Caroline County, MD Development Impact Fees

Chapter 175 of the Caroline County Code of Public Local Laws; or

The applicable law or regulation of a municipal corporation.

§ 167-2 Purpose.

The purpose of this chapter is to promote the health, safety, and general welfare of the residents of the County and its municipal corporations by requiring that all new development pay its proportionate fair share of the costs for capital facilities necessary to accommodate development impacts on public infrastructure and service and ensuring that adequate public facilities are available in a timely and well-planned manner by:

Establishing uniform procedures for the imposition, calculation, collection, expenditure, and administration of development impact fees imposed on new development;

Requiring all new residential and nonresidential development to contribute its fair and proportionate share towards the costs of capital improvements reasonably necessitated by such new development;

Providing a means of financing public facilities needed to accommodate new development in a safe and timely manner;

Ensuring that the new development paying development impact fees reasonably benefits from the appropriation of impact fee funds to public facilities provided to accommodate such new development;

Implementing the Caroline County Comprehensive Plan and capital budget by ensuring that adequate public facilities are available in a timely and well-planned manner; and

Ensuring that all applicable legal standards and criteria are properly incorporated in these procedures.

§ 167-3 Effect on other provisions.

This chapter may not be construed to alter, amend, or modify any provision of Chapter 175. The provisions of Chapter 175 shall be operative and remain in full force and effect notwithstanding any contrary provisions, definitions, or intentions that are or may be expressed or implied in this chapter.

The payment of development impact fees shall not entitle the applicant to a building permit, zoning certificate or certificate of occupancy unless all other applicable land use, zoning, planning, adequate public facilities, forest resource, platting, subdivision, and other related requirements, standards, and conditions have been met. Such other requirements, standards, and conditions are independent of the requirement for payment of a development impact fee.

This chapter shall not affect, in any manner, the permissible use of property, density or intensity of development, design and improvement standards, or other applicable standards or requirements of the land development regulations of the County or any municipal corporation.

Development agreements. Nothing herein shall be deemed to limit the County's authority or ability to enter into development agreements with applicants for new development which may provide for dedication of land, payments in lieu of development impact fees, or actual infrastructure improvements. Such development agreements may allow offsets against development impact fees for contributions made or to be made in the future in cash, or by taxes or assessments or dedication of land or by actual construction of all or part of a public facility by the affected property owner.

§ 167-4 Establishment of impact fee subareas.

Impact fee subareas may be established for the purpose of ensuring that the collection of certain development impact fees is more directly tied to the expenditure of such fees. Impact Fee Subarea Maps may be adopted by resolution. If adopted, such maps shall be incorporated as part of this chapter by reference. The County Commissioners may adopt and/or amend the boundaries of the impact fee subareas at such times as may be deemed necessary to carry out the purposes and intent of this chapter and to comply with all applicable legal requirements for use of development impact fees.

§ 167-5 Applicability of development impact fees.

Affected area. This chapter shall apply to all new development within Caroline County, including new development that takes place within the boundaries of any municipal corporation. Development impact fees for particular public facilities may apply to less than the entire County, as indicated herein.

Type of development affected. Except as provided in Subsections C and D below, or where otherwise specifically exempt by the provisions of this chapter, this chapter shall apply to all new development.

Types of development not affected.

No development impact fee shall be imposed on any new residential development that does not add a new dwelling unit nor shall a development impact fee be imposed for alteration or expansion of an existing dwelling unit where no additional dwelling unit is created.

No development impact fee shall be imposed on the alteration of existing nonresidential uses where there is no increase in the nonresidential floor area.

No development impact fee shall be imposed on the development of essential public services, including those provided by the State of Maryland, the County, any municipal corporation, or the federal government.

Lots where the previous development excise tax for school construction had been levied under the previous Article V of Chapter 166 of the Caroline County Code of Public Local Laws shall be treated in the following manner:

If the excise tax has been paid in full prior to the effective date of this chapter, no public school construction impact fee shall be imposed.

