Legislative Briefing ~ July 2, 2018

Legislative Briefing ~ July 2, 2018

Settlement Reached on Dwelling Rates

The NC Rate Bureau and the NC Department of Insurance (NCDOI) reached a settlement agreement this week on a Dwelling Rate Filing that was submitted in February of this year. The Rate Bureau was proposing an overall statewide average increase in dwelling policy rate of 18.9%.
NC Insurance Commissioner Mike Causey was able to negotiate a much lower average overall statewide increase in dwelling policy rates to 4.8%. The settlement also realigns some territories to be consistent with the boundary lines on the homeowners insurance rate map.
Dwelling policies differ from homeowner policies. Dwelling policies typically cover non owner- occupied second homes, vacation rental homes or year-round rental homes and do not include liability coverage.
By reaching an agreement with the NC Rate Bureau, Insurance Commissioner Mike Causey has avoided a public hearing on the filing which was scheduled to begin August 20th.
Below is a chart of the proposed rate changes by percentage, the current rate and the approved percentage changes.
In the eastern NC coastal area, the fire coverage rate is going down but the wind and hail (extended coverage) rate is going up. Fortunately, the wind rate is not going up to the extent that was proposed. Wind rates are three to eight times higher than fire rates so a double-digit increase in wind rate is going to have significant impact on policyholders. The Fire and Wind portion of the rate is based on $15,000 Coverage, Base Class is Form DP-001. The new rates become effective February 1, 2019 and also impact those with dwelling policy coverage under the NCIUA (Coastal Property Insurance Pool). Changes to contents coverage are also included in the settlement agreement.
The press release and associated maps and charts from NCDOI can be found here.

Territory

Kill Devil Hills Removes Multi-Family Option from Low Density Residential Zone

The KDH Board of Commissioners met on Wednesday and held two public hearings on zoning ordinance text amendments. Commissioners took the following action:
• Approved by a vote of 3 to 2 a zoning ordinance text amendment to remove multi-family dwellings as a conditional use in the Low Density Residential (RL) Zone. The zoning ordinance had allowed multi-family, defined as 3 or more units, in the RL zone as a conditional use. According to Town Planner Cameron Ray, at least 25,000 sq. ft. or more was required to develop 3 or more units on a lot in order to meet setbacks, parking, stormwater, etc. He conveyed that there is not much land left of this size that is not developed in the RL zone to allow for a possible conditional use permit. Ray added that the RL zone is almost completely built out with single-family structures. Those opposing the amendment felt that it was the wrong direction to be going in considering the current community-wide conversation on the need for more affordable community housing options. A speaker noted that multi-family housing does not always equal affordable housing. Multi-family housing is an allowed use (not conditional) in the Light Industrial 1 (LI1), Light Industrial 2 (LI2), OIR and Commercial zones. The text amendment does not address accessory dwelling units.
Three multi-family projects are already in the pipeline to be developed in KDH. Derek Stallings is planning to develop up to six units on 802 W. Airstrip and also on 903 W. Corrigan. The Corrigan project will be adjacent to the Run Hill luxury apartments. Both projects are located in the Light Industrial zone. Another 5-unit, 11 bedroom project is being built between the highways on Caroline Drive in the Commercial zone.
To view the KDH zoning map, click here.
• Approved a zoning ordinance amendment to change §153.002 Definitions, §153.096(L) Ocean Impact Residential Zone Permitted Uses, §153.076(FF) Commercial Zone Permitted Uses, and create a new section, §153.290 Cottage Court – to modify existing definition of Cottage Court, add Cottage Court as a Permitted Use and create associated regulations for Cottage Court. The definition of cottage court was changed from two to three units. Several regulations were added regarding cottage court development.
The background information on the above public hearings that was included in the Board of Commissioners meeting packet can be found here.

Dare County Planning Board to Discuss Community Housing Zoning Changes

Bob Peele, head of the Outer Banks Chamber of Commerce’s Community Housing Initiative, has been advocating that amendments be made to Dare County’s and its six Towns zoning ordinances to allow for accessory dwelling units and to ease restrictions on multi-family development. On Monday, July 9th at 6 p.m., the Dare County Planning Board will begin its discussions on the proposals that Peele gave to the Board of Commissioners at their first meeting this month regarding accessory dwelling units, duplex lost size and multi-family structures.

NFIP Reauthorization Update

The National Flood Insurance Program (NFIP) is set to expire July 31, 2018. Last week, Senators Kennedy and Cassidy were successful in securing an amendment to extend the NFIP for six months as part of the Farm bill, which ultimately passed the Senate. This is a major victory, but according to the New Orleans Coalition for Sustainable Flood Insurance, it is unclear at this point whether or not the House and Senate will work out the differences between the House passed Farm Bill and the Senate passed Farm Bill before the NFIP’s July 31 expiration. Senators Kennedy and Cassidy also introduced a standalone bill that extends the program for six months, and members are also looking at other legislation that must be passed before July 31 to attach an amendment extending the NFIP.
If you have not already participated in the National Association of REALTORS® Call for Action to reauthorize the NFIP, please take a minute to do so by clicking here.

