GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2015
SESSION LAW 2016-122
SENATE BILL 326
AN ACT revising the conditions under which counties and cities may inspect buildings or structures.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 153A‑364 reads as rewritten:
"§ 153A‑364. Periodic inspections for hazardous or unlawful conditions.
(a) The inspection
department may make periodic inspections, subject to the board of
commissioners' directions, for unsafe, unsanitary, or otherwise hazardous and
unlawful conditions in buildings or structures within its territorial
jurisdiction. However, when the inspection department determines that
a safety hazard exists in one of the dwelling units within a multifamily
building, which in the opinion of the inspector poses an immediate threat to
the occupant, the inspection department may inspect, in the absence of a
specific complaint and actual knowledge of the unsafe condition, additional
dwelling units in the multifamily building to determine if that same safety
hazard exists. Except as provided in subsection
(b) of this section, the inspection department may make periodic inspections
only when there is reasonable cause to believe that unsafe, unsanitary, or
otherwise hazardous or unlawful conditions may exist in a residential building
or structure. For purposes of this section, the term "reasonable
cause" means any of the following: (i) the landlord or ownerproperty
has a history of more than two four verified violations of the
housing ordinances or codes within a rolling 12‑month period; (ii)
there has been a complaint that substandard conditions exist within the
building or there has been a request that the building be inspected; (iii) the
inspection department has actual knowledge of an unsafe condition within the
building; or (iv) violations of the local ordinances or codes are visible from
the outside of the property. In conducting inspections authorized under this
section, the inspection department shall not discriminate between single‑family
and multifamily buildings.buildings or between owner‑occupied
and tenant‑occupied buildings. In exercising these powers, each
member of the inspection department has a right, upon presentation of proper
credentials, to enter on any premises within the territorial jurisdiction of
the department at any reasonable hour for the purposes of inspection or other
enforcement action. Nothing in this section shall be construed to prohibit
periodic inspections in accordance with State fire prevention code or as
otherwise required by State law.
(b) A county may require
periodic inspections as part of a targeted effort to respond to blighted or
potentially blighted conditions within a geographic area that has been
designated by the county commissioners. However, the total aggregate of targeted
areas in the county at any one time shall not be greater than one square mile
or five percent (5%) of the area within the county, whichever is greater. A targeted
area designated by the county shall reflect the county's stated neighborhood
revitalization strategy and shall consist of property that meets the definition
of a "blighted area" or "blighted parcel" as those terms
are defined in G.S. 160A‑503(2) and G.S. 160A‑503(2a),
respectively, except that for purposes of this subsection the planning
commission is not required to make a determination as to the property. The
county shall not discriminate in its selection of areas or housing types to
be targeted and shall (i) provide notice to all owners and residents of
properties in the affected area about the periodic inspections plan and
information regarding a public hearing regarding the plan; (ii) hold a public
hearing regarding the plan; and (iii) establish a plan to address the ability
of low‑income residential property owners to comply with minimum housing
code standards. A residential building or structure that is subject to periodic
inspections by the North Carolina Housing Finance Agency (hereinafter
"Agency") shall not be subject to periodic inspections under this
subsection if the Agency has issued a finding that the building or structure is
in compliance with federal standards established by the United States
Department of Housing and Urban Development to assess the physical condition of
residential property. The owner or manager of a residential building or structure
subject to periodic inspections by the Agency shall, within 10 days of receipt,
submit to the inspection department a copy of the Compliance Results Letter
issued by the Agency showing that the residential building or structure is in
compliance with federal housing inspection standards. If the owner or manager
fails to submit a copy of the Compliance Results Letter as provided in this
subsection, the residential building or structure shall be subject to periodic
inspections as provided in this subsection until the Compliance Results Letter
is submitted to the inspection department.
