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Upcoming PSC Public Workshop of Notice of Water Certification Costs

NOTICE to builders, developers, consulting engineers, land use attorneys

Public Workshop Thursday, May 11, 2017 at 1:00pm

At Public Service Commission, 861 Silver Lake Blvd, Cannon Building, Suite 100, Dover, 19904

 

Currently, water companies are NOT required to provide advance notice to developers if there will be costs for offsite improvements required to provide water to their development.  The water certification you obtain in order to secure record plan approval does not guarantee water service and in fact the water company can wait till your first certificate of occupancy to advise and require payment of mandatory offsite costs (called Category 1B Costs, or Contributions in Aid of Construction – CIAC).  There is not even a mechanism currently for developers to check in with the water company after record plan approval, or if you decide to alter or delay the project for marketing or economic reasons.  This is a statewide issue.

Thus, the developer is liable for potential additional CIAC costs the longer the time between record plan approval and start of construction. In this case (PSC Order # 9038) the developer was forced to pay over $400 thousand dollars of CIAC improvements, long after bank financing and project budgets were prepared.

Developers and homebuilders need to attend this important workshop and tell the PSC staff how important it is to receive timely notice of costs, and PSC regulations should be amended to mandate that the water company should provide notice to you.  And, as recommended by the Hearing Examiner, there should be a penalty imposed on the water company for non-compliance.

Developers and homebuilders should bring their engineering consultants and land use attorney to the workshop as well.

This is a public workshop, sponsored and held by the Public Service Commission.  So that we know who is attending, please email us at info@hbade.org If you plan to attend and if you plan to speak. While we will make every effort to advise of any workshop changes, you should consult the PSC’s website  http://depsc.delaware.gov/ on the day of the workshop for cancellation of or changes in the time, date or place of the workshop.

About HBA of Delaware

HBA/DE has been an integral part of the growth and economic development of the State of Delaware since 1947. HBA/DE was founded as a non-profit state affiliate of the National Association of Home Builders (NAHB) representing home builders and other businesses directly related to Delaware's Home Building Industry. Consisting of Builders, Remodelers and a group of diversified associate members, the Home Builders Association of Delaware strives to protect and preserve housing as a symbol of America. www.hbade.org

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