Collection and expenditure of impact fees assessed, imposed, levied, and collected for development shall be reasonably related to the benefits accruing to the development. To determine whether the fees are reasonably related, the impact fee ordinance or board rule shall provide that:

(1) Upon collection, the fees shall be deposited in a special trust fund or interest-bearing account. The portion that constitutes recoupment may be transferred to any appropriate fund;
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Terms Used In Hawaii Revised Statutes 46-144

  • Board: means the board of water supply or water board of any county. See Hawaii Revised Statutes 46-141
  • Capital improvements: means the acquisition of real property, improvements to expand capacity and serviceability of existing public facilities, and the development of new public facilities. See Hawaii Revised Statutes 46-141
  • county: includes the city and county of Honolulu. See Hawaii Revised Statutes 1-22
  • Developer: means a person, corporation, organization, partnership, association, or other legal entity constructing, erecting, enlarging, altering, or engaging in any development activity. See Hawaii Revised Statutes 46-141
  • Development: means any artificial change to real property that requires a grading or building permit as appropriate, including, but not limited to, construction, expansion, enlargement, alteration, or erection of buildings or structures. See Hawaii Revised Statutes 46-141
  • Impact fees: means the charges imposed upon a developer by a county or board to fund all or a portion of the public facility capital improvement costs required by the development from which it is collected, or to recoup the cost of existing public facility capital improvements made in anticipation of the needs of a development. See Hawaii Revised Statutes 46-141
  • Needs assessment study: means a study required under an impact fee ordinance that determines the need for a public facility, the cost of development, and the level of service standards, and that projects future public facility capital improvement needs; provided that the study shall take into consideration and incorporate any relevant county general plan, development plan, or community plan. See Hawaii Revised Statutes 46-141
  • Reasonable benefit: means a benefit received by a development from a public facility capital improvement that is greater than the benefit afforded the general public in the jurisdiction imposing the impact fees. See Hawaii Revised Statutes 46-141
  • Recoupment: means the proportionate share of the public facility capital improvement costs of excess capacity in existing capital facilities where excess capacity has been provided in anticipation of the needs of a development. See Hawaii Revised Statutes 46-141
(2) Collection and expenditure shall be localized to provide a reasonable benefit to the development. A county or board shall establish geographically limited benefit zones for this purpose; provided that zones shall not be required if a reasonable benefit can be otherwise derived. Benefit zones shall be appropriate to the particular public facility and the county or board. A county or board shall explain in writing and disclose at a public hearing reasons for establishing or not establishing benefit zones;
(3) Except for recoupment, impact fees shall not be collected from a developer until approval of a needs assessment study that sets out planned expenditures bearing a substantial relationship to the needs or anticipated needs created by the development;
(4) Impact fees shall be expended for public facilities of the type for which they are collected and of reasonable benefit to the development; and
(5) Within six years of the date of collection, the impact fees shall be expended or encumbered for the construction of public facility capital improvements that are consistent with the needs assessment study and of reasonable benefit to the development.

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