(c) In no event may a county
do any of the following: (i) adopt or enforce any ordinance that would require
any owner or manager of rental property to obtain any permit or permission from
the county to lease or rent residential real property,property or to
register rental property with the county, except for those individual rental
units that have either more than three four verified
violations of housing ordinances or codes in a rolling 12‑month
period or two or more verified violations in a rolling 30‑day period, or
upon the property being identified within the top 10% ten percent
(10%) of properties with crime or disorder problems as set forth in a local
ordinance; (ii) require that an owner or manager of residential rental property
enroll or participate in any governmental program as a condition of obtaining a
certificate of occupancy; or (iii) except as provided in subsection (d) of
this section,occupancy; (iii) levy a special fee or tax on
residential rental property that is not also levied against other commercial
and residential properties.properties, unless expressly authorized by
general law or applicable only to an individual rental unit or property
described in clause (i) of this subsection and the fee does not exceed five
hundred dollars ($500.00) in any 12‑month period in which the unit or
property is found to have verified violations; (iv) provide that any violation
of a rental registration ordinance is punishable as a criminal offense; or (v) require
any owner or manager of rental property to submit to an inspection before
receiving any utility service provided by the city. For purposes of this
section, the term "verified violation" means all of the following:
(1) The aggregate of all violations of housing ordinances or codes found in an individual rental unit of residential real property during a 72‑hour period.
(2) Any violations that have not been corrected by the owner or manager within 21 days of receipt of written notice from the county of the violations. Should the same violation occur more than two times in a 12‑month period, the owner or manager may not have the option of correcting the violation. If the housing ordinance or code provides that any form of prohibited tenant behavior constitutes a violation by the owner or manager of the rental property, it shall be deemed a correction of the tenant‑related violation if the owner or manager, within 30 days of receipt of written notice of the tenant‑related violation, brings a summary ejectment action to have the tenant evicted.
(d) A county may levy a fee for residential rental
property registration under subsection (c) of this section for those rental
units which have been found with more than two verified violations of housing
ordinances or codes within the previous 12 months or upon the property being
identified within the top 10% of properties with crime or disorder problems as
set forth in a local ordinance. The fee shall be an amount that covers the cost
of operating a residential registration program and shall not be used to
supplant revenue in other areas. Counties using registration programs that
charge registration fees for all residential rental properties as of June 1,
2011, may continue levying a fee on all residential rental properties as
follows:
(1) For properties with 20 or more residential
rental units, the fee shall be no more than fifty dollars ($50.00) per year.
(2) For properties with fewer than 20 but more than
three residential rental units, the fee shall be no more than twenty‑five
dollars ($25.00) per year.
(3) For properties with three or fewer residential
rental units, the fee shall be no more than fifteen dollars ($15.00) per year.
(e) If a property is identified by the county as being in the top ten percent (10%) of properties with crime or disorder problems, the county shall notify the landlord of any crimes, disorders, or other violations that will be counted against the property to allow the landlord an opportunity to attempt to correct the problems. In addition, the county and the county sheriff's office shall assist the landlord in addressing any criminal activity, which may include testifying in court in a summary ejectment action or other matter to aid in evicting a tenant who has been charged with a crime. If the county or the county sheriff's office does not cooperate in evicting a tenant, the tenant's behavior or activity at issue shall not be counted as a crime or disorder problem as set forth in the local ordinance, and the property may not be included in the top ten percent (10%) of properties as a result of that tenant's behavior or activity.
(f) If the county takes action against an individual rental unit under this section, the owner of the individual rental unit may appeal the decision to the housing appeals board or the zoning board of adjustment, if operating, or the planning board if created under G.S. 153A‑321, or if neither is created, the governing board. The board shall fix a reasonable time for hearing appeals, shall give due notice to the owner of the individual rental unit, and shall render a decision within a reasonable time. The owner may appear in person or by agent or attorney. The board may reverse or affirm the action, wholly or partly, or may modify the action appealed from, and may make any decision and order that in the opinion of the board ought to be made in the matter."
SECTION 2. G.S. 160A‑424 reads as rewritten:
"§ 160A‑424. Periodic inspections.inspections
for hazardous or unlawful conditions.
