1. No person shall make any improvement until all applicable thoroughfare or open space facility fees have been paid in full.
2. No building permit or other City permit for those improvements not requiring a building permit, shall be issued for any activity requiring the payment of a facility fee until the required facility fees have been paid in full.
3. Current facility fees are listed in the City of Raleigh Fee Schedule, kept on file by the City and are updated and adopted by the City Council.

Facility fees shall not be imposed in the following circumstances.

1. Governmental authorities that are exempted by law from paying the fees.
2. Alterations, repairs, renovations or expansion of a residential building where no additional residential units are created and use, as shown within the fee schedule, is not changed.
3. Replacement of a building or structure or manufactured home with a new building or structure or manufactured home of the same dwelling type or non residential use. Nonresidential alterations, repairs, renovations or replacement buildings or structures must be of the same size and use as the original building or structure and must meet the same parking, acreage, bed or other fee basis requirements. If the alterations or replacement change of use or alteration or expansion payment rule in Sec. 8.9.3.A. or Sec. 8.9.3.B. shall apply. No facility fee credit will be given under this section or under Sec. 8.9.3.A. or Sec. 8.9.3.B. unless the structure for which the credit is sought was standing at some time in the 6 year period immediately preceding the date on which the facility fee for the new project is calculated.
4. The construction of walls, fences, monuments, billboards, poles, pipelines antennas, transmission lines, advertising signs, unmanned utility stations or substations, wells, water towers, off-street parking decks, parking garages or parking lots as the primary use on the lot or similar structures and improvements.
5. Accessory uses listed in Sec. 6.7.3.
6. Incidental water sports, play courts, play fields provided that there is no solicitation of off-site traffic or business, there is no separate charge or membership fee associated with the use of such facilities and no special use permit is required.
7. Temporary structures or uses.
8. Croplands or pasturelands and incidental sheds and barns. But processing facilities and residences shall pay their respective industrial and residential facility fees.

The Development Services Director shall compute and collect all facility fees.

1. Alterations, Expansions or Redevelopment
   In the case of an alteration, expansion, renovation or redevelopment of an existing development, facility fees shall be levied based upon the net increase, if any, above that which the existing development would pay.
2. Change of Use or the Addition of Other Uses
   1. In the case of a change of use, which increases the fee rate or total fee above that which the existing use would pay, facility fees shall be paid based upon the net increase in the fee for the new use as compared to the previous use.
   2. There shall be no reimbursement of any facility fee due to a change of use which has a lower fee than the current use, nor shall there be any reimbursement if a use is terminated.
3. Change of Use Status from Illegal to Legal
   In the case of a use that was previously illegal under the Raleigh City Code being made legal other than by terminating the use, the use shall be liable for the payment of a facility fee equal to the fee that would be paid if the use were a new use.
4. Mixed Use
   In the case of mixed use developments or multiple tenants or unit owners each separate occupancy of tenant space shall be charged a fee based on the prevailing use or function of that space.
5. Shell/Foundation Permits
   1. In the case of a “shell or foundation” permit, the facility fee amounts shall be based on the building permit.
   2. If it is found during review of the “fit-up” permit that the uses differ from these uses for the shell, a determination shall be made as to whether or not an additional fee or refund is due. If any additional fee is due, it shall be paid prior to the issuance of the fit-up permit.
6. Size of Retail Establishments
   In the case of retail uses which share common drives or parking areas, all such retail uses, including those located on separate outparcels, shall pay a thoroughfare facility fee based on the appropriate square footage range of all the retail uses located within the development even if this is a greater fee than for any single retail use or other combinations of retail uses.
7. Unscheduled Activity
   1. ​​​​​​​If the type of new construction activity is not specified on the thoroughfare fee schedule, the Development Services Director shall use the thoroughfare fee applicable to the most nearly comparable type of land use on the thoroughfare fee schedule.
   2. If the applicant disagrees with the determination of the Development Services Director, then the applicant shall use the alternate thoroughfare facility fee calculation, except that the cost per trip end factor shall be the same referred to in the alternative thoroughfare fee calculation schedule.

