State House Passes Road Maintenance Bond Legislation

The North Carolina House last week passed legislation to establish a new performance guarantee process for subdivision roads, while also requiring the state Department of Transportation (NCDOT) to develop a comprehensive roads database and improve the process by which roads are accepted into the state system for maintenance.

HB 457, ‘Performance Guarantees/Subdivision Streets’ would authorize counties to be able to require “residual performance guarantees” from developers, but, in return, requires NCDOT to expedite the acceptance of county subdivision roads.  Despite the fact that these roads are constructed to DOT standards and are given to the state at no cost, the NCDOT has historically been slow to accept them into its system.

The legislation also requires the state to accept subdivision roads approved on or after October 1, 2010, which meet DOT standards and which have been open to public travel for the last 6 years.

Finally, the legislation would direct NCDOT to work with counties to create a database that would convey the status of roads within each county (i.e., “public” or “private”).  This database would provide Realtors® and property owners much-needed information about the maintenance responsibilities associated with many of the state’s orphan roads, as well as establish a greater understanding for road ownership for properties across the state.

HB 457 passed the House by a unanimous vote of 112-0, and now moves on to the Senate. It is supported by both the North Carolina Association of Realtors® (NCAR) and the North Carolina Home Builders Association (NCHBA)

Source: NCAR & NCHBA

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