GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

H	1 

HOUSE BILL 605

Short Title:  Haywood Road Assessments.	(Local)
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Sponsors: Representatives Beall and Ramsey (co-sponsors) (by request).
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Referred to:  Finance.
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March 29, 1993

A BILL TO BE ENTITLED
AN ACT TO ALLOW HAYWOOD COUNTY TO MAKE ASSESSMENTS FOR IMPROVEMENTS ON CERTAIN ROADS IN UNINCORPORATED AREAS WHICH ARE NOT ELIGIBLE FOR INCLUSION IN THE STATE HIGHWAY SYSTEM.
The General Assembly of North Carolina enacts:
Section 1.  Article 9 of Chapter 153A of the General Statutes is amended by adding the following new section:
"§ 153A-205.1.  Improvements to subdivision and residential streets in unincorporated areas.
(a)	A county may finance the cost of improvements to subdivision and residential streets located in the county and outside of the city where the Department of Transportation has certified that such streets do not meet the standards of the Secondary Roads Council and, therefore, cannot become part of the State-maintained system, and shall levy and collect, pursuant to the procedures of Article 9 of Chapter 153A of the General Statutes, special assessments against benefitted property to recoup the costs.
(b)	Only those subdivisions and residential streets which were either constructed or platted of record in the office of the register of deeds of the county where such streets are located prior to the adoption of the minimum standards for secondary roads by the Secondary Roads Council, Department of Transportation, shall be eligible for improvements financed pursuant to this section.  Land owned, leased, or controlled by a railroad company is exempt from such assessments to the same extent that it would be exempt from street assessments of a city under G.S. 160A-222.
(c)	Before a county may finance all or a portion of the cost of improvements to a subdivision or residential street, it must receive a petition for the improvements signed by at least fifty-one percent (51%) of the owners of the property to be assessed, who must represent at least fifty-one percent (51%) of all the linear feet of frontage of the lands abutting on the street or portion thereof to be improved.  The petition shall state the maximum annual assessment, made on one of the following basis:
(1)	The street frontage of the lots served, or subject to being served, by the subdivision and residential streets, at an equal rate per foot of frontage;
(2)	The area of land served, or subject to be served, by the subdivision and residential streets, at an equal rate per unit of area;
(3)	The valuation of land served, or subject to being served, by the subdivision and residential streets, being the value of the land as shown on the tax records of the county, at an equal rate per dollar of valuation;
(4)	The number of lots served, or subject to being served, by the subdivision and residential streets, when the project involves maintenance of an existing street which leads from a State-maintained street to a residential or commercial subdivision, at an equal rate per lot; or
(5)	A combination of two or more of these bases.
(d)	A county may treat as a unit and consider as one street two or more connecting subdivisions or residential streets in a petition filed under this subsection calling for the improvement of subdivision or residential streets subject to property owners sharing in the cost of improvement.
(e)	Property owned by the United States shall not be included in determining the linear feet of frontage on the subdivision and residential street, nor shall the United States be included in determining the number of owners of property abutting the residential and subdivision streets.  Property owned by the State of North Carolina shall be included in determining frontage and the number of owners only if the State has consented to assessment as provided in G.S. 153A-189.  Property owned, leased, or controlled by railroad companies shall be included in determining frontage and the number of owners to the extent the property is subject to assessment under G.S. 160A-222.  Property owned, leased, or controlled by railroad companies that is not subject to assessment shall not be included in determining frontage or the number of owners.
(f)	No right of action or defense asserting the invalidity of street assessments on grounds that the county did not comply with this subsection in securing a valid petition may be asserted except in an action or proceeding begun within 90 days after the date of publication of the notice of adoption of the preliminary assessment resolution.
(g)	This section is intended to provide a means of assisting in financing improvements to subdivision and residential streets that were either constructed or platted of record prior to the effective date of the secondary road standards of the Secondary Roads Council, Department of Transportation, and which have been certified as not eligible for inclusion in the Secondary Roads Maintenance Program of the Department of Transportation.  By financing improvements under this section, a county does not thereby acquire or assume any responsibility for the street or streets involved, and a county has no liability arising from the construction of such an improvement or the maintenance of such a street.  Nothing in this section shall be construed to alter the conditions and procedures under which State system streets or other public streets are transferred to municipal street systems pursuant to G.S.  136-166.1 and G.S. 136-166.2 upon the annexation by, or incorporation of, a municipality.
(h)	A county shall provide for the performance of necessary work and furnishing of necessary materials to accomplish the purposes of this section by contracting with one or more homeowners associations or other nonprofit corporations or associations, the members of which own land within the subdivision where the street to be maintained is located.  The terms of such contract shall require that such association permit all owners of property located within the subdivision be a member thereof with full rights of membership on an equal basis with all other owners, and shall include such other provisions as deemed necessary by the county, including, but not limited to, provisions requiring all financial records of the association or nonprofit corporation be subject to audit by the county finance officer and further requiring that the homeowners association or other nonprofit corporation submit an annual budget of needed improvements, on a schedule established by the county finance officer, using such format and providing such information as is required by the county finance officer.
(i)	This act applies only to roads which were offered for dedication prior to October 1, 1975, and have not been designated private roads pursuant to G.S. 136-102.6 and have been certified as not eligible for inclusion in the Department of Transportation State Highway System for maintenance as a secondary road.
(j)	No assessment may be made under subdivision (c)(3) of this section or under subdivision (c)(5) of this section where the combination includes subdivision (c)(3) of this section unless the qualified voters of the county approve the ad valorem assessment as required by Article V, Section 2(5) of the Constitution of North Carolina.
(k)	This section applies to Haywood County only."
Sec. 2.  This act is effective upon ratification.