A BILL TO BE ENTITLED
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.  Inspections for hazardous or unlawful conditions.
(a)	The inspection department may make 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. Except as provided in subsection (b) of this section, the inspection department may make 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 property has a history of more than two verified violations of the housing ordinances or codes within a 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 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 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 shall not be greater than one square mile or five percent (5%) of the area within the county, whichever is greater. The targeted area designated by the county shall reflect the county's stated neighborhood revitalization strategy and address significant levels of disrepair. The county shall (i) provide notice to all owners and residents of properties in the affected area about the 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.
(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, or to register rental property, except for those individual rental units that have more than seven verified violations of housing ordinances or codes in a rolling 12‑month period or upon the property being identified within the top four percent (4%) of properties with crime or disorder problems, or an individual unit with two or more violations in a rolling 30‑day period, 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; (iii) levy a special fee or tax on residential rental property that is not also levied against other commercial and residential properties, except as authorized by act of the General Assembly; (iv) require proof of registration under subdivision (i) of this subsection, when applicable, be posted in the business office, common area, or other conspicuous place; or (v) provide that any violation of a rental registration ordinance is punishable as a criminal offense.
				 
(e)	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 30 days of receipt of written notice from the county of the violations. 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. 
(f)	If a property is identified by the county as being in the top four percent (4%) 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's sheriff department shall assist the landlord in addressing any criminal activity, including 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's sheriff department 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 four percent (4%) of properties as a result of that tenant's behavior or activity. 
(g)	For purposes of this section, if an individual unit has a violation of G.S. 42‑42(a)(8) and that violation cannot be corrected or cured under this section, it shall be a verified violation.
(h)	If the county takes action against a unit under this section, the county shall provide an independent review process whereby the unit owner may appeal the violation or crime or disorder problems that the county has determined should be the responsibility of the owner. The process shall include an independent decision maker who is not connected to the county and due process for the unit owner."
SECTION 2.  G.S. 160A‑424 reads as rewritten:
"§ 160A‑424.  Inspections for hazardous or unlawful conditions.
(a)	The inspection department may make inspections, subject to the council's directions, for unsafe, unsanitary, or otherwise hazardous and unlawful conditions in buildings or structures within its territorial jurisdiction. Except as provided in subsection (b) of this section, the inspection department may make 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 property has a history of more than seven 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 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 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 county shall not be greater than one square mile or five percent (5%) of the area within the corporate limits of the city, whichever is greater. The targeted area designated by the city shall reflect the city's stated neighborhood revitalization strategy and address significant levels of disrepair. The city shall (i) provide notice to all owners and residents of properties in the affected area about the 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.
(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, except for those individual rental units that have more than three verified violations in a 12‑month period or upon the property being identified within the top four percent (4%) of properties with crime or disorder problems, or an individual unit with two or more violations in a rolling 30‑day period, 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; (iii) levy a special fee or tax on residential rental property that is not also levied against other commercial and residential properties, except as authorized by act of the General Assembly; (iv) require proof of registration under subdivision (i) of this subsection, when applicable, be posted in the business office, common area, or other conspicuous place; or (v) provide that any violation of a rental registration ordinance is punishable as a criminal offense.
				 
(e)	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 30 days of receipt of written notice from the city of the violations. 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.
(f)	If a property is identified by the city as being in the top four percent (4%) 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 department shall assist the landlord in addressing any criminal activity, including 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's sheriff department 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 four percent (4%) of properties as a result of that tenant's behavior or activity.
(g)	For purposes of this section, if an individual unit has a violation of G.S. 42‑42(a)(8) and that violation cannot be corrected or cured under this section, it shall be a verified violation.
(h)	If the city takes action against a unit under this section, the city shall provide an independent review process whereby the unit owner may appeal the violation or crime or disorder problems that the city has determined should be the responsibility of the owner. The process shall include an independent decision maker who is not connected to the city and due process for the unit owner."
SECTION 3.  This act is effective when it becomes law.