This bill amends RCW 82.02.050 and repeals RCW 43.31.980. It requires counties, cities, and towns that impose impact fees to adopt and maintain, by September 1, 2026, a deferred collection system specifically for single-family detached and attached residential construction. Under the deferral system an applicant may execute a recorded promissory note for the full value of the impact fees listing each fee and the total amount; payment can be set to occur at issuance of a certificate of occupancy (or equivalent), at closing of the first sale after the building permit, or at final inspection. If fees remain unpaid one month after the first sale, the note bears interest at the rate in RCW 82.32.050(2) (adjusted annually) and penalties escalate to 5% after one month, 10% after two months, and 20% after three months. Interest and penalties are collectible only from the applicant and may not be a lien against property sold by the applicant; the deferral term may not exceed 18 months from permit issuance. Applicants must provide written disclosure of a deferral agreement to buyers as required by chapter 64.06 RCW. Jurisdictions that had a full-delay deferral process in place by April 1, 2015 and maintained after September 1, 2016 are exempt from the new subsection (3) requirements. For subsection (3) purposes, “applicant” includes entities that control, are controlled by, or are under common control with the applicant. The bill also states jurisdictions must balance reliance on impact fees with other public funds and prohibits using impact fees as the sole finance source. The bill also clarifies capital facilities plan content and impact fee use: plans must identify existing facility deficiencies and how to eliminate them within a reasonable period, additional demands from new development, and the improvements needed to serve new development. Impact fees may be imposed only for system improvements reasonably related to the new development, must not exceed a proportionate share of those costs, and may be collected and spent only for public facilities defined in RCW 82.02.090 and addressed by an applicable capital facilities plan element. Impact fee ordinances in effect at the location when a fully completed project permit application is submitted govern which fee schedule applies. The bill repeals RCW 43.31.980 (the impact fee annual report statute). Portions of the bill text and related provisions (for example, some details on liens, foreclosure, administrative fees, interactions with school districts, and the full amended section structure) are missing from the provided excerpts, so some procedural details and the full repeal implications are unclear from these facts alone.

If enacted, this bill requires cities and counties that charge impact fees to adopt a deferred payment option for single‑family home permits by September 1, 2026, letting builders or permit applicants sign a recorded promissory note for the full fee and pay at certificate of occupancy, final inspection, or on first sale. That will shift timing and some collection risk away from jurisdictions because fees can be delayed up to 18 months and interest and penalties after a first sale are collectible only from the applicant personally (not as a lien on the sold property), so local governments may receive less immediate cash flow and must add recordation and disclosure steps; builders and developers gain a foreseeable short-term cash-flow option but take on personal payment liability and potential penalties if they do not pay when due. County auditors and treasurers will handle more recordings and provide the variable interest rate annually, and buyers must receive disclosure of any deferral agreement. The bill also tightens that impact fees can only pay for proportionate system improvements identified in the jurisdiction’s capital facilities plan, requires plans to show existing deficiencies and how they will be fixed, and makes the applicable fee the ordinance in effect when a complete permit application is submitted. It repeals the prior impact fee annual report requirement (RCW 43.31.980), reducing that reporting obligation. Some implementation details and interactions with other provisions (for example, earlier lien, foreclosure, or school district provisions referenced elsewhere) are missing from these excerpts, so exact administrative and legal effects in every case are uncertain.