2006 Code of Virginia § 15.2-2243 - Payment by subdivider of the pro rata share of the cost of certain facilities

15.2-2243. Payment by subdivider of the pro rata share of the cost ofcertain facilities.

A. A locality may provide in its subdivision ordinance for payment by asubdivider or developer of land of the pro rata share of the cost ofproviding reasonable and necessary sewerage, water, and drainage facilities,located outside the property limits of the land owned or controlled by thesubdivider or developer but necessitated or required, at least in part, bythe construction or improvement of the subdivision or development; however,no such payment shall be required until such time as the governing body or adesignated department or agency thereof has established a general sewer,water, and drainage improvement program for an area having related and commonsewer, water, and drainage conditions and within which the land owned orcontrolled by the subdivider or developer is located or the governing bodyhas committed itself by ordinance to the establishment of such a program.Such regulations or ordinance shall set forth and establish reasonablestandards to determine the proportionate share of total estimated cost ofultimate sewerage, water, and drainage facilities required to adequatelyserve a related and common area, when and if fully developed in accord withthe adopted comprehensive plan, that shall be borne by each subdivider ordeveloper within the area. Such share shall be limited to the amountnecessary to protect water quality based upon the pollutant loading caused bythe subdivision or development or to the proportion of such total estimatedcost which the increased sewage flow, water flow, and/or increased volume andvelocity of storm water runoff to be actually caused by the subdivision ordevelopment bears to total estimated volume and velocity of such sewage,water, and/or runoff from such area in its fully developed state. Incalculating the pollutant loading caused by the subdivision or development orthe volume and velocity of storm water runoff, the governing body shall takeinto account the effect of all on-site storm water facilities or bestmanagement practices constructed or required to be constructed by thesubdivider or developer and give appropriate credit therefor.

B. Each such payment received shall be expended only for necessaryengineering and related studies and the construction of those facilitiesidentified in the established sewer, water, and drainage program; however, inlieu of such payment the governing body may provide for the posting of apersonal, corporate or property bond, cash escrow or other method ofperformance guarantee satisfactory to it conditioned on payment atcommencement of such studies or construction. The payments received shall bekept in a separate account for each of the individual improvement programsuntil such time as they are expended for the improvement program. All bonds,payments, cash escrows or other performance guarantees hereunder shall bereleased and used, with any interest earned, as a tax credit on the realestate taxes on the property if construction of the facilities identified inthe established water, sewer and drainage programs is not commenced withintwelve years from the date of the posting of the bond, payment, cash escrowor other performance guarantee.

C. Any funds collected for pro rata programs under this section prior to July1, 1990, shall continue to be held in separate, interest bearing accounts forthe project or projects for which the funds were collected and any interestfrom such accounts shall continue to accrue to the benefit of the subdivideror developer until such time as the project or projects are completed oruntil such time as a general sewer and drainage improvement program isestablished to replace a prior sewer and drainage improvement program. Ifsuch a general improvement program is established, the governing body of anylocality may abolish any remaining separate accounts and require the transferof the assets therein into a separate fund for the support of each of theestablished sewer, water, and drainage programs. Upon the transfer of suchassets, subdividers and developers who had met the terms of any existingagreements made under a previous pro rata program shall receive anyoutstanding interest which has accrued up to the date of transfer, and suchsubdividers and developers shall be released from any further obligationunder those existing agreements. All bonds, payments, cash escrows or otherperformance guarantees hereunder shall be released and used, with anyinterest earned, as a tax credit on the real estate taxes on the property ifconstruction of the facilities identified in the established water, sewer anddrainage programs is not commenced within twelve years from the date of theposting of the bond, payment, cash escrow or other performance guarantee.

(Code 1950, 15-781, 15-967.1; 1950, p. 183; 1962, c. 407, 15.1-466;1970, c. 436; 1973, cc. 169, 480; 1975, c. 641; 1976, c. 270; 1978, cc. 429,439, 440; 1979, cc. 183, 188, 395; 1980, cc. 379, 381; 1981, c. 348; 1983,cc. 167, 609; 1984, c. 111; 1985, cc. 422, 455; 1986, c. 54; 1987, c. 717;1988, cc. 279, 735; 1989, cc. 332, 393, 403, 495; 1990, cc. 170, 176, 287,708, 973; 1991, cc. 30, 47, 288, 538; 1992, c. 380; 1993, cc. 836, 846, 864;1994, c. 421; 1995, cc. 386, 388, 389, 452, 457, 474; 1996, cc. 77, 325, 452,456; 1997, c. 587; 2001, c. 704.)