By Pete Dolan and Jonelle Cameron
On March 19, 2015, Governor Terry McAuliffe signed Senate Bill 1257, eliminating the sunset provision of an important statute regarding timing of proffer payments. Prior to 2010, proffer payments on a per-unit basis were to be paid at the building permit stage. During the recession, however, Code Section 15.2-2303.1:1 was created, which required a delay of such proffer payments until prior to (and as a condition of) obtaining a certificate of occupancy. Because the bill was created during the housing crisis, it was subject to an expiration date. SB 1257 eliminates that expiration date, making the statute permanent.
In addition, SB 1257 eliminates the expiration date of a 2009 Act of Assembly that lowered the cap on the administrative costs a County could charge a developer for dedication of a public right of way from 25% to 10% of the actual construction cost.
Without SB 1257, both Code Section 15.2-2303.1:1 and the 10% cap on administrative costs would have expired on July 1, 2017.
The complete text of Virginia Code Section 15.2-2303.1:1 can be found here.
