---
title: HB 656. Local government; authorize assessment of development impact fees for public facilities produced through agreements between developers and governmental entities
collection: bills
id: 2025-2026/hb656
cite_as: HB 656, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb656
md_url: https://georgiacommons.org/bills/2025-2026/hb656.md
text_url: https://georgiacommons.org/bills/2025-2026/hb656/text
source_url: https://www.legis.ga.gov/legislation/70855
date: 2025-02-28
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 129
omitted_url: https://georgiacommons.org/bills/2025-2026/hb656.md?full=1
bill_number: HB 656
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2025-02-26
last_action: House Second Readers
sponsors:
- Steven Sainz
- Ron Stephens
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB656/2025
upstream_id: 1985810
summaries_model: claude-sonnet-5
topic_tags:
- development impact fees
- local government funding
- infrastructure
- property development
- public facilities
---
# HB 656. Local government; authorize assessment of development impact fees for public facilities produced through agreements between developers and governmental entities
## Text
House Bill 656
By: Representatives Sainz of the 180th and Stephens of the 164th
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 71 of Title 36 of the Official Code of Georgia Annotated, relating to
development impact fees, so as to authorize the assessment of development impact fees for
public facilities produced through agreements between developers and governmental entities;
to revise definitions; to extend the period of time a local government may encumber unspent
impact fees; to provide for related matters; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Chapter 71 of Title 36 of the Official Code of Georgia Annotated, relating to development
impact fees, is amended by revising paragraphs (16) and (17) of Code Section 36-71-2,
relating to definitions, and by adding a new subparagraph to read as follows:
"(16) 'Proportionate share' means that portion of the cost of system improvements which
is reasonably related to the service demands and needs of the caused by a project within
the defined service area.
(17) 'Public facilities' means:
(A) Water supply production, treatment, and distribution facilities;
(B) Waste-water collection, treatment, and disposal facilities;
(C) Roads, streets, and bridges, including rights of way, traffic signals, landscaping,
and any local components of state or federal highways;
(D) Storm-water collection, retention, detention, treatment, and disposal facilities,
flood control facilities, and bank and shore protection and enhancement improvements;
(E) Parks, open space, and recreation areas and related facilities;
(F) Public safety facilities, including police, fire, emergency medical, and rescue
facilities; and
(G) Libraries and related facilities; and
(H) Any of the public facilities listed in subparagraphs (A) through (G) of this
paragraph that are the product of agreements between developers and governmental
entities."
SECTION 2.
Said chapter is further amended by revising paragraphs (1) and (2) of Code Section 36-71-9,
relating to refunds of development impact fees, as follows:
"(1) Upon the request of an owner of property on which a development impact fee has
been paid, a municipality or county shall refund the development impact fee if capacity
is available and service is denied or if the municipality or county, after collecting the fee
when service is not available, has failed to encumber the development impact fee or
commence construction within six ten years after the date that the fee was collected. In
determining whether development impact fees have been encumbered, development
impact fees shall be considered encumbered on a first-in, first-out (FIFO) basis;
(2) When the right to a refund exists due to a failure to encumber development impact
fees, the municipality or county shall provide written notice of entitlement to a refund to
the feepayor who paid the development impact fee at the address shown on the
application for development approval or to a successor in interest who has given notice
to the municipality or county of a transfer or assignment of the right or entitlement to a
refund and who has provided a mailing address. Such notice shall also be published
within 30 days after the expiration of the six-year ten-year period after the date that the
development impact fees were collected and shall contain the heading 'Notice of
Entitlement to Development Impact Fee Refund';"
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.
## Summaries written by Georgia Commons
The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.
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.
### Plain-language summary
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 it 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.
## Status
- Status: Introduced (2025-02-26)
- Last action: House Second Readers (2025-02-28)
- Sponsors: Steven Sainz, Ron Stephens
- Official page: https://www.legis.ga.gov/legislation/70855
> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb656.md?full=1