Bill Summary for S 438 (2023-2024)
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View NCGA Bill Details | 2023-2024 Session |
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.
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Bill 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).