Prior to the effective date of this chapter, unpaid excise taxes where building permits have been issued and a dwelling built, shall constitute a lien against the property and shall be collectable in the same manner in which real estate taxes are collected and in accordance with § 20-127 of the Local Government Article of the Annotated Code of Maryland.

If the excise tax has not been paid in full and no building permits have been issued, the public school construction impact fee shall be imposed.

No public school construction impact fee shall be imposed on the development of any single-family residential lot created and recorded before the previous development excise tax for school construction was enacted (December 14, 1993).

(6)

No public school construction impact fee shall be imposed on age-restricted residential development that meet the following conditions:

Deed restrictions. Age-restricted single- or multifamily dwelling units shall be restricted by deed to 1) the residency of at least one individual 55 years of age or older, and 2) exclude permanent occupancy by anyone under the age of 21, and that also have further deed restrictions as follows:

[1]

No dwelling unit may be occupied by any individual under the age of 21 for more than 30 days in any six-month period.

[2]

Each dwelling unit shall be occupied following its sale or lease by at least one individual 55 years of age or older. Individuals aged 21 or older may reside in the development as long as they occupy a dwelling unit with an individual aged fifty-five-year or older and will be allowed to remain in the dwelling unit following the death, divorce or incapacity of the individual aged 55 years or older.

[3]

No new individuals aged 21 to 54 can move into the dwelling unit after the death, divorce or incapacitation of the individual aged 55 years or older.

Compliance. To ensure continuous compliance with the age restrictions, each contract of sale or lease agreement for the varying housing types within the development will require certification of the household composition. Each household shall recertify its composition (i.e., the name and birth date of each resident) annually. The entity with management responsibilities or the homeowners' association for the development shall submit annually to the Director of Planning and Codes a letter certifying and documenting the composition and compliance of each household in the development.

Enforcement. The entity with management responsibilities or the homeowners' association for the development shall be required to enforce the covenants and shall be prohibited from electing to waive its enforcement rights and obligations. The Planning Director is authorized to develop, maintain and enforce such administrative regulations, guidelines, and provisions for enforcement as they deem appropriate to implement this section. Such regulations, guidelines, and provisions shall be adopted by resolution of the County Commissioners and be made available to the public.

Beneficiary. The County Commissioners shall be designated as a beneficiary of the covenants based upon their agreement to exempt the development from the obligation to pay the school construction impact fee and for the sole purpose of empowering Caroline County with the right to enforce the covenants. This designation shall not obligate Caroline County to enforce the covenants. The damages incurred by Caroline County in the event of the entity with management responsibilities or the homeowners' association's failure to enforce the covenants will include, but not be limited to, the amount of the public school construction impact fees that would have been assessed for the entire development if the development had not been exempt.

(7)

Any age-restricted development granted an exemption from public school construction impact fees shall be required to pay fire protection-emergency medical services (EMS) impact fees.

Exempt development.

The following land use types shall be exempt, either in whole or in part, from the requirements of this chapter as follows:

No development impact fees shall be imposed on nonresidential development on a farm.

No development impact fees shall be imposed on farm employee dwellings that are either subject to a MALPF easement or are located in a MALPF District.

Development impact fees imposed on nonresidential development within a designated growth area or incorporated town shall be imposed in an amount that is 50% below that required pursuant to § 167-14.

Development impact fees imposed on nonresidential development outside of a designated growth area or incorporated town shall be imposed in an amount that is 25% below that required pursuant to § 167-14.

Impact fee waiver for farm lots.

Definitions. For the purposes of this subsection, the following terms shall have the designated definitions:

CHILD

A person's offspring, whether natural or legally adopted.

FARM

A parcel of land not less than 20 acres in size used for agricultural production as defined by Chapter 175 of the Code.

FARM LOT

A lot which has been legally subdivided from a farm by a farmer.

FARMER

A person who owns and operates a farm.

GRANDCHILD

The offspring of a child, as defined herein, whether natural or legally adopted.

Impact fees collected under this chapter shall be waived for farm lots if the farm lot was transferred directly from a farmer to the farmer's child or grandchild.

