GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	3 

SENATE BILL 766
Judiciary III Committee Substitute Adopted 5/4/89
Third Edition Engrossed 5/11/89

Short Title:  Vesting Property Rights.	(Public)
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Sponsors:
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Referred to:  
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April 4, 1989

A BILL TO BE ENTITLED
AN ACT TO PROVIDE FOR CERTAIN VESTED PROPERTY RIGHTS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 160A-385(b) reads as rewritten:
	"(b)	Amendments, modifications, supplements, repeal or other changes in zoning regulations and restrictions and zone boundaries shall not be applicable or enforceable without consent of the owner with regard to lots for which either (i) building permits have been issued pursuant to G.S. 160A-417 prior to the enactment of the ordinance making the change or changes so long as the permits remain valid and unexpired pursuant to G.S. 160A-418 and unrevoked pursuant to G.S. 160A-422 or (ii) a notice of intent to develop has been filed and recorded pursuant to G.S. 160A-385.1 prior to the publication of the notice of public hearing as required by G.S. 160A-364 the ordinance making the change or changes so long as such notice of intent to develop remains valid and unexpired pursuant to G.S. 160A-385.1."
Sec. 2.  Part 3 of Article 19 of Chapter 160A of the General Statutes is amended by adding a new section to read:
"§ 160A-385.1.  Notice of intent to develop.
(a)	The General Assembly finds and declares that it is necessary and desirable, as a matter of public policy, to provide for the establishment of certain vested property rights in order to ensure reasonable certainty, stability, and fairness in the land use planning process and in order to stimulate economic growth, secure the reasonable investment-backed expectations of landowners, and foster cooperation between the public and private sectors in the area of land use planning.
(b)	Definitions
(1)	‘Landowner' means any owner of a fee simple interest in real property, including the heirs, devisees, and personal representative of such owner, but shall not include any person or legal entity who holds a legal or equitable interest as security for an indebtedness.
(2)	‘City' shall have the same meaning as set forth in G.S. 160A-1(2).
(3)	‘Property' means all real property subject to zoning regulations and restrictions and zone boundaries by a city.
(4)	‘Notice of intent to develop' means a form in recordable format prepared by the landowner and containing the information required by G.S. 1604-385.1(d)(1).
(5)	‘Vested property right' means the right to undertake and complete the development and use of property in accordance with, and subject to the terms and conditions set forth in the zoning regulations, restrictions and boundaries in effect at the time of the filing of a notice of intent to develop.
(c)	Establishment of vested property right.
A vested property right is established with respect to any property upon the filing of a notice of intent to develop.  Such vested property right shall confer upon the landowner the right to undertake and complete the development and use of said property in accordance with, and subject to the terms and conditions set forth, the zoning regulations and restrictions and zone boundaries in effect at the time of the filing of the notice of intent to develop.
(d)	Notice of intent to develop.
(1)	Notice of intent to develop shall include:
a.	The name and address of the landowner, or of each landowner, if there is more than one;
b.	A metes and bounds description of the property to which the vested property right is to attach, which is in accordance with and refers to a survey of the property made within two years of the date of the notice of intent to develop;
c.	A statement of the zoning classification, including overlay zoning classification, if any, to which the property is subject, as such classification is named and described in the city zoning ordinances in effect as of the date of the notice of intent to develop;
d.	The date the notice of intent to develop is filed with the city planning department, or, if there is no city planning department, then the date of filing with the city department or official having authority to issue building permits.  For purposes of this section, the date the notice of intent to develop is filed must be noted on the notice.
e.	A preliminary development plan describing in general terms the nature of the proposed development.
(2)	The notice of intent to develop shall be filed with the city planning department or, if there is no planning department, with the city department or official having authority to issue building permits and shall continue in effect for a period of three years after the date of the notice of intent to develop; provided, however, that the notice of intent to develop shall be null and void unless, within 10 calendar days from and after the date of the notice of intent to develop, the notice of intent to develop is recorded in the office of the register of deeds for the county in which the property is located.  The notice of intent to develop shall continue in full force and effect until the earlier of the expiration of the two-year period or the issuance of a building permit for the property.  The two-year effective period for a notice of intent to develop shall only apply as long as the property is owned by the same persons who owned the property when the notice of intent to develop was filed.  A notice of intent to develop may only be filed once by the owner or owners of property.  The owner or owners of property may at any time after filing revoke a notice of intent to develop by notifying in writing the property planning official and if the notice of intent to develop has been filed with the register of deeds, by filing a renovation notice with register of deeds.
