HB 2343, from Rep. Brandy Donaghy (D–Everett), updates the terms for “latecomer agreements” – an arrangement between a property developer and a municipality to provide for proportionate cost recovery from future development that benefits from infrastructure paid for and installed by the earlier developer. This is common when a development is required by a city to install larger pipes or other infrastructure to provide capacity for expected future growth. Existing law also provides for the authority for cities to be investors in that original infrastructure and receive repayment as development occurs. More specifically, the bill amends the allowable contract terms for the latecomer agreements.

The bill includes the following changes:

• Reimbursement periods may be extended more than once. Currently only one extension is allowed.
• The extension periods cannot be longer than any national economic recession.
• For contracts approved prior to the COVID-19 pandemic, if an extension is requested by March 31, 2025, a two-year, eight-month extension must be granted.
• The allowable length of a reimbursement contract for road or street improvements is increased from 15 to 20 years.
• The requirement that the municipality notify the property owner of an extension to the contract is removed.

Dates to remember

HB 2343 is scheduled for a public hearing in the House Local Government Committee on Wednesday, January 24 at 8 am.