NCORR ADMINISTRATIVE MODIFICATIONS.

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View NCGA Bill Details2023-2024 Session
Senate Bill 438 (Public) Filed Thursday, March 30, 2023
AN ACT TO ESTABLISH PROCUREMENT PROCEDURES FOR CONSTRUCTION PROJECTS FUNDED BY THE COMMUNITY DEVELOPMENT BLOCK GRANT DISASTER RECOVERY PROGRAM, TO PROTECT HOMEOWNERS FROM AN INCREASE IN PROPERTY TAX LIABILITY RESULTING FROM THE REVALUATION OF REAL PROPERTY REHABILITATED USING COMMUNITY DEVELOPMENT BLOCK GRANT DISASTER RECOVERY FUNDS OR HURRICANE FLORENCE DISASTER RECOVERY FUNDS BY LIMITING THE ABILITY OF ASSESSORS TO REAPPRAISE REAL PROPERTY AT HIGHER VALUES UNDER CERTAIN CIRCUMSTANCES, TO INCREASE THE INFORMAL BID THRESHOLD FOR CONTRACTS FOR CONSTRUCTION OR REPAIR WORK RELATED TO DISASTER RECOVERY UNDERTAKEN BY THE NORTH CAROLINA OFFICE OF RECOVERY AND RESILIENCY, AND TO MAKE OTHER PROGRAMMATIC CHANGES.
Intro. by Jackson, Perry, Britt.

Status: Ref To Com On Rules, Calendar, and Operations of the House (House action) (May 4 2023)
S 438

Bill Summaries:

  • Summary date: May 2 2023 - View Summary

    Senate amendment to the 2nd edition makes the following changes.  

    Section 2

    Amends new GS 143B-1042 by amending the requirements for contracts awarded or assigned by the Office of Recovery and Resiliency (Office) that are related to detached single-family dwellings and are funded with funds from the Community Development Block Grant Disaster Recovery program, to now provide that notwithstanding any contrary law, the Office must contract for a comparable sized dwelling, not to exceed a 15% difference from the pre-disaster dwelling size, except as is reasonably necessary due to lot setback requirements, building or safety code requirements, or local use or standard requirements of the property. Requires applications to be given the chance to further reduce the replacement square footage at their sole discretion and behest.

    Replaces the proposed change to GS 143-53.1 with the provision limiting the bid value benchmark, notwithstanding any other provision of law, to no greater than $250,000 for Community Development Block Grant Disaster Recovery funds available to the Office.

    Amends GS 143-131 by adding that the Office must, notwithstanding GS 143-129 and GS 143-131, use GS 143-135.9 and award construction contracts as best value procurements. 


  • Summary date: Apr 27 2023 - View Summary

    Senate committee substitute to the 1st edition makes the following changes.  

    Section 1

    Amends GS 143B-1040 (Office of Recovery and Resiliency [ORR]) to remove references to Hurricanes Florence and Matthew, so that the funding entity is just the Community Development Block Grant Disaster Recovery program (Recovery program).

    Section 2

    Amends new GS 143B-1042 to add new defined term contractor and to expand the scope of the term construction activities to apply to any actions undertaken for specified purposes in the definition (was, any physical actions undertaken on property for those purposes). Amends nine requirements for contracts awarded or assigned by ORR related to detached single-family dwelling funded with finds provided by the Recovery program, including: (1) adding the length of time, if any, that an applicant has been temporarily relocated to the minimum requirements (was, just requirements) for ORR’s priority-based award system; (2) changing the contractor award limit from a single bid package of 20 detached single-family dwellings to no greater than 75 at any given time; (3) changing the requirements for contracts to both expedite the recovery process for citizens while protecting the Recovery program from financial loss (previously, required contract provisions were just to protect the Recovery program from financial loss) by deleting provisions providing alternate daily liquidated damages calculation of 2% and requiring that liquidated damages be placed in a disaster recovery fund; (4) extending the deadline for completion of construction activities from 120 days to 135 days and makes technical changes; (5) changing the permissible reasons for an extension from ORR from unusual weather phenomena to weather phenomena or unforeseen circumstances. Defines weather phenomena as a weather event that creates a reasonable impossibility of the construction activities during the same period of time and locality where the construction activities are to be performed, as reported by the National Oceanic and Atmospheric Administration National Weather Service statistics. Defines unforeseen circumstances as actions taken by the applicant or other third party that limit the ability of ORR or contractors to continue construction activities. Permits the Director to grant extensions under this subdivision not to exceed 45 days in total for any individual assignment or award. In addition, when unforeseen circumstances arise, permits the Secretary of the Department of Public Safety to grant an additional extension under this subdivision not to exceed 45 days in total for any individual assignment or award. Specifies that any extension granted by the Secretary under this subdivision must be reported to the chairs of the specified NCGA committees within five business days. Limits the combined total number of days for all extensions granted under this subdivision to not more than 90 days for any individual project awarded or assigned; (6) deleting provision barring a contractor from being awarded or assigned a contract unless the contractor has completed at least 75% of the construction projects on the subject property; and (7) adding new provision requiring ORR to limit the expansion or reduction in square footage of any detached single‐family dwelling to no greater than 5% of the pre‐disaster square footage of the dwelling, except insofar as it is reasonably necessary due to lot setback requirements or other lot size requirements of the real property. Amends effective date to have it also apply to contracts assigned on or after the date the act becomes law. 