(e)	Exceptions.
(1)	Nothing contained in this section shall be deemed to impair or restrict the right or power of a city to amend, modify, revoke or enact any zoning regulation or restriction or zone boundary.
(2)	Notwithstanding the existence of vested property rights, the city may amend, modify or enact a zoning regulation or restriction or zone boundary which will affect the property which is subject to the vested property rights and which will amend the terms of the vested property rights upon any of the following events:
a.	A request by or with the written consent of the landowner for such amendment, modification or enactment; or
b.	The discovery of natural or man-made hazards on or in the immediate vicinity of the property, which hazards could not reasonably have been discovered at the time of the filing of the notice of intent to develop, and which hazards, if unconnected by an amendment to modification of or enactment of zoning regulation or restriction or zone boundary, pose a serious threat to the public health, safety or welfare.
c.	The initial zoning of any property which has not previously been subject to zoning regulations, restrictions and districts.
d.	If at the time notice of intent to develop is filed, the planning department, or if there is no planning department, the department or official having authority to issue building permits, is considering whether amendment, modification or enactment of a zoning regulation or restriction or zone boundary which will affect the property which is subject to the vested property rights should be recommended.  For purposes of this provision, public notice shall include the issue being on the agenda of a public body either appointed or elected.
(3)	Nothing contained in this section shall be deemed to impair or restrict the right or power of a city to amend, modify, revoke or enact any zoning regulation or restriction or zone boundary and apply the changes to property which is subject to a notice of intent under this section, if required by rules or regulations adopted by the Environmental Management Commission to protect water supply watersheds, to the extent allowed by the common law and the constitutions of North Carolina and the United States.
(4)	A notice of intent filed concerning property located in a historic district established under Part 3A of Article 19 of Chapter 160A of the General Statutes shall have no effect on property in the district."
Sec. 3.  G.S. 153A-344(b) reads as rewritten:
	"(b) Amendments, modifications, supplements, repeal or other changes in zoning regulations and restrictions and zone boundaries shall not be applicable or enforceable without consent of the owner with regard to lots for which either (i) building permits have been issued pursuant to G.S. 153A-357 prior to the enactment of the ordinance making the change or changes so long as the permits remain valid and unexpired pursuant to G.S. 153A-358 and unrevoked pursuant to G.S. 153A-362 or (ii) a notice of intent to develop has been filed and recorded pursuant to G.S. 153A-344.1 prior to the first publication of the notice of public hearing as required by G.S. 153A-323 the ordinance making the change or changes so long as such notice of intent to develop remains valid and unexpired pursuant to G.S. 153A-344.1.  The foregoing are not mutually exclusive."
Sec. 4.  Part 3 of Article 19 of Chapter 153A of the General Statutes is amended by adding a new section to read:
"§ 153A-344.1.  Notice of intent to develop.
(a)	The General Assembly finds and declares that it is necessary and desirable, as a matter of public policy, to provide for the establishment of certain vested property rights in order to ensure reasonable certainty, stability, and fairness in the land use planning process and in order to stimulate economic growth, secure the reasonable investment-backed expectations of landowners, and foster cooperation between the public and private sectors in the area of land use planning.
(b)	Definitions
(1)	‘Landowner' means any owner of a fee simple interest in real property, including the heirs, devisees, and personal representative of such owner, but shall not include any person or legal entity who holds a legal or equitable interest as security for an indebtedness.
(2)	‘County' shall have the same meaning as set forth in G.S. 153-1(3).
(3)	‘Property' means all real property subject to zoning regulations and restrictions and zone boundaries by a city.
(4)	‘Notice of intent to develop' means a form in recordable format prepared by the landowner and containing the information required by G.S. 153A-344.1(d)(1).
