                                 CODE OF VIRGINIA

PAYMENT BY SUBDIVIDER OF THE PRO RATA SHARE OF THE COST OF CERTAIN FACILITIES
(§ 15.2-2243)

A. A locality may provide in its subdivision ordinance for payment by a
subdivider or developer of land of the pro rata share of the cost of providing
reasonable and necessary sewerage, water, and drainage facilities, located
outside the property limits of the land owned or controlled by the subdivider or
developer but necessitated or required, at least in part, by the construction or
improvement of the subdivision or development; however, no such payment shall be
required until such time as the governing body or a designated department or
agency thereof has established a general sewer, water, and drainage improvement
program for an area having related and common sewer, water, and drainage
conditions and within which the land owned or controlled by the subdivider or
developer is located or the governing body has committed itself by ordinance to
the establishment of such a program. Such regulations or ordinance shall set
forth and establish reasonable standards to determine the proportionate share of
total estimated cost of ultimate sewerage, water, and drainage facilities
required to adequately serve a related and common area, when and if fully
developed in accord with the adopted comprehensive plan, that shall be borne by
each subdivider or developer within the area. Such share shall be limited to the
amount necessary to protect water quality based upon the pollutant loading
caused by the subdivision or development or to the proportion of such total
estimated cost which the increased sewage flow, water flow, and/or increased
volume and velocity of storm water runoff to be actually caused by the
subdivision or development bears to total estimated volume and velocity of such
sewage, water, and/or runoff from such area in its fully developed state. In
calculating the pollutant loading caused by the subdivision or development or
the volume and velocity of storm water runoff, the governing body shall take
into account the effect of all on-site storm water facilities or best management
practices constructed or required to be constructed by the subdivider or
developer and give appropriate credit therefor.

B. A locality that has adopted an ordinance pursuant to subsection A may also
provide in its subdivision ordinance that, when adequate water, sewerage, or
drainage facilities are not available to serve a proposed subdivision or
development, the subdivider or developer of the property may be permitted to
install reasonable and necessary water, sewerage, and drainage facilities,
located on or outside the property limits of the land owned or controlled by the
subdivider or developer but necessitated or required, at least in part, by the
utility needs of the development or subdivision, including reasonably
anticipated capacity, extensions, or maintenance considerations of a utility
service plan for the service area. The ordinance shall provide that such
subdivider or developer shall be entitled to reimbursement of a portion of its
costs by any subsequent subdivider or developer that utilizes the installed
water, sewerage or drainage facilities or from connection fees paid for lots
within its development, and the ordinance may limit the duration of the
reimbursements. The locality is authorized to administer by ordinance and by
adopted reasonable policies and procedures standards for installation of such
water, sewerage, and drainage facilities and parameters for pro rata
reimbursement or connection or capacity fee reimbursement. The provisions of
this subsection shall not be deemed to limit the authority of (i) localities
that have not adopted an ordinance pursuant to subsection A or (ii) authorities
established pursuant to the Virginia Water and Waste Authorities Act (&#xA7;
15.2-5100 et seq.) to establish policies for reimbursement or credits from
connection fees or to other utility fund sources to subdividers and developers
constructing water, sewerage, or drainage facilities.

C. Each payment pursuant to subsection A received shall be expended only for
necessary engineering and related studies and the construction of those
facilities identified in the established sewer, water, and drainage program;
however, in lieu of such payment the governing body may provide for the posting
of a personal, corporate or property bond, cash escrow, or other method of
performance guarantee satisfactory to it conditioned on payment at commencement
of such studies or construction. The payments received shall be kept in a
separate account for each of the individual improvement programs until such time
as they are expended for the improvement program. All bonds, payments, cash
escrows, or other performance guarantees hereunder shall be released and used,
with any interest earned, as a tax credit on the real estate taxes on the
property if construction of the facilities identified in the established water,
sewer, and drainage programs is not commenced within 12 years from the date of
the posting of the bond, payment, cash escrow, or other performance guarantee.

D. Any funds collected for pro rata programs under this section prior to July 1,
1990, shall continue to be held in separate, interest bearing accounts for the
project or projects for which the funds were collected and any interest from
such accounts shall continue to accrue to the benefit of the subdivider or
developer until such time as the project or projects are completed or until such
time as a general sewer and drainage improvement program is established to
replace a prior sewer and drainage improvement program. If such a general
improvement program is established, the governing body of any locality may
abolish any remaining separate accounts and require the transfer of the assets
therein into a separate fund for the support of each of the established sewer,
water, and drainage programs. Upon the transfer of such assets, subdividers and
developers who had met the terms of any existing agreements made under a
previous pro rata program shall receive any outstanding interest which has
accrued up to the date of transfer, and such subdividers and developers shall be
released from any further obligation under those existing agreements. All bonds,
payments, cash escrows, or other performance guarantees hereunder shall be
released and used, with any interest earned, as a tax credit on the real estate
taxes on the property if construction of the facilities identified in the
established water, sewer, and drainage programs is not commenced within 12 years
from the date of the posting of the bond, payment, cash escrow, or other
performance guarantee.

HISTORY: 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; 2020, c. 820; 2022, c. 629.