If the farmer's child or grandchild sells or otherwise transfers the farm lot (except by reason of his or her death) within five years after the date of issuance of the building permit to which the impact fee waiver has been applied, then the farmer's child or grandchild shall be obligated to repay the total amount of the waived impact fees to the County.

If the farmer's child or grandchild sells or otherwise transfers the farm lot more than five years after the date of issuance of the building permit to which the impact fee waiver has been applied, then the obligation to repay the waived impact fees to the County shall not apply.

(e)

The obligation to repay the waived impact fees to the County shall be memorialized by a recorded lien on the farm lot, which shall, by its terms, expire five years after the date of issuance of the building permit to which the impact fee waiver has been applied.

In no event shall impact fees be increased or appropriated to offset the impact of an exempt use on public facilities, and nor shall the adopted level of service be reduced as a result of an exempt use.

Development impact fee subarea. Except as provided by § 167-12, impact fees for certain public facilities shall be collected and spent within a defined geographical area.

§ 167-6 Review and adjustments.

At least once every five years, not later than July 1, beginning July 1, 2019, and prior to the County Commissioner's adoption of the annual budget and capital improvements program, the Finance Director, or designee, shall coordinate the preparation and submission of a report to the County Commissioners on the subject of development impact fees.

The report may include any or all of the following:

Recommendations for amendments, if appropriate, to these procedures or to specific ordinances adopting development impact fees for particular public facilities;

Proposed changes to the Caroline County capital improvements program, including the identification of additional public facility projects anticipated to be funded wholly or partially with development impact fees;

Proposed changes to the boundaries of impact fee subareas;

Proposed changes to development impact fee schedules as set forth in the ordinances imposing and setting development impact fees for particular public facilities;

Proposed changes to any development impact fee calculation methodology; and

(6)

Any other data, analysis, or recommendations as the Finance Director, or designee, may deem appropriate, or as may be requested by the County Commissioners.

The Finance Director shall submit the report to the County Commissioners, which shall receive the report, and which may take such actions as the Commissioners deem appropriate, including, but not limited to, requesting additional data or analyses and holding public workshops and public hearings.

§ 167-7 Imposition, payment and enforcement of development impact fees.

Unincorporated County.

A building permit or zoning certificate shall not be issued by the County for a new development until the development impact fees required under this chapter have been calculated and paid.

In no event shall a certificate of occupancy be issued unless the development impact fees required under this chapter have been paid. The amount of the development impact fee due is the amount of the fee in effect on the date of application for the building permit or zoning certificate.

Municipal corporations. As required by § 5-102 of the Local Government Article of the Annotated Code of Maryland, municipal corporations shall assist the County with the collection of development impact fees for dwellings built within town limits. Development impact fees on new development within municipal corporations shall be collected by the County prior to issuance of a building permit or zoning certificate as required by this chapter. No municipal corporation shall issue a building permit or zoning certificate until the applicant demonstrates that all impact fees required by this chapter have been paid to the County.

Lien. In the event new development is undertaken without the payment of all applicable development impact fees, the development impact fees shall:

Be a lien against the site of development;

Be levied, collected, and enforced in the same manner as real property taxes imposed by the County; and

Have the same priority and bear the same interest and penalties as real property taxes.

Actions to recover. In the event a development impact fee is not paid as required by this chapter, the County Attorney may institute an action to recover the fee and enjoin the use of the property until the fee is paid. The person who fails so to pay shall be responsible for the costs of such suit, including reasonable attorney's fees.

§ 167-8 Calculation of development impact fees.

In general. An applicant shall be notified by the County or by the municipal corporation within which new development is located of the applicable development impact fee requirements at the time of application for a building permit or zoning certificate. At such time, the development impact fees shall be calculated by the Planning Director, or designee, and shall be paid by the applicant as provided in § 167-7.

Calculation.

Upon receipt of an application for a building permit or zoning certificate, the Planning Director, or designee, shall determine:

Whether the proposed new development constitutes a residential or nonresidential use;

The specific type of residential or nonresidential development, if applicable;

If residential, the number of new dwelling units;

If nonresidential, the number of additional square feet of floor area (rounded up to the nearest square foot) and the proposed use; and whether the proposed use is in the same type of nonresidential development as the prior use; and

(e)

If applicable, the development impact fee subarea or subareas in which the new development is located.