1. Creation of Trust Funds
   1. The facility fees collected by the City shall be kept separate from other revenue of the City.
   2. There shall be 1 trust fund established for each of the benefit areas, shown on maps labeled “Thoroughfare and Collector Street Benefit Areas” and “Open Space Benefit Areas,” respectively; copies are on file with the City Clerk and are made a part of this UDO.
   3. All facility funds collected shall be properly identified by the appropriate benefit area and transferred for deposit in the appropriate trust account.
   4. A portion of these funds shall be allocated and assigned to a separate account for each benefit area for the purpose of providing funds for reimbursements required per Sec. 8.9.1. and Sec. 8.9.3.
   5. These funds shall be allocated into the appropriate reimbursement accounts as follows:
      1. Thoroughfare and collector street fees as defined in this UDO:
         1. Benefit Zone 1: 50% of the funds collected.
         2. Benefit Zone 2: 27% of the funds collected.
         3. Benefit Zone 3: 27% of the funds collected
      2. Open space fees: All Benefit Zones: 20% of the funds collected.
   6. Funds may be transferred from reimbursement accounts to project accounts for each benefit area at the end of each fiscal year, to the extent that the account balance in each benefit area exceeds the contractual reimbursement
      obligations for the area.
2. Limitation on Expenditure of Funds Collected
   1. Funds expended from facility fee trust accounts shall be made for no other purpose than for thoroughfare and collector street capital costs or open space capital costs associated with projects undertaken by the City or by the City in conjunction with other units of government.
   2.  No funds shall be used for periodic or routine maintenance or for administration of the facility fee program.
   3. Expenditures from the trust fund shall be matched by an equal sum of money approved from non-fee sources and shall be spent for projects located in the same zone in which the fees were collected.
   4. All funds shall be used exclusively for capital improvements within the benefit area from which the funds were collected.
   5. A report of the collection activity from application of facility fees shall be made to City Council and once every 2 years.
   6. The report shall show where fees have been collected and what projects have been constructed or reimbursed with fee monies.
   7. The City Council shall review this report and consider whether within each benefit area fees are being spent so that no area of new construction is not being benefited by the fees.
   8. If the City Council determines that areas of new construction within benefit areas are not being benefited, then it shall readjust capital improvements program to correct this condition.
   9. Funds shall be expended in the order in which they were collected. But in no event shall funds not be expended within 6 years after their collection except when the City, in conjunction with any other unit of government, provides the facility; in such cases, the funds must be expended within 10 years after their collection.
3. Disbursal of Funds
   Funds withdrawn from these trust accounts must be used solely in accordance with the provisions of this UDO. The disbursal of funds require the approval of the City Council upon recommendation of the City Manager.
4. Interest on Funds
   1. Any funds on deposit not immediately necessary for expenditure shall be invested as allowed in N.C. Gen. Stat. §159-30 for other public monies.
   2. All income derived shall be deposited in the applicable trust account.
5. Return of Fees
   1. If the development for which the fees were paid was never begun or if begun, the property is restored to an undeveloped state, a reimbursement will be allowed within 7 months following the issuance of a building permit provided such permit is surrendered to the City or within 7 months following the payment of the facility fee in the case when no building permit is required.
   2. Any funds not expended within the time limits established in Sec. 8.9.4.B.9. above shall be returned to the feepayor or the landowner if the address of the feepayor provided to the City is not current with interest at the rate of
      6% per annum. A refund of permit fees is allowed for shell permits if it is determined during review of the “fit-up” permits, the uses have changed to a use with a lower fee then a refund is owed.

1. In addition to any other remedy allowed by N.C. Gen. Stat. §160A-175, the failure to pay a facility fee is a civil penalty.
2. The amount of the penalty shall equal the amount of the unpaid facility fee, plus an interest charge of ½ % per month compounded monthly and a service charge of $100.
3. The City may assess the penalty against the developer or the landowner where new construction has occurred without payment of a facility fee; but no service charge will be assessed when City staff has made an error in the fee calculations.
4. No penalty shall be assessed until the person or persons alleged to be in violation are served by registered mail, certified mail—return receipt requested or personal service with notice to pay.
5. The City Attorney is authorized to institute a civil action in the name of the City, in the appropriate division of the general court of justice in Wake County for recovery of the penalty.
6. All monies recovered shall be deposited in the appropriate trust fund.