Bill > SB0855

This bill allows a municipality that has operated a sewer system outside its city limits and has had a ban on new sewer connections outside its city for at least five consecutive years to extend sewer service or allow connections only to properties within a designated "adjacency area" (an area outside the city but next to it that could reasonably be served by the city's sewer system), provided that the property owner or developer pays a "housing surcharge." This housing surcharge is a fee or assessment collected to fund affordable housing within the municipality's city limits. The bill outlines how this surcharge can be collected, including directly from the property owner, assessed against the property for payment over time, or potentially satisfied by allocating increased county property tax revenues generated by the development, with specific conditions for such an allocation. The collected surcharge funds must be deposited into an "affordable housing trust fund" and used exclusively for affordable housing projects within the municipality's city limits. The bill also details how the surcharge amounts are calculated for both residential lots and commercial developments, allows for deferred payment options, and establishes procedures for appeals and contractual agreements for sewer connections. Importantly, this bill does not affect existing vested property rights and applies only to development applications submitted after the municipality implements its sewer extension policy under this law.