3.24.220 Payment – Deferral.
(1) Per RCW 82.02.050(3), the city hereby establishes a deferral system by which an applicant for a building permit for a single-family detached or attached residence may request a deferral of the full impact fee payment to the time of final inspection.
(2) The city will withhold certification of final inspection until the impact fees have been paid in full.
(3) The term of an impact fee deferral under this section may not exceed 18 months from the date of building permit issuance. If impact fees are not paid by the end of the 18 months, then city must withhold future inspection until such time impact fees are paid in full.
(4) The community development department must allow an applicant to defer payment of the impact fees when, prior to submission of a building permit application for deferment or prior to final inspection for deferment under subsection (1) of this section, the applicant:
(a) Submits a signed and notarized deferred impact fee application and acknowledgment form for the development for which the property owner wishes to defer payment of the impact fees; and
(b) With regard to deferred payment under subsection (1) of this section, records a lien for impact fees against the property in favor of the city in the total amount of all deferred impact fees for the development. The lien for impact fees must:
(i) Be in a form approved by the city attorney;
(ii) Include the legal description, tax account number and address of the property;
(iii) Be signed by all owners of the property, with all signatures as required for a deed, and recorded in the county in which the property is located;
(iv) Be binding on all successors in title after the recordation; and
(v) Be junior and subordinate to one mortgage for the purpose of construction upon the same real property granted by the person who applied for the deferral of impact fees.
(5) In the event that the impact fees are not paid in accordance with subsection (1) of this section, the city must institute foreclosure proceedings under the process set forth in Chapter 61.12 RCW, except as revised herein. In addition to any unpaid impact fees, the city is entitled to interest on the unpaid impact fees at the rate provided for in RCW 19.52.020 and the reasonable attorney fees and costs incurred by the city in the foreclosure process. Notwithstanding the foregoing, prior to commencement of foreclosure, the city must give not less than 30 days’ written notice to the person or entity whose name appears on the assessment rolls of the county assessor as owner of the property and to the site address via certified mail with return receipt requested and regular mail advising of its intent to commence foreclosure proceedings. If the impact fees are paid in full to the city within the 30-day notice period, no attorney fees, costs, or interest will be owed.
(6) In the event that the deferred impact fees are not paid in accordance with this section, and in addition to foreclosure proceedings provided in subsection (5) of this section, the city may initiate any other action(s) legally available to collect such impact fees.
(7) Upon receipt of final payment of all deferred impact fees for the development, the department must execute a separate lien release for the property in a form approved by the city attorney. The property owner, at their expense, is responsible for recording each lien release.
(8) Compliance with the requirements of the deferral option constitutes compliance with the conditions pertaining to the timing of payment of the impact fees. (Ord. 1520 § 1 (Exh. A), 2023).