(a) The inspection
department may make periodic inspections, subject to the council's directions,
for unsafe, unsanitary, or otherwise hazardous and unlawful conditions in
buildings or structures within its territorial jurisdiction. However,
when the inspection department determines that a safety hazard exists in one of
the dwelling units within a multifamily building, which in the opinion of the
inspector poses an immediate threat to the occupant, the inspection department
may inspect, in the absence of a specific complaint and actual knowledge of the
unsafe condition, additional dwelling units in the multifamily building to
determine if that same safety hazard exists. Except
as provided in subsection (b) of this section, the inspection department may
make periodic inspections only when there is reasonable cause to believe that
unsafe, unsanitary, or otherwise hazardous or unlawful conditions may exist in
a residential building or structure. For purposes of this section, the term
"reasonable cause" means any of the following: (i) the landlord or
ownerproperty has a history of more than two four verified
violations of the housing ordinances or codes within a rolling 12‑month
period; (ii) there has been a complaint that substandard conditions exist
within the building or there has been a request that the building be inspected;
(iii) the inspection department has actual knowledge of an unsafe condition
within the building; or (iv) violations of the local ordinances or codes are
visible from the outside of the property. In conducting inspections authorized
under this section, the inspection department shall not discriminate between
single‑family and multifamily buildings.buildings or between
owner‑occupied and tenant‑occupied buildings. In exercising
this power, members of the department shall have a right to enter on any
premises within the jurisdiction of the department at all reasonable hours for
the purposes of inspection or other enforcement action, upon presentation of
proper credentials. Nothing in this section shall be construed to prohibit
periodic inspections in accordance with State fire prevention code or as
otherwise required by State law.
(b) A city may require
periodic inspections as part of a targeted effort to respond to blighted or
potentially blighted conditions within a geographic area that has been
designated by the city council. However, the total aggregate of targeted
areas in the city at any one time shall not be greater than one square mile or
five percent (5%) of the area within the city, whichever is greater. A targeted
area designated by the city shall reflect the city's stated neighborhood
revitalization strategy and shall consist of property that meets the definition
of a "blighted area" or "blighted parcel" as those terms
are defined in G.S. 160A‑503(2) and G.S. 160A‑503(2a),
respectively, except that for purposes of this subsection the planning
commission is not required to make a determination as to the property. The municipality
shall not discriminate in its selection of areas or housing types to be
targeted and city shall (i) provide notice to all owners and
residents of properties in the affected area about the periodic inspections
plan and information regarding a public hearing regarding the plan; (ii) hold a
public hearing regarding the plan; and (iii) establish a plan to address the
ability of low‑income residential property owners to comply with minimum
housing code standards. A residential building or structure that is subject to
periodic inspections by the North Carolina Housing Finance Agency (hereinafter
"Agency") shall not be subject to periodic inspections under this
subsection if the Agency has issued a finding that the building or structure is
in compliance with federal standards established by the United States
Department of Housing and Urban Development to assess the physical condition of
residential property. The owner or manager of a residential building or
structure subject to periodic inspections by the Agency shall, within 10 days
of receipt, submit to the inspection department a copy of the Compliance
Results Letter issued by the Agency showing that the residential building or
structure is in compliance with federal housing inspection standards. If the
owner or manager fails to submit a copy of the Compliance Results Letter as
provided in this subsection, the residential building or structure shall be subject
to periodic inspections as provided in this subsection until the Compliance
Results Letter is submitted to the inspection department.