For proposed new development for which no specific land use type is listed in § 167-14, the Planning Director shall apply the land use type that is most similar to the proposed new development in terms of impact on public facilities, based on the predominant characteristics of the proposed new development.

The calculation of development impact fees due from a mixed-use development shall be based upon the development impact fee for each public facility generated by each land use type in the mixed-use development.

The calculation of development impact fees due from a phased new development shall be based upon the development impact fees due for each specific land use within the phase of development for which building permits or zoning certificates are requested.

After making these determinations, the Planning Director, or designee, shall calculate the applicable development impact fee by multiplying the demand added by the new development, measured by the amount of new floor area, by the amount of the applicable development impact fee per square foot of development, and incorporating any applicable credit made pursuant to § 167-10 of this chapter.

§ 167-9 Site specific analysis.

If the type of land use proposed for new development is not expressly listed in the particular development impact fee ordinance and schedule, the Planning Director, or designee, shall:

Identify the most similar land use type listed and calculate the development impact fee based on that land use; or

Identify the broader land use category within which the specified land use would apply and calculate the development impact fee based on that land use category; or

At the option of the applicant, determine the basis used to calculate the fee pursuant to an independent impact analysis for development impact fee calculation. This option shall be requested by the applicant on a form provided by the County for such purpose. If this option is chosen, the following shall apply:

The applicant shall be responsible, at its sole expense, for preparing the independent impact analysis, which shall be reviewed for approval by the Planning Director prior to payment of the fee.

The independent impact analysis shall measure the impact that the proposed development will have on the particular public facility for which the impact fee is being assessed, and shall be based on the same methodologies used in the development of this chapter, and shall be in accordance with standard methodologies for the evaluation of impacts upon public facilities created by new development; and shall be performed by a person or firm with sufficient professional training and experience in the preparation of such analyses.

After review of the independent impact analysis submitted by the applicant, the Planning Director shall accept or reject the analysis and provide written notice to the applicant of its decision within 20 working days. If the independent impact analysis is rejected, the written notice shall provide an explanation of the insufficiencies of the analysis.

If the proposed development site is located within a municipal corporation, the Planning Director shall consult with the Planning Director of the municipal corporation prior to making a final decision.

Pursuant to either the analysis of the Planning Director, or designee, or the independent impact analysis submitted by the applicant and accepted by the Planning Director, the Planning Director shall calculate the development impact fee accordingly.

§ 167-10 Development impact fee credits.

Applicability.

The County Commissioners shall grant a credit against any development impact fee imposed by this chapter upon any new development where the applicant has entered into a credit agreement with the County Commissioners as provided herein. Credits may be given for dedications and construction of certain public facilities made prior to or after the effective date of this chapter, including those made pursuant to a condition of development approval, which:

Are consistent with and implement the County capital improvements program;

Are funded by development impact fee revenue;

Are of the same category of public facility impacted by the proposed new development; and

Are constructed or dedicated in accordance with the timing schedule set forth in the capital improvement program.

No credit shall exceed development impact fees imposed by this chapter for the proposed new development.

Procedure.

The determination of the credit shall be undertaken through the submission of a proposed credit agreement to the Planning Director or designee, which agreement shall include the following:

A proposed plan of specific capital improvements, specifically outlining the capital improvements that will be constructed in lieu of the required development impact fee and the time by which the capital improvements will be constructed, or, if provided pursuant to a prior condition of development approval, a description of the required capital improvements, including land dedications and facilities or equipment contributed; and

The actual or projected costs for the capital improvements, which shall be based on local information for similar capital improvements, along with a construction timetable for the completion thereof. Such estimated costs shall include the cost of construction, labor and materials, lands, easements and rights, surveys, plans and specifications, engineering and legal services, and all other expenses necessary or incident to determining the feasibility of such construction.

The proposed plan and cost estimates shall be prepared by a person or persons qualified in the provision of the particular capital improvement, impact analysis, and economics.

