AN ACT to allow ALL MUNICIPALITIES THE AUTHORITY TO ADOPT AN ORDINANCE DECLARING residential buildings in community development target areas TO BE unsafe and to removE or demolish those buildings.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 160A‑425.1 and G.S. 160A‑432(a1) are repealed.
SECTION 2.  G.S. 160A‑426 reads as rewritten:
"§ 160A‑426.  Unsafe buildings condemned in  localities.
(a)	Residential Building and Nonresidential Building or Structure. – Every building that shall appear to the inspector to be especially dangerous to life because of its liability to fire or because of bad condition of walls, overloaded floors, defective construction, decay, unsafe wiring or heating system, inadequate means of egress, or other causes, shall be held to be unsafe, and the inspector shall affix a notice of the dangerous character of the structure to a conspicuous place on the exterior wall of the building.
(b)	Nonresidential Building or Structure. – In addition to the authority granted in subsection (a) of this section, an inspector may declare a nonresidential building or structure within a community development target area to be unsafe if it meets both of the following conditions:
(1)	It appears to the inspector to be vacant or abandoned.
(2)	It appears to the inspector to be in such dilapidated condition as to cause or contribute to blight, disease, vagrancy, fire or safety hazard, to be a danger to children, or to tend to attract persons intent on criminal activities or other activities that would constitute a public nuisance.
(c)	If an inspector declares a nonresidential building or structure to be unsafe under subsection (b) of this section, the inspector must affix a notice of the unsafe character of the structure to a conspicuous place on the exterior wall of the building. For the purposes of this section, the term "community development target area" means an area that has characteristics of an urban progress zone under G.S. 143B‑437.09, a "nonresidential redevelopment area" under G.S. 160A‑503(10), or an area with similar characteristics designated by the city council as being in special need of revitalization for the benefit and welfare of its citizens.
(d)	A municipality may expand subsections (b) and (c) of this section to apply to residential buildings by adopting an ordinance. Before adopting such an ordinance, a municipality shall hold a public hearing and shall provide notice of the hearing at least 10 days in advance of the hearing."
SECTION 3.  G.S. 160A‑432(b) reads as rewritten:
"(b)	Removal of Building. – In the case of a building or structure declared unsafe under G.S. 160A‑426 or an ordinance adopted pursuant to G.S. 160A‑426, a city may, in lieu of taking action under subsection (a), cause the building or structure to be removed or demolished. The amounts incurred by the city in connection with the removal or demolition shall be a lien against the real property upon which the cost was incurred. The lien shall be filed, have the same priority, and be collected in the same manner as liens for special assessments provided in Article 10 of this Chapter. If the building or structure is removed or demolished by the city, the city shall sell the usable materials of the building and any personal property, fixtures, or appurtenances found in or attached to the building. The city shall credit the proceeds of the sale against the cost of the removal or demolition. Any balance remaining from the sale shall be deposited with the clerk of superior court of the county where the property is located and shall be disbursed by the court to the person found to be entitled thereto by final order or decree of the court."
SECTION 4.  G.S. 160A‑428 reads as rewritten:
"§ 160A‑428.  Action in event of failure to take corrective action.
If the owner of a building or structure that has been condemned as unsafe pursuant to G.S. 160A‑426 shall fail to take prompt corrective action, the local inspector shall give him written notice, by certified or registered mail to his last known address or by personal service:
(1)	That the building or structure is in a condition that appears to meet one or more of the following conditions:
a.	Constitutes a fire or safety hazard.
b.	Is dangerous to life, health, or other property.
c.	Is likely to cause or contribute to blight, disease, vagrancy, or danger to children.
d.	Has a tendency to attract persons intent on criminal activities or other activities which would constitute a public nuisance.
(2)	That a hearing will be held before the inspector at a designated place and time, not later than 10 days after the date of the notice, at which time the owner shall be entitled to be heard in person or by counsel and to present arguments and evidence pertaining to the matter; and
(3)	That following the hearing, the inspector may issue such order to repair, close, vacate, or demolish the building or structure as appears appropriate.
If the name or whereabouts of the owner cannot after due diligence be discovered, the notice shall be considered properly and adequately served if a copy thereof is posted on the outside of the building or structure in question at least 10 days prior to the hearing and a notice of the hearing is published in a newspaper having general circulation in the city at least once not later than one week prior to the hearing."
SECTION 5.  Section 1 of this act is effective October 1, 2009, and the remainder of this act is effective when it becomes law.  A municipality may adopt an ordinance under G.S. 160A‑426(d) when this act becomes law, but the ordinance may not become effective prior to October 1, 2009.
In the General Assembly read three times and ratified this the 2nd day of July, 2009.

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		 Walter H. Dalton
	 President of the Senate

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		 Joe Hackney
	 Speaker of the House of Representatives

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		 Beverly E. Perdue
	 Governor

Approved __________.m. this ______________ day of ___________________, 2009