Latecomer agreements (LCAs) have become increasingly popular in Washington State as a way to fund local infrastructure projects. In essence, LCAs allow property owners who benefit from new public improvements, such as roads, sidewalks, and parks, to reimburse the city for a portion of the construction costs.

LCAs typically work like this: a developer or property owner initiates a new construction project that includes public improvements. The city agrees to fund the improvements, but instead of paying for everything upfront, the city creates a special taxing district. Property owners within the district are then assessed a fee for the improvements. The fee is typically spread out over a period of years and is based on the size of each property and its estimated benefit from the new improvements.

LCAs have several benefits. They allow cities to fund public improvements without putting the entire burden on taxpayers. They also encourage development by making it more attractive to developers and property owners who might not otherwise be willing to invest in areas that lack infrastructure.

However, LCAs have also been criticized for being too complicated and for favoring larger property owners over smaller ones. They can also be difficult to administer, requiring the city to keep track of property ownership changes and to collect fees over the course of several years.

In response to these concerns, the Washington State Legislature passed a new law in 2019 that made several changes to the LCA process. Under the new law, the city must now hold a public hearing before creating a taxing district. The city must also provide notice to affected property owners, including information on the estimated costs and the length of the assessment period.

The new law also requires cities to create a dispute resolution process for property owners who believe they have been assessed too much. And it requires the city to provide more detailed information about the costs and benefits of the improvements.

Overall, LCAs can be a useful tool for funding public infrastructure projects in Washington State. However, they require careful planning and administration to ensure that they are fair to all property owners and that the benefits are worth the costs. If you are considering an LCA for your property, it is important to consult with an experienced attorney and to thoroughly understand the potential costs and benefits before agreeing to participate.