(c) In no event may a city
do any of the following: (i) adopt or enforce any ordinance that would require
any owner or manager of rental property to obtain any permit or permission from
the city to lease or rent residential real property,property or to
register rental property with the city, except for those properties individual
rental units that have either more than three four verified
violations in a rolling 12‑month period or two or more verified
violations in a rolling 30‑day period, or upon the property being
identified within the top 10% ten percent (10%) of properties
with crime or disorder problems as set forth in a local ordinance; (ii) require
that an owner or manager of residential rental property enroll or participate
in any governmental program as a condition of obtaining a certificate of
occupancy; or (iii) except as provided in subsection (d) of this section, (iii)
levy a special fee or tax on residential rental property that is not also
levied against other commercial and residential properties.properties,
unless expressly authorized by general law or applicable only to an individual
rental unit or property described in subdivision (i) of this subsection and the
fee does not exceed five hundred dollars ($500.00) in any 12‑month period
in which the unit or property is found to have verified violations; (iv)
provide that any violation of a rental registration ordinance is punishable as
a criminal offense; or (v) require any owner or manager of rental property to
submit to an inspection before receiving any utility service provided by the city.
For purposes of this section, the term "verified violation" means all
of the following:
(1) The aggregate of all violations of housing ordinances or codes found in an individual rental unit of residential real property during a 72‑hour period.
(2) Any violations that have not been corrected by the owner or manager within 21 days of receipt of written notice from the city of the violations. Should the same violation occur more than two times in a 12‑month period, the owner or manager may not have the option of correcting the violation. If the housing ordinance or code provides that any form of prohibited tenant behavior constitutes a violation by the owner or manager of the rental property, it shall be deemed a correction of the tenant‑related violation if the owner or manager, within 30 days of receipt of written notice of the tenant‑related violation, brings a summary ejectment action to have the tenant evicted.
(d) A city may levy a fee for residential rental
property registration under subsection (c) of this section for those rental
units which have been found with more than two verified violations of local
ordinances within the previous 12 months or upon the property being identified
within the top 10% of properties with crime or disorder problems as set forth
in a local ordinance. The fee shall be an amount that covers the cost of
operating a residential registration program and shall not be used to supplant
revenue in other areas. Cities using registration programs that charge
registration fees for all residential rental properties as of June 1, 2011, may
continue levying a fee on all residential rental properties as follows:
(1) For properties with 20 or more residential
rental units, the fee shall be no more than fifty dollars ($50.00) per year.
(2) For properties with fewer than 20 but more than
three residential rental units, the fee shall be no more than twenty‑five
dollars ($25.00) per year.
(3) For properties with three or fewer residential
rental units, the fee shall be no more than fifteen dollars ($15.00) per year.
(e) If a property is identified by the city as being in the top ten percent (10%) of properties with crime or disorder problems, the city shall notify the landlord of any crimes, disorders, or other violations that will be counted against the property to allow the landlord an opportunity to attempt to correct the problems. In addition, the city and the city's police department or, if the city has no police department, the county sheriff's office shall assist the landlord in addressing any criminal activity, which may include testifying in court in a summary ejectment action or other matter to aid in evicting a tenant who has been charged with a crime. If the city, the city's police department, or where applicable the county sheriff's office does not cooperate in evicting a tenant, the tenant's behavior or activity at issue shall not be counted as a crime or disorder problem as set forth in the local ordinance, and the property may not be included in the top ten percent (10%) of properties as a result of that tenant's behavior or activity.
(f) If the city takes action against an individual rental unit under this section, the owner of the individual rental unit may appeal the decision to the housing appeals board or the zoning board of adjustment, if operating, or the planning board, if created under G.S. 160A‑361, or if neither is created, the governing board. The board shall fix a reasonable time for hearing appeals, shall give due notice to the owner of the individual rental unit, and shall render a decision within a reasonable time. The owner may appear in person or by agent or attorney. The board may reverse or affirm the action, wholly or partly, or may modify the action appealed from, and may make any decision and order that in the opinion of the board ought to be made in the matter."
SECTION 3. This act becomes effective January 1, 2017.
In the General Assembly read three times and ratified this the 1st day of July, 2016.
s/ Tom Apodaca
Presiding Officer of the Senate
s/ Tim Moore
Speaker of the House of Representatives
s/ Pat McCrory
Governor
Approved 8:08 a.m. this 28th day of July, 2016