    Section 3

    Amends one of the reasons for increased reappraisal for a permanent residence that has increased in true value under new GS 105-286.1 and GS 105-328.1(b)(4) (reappraisal limitation for certain rehabilitation of real property) so that it allows for such increased reappraisal after the owner's permanent residence is modified (was, rehabbed) using Recovery program funds or Hurricane Florence Disaster Recovery funds, five calendar years have elapsed (was, five years since the first reappraisal of the permanent residence).


  • Summary date: Apr 26 2023 - View Summary

    Senate committee substitute to the 1st edition is to be summarized. 


  • Summary date: Mar 30 2023 - View Summary

    Section 1

    Amends GS 143B-1040 to include Tropical Storm Fred in the natural disasters for which the Office of Recovery and Resiliency (ORR) is charged with executing recovery and resiliency projects and administering funds provided by the Community Development Block Grant Disaster Recovery program (Recovery program). Adds a new subsection providing that the provisions of Subpart D, Part 5 (Division of Emergency Management; Division), Article 13 (Department of Public Safety; DPS) relating to standards and practices of applicant and homeowner eligibility, contractor requirements, rehabilitation assistance, physical condition requirements, and displacement and relocation, are not to be construed as more restrictive than applicable federal or state law.

    Section 2

    Enacts GS 143B-1042, establishing nine requirements for contracts awarded or assigned by ORR related to detached single-family dwelling funded with finds provided by the Recovery program, including: (1) requiring ORR to develop a priority-based system for awarding or assigning contracts as specified with described qualifications; (2) limiting the number of detached single-family dwellings included in a single bid package to 20, and limiting the award or assignment of contracts to contractors to perform construction activities on no more than 20 dwellings at one time; (3) requiring described cancellation and liquidation clauses in all contracts; and (4) requiring contractors awarded or assigned a contract to begin activities on the property within 45 days after the award and complete activities within 120 days of award or assignment, or the temporary relocation of the applicant, whichever is later. Defines construction activities and property.

    Enacts GS 160D-1112.1, requiring local government inspection departments (departments) to give priority to inspections services (including permitting) required under Article 11, Building Code Enforcement, that involving activities on detached single-family dwellings funded in whole or in part with funds from the Recovery program. Allows departments to require contractors to present evidence proving the activities are funded by the Recovery program prior to granting priority. 

    Directs ORR to adopt the priority-based system required under new GS 160D-1042(b)(1) within 30 days of the date the act becomes law, and within 30 days of such adoption, report to the specified NCGA commission detailing the system. 

    Section 3

    Amends Article 14 (Time for Listing and Appraising Property for Taxation) and Article 22 (Listing property for city and town taxation; duty of owner; authority of governing body to obtain lists from county) of GS Chapter 105 by enacting GS 105-286.1 and GS 105-328.1 with identical provisions as follows. Prohibits appraising a permanent residence, which has increased in true value because it was rehabilitated using Recovery program funds administered by ORR or Hurricane Florence Disaster Recovery Fund administered by the Office of State Budget and Management (OSBM), at a value higher than the most recent value appraised prior to the rehabilitation unless one of four acts or circumstances occurs: (1) transfer of the residence; (2) death of the owner; (3) cease of use as a permanent residency by the owner; or (4) passage of five years since the first reappraisal. Specifies limitations of each circumstance. Defines owner, permanent residence, and rehabilitation or rehabilitated. Establishes a process by which an owner can file a complaint alleging appraisal in violation of the statute, from which the assessor has 30 days to confirm or deny the allegations and notify the owner. Requires the assessor to assist the owner in providing or verifying information in the custody of the city or county. Requires reappraisal if the allegations are confirmed. Allows an owner to appeal an accessor's decision that the appraisal was not in error to the county's governing body, with an appeal of the governing body's decision permitted to the Property Tax Commission. 

    Makes conforming changes to GS 105-283, GS 105-284, and GS 105-328, relating to appraisals, to reference new GS 105-286.1 and GS 105-328.1 as appropriate. 

    Applies for taxes imposed for taxable years beginning on or after July 1, 2023. 

    Section 4

    Amends GS 143-53.1 to set the competitive bidding benchmark for ORR when awarding or assigning contracts under Subpart D, Part 5, GS Chapter 143B, as amended, at $250,000.

    Amends GS 143-131, which requires public construction or purchase contracts of $30,000 or more (but less than the limits of GS 143-129) made by any political subdivision of the State or their officer be made after informal bids have been secured, with all contracts awarded to the lowest responsible, responsive bidder, taking into account specified considerations, and public entities responsible for recordkeeping. Explicitly subjects ORR to these provisions for all contracts for construction or repair work related to disaster recovery involving the expenditure of $250,000 or more of public money, but less than the limits of GS 143-129. Defines construction to include the purchase of manufactured housing units.