Condemning Unsafe Nonresidential Structures Richard Ducker School of Government UNC – Chapel Hill March 23, 2007

Regulatory Tools and Sources of Statutory Authority (1) Nonresidential and residential unsafe building condemnation (G.S. 160A-426(a)) (2) Nonresidential unsafe building condemnation (G.S. 160A-426(b)) (3) Abatement of public nuisance (G.S. 160A-193

Regulatory Tools and Sources of Statutory Authority (4) Minimum housing (G.S. 160A-441) (5) General ordinance-making power (G.S. 160A-174 (6) Abandoned structure ordinance (G.S. 160A-441, 2nd §) (7) Demolition by neglect (historic preservation ordinance) (G.S. 160A-400.14(b))

Nonresidential Condemnation (Section 426(a) Property) May be either building or structure Must be “especially dangerous to life” because of fire or because of condition of walls, floors, egress, defective construction, decay, unsafe wiring, “or other causes”

Nonresidential Condemnation (Section 426(b) Property) (1) Vacant or abandoned, AND (2) “In such a dilapidated condition as to cause or contribute to blight, disease, vagrancy, fire or safety hazard, to be a danger to children, or to attract persons intent on criminal activities or other activities that would be a public nuisance,” AND (3) Located in a community development target area

Community Development Target Area Must Be: A nonresidential redevelopment area OR An area that has characteristics of a development zone OR An area “with similar characteristics designated by the city council as being in special need of revitalization.”

Unsafe Building Condemnation Procedure Generally Procedure more drastic and accelerated than property maintenance codes Placard-first approach No local ordinance required

Suggested Comments “As Hurricane Floyd demonstrated so dramatically, building disaster-resilient communities is also a key element of Smart Growth.” Image Photo courtesy of Mike Halminski, 1999. All rights reserved.

Notice of Hearing “Owner” must be given notice by registered or certified mail or personal service If name or whereabouts of owner cannot be discovered by due diligence, then notice in newspaper OK No provision if owner refuses or fails to accept mail service

Hearing Hearing must be held no less than 10 days from notice date Hearing held “before the inspector”

Order Inspector may order owner to “remedy the defective conditions by repairing, closing, vacating, or demolishing. . . or taking other such necessary steps … as the inspector may prescribe” No express requirement the demolition be reserved for situations where cost of repair relatively high in comparison to value Owner given at least 60 days unless “imminent danger”

Appeals Must be taken to governing board within 10 days No appeal to Department of Insurance Board sits in a quasi-judicial capacity and has power to uphold, modify, or revoke the inspector’s order

Remedies Summary demolition actions questionable for section 426(a) properties (but perhaps may be coupled with action to abate a public safety nuisance) Summary demolition actions expressly authorized for section 426(b) properties

Lien Authority No express lien for demolition or removal costs for section 426(a) properties Two express liens for 426(b) properties: Against property upon which cost incurred Against same owner’s property within city or within one mile of city, (except for primary residence)

Liens and Other Arrangements City must sell salvageable materials and credit proceeds against demolition costs No express lien for demolition or removal costs for section 426(a) properties Two express liens for 426(b) properties: Against property upon which cost incurred Against same owner’s property within city or within one mile of city, (except for primary residence)

Disadvantages of Summary Abatement Lack of judicial authorization for: Whether demolition is proper remedy The manner in which owner is notified of demolition or removal action “Seizure “ when building demolished or moved

Constitutional Issues Taking of property without just compensation Procedural due process Fourth Amendment right to be free from unreasonable searches and seizures