North Carolina Senate Bill 166 (Session Law 2024-49), the majority of which became effective on September 11, 2024, amended various N.C. state building codes, regulations for contractors and design professionals, and environment and environmental health regulations. It also reorganized the Building Code Council. This first article in a series focuses on Part 1 of the session law: Development Regulations. Here are key changes that insurance adjusters handling construction and architect, engineer, and design claims should be aware of:
Part 1: Development Regulations
Public Health: The North Carolina Drinking Water Act (N.C. Gen. Stat. Article 10, Chapter 130A)
§ 130A-330. Local authority to require backflow preventers; testing
This new section added to the North Carolina Drinking Water Act deals with the requirement of backflow preventers by the local authority, and testing of the same. It states that if a public water system is owned or operated by a local government unit, customers are not required to install backflow preventers (i.e., assemblies or devices that stop the backflow of water into potable water supply systems) on existing nonresidential or residential connections, if not otherwise required by State or federal law. The exception to this is if the “degree of hazard from the customer’s connection is determined to be high by the Department.” § 130A-330(a). However, section (a) does not overrule requirements by the N.C. Plumbing Code and the N.C. Fire Code related to the installation of backflow preventers in certain circumstances, including the retrofit or upfit/fit-up of a plumbing system, the addition of a facility, or a change in the use of the property served by the plumbing connection. § 130A-330(b).
Notably, the law makes public water systems owned or operated by local government, and their employees, immune from liability for tort claims for “any loss, damage, or injury arising out of or relating to the backflow of water into potable water supply systems where a backflow preventer is not required by State or federal law, or where the degree of hazard from the customer’s connection is not determined to be high by the Department.” § 130A-330(c). The Department is required to determine the hazard degree when the installation is not required by any other State or federal law. § 130A-330(d).
Furthermore, public water systems owned or operated by local government are not allowed to require testing of backflow preventers on residential irrigation systems that do not apply or dispose chemical feeds more often than once every three (3) years. And those government-owned or operated water systems cannot be held liable in tort for any loss, damage, or injury resulting from compliance with these limitations on periodic testing.
Finally, the new section allows government-owned or operated public water systems to accept testing on backflow preventers performed by plumbing contractors licensed under Article 2, Chapter 87 of the North Carolina General Statutes (“Plumbing and Heating Contractors”) or by certified backflow prevention assembly testers approved by the public water system. § 130A-330(h).
§ 130A-331. Prohibit duplicative water service shut-off valves
This new section of the Act prohibits local governmental units and individuals that are locating, constructing, altering, or operating (or intending to do any of the foregoing) a public water system from requiring the installation of a redundant inline water service shutoff valve between a water service meter and a customer receiving water service in a dwelling subject to the N.C. Residential Code. There are certain exceptions for integrated valves in a water meter box for the purpose of water meter installation, repair, or replacement, as well as certain valves installed as an accessible main shutoff valve. This section became effective on January 1, 2025.
Local Planning and Development Regulation: Building Code Enforcement (N.C. Gen. Stat. Article 11, Chapter 160D)
§ 160D-1110(b). Building Permits
This section of the statute regarding building permits was rewritten to add that a local government that reviews residential building plans (which is still not required) in order to issue a building permit must conduct its initial review “concurrently with processes for project development approvals required from other State, federal, and local agencies” and that if the local government does not perform its initial review within twenty (20) business days of submission of the plans, then it shall refund to the building permit applicant a portion of his/her total permit application fee. It goes on to detail exactly how much of the permit application fee shall be refunded based upon the amount of time that has passed. This section became effective on July 1, 2024.
§ 160D-1110(h). Building Permits
Pursuant to this section, no local government may withhold a building permit or certificate of occupancy unless otherwise authorized by law or unless the local government “reasonably determines the existence of a public safety issue directly related to the issuance of a building permit or certificate of occupancy.” The amendment to this section clarified that certain construction activities do not constitute “public safety issues.” Specifically, a “public safety issue” does not include “improvement, installation, placement, repair, or replacement of the following:
- Landscaping around dwellings subject to the North Carolina Residential Code within individual lots.
