Chris Dawson, Attorney, GrayRobinson Law Firm
A sweeping impact fee reform package moved through the Florida Legislature during the 2021 regular session, ultimately passing during the final week. The legislation, HB 337 by Representative Nick DiCeglie (R – Largo) and SB 750 by Senator Joe Gruters (R – Sarasota), was subsequently signed into law by Governor Ron DeSantis on June 6, taking effect immediately with some provisions applying retroactively to January 1, 2021.
This new law makes several revisions to and places significant restrictions on local governments’ abilities to levy and raise impact fees within their jurisdictions. It defines the terms “infrastructure” and “public facilities” and clarifies existing statutory text. In addition to local governments, the bill requires special districts to credit against the collection of impact fees any contribution related to public facilities towards impacts on the same type of public facilities for which the contribution was made. All credits against impact fee collections must be made regardless of any provision in local government or special district charter, comprehensive plan policy, ordinance, resolution or development order or permit.
The bill also provides that the assignability and transferability of impact fees apply to all impact fee credits, regardless of whether the credit was established before or after the effective date of the bill. The legislation provides that if a local government, school district or special district impact fee increases not more than 25 percent above the current rate, the increase must be implemented in two equal annual increments. If a fee is increased between 25 and 50 percent above the current rate, the phase in is
four equal installments. No impact fee increase may exceed 50 percent and an impact fee may not be increased more than once every four years.
Notably, an exception to these requirements is provided if a local government, school district or special district establishes the need for the increased impact fee pursuant to the rational nexus test, uses a study showing the extraordinary circumstances requiring the additional increase that was completed within 12 months before the increase, holds at least two publicly noticed workshops and adopts the increase by at least a two-thirds vote. Several local governments around the state have already indicated their intentions to utilize this exception process in the coming weeks, which is likely to draw administrative or legal challenges.
Lastly, the bill provides that an impact fee may not be increased retroactively for a previous or current fiscal or calendar year. The impact fee increase limitations operate retroactively to January 1, 2021. The bill also revises a current affidavit requirement so that local governments must attest to their compliance with this new law.
The signing into law of this impact fee reform package marks a conclusion to a legislative effort that has been years in the making. Now, all eyes turn to the “extraordinary circumstances” exception as local governments across the state weigh their abilities to
levy and raise impact fees under these new stringent standards.
Chris Dawson is an Attorney and professional Lobbyist for GrayRobinson’s Orlando office and is licensed to practice law in both Florida and Alabama. He primarily focuses on lobbying and government relations for public and private sector clients at the executive and legislative levels of state government. He is credentialed as a Designated Professional Lobbyist by the Florida Association of Professional Lobbyists. Chris also holds two degrees in Civil Engineering and has experience in construction litigation and design professional malpractice defense.
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