(5)	‘Vested property right' means the right to undertake and complete the development and use of property in accordance with, and subject to the terms and conditions set forth in the zoning regulations, restrictions and boundaries in effect at the time of the filing of a notice of intent to develop.
(c)	Establishment of vested property right.
A vested property right is established with respect to any property upon the filing of a notice of intent to develop.  Such vested property right shall confer upon the landowner the right to undertake and complete the development and use of said property in accordance with, and subject to the terms and conditions set forth, the zoning regulations and restrictions and zone boundaries in effect at the time of the filing of the notice of intent to develop.
(d)	Notice of intent to develop.
(1)	Notice of intent to develop shall include:
a.	The name and address of the landowner, or of each landowner, if there is more than one;
b.	A metes and bounds description of the property to which the vested property right is to attach, which is in accordance with and refers to a survey of the property made within two years of the date of the notice of intent to develop;
c.	A statement of the zoning classification, including overlay zoning classification, if any, to which the property is subject, as such classification is named and described in the county zoning ordinances in effect as of the date of the notice of intent to develop;
d.	The date the notice of intent to develop is filed with the county planning department, or, if there is no county planning department, then the date of filing with the county department or official having authority to issue building permits.  For purposes of this section, the date the notice of intent to develop is filed must be noted on the notice.
e.	A preliminary development plan describing in general terms the nature of the proposed development.
(2)	The notice of intent to develop shall be filed with the county planning department or, if there is no planning department, with the county department or official having authority to issue building permits and shall continue in effect for a period of three years after the date of the notice of intent to develop; provided, however, that the notice of intent to develop shall be null and void unless, within 10 calendar days from and after the date of the notice of intent to develop, the notice of intent to develop is recorded in the office of the register of deeds for the county in which the property is located.  The notice of intent to develop shall continue in full force and effect until the earlier of the expiration of the two-year period or the issuance of a building permit for the property.  The two-year effective period for a notice of intent to develop shall only apply as long as the property is owned by the same persons who owned the property when the notice of intent to develop was filed.  A notice of intent to develop may only be filed once by the owner or owners of property.  The owner or owners of property may at any time after filing revoke a notice of intent to develop by notifying in writing the property planning official and if the notice of intent to develop has been filed with the register of deeds, by filing a renovation notice with the register of deeds.
(e)	Exceptions.
(1)	Nothing contained in this section shall be deemed to impair or restrict the right or power of a city to amend, modify, revoke or enact any zoning regulation or restriction or zone boundary.
(2)	Notwithstanding the existence of vested property rights, the county may amend, modify or enact a zoning regulation or restriction or zone boundary which will affect the property which is subject to the vested property rights and which will amend the terms of the vested property rights upon any of the following events:
a.	A request by or with the written consent of the landowner for such amendment, modification or enactment; or
b.	The discovery of natural or man-made hazards on or in the immediate vicinity of the property, which hazards could not reasonably have been discovered at the time of the filing of the notice of intent to develop, and which hazards, if unconnected by an amendment to modification of or enactment of zoning regulation or restriction or zone boundary, pose a serious threat to the public health, safety or welfare.
c.	The initial zoning of any property which has not previously been subject to zoning regulations, restrictions and districts.
d.	If at the time notice of intent to develop is filed, the planning department, or if there is no planning department, the department or official having authority to issue building permits, is considering whether amendment, modification or enactment of a zoning regulation or restriction or zone boundary which will affect the property which is subject to the vested property rights should be recommended.  For purposes of this provision, public notice shall include the issue being on the agenda of a public body either appointed or elected.
(3)	Nothing contained in this section shall be deemed to impair or restrict the right or power of a county to amend, modify, revoke or enact any zoning regulation or restriction or zone boundary and apply the changes to property which is subject to a notice of intent under this section, if required by rules or regulations adopted by the Environmental Management Commission to protect water supply watersheds, to the extent allowed by the common law and the constitutions of North Carolina and the United States.
(4)	A notice of intent filed concerning property located in a historic district established under Part 3A of Article 19 of Chapter 160A of the General Statutes shall have no effect on property in the district."
Sec. 5.  This act shall become effective July 1, 1990.