(1) A local political subdivision may expend impact fees only for a system improvement:
(a) identified in the impact fee facilities plan; and
(b) for the specific public facility type for which the fee was collected.
(2)
(a) Except as provided in Subsection (2)(b), a local political subdivision shall expend or encumber an impact fee collected with respect to a lot:
(i) for a permissible use; and
(ii) within six years after the impact fee with respect to that lot is collected.
(b) A local political subdivision may hold the fees for longer than six years if it identifies, in writing:
(i) an extraordinary and compelling reason why the fees should be held longer than six years; and
(ii) an absolute date by which the fees will be expended.