Georgia CommonsHB656: HB656 Local government; authorize assessment of development impact fees for public facilities produced through agreements between developers and governmental entities
Last action February 28, 2025 · House Second Readers
A Georgia House bill would let cities and counties charge development impact fees for public facilities built through agreements between developers and local governments, and would extend from six to ten years how long governments can hold unspent impact fee money before refunding it.
In plain language
Georgia law lets counties and municipalities charge developers impact fees to pay for public facilities like roads, water systems, parks, and public safety buildings needed because of new growth. This bill amends that law (O.C.G.A. Chapter 71 of Title 36) in two main ways. First, it adds a new category to the definition of 'public facilities' covering any of the listed facility types, such as roads, water systems, or parks, that are produced through agreements between developers and governmental entities. This means fees could be assessed to help fund facilities built under such developer-government deals. Second, it changes the refund rules for impact fees. Currently, if a local government collects a fee but does not commit ('encumber') the money or start construction within six years, the payer is entitled to a refund. The bill extends that window to ten years, meaning governments could hold impact fee money longer before facing a refund obligation.
What the bill does
- Adds a new category to the legal definition of 'public facilities' covering facilities that result from agreements between developers and local governments.
- Extends from six years to ten years the deadline for a local government to encumber or begin construction with collected impact fees before a refund is owed.
- Extends the related notice requirement so local governments must publish refund notices within 30 days after the new ten-year period expires, instead of six years.
- Revises the definition of 'proportionate share' used to calculate how much of a public facility's cost is tied to a specific development project.
Who it affects
The bill affects real estate developers who pay impact fees, property owners seeking refunds of those fees, and city and county governments that assess and manage development impact fee funds for roads, water and sewer systems, parks, libraries, and public safety facilities.
Why it matters
Local governments could count developer-built public facilities toward impact fee funding and hold collected fees for four more years before having to refund unspent money, which could change how quickly developers get refunds and how governments plan funding for growth-related infrastructure.
Key provisions
- Section 1 amends O.C.G.A. § 36-71-2 to revise the definitions of 'proportionate share' and 'public facilities,' adding subparagraph (H) covering facilities produced through developer-government agreements.
- Section 2 amends O.C.G.A. § 36-71-9 to change the refund trigger period from six years to ten years for unencumbered or unconstructed impact fee projects.
- Section 2 also updates the refund notice publication deadline to align with the new ten-year period.
- Section 3 repeals conflicting laws.
From the bill
“Any of the public facilities listed in subparagraphs (A) t hrough (G) of this25 paragraph that are the product of agreements between developers and governmental26 entities.”
“has failed to encumber the devel opment impact fee or34 commence construction within six ten years after the date that the fee was collected”
Status timeline
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Steven Sainz (R, HD-180)
- Ron Stephens (R, HD-164)
Topics
- development impact fees
- local government funding
- infrastructure
- property development
- public facilities