Planning to Travel and Want to Know Road Conditions?

Access NC DOT’s Travel Management System here.

Town/County Update

Duck – The Planning Board meets on Wednesday, July 11th at 6:30 p.m. and will review the following:
• Application by Scarborough Faire in Duck, LLC for a conditional use permit to expand an existing restaurant (Rope & Ladder) in the Village Commercial (V-C) district in the Scarborough Faire Shopping Center at 1177 Duck Road.
Following the Planning Board’s recommendations, Duck Town Council is expected to conduct a Public Hearing on August 1, 2018 at 7:00 p.m. to receive comments prior to its consideration of this application.

On Wednesday, July 18th at 7 p.m., Town Council will conduct a public hearing on the following:
• Application by Mark & Ashley Copeland (Big Momma, LLC) for conditional use permits to expand the existing restaurant with a permanent outdoor seating and entertainment area and apply the Village Commercial Development Option seeking flexible development standards for structure setbacks, parking setbacks, and landscape buffers for Roadside Bar & Grill at 1193 Duck Road.

Southern Shores – Town Council will hold two public hearings at their meeting on July 10th at 5:30 p.m. to consider the following:
• A zoning text amendment application submitted by the Southern Shores Volunteer Fire Department to establish parking, signage, and setback requirements for Fire Stations.
• A zoning text amendment application submitted by the Town to establish new lot coverage requirements.
The Town Council will also consider a second reading of ZTA-18-07, a Zoning Text Amendment application submitted by the Town of Southern Shores to amend the Southern Shores Town Code Section 36-132, Regulation of Structures and Uses Nonconforming. The new section deals with adjacent lots under the same ownership and would require a recombining of the lots in some cases to reduce the number of nonconforming lots in the Town. Full details on the amendment can be found here.

For additional information or questions, please contact Town Hall at (252) 261-2394 or email whaskett@southernshores-nc.gov.

The Outer Banks Association of REALTORS® and the Outer Banks Home Builders Association congratulate Planning Director Wes Haskett in being named Assistant Town Manager!

Kill Devil Hills – The previously scheduled July 16th Board of Commissioners meeting has been rescheduled to Thursday, July 19th at 5:30 p.m. in the Meeting Room at the Administration Building. A joint work session will be held with the Planning Board and Land Use Plan Consultant for discussion of the Town’s Land Use Plan Update. The public is invited to attend.

Commissioners scheduled a public hearing for July 17th at 5:30 p.m. to consider a zoning ordinance text amendment submitted by SAGA Construction to add a permeable pavement lot coverage reduction in the Residential Low Density Zone (see map link above). The Planning Board recently reviewed the proposal and voted to recommended approval to the Board of Commissioners. More information can be found here.

Nags Head – The Board of Commissioners meet this Thursday, July 5th and will once again discuss system development fees. Action on the agenda item was previously tabled after a public hearing was held. In accordance with House Bill 436, adopted by the NC General Assembly in July 2017, State Statute GS 162A was amended by adding “Article 8, System Development Fees”. The title of this amendment is “An Act to provide for uniform authority to implement system development fees for public water and sewer systems in North Carolina and to clarify the applicable statute of limitations.” The Nags Head Board of Commissioners authorized the hiring of Rivers & Associates, Inc., a professional consulting engineering firm, to complete a system development fee analysis, which was adopted by the Board along with amendments to the consolidated fee schedule on June 20, 2018.

The below ordinance includes amendment to Town Code Chapter 44 Utilities to codify the system development fee in accordance with the analysis adopted by the Board and to establish procedures to collect the fee and/or provide credits for pre-existing or pre-paid impact fees.
ORDINANCE AMENDING THE CODE OF ORDINANCES

In the News

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Upcoming Meetings

Monday, July 2
6:00 p.m. – Currituck Board of Commissioners

Wednesday, July 4
Town and County Offices Closed

Thursday, July 5
9:00 a.m. – Nags Head Board of Commissioners

Monday, July 9
5:30 p.m. – Kill Devil Hills Board of Commissioners
6:00 p.m. – Kitty Hawk Town Council
6:00 p.m. – Dare Planning Board
7:00 p.m. – Dare Waterways Commission

Tuesday, July 10
9:00 a.m. – OBAR Legislative Committee
9:30 a.m. – Oregon Inlet Task Force
5:30 p.m. – Southern Shores Town Council
->7:00 p.m. – Currituck Planning Board

Wednesday, July 11
6:30 p.m. – Duck Planning Board

Thursday, July 12
9:00 a.m. – OBAR Board of Directors

Advocacy, Legislative Briefing