement based 3
on the respective contribution of the owner and the municipality.4
(2) A contract entered into under this section must also provide, 5
in accordance with the requirements of this section, for the pro rata 6
reimbursement to the owner or the owner's assigns for ((twenty)) 20 7
years, or for a longer period if extended in accordance with 8
subsection (4) of this section. The reimbursements must be: (a) 9
Within the period of time that the contract is effective; (b) for a 10
portion of the costs of the water or sewer facilities improved or 11
constructed in accordance with the contract; and (c) from latecomer 12
fees received by the municipality from property owners who 13
subsequently connect to or use the water or sewer facilities, but who 14
did not contribute to the original cost of the facilities.15
(3) Except as provided otherwise by this section, a municipality 16
seeking reimbursement from an owner of real estate under this section 17
is limited to the dollar amount authorized in accordance with 18
subsection (7) of this section. This does not prevent the 19
municipality from collecting amounts for services or infrastructure 20
that are additional expenditures not subject to the ordinance, 21
contract, or agreement, nor does it prevent the collection of fees 22
that are reasonable and proportionate to the total expenses incurred 23
by the municipality in complying with this section.24
(4)(a) The contract may provide for ((an extension)) one or more 25
extensions of the ((twenty-year)) 20-year reimbursement period , each 26
for a time not to exceed the duration of ((any)):27
(i) Any moratorium, phasing ordinance, concurrency designation, 28
or other governmental action that prevents making applications for, 29
or the approval of, any new development within the benefit area for a 30
period of six months or more;31
(ii) Any national economic recession as declared by the national 32
bureau of economic research business cycle dating committee.33
(b) For those contracts approved prior to February 29, 2020, an 34
extension equal to the time between February 29, 2020, and October 35
28, 2022, during which the state of Washington was under a state of 36
emergency as a result of the COVID-19 pandemic, shall be granted 37
provided a request for this extension is received by the district 38
prior to March 31, 2026.39
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(c) Upon the extension of the reimbursement period pursuant to 1
(a) or (b) of this subsection, the contract must specify the duration 2
of the contract extension and must be filed and recorded with the 3
county auditor. ((Property owners who are subject to the 4
reimbursement obligations under subsection (1) of this section shall 5
be notified by the contracting municipality of the extension filed 6
under this subsection.))7
(5) The requirement for a municipality to contract with an owner 8
of real estate for the construction or improvement of water or sewer 9
facilities under this section is only applicable if the facilities 10
are consistent with all applicable comprehensive plans and 11
development regulations of the municipalities through which the 12
facilities will be constructed or will serve. 13
(6) Each contract must include a provision requiring that every 14
two years from the date the contract is executed a property owner 15
entitled to reimbursement under this section provide the municipality 16
with information regarding the current contract name, address, and 17
telephone number of the person, company, or partnership that 18
originally entered into the contract. If the property owner fails to 19
comply with the notification requirements of this subsection within 20
((sixty)) 60 days of the specified time, then the contracting 21
municipality may collect any reimbursement funds owed to the property 22
owner under the contract. The funds collected under this subsection 23
must be deposited in the capital fund of the municipality.24
(7) To the extent it may require in the performance of the 25
contract, the municipality may install the water or sewer facilities 26
in and along the county streets in the area to be served as 27
hereinabove provided, subject to reasonable requirements as to the 28
manner of occupancy of the streets as the county may by resolution 29
provide. The provisions of the contract may not be effective as to 30
any owner of real estate not a party thereto unless the contract has 31
been recorded in the office of the county auditor of the county in 32
which the real estate of the owner is located prior to the time the 33
owner taps into or connects to the water or sewer facilities.34
(8) Within ((one hundred twenty)) 120 days of the completion of a 35
water or sewer facility, the owners of the real estate must submit 36
the total cost of the water or sewer facility to the applicable 37
municipality. This information must be used by the municipality as 38
the basis for determining reimbursements by future users who benefit 39
p. 5 HB 1305
from the water or sewer facility, but who did not contribute to the 1
original cost of the water or sewer facility. 2
(9) Nothing in this section is intended to create a private right 3
of action for damages against a municipality for failing to comply 4
with the requirements of this section. A municipality, its officials, 5
employees, or agents may not be held liable for failure to collect a 6
latecomer fee unless the failure was willful or intentional. Failure 7
of a municipality to comply with the requirements of this section 8
does not relieve a municipality of any future requirement to comply 9
with this section. 10
Sec. 3. RCW 35.72.020 and 2006 c 88 s 1 are each amended to read 11
as follows: 12
(1) Except as otherwise provided in subsection (2) of this 13
section, the contract may provide for the partial reimbursement to 14
the owner or the owner's assigns for a period not to exceed 15
((fifteen)) 20 years of a portion of the costs of the project by 16
other property owners who: 17
(a) Are determined to be within the assessment reimbursement area 18
pursuant to RCW 35.72.040; 19
(b) Are determined to have a reimbursement share based upon a 20
benefit to the property owner pursuant to RCW 35.72.030;21
(c) Did not contribute to the original cost of the street 22
project; and 23
(d) Subsequently develop their property within the period of time 24
that the contract is effective and at the time of development were 25
not required to install similar street projects because they were 26
already provided for by the contract. 27
Street projects subject to reimbursement may include design, 28
grading, paving, installation of curbs, gutters, storm drainage, 29
sidewalks, street lighting, traffic controls, and other similar 30
improvements, as required by the street standards of the city, town, 31
or county. 32
(2)(a) The contract may provide for ((an extension)) one or more 33
extensions of the ((fifteen-year)) 20-year reimbursement period, each 34
for a time not to exceed the duration of ((any)):35
(i) Any moratorium, phasing ordinance, concurrency designation, 36
or other governmental action that prevents making applications for, 37
or the approval of, any new development within the benefit area for a 38
period of six months or more;39
p. 6 HB 1305
(ii) Any national economic recession as declared by the national 1
bureau of economic research business cycle dating committee.2
(b) For those contracts approved prior to February 29, 2020, an 3
extension equal to the time between February 29, 2020, and October 4
28, 2022, during which the state of Washington was under a state of 5
emergency as a result of the COVID-19 pandemic, shall be granted 6
provided a request for this extension is received by the district 7
prior to March 31, 2026.8
(c) Upon the extension of the reimbursement period pursuant to 9
(a) or (b) of this subsection, the contract must specify the duration 10
of the contract extension and must be filed and recorded with the 11
county auditor. ((Property owners who are subject to the 12
reimbursement obligations under subsection (1) of this section shall 13
be notified by the appropriate county, city, or town of the extension 14
filed under this subsection.))15
(3) Each contract shall include a provision requiring that every 16
two years from the date the contract is executed a property owner 17
entitled to reimbursement under this section provide the appropriate 18
county, city, or town with information regarding the current contract 19
name, address, and telephone number of the person, company, or 20
partnership that originally entered into the contract. If the 21
property owner fails to comply with the notification requirements of 22
this subsection within ((sixty)) 60 days of the specified time, then 23
the contracting county, city, or town may collect any reimbursement 24
funds owed to the property owner under the contract. Such funds must 25
be deposited in the capital fund of the county, city, or town.26
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