If the development site or the land or dedication of any structure for credit is located within a municipal corporation, the Planning Director of the municipal corporation shall be consulted regarding the proposed conveyance or dedication.

Within 20 working days of the submission of the proposed credit agreement, the Planning Director, or designee, shall determine if the proposed agreement is complete. If it is determined that the proposed credit agreement is not complete, the Planning Director, or designee, shall send a written statement to the applicant outlining the deficiencies and no further action shall be taken until all deficiencies have been corrected.

Once the Planning Director or designee determines the proposed credit agreement is complete, within 20 working days, the Planning Director shall approve the agreement if it is determined that the proposed capital improvements are consistent with and implement the capital improvement program, as it applies to the specific category of capital improvement. If, within this time period, the Planning Director determines that either the suggested capital improvements are not consistent with or do not implement the capital improvement program, or that the proposed costs are not acceptable, the Planning Director, or designee, shall propose changes to the agreement that are consistent with this section.

(6)

If the Planning Director approves the proposed credit agreement, or if the changes proposed by the Planning Director, or designee, are acceptable to the applicant, the credit agreement shall be prepared and forwarded for final approval and execution by the County Commissioners.

(7)

Upon execution of the credit agreement, the balance of development impact fees due, if any, shall be paid in accordance with this chapter and any land dedicated pursuant to the credit agreement shall be conveyed in fee simple to the County Commissioners free and clear of all leases and encumbrances.

(8)

In the event the credit agreement contemplates the dedication of structures, the person required to pay development impact fees shall execute such easements and other instruments as may be necessary to authorize the County Commissioners to use the structures for public purposes.

Timing of conveyance. Any land or other dedications awarded credit under this section shall be conveyed no later than the time at which development impact fees are required to be paid. The portion of the development impact fee represented by a credit for construction shall be deemed paid when the construction is completed and accepted by the County for maintenance or when adequate security for the completion of the construction has been provided.

§ 167-11 Administration of development impact fees.

Collection. The Planning Director, or designee, shall collect all applicable development impact fees as provided in § 167-7, unless:

The applicant is determined to be entitled to a full credit, pursuant to § 167-10 of this chapter; or

The applicant has been determined to be not subject to the payment of a development impact fee as set forth in § 167-5; or

The applicant has filed an appeal and has posted with the County a letter of credit in the amount of the development impact fee, as calculated by the Planning Director, or designee. Such letter of credit must first be approved by the County Attorney and Finance Director.

Development impact fee accounts.

A development impact fee account shall be established by the County Commissioners for each category of public facilities for which development impact fees are imposed. Such account shall clearly identify the category, account, or fund for which the development impact fee has been imposed.

Subaccounts shall be established for individual impact fee subareas.

All development impact fees collected by the County or a municipal corporation shall be deposited in the appropriate development impact fee account or subaccount, which shall be interest-bearing. All interest earned on funds deposited to such account shall be credited to and considered funds of the account. The funds of each such account shall be capable of being accounted for separately from all other County funds, over time. The County shall establish and implement necessary accounting controls to ensure that the development impact fee funds are properly deposited, accounted for, and appropriated in accordance with this chapter, and any other applicable legal requirements.

Duties of Finance Director.

The Finance Director shall maintain and keep accurate financial records for each of the development impact fee accounts that:

Show the source and disbursement of all revenues; and

Account for all fees received.

The Finance Director shall make its financial records available for public inspection at reasonable times and under reasonable circumstances.

§ 167-12 Appropriation of development impact fees.

In general. Development impact fee funds may be appropriated for public facilities, for public facility expenditures, and for the payment of principal, interest, and other financing costs on contracts, bonds, notes, or other obligations issued by or on behalf of the County or other applicable local governmental entities to finance such public facilities and public facility expenditures necessitated by new development. All appropriations from development impact fee accounts shall be detailed in a budget adopted by the County Commissioners.