- Landscaping within common areas within a subdivision development.
- Street lighting fixtures within common areas of a subdivision development.
Finally, the rewritten section adds that if at the time a certificate of occupancy is issued, a developer has not completed all required site improvements (i.e., landscaping around dwellings and within common areas in a subdivision, and street lighting fixtures), then s/he must submit a signed affidavit stating why the site improvements have not been completed, the expected date of completion, and a promise to complete the required improvements.
Local Planning and Development Regulation: Administration, Enforcement, and Appeals (N.C. Gen. Stat. Article 4, Chapter 160D)
§ 160D-403(e). Administrative development approvals and determinations
The subject of§ 160D-403 is development approvals from the local government. Subsection (e) gives administrative staff the power and authority to inspect work undertaken pursuant to development approvals to ensure that the work is being done in accordance with State and local laws, as well as the terms of the approval, which includes the authority to enter sites under certain circumstances. The amendment to this subsection makes clear that staff are “prohibited from requiring unrestricted written consent from a permit applicant to enter any premises or areas not open to the public as a condition to accepting an application for, or the issuance of, development approvals.” (emphasis added).
§ 160D-1104(c). Duties and responsibilities
§ 160D-1104 deals with the duties and responsibilities of an inspection department and its inspectors. Subsection (c) was amended to add that building inspectors are not allowed to require affidavits attesting that work complies with the North Carolina Residential Code in lieu of conducting required inspections for work subject to the North Carolina Residential Code.
Local Planning and Development Regulation: Subdivision Regulation (N.C. Gen. Stat. Article 8, Chapter 160D)
§ 160D-804(c). Contents and requirements of regulation
§ 160D-804(c) allows for the dedication of rights-of-way or easements for utility and street purposes. The session law added a new subdivision, (5), which states that city regulations may not require a developer to “design and construct pedestrian facilities, including sidewalks, within rights-of-way for new streets designated as public and to be submitted to the North Carolina Department of Transportation for review … for small residential subdivisions [i.e., subdivision developments with twenty or fewer individual lots]” located in certain extraterritorial jurisdictions unless the city first agrees in writing to perform long-term maintenance.
§ 160D-804.1. Performance guarantees
This section allows subdivision regulations to use performance guarantees to ensure statutory compliance and “successful completion of required improvements.” Subsection (1c) was added and requires a local government to “conduct an inspection of the improvements subject to a performance guarantee” within a certain time period after a request by a developer and to advise the developer if the completed improvements meet required local governmental specifications. If a developer and local government disagree whether a required improvement meets the required specifications, then a developer has the option to obtain a certification from a licensed professional engineer stating that the improvements meet the specifications.
Subsection (2) was also amended to provide a set amount of time (30 days) within which a performance guarantee must be released or returned after the local government has acknowledged that the improvements are complete, and it adds an option in lieu of the governmental acknowledgement, i.e., a sealed certification from a professional engineer.
Finally, subsection (4), which deals with coverage of performance guarantees, was changed to add that performance guarantees may not be required for maintenance of any improvement once the improvement has been completed to the local government’s specification or upon receipt of a sealed certification from a professional engineer.
Local Planning and Development Regulation: Miscellaneous Provisions (N.C. Gen. Stat. Article 15, Chapter 160D)
§ 160D-1501. Model homes within subdivision developments
This new section was added to regulate model homes and includes regulations concerning the issuance of temporary certificates of occupancy, accessibility requirements, display area signage, utility connections, and disconnection of water to bathroom facilities. This section became effective on January 1, 2025 and applies to applications for temporary certificates of occupancy submitted on or after that date.
The next article in this series will discuss Part 2 of the law: The North Carolina State Building Code.
