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25LSO-0664
2025
STATE OF WYOMING
25LSO-0664
Introduced
2.0
HOUSE BILL NO. HB0197
Limits on property development exaction and mitigation fees.
Sponsored by: Representative(s) Davis, Byron, Erickson, Larson, JT, Lawley, Locke, Tarver and Wylie and Senator(s) Crago, Dockstader, Jones and Kolb
A BILL
for
AN ACT relating to city, county, state and local powers; clarifying how cities, towns and counties can impose exaction or mitigation fees for development projects; specifying limits for affordable or workforce housing exaction and mitigation fees; establishing a process for review and appeal of affordable or workforce housing exaction and mitigation fees; specifying applicability; and providing for an effective date.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1
.
W.S. 16
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13
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101 through 16
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13
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103 are created to read:
CHAPTER 13
LAND USE REGULATIONS
ARTICLE 1
LIMITS ON AFFORDABLE OR WORKFORCE HOUSING EXACTIONS OR MITIGATION FEES
16
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13
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101.
Definitions.
(a)
As used in this section:
(i)
"Affordable or workforce housing exaction or mitigation fee" means any fee imposed by a land use permitting authority to be used to provide or offset affordable or workforce housing costs as a condition of granting a land use permit;
(ii)
"Commercial development" means constructing, renovating or building an addition to any structure intended primarily for commercial purposes;
(iii)
"Exaction or mitigation nexus study" means a study conducted by a land use permitting authority which establishes a rational connection between an activity described in subparagraph (vi)(A) or (B) of this subsection and the exaction or mitigation fee imposed to provide affordable or workforce housing;
(iv)
"Individualized determination" means an analysis conducted by a land use permitting authority specific to the proposed residential or commercial development that establishes that an affordable or workforce housing exaction or mitigation fee imposed is reasonably proportional, both in nature and extent, to the proposed residential or commercial development impact;
(v)
"Land use permitting authority" means any governing body of a city, town, county, special district or other entity of state or local government that issues land use permits;
(vi)
"Land use permit" means any permit that is required by state law, local ordinance or rule to be obtained before:
(A)
A structure can be built or renovated;
(B)
An addition can be built onto an existing structure.
(vii)
"Residential development" means constructing, renovating or building an addition to any structure intended for human habitation.
16
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13
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102.
Limits on imposition of affordable or workforce housing exaction or mitigation fees on specified proposed property development.
(a)
Subject to W.S. 15
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1
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103(a)(li) and 18
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2
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101(a)(ix), a land use permitting authority may require as a condition for the issuance of a land use permit for residential or commercial development the imposition of an affordable or workforce housing exaction or mitigation fee if the fee is reasonably proportional, both in nature and extent, to the costs of mitigating the identified impact from the proposed residential or commercial development as determined by an exaction and mitigation nexus study. An affordable or workforce housing exaction or mitigation fee imposed pursuant to this paragraph shall be collected and accounted for in the same manner as other public funds. The maximum fee charged pursuant to this paragraph shall not include any costs attributable to the first three thousand (3,000) square feet of a single
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family residential dwelling or the first one thousand seven hundred fifty (1,750) square feet of a multi
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family residential dwelling.
(b)
No affordable or workforce housing exaction or mitigation fee allowed under subsection (a) of this section shall be more than the percentage determined by an exaction or mitigation nexus study or four percent (4%), whichever is less, of the total construction, renovation or addition cost for all structures identified to serve primarily as single
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family residential dwellings, multi
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family residential dwellings or a commercial development.
(c)
A land use permitting authority shall not, directly or indirectly, impose an affordable or workforce housing exaction or mitigation fee on the subdivision of land or on any structure built, renovated or on which an addition is built to support agricultural activities.
16
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13
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103.
Process and appeal.