Restrictions on appropriations. Development impact fees shall be appropriated only:

For the particular category of public facilities for which they were imposed, calculated, and collected. Development impact fees shall not be appropriated for funding any expenditure that would be classified in an accounting as a maintenance or repair expense or for operational or personnel expenses associated with the provision of a public facility:

Where applicable, within the impact fee subarea where collected, unless the development impact fee funds will be appropriated for a public facility necessitated by or serving the new development as provided in Subsection C below; and

Within six years of the beginning of the fiscal year immediately succeeding the date of collection, unless the development impact fee funds will be appropriated in accordance with Subsection D below.

In addition to other applicable criteria, fire protection and emergency medical services development impact fees shall be appropriated only through the volunteer districts, in accordance with the provisions of § 167-16, below.

Appropriation of development impact fee funds outside of subarea where collected. Notwithstanding § 167-12B(2) above, where the County is divided into impact fee subareas for the payment and expenditure of a particular development impact fee, development impact fee funds may be appropriated for a public facility located outside of the subarea where collected only if the demand for the public facility is generated in whole or in part by the new development and the public facility will benefit the new development that paid the fee, as required by law.

Appropriation of development impact fee funds beyond six years of collection. Notwithstanding § 167-12B(3) above, development impact fee funds may be appropriated beyond six years from the beginning of the fiscal year immediately succeeding the date of collection if the appropriation is for a public facility or capital improvement that requires more than 10 years to plan, design, and construct, and the demand for the public facility is generated in whole or in part by the new development; or if the public facility will actually serve the new development; or where the capital improvements program prepared by the County for a particular category of public facility has used a longer time frame. The County shall document such appropriations.

§ 167-13 Refund of development impact fees.

Expiration or revocation of building permit or zoning certificate. An applicant who has paid a development impact fee for a new development for which the necessary building permit or zoning certificate has expired or for which the building permit or zoning certificate has been revoked prior to construction shall be eligible to apply for a refund of development impact fees.

(Reserved)

Abandonment of development after initiation of construction. An applicant who has paid a development impact fee for a new development for which a building permit or zoning certificate has been issued and pursuant to which construction has been initiated, but which construction is abandoned prior to completion and issuance of a certificate of occupancy, shall not be eligible for a refund unless the uncompleted building is completely demolished.

Administrative fee. A 2% administrative fee, not to exceed $500, shall be deducted from the amount of any refund granted and shall be retained by the County to defray the administrative expenses associated with the processing of a refund application.

Procedure and submittal requirements.

Applications for a refund shall be made on a form provided by the County for such purposes and shall include all information required below. Upon receipt of a complete application for a refund, the Planning Director, or designee, shall review the application and documentary evidence submitted by the applicant as well as such other information and evidence as may be deemed relevant, and make a determination as to whether a refund is due. Refunds by direct payment shall be made following an affirmative determination by the Planning Director, or designee. No interest shall be paid by the County in calculating the amount of a refund.

Applications for refunds due to abandonment of a new development prior to completion or due to expiration or revocation of a building permit or zoning certificate shall be made within 60 days following expiration or revocation of the building permit or zoning certificate, or within 60 days following the issuance of a valid County-issued demolition permit. The applicant shall submit:

Evidence of the amount of the development impact fees paid by public facilities category and receipts evidencing such payments; and

Documentation evidencing the expiration or revocation of the building permit or zoning certificate prior to construction, or the approval of demolition of the structure pursuant to a valid County-issued demolition permit.

Forfeiture of fees. Failure to apply for a refund within the deadlines set forth in this section shall constitute a forfeiture of any fees available for refund to the property owner or applicant.

Method of refund payment. The County may, at its option, make refunds of development impact fees by direct payment, by offsetting such refunds against other development impact fees due for the same category of public facilities for new development on the same property, or by other means subject to agreement with the property owner or applicant.

§ 167-14 Amount of impact fees.

Residential and nonresidential development impact fees shall be paid in the amounts set forth below, or as amended pursuant to § 167-6.

Single-family dwellings:

Public school construction: $5,000 per dwelling unit.

(Reserved)

Multifamily dwellings:

Public school construction: $5,000 per dwelling unit.

(Reserved)

Age-restricted (55 and over) dwellings:

Fire protection/emergency medical services: $2,000 per dwelling unit.

(Reserved)

Nonresidential impact fees:

(Reserved)