(a)
Land use permitting authorities shall provide written notice to the residential or commercial development applicant of affordable or workforce housing exaction or mitigation fees not later than thirty (30) days before imposing the affordable or workforce housing exaction or mitigation fees. Upon receipt of an affordable or workforce housing exaction or mitigation fee notice, the applicant may request the land use permitting authority prepare an individualized determination, at the expense of the land use permitting authority, providing an explanation of the affordable or workforce housing exaction or mitigation fee amount imposed, including the methodology, supporting data and information used to determine the impact anticipated to be caused by the proposed residential or commercial development and the method of calculating the affordable or workforce housing exaction or mitigation fee amount based on that identified impact.
(b)
The land use permitting authority shall provide the completed individualized determination not later than sixty (60) days after receipt of the request. Unless an administrative appeal is filed, this individualized determination shall be the final decision of the land use permitting authority. If the individualized determination is not completed and delivered to the residential or commercial development applicant within sixty (60) days after receipt of the request, the affordable or workforce exaction or mitigation fee shall be waived.
(c)
If the residential or commercial development applicant objects to the methodology, supporting information or conclusions set forth in the individualized determination, the applicant may request a hearing before the land use permitting authority. The request may be filed immediately or may be delayed and included with other matters arising in the applicant's permit review process related to the residential or commercial development application. Upon receiving a request for a hearing, the land use permitting authority shall hold a public hearing to determine the facts relating to the dispute over the affordable or workforce housing exaction or mitigation fee and shall render a final decision on the affordable or workforce housing exaction or mitigation fee not later than sixty (60) days after receiving the request for a hearing. In any hearing, the burden of proof is on the land use permitting authority to demonstrate that the affordable or workforce housing exaction or mitigation fee is reasonably proportional, both in nature and extent, to the cost of mitigating an identified impact of the propose residential or commercial development.
(d)
A residential or commercial development applicant may elect to proceed under protest and pay a required affordable or workforce housing exaction or mitigation fee while the exaction or mitigation fee is challenged or appealed. Any payment under protest of an affordable or workforce housing exaction or mitigation fee shall not be construed as a waiver of any objections or appeals or rights to judicial review of the exaction or mitigation fee. The land use permitting authority shall not require the residential or commercial development applicant to pay the affordable or workforce housing exaction or mitigation fee as a prerequisite to challenging or appealing the validity of the exaction or mitigation fee.
(e)
A residential or commercial development applicant may bring an action in a court of competent jurisdiction to challenge the validity or constitutionality of an affordable or workforce housing exaction or mitigation fee following the public hearing held pursuant to subsection (c) of this section. The court shall review the affordable or workforce housing exaction or mitigation fee de novo with the burden of proof on the land use permitting authority to determine that the exaction or mitigation fee is reasonably proportional, both in nature and extent, to the costs of mitigating an identified impact from the residential or commercial development.
Section 2.
W.S. 15
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1
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103(a) by creating a new paragraph (li) and 18
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2
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101(a) by creating a new paragraph (ix) are amended to read:
15
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1
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103.
General powers of governing bodies.
(a)
The governing bodies of all cities and towns may:
(li)
Impose
exaction or mitigation fees on residential or commercial development, including, subject to W.S. 16
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3
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102, an exaction or mitigation fee for affordable or workforce housing, if:
(A)
An essential nexus exists between a legitimate governmental interest and each exaction or mitigation fee; and
(B)
Each exaction or mitigation fee is reasonably proportional, both in nature and extent, to the impact of the proposed development.
18
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2
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101.
General powers.
(a)
Each organized county in the state is a body corporate and politic. The powers of the county shall be exercised by a board of county commissioners which may:
(ix)
Impose exaction or mitigation fees on residential or commercial development, including, subject to W.S. 16
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3
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102, an exaction or mitigation fee for affordable or workforce housing, if:
(A)
An essential nexus exists between a legitimate governmental interest and each exaction or mitigation fee; and
(B)
Each exaction or mitigation fee is reasonably proportional, both in nature and extent, to the impact of the proposed development.
Section 3
.
This act shall apply to all applications for permits submitted for residential or commercial development submitted on or after July 1, 2025.
Section 4
.
This act is effective July 1, 2025
.
(END)
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HB0197