GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 587
Short Title: Clarify Nonconforming Uses. (Public)
Sponsors: Senators Lazzara and Sawrey (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S587 -v-1*
A BILL TO BE ENTITLED 1
AN ACT TO CLARIFY NO NCONFORMITIES IN LAN D DEVELOPMENT 2
REGULATIONS. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. G.S. 160D-102 is amended by adding a new subdivision to read: 5
"(23m) Nonconformity. – Any of the following that was lawfully operated, 6
established, or commenced in accordance with applicable development 7
regulations in effect at the time the nonconformity became nonconforming so 8
long as the nonconformity is not extended, expanded, enlarged, increased, or 9
intensified: 10
a. A lot, parcel, or tract of land that fails to meet all current development 11
regulation requirements. 12
b. A structure that no longer complies with all current development 13
regulation requirements applicable to that structure. 14
c. The use of a property for a purpose or activity, or in a manner, made 15
unlawful by a current development regulation. 16
d. Any dwelling, accessory building, accessory structure, outdoor 17
lighting, fence, wall, sign, off-street parking, vehicular surface area, or 18
private access point." 19
SECTION 2. Article 1 of Chapter 160D of the General Statutes is amended by 20
adding a new section to read: 21
"§ 160D-108.2. Nonconformities. 22
(a) Amendments in land development regulations are not applicable or enforceable 23
without the written consent of the owner with regard to a nonconformity. All of the following 24
shall apply to vested rights in a nonconformity established under this section: 25
(1) The establishment of a vested right under this section does not preclude 26
vesting under one or more other provisions of law or vesting by application of 27
common law principles. 28
(2) A vested right, once established as provided for in this section or by common 29
law, precludes any action by a local government that would change, alter, 30
impair, prevent, diminish, or otherwise delay the development or use of the 31
property allowed by applicable development regulations, except where a 32
change in State or federal law mandating local government enforcement 33
occurs after the nonconformity was established that has a fundamental and 34
retroactive effect on the development or use. 35
(3) G.S. 160D-108(h) shall apply to the claiming of nonconformities. 36 General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 587-First Edition
(4) Unless otherwise specified by this section or another statute, a nonconformity 1
may continue until intentionally and voluntarily discontinued. 2
(b) The statutory vesting period granted by this section for a nonconformity expires if the 3
nonconformity is intentionally and voluntarily discontinued for a period of not less than 24 4
consecutive months. The 24-month discontinuance period shall be automatically tolled during 5
any of the following events: 6
(1) The pendency of any board of adjustment proceeding or civil action in a State 7
or federal court regarding the validity of the use of the property or the 8
existence of the statutory vesting period granted by this section. 9
(2) The pendency of any litigation involving use of the property that is the subject 10
of the vesting. 11
(3) The duration of any emergency declaration issued under G.S. 166A-19.20 or 12
G.S. 166A-19.22 for which the defined emergency area includes the property, 13
in whole or in part. 14
(c) Reconstruction, re-establishment, repair, and maintenance of a nonconformity shall 15
be allowed by right provided the nonconforming is not extended, expanded, enlarged, increased, 16
or intensified by the reconstruction, re-establishment, repair, or maintenance. 17
(d) This section shall not apply to G.S. 160D-912 and G.S. 160D-912.1." 18
SECTION 3. G.S. 160D-108 reads as rewritten: 19
"§ 160D-108. Permit choice and vested rights. 20
… 21
(d) Duration of Vesting. – Upon issuance of a development permit, the statutory vesting 22
granted by subsection (c) of this section for a development project is effective upon filing of the 23
application in accordance with G.S. 143-755, for so long as the permit remains valid pursuant to 24
law. Unless otherwise specified by this section or other statute, local development permits expire 25
one year after issuance unless work authorized by the permit has substantially commenced. A 26
local land development regulation may provide for a longer permit expiration period. For the 27
purposes of this section, a permit is issued either in the ordinary course of business of the 28
applicable governmental agency or by the applicable governmental agency as a court directive. 29
Except where a longer vesting period is provided by statute or land development regulation, 30
the statutory vesting granted by this section, once established, expires for an uncompleted 31
development project if development work is intentionally and voluntarily discontinued for a 32
period of not less than 24 consecutive months, and the statutory vesting period granted by this 33
section for a nonconforming use of property expires if the use is intentionally and voluntarily 34
discontinued for a period of not less than 24 consecutive months. The 24-month discontinuance 35
period is automatically tolled during any of the following: 36
(1) the The pendency of any board of adjustment proceeding or civil action in a 37
State or federal trial or appellate court regarding the validity of a development 38
permit, the use of the property, or the existence of the statutory vesting period 39
granted by this section. 40
(2) The 24-month discontinuance period is also tolled during the pendency of any 41
litigation involving the development project or property that is the subject of 42
the vesting. 43
(3) The duration of any emergency declaration issued under G.S. 166A-19.20 or 44
G.S. 166A-19.22 for which the defined emergency area includes the property, 45
in whole or in part. 46
… 47
(h) Process to Claim Vested Right. – A person claiming a statutory or common law vested 48
right may submit information to substantiate that claim to the zoning administrator or other 49
officer designated by a land development regulation, who shall make an initial determination as 50
to the existence of the vested right. The decision of the zoning administrator or officer may be 51 General Assembly Of North Carolina Session 2025
Senate Bill 587-First Edition Page 3
appealed under G.S. 160D-405. On appeal, the existence of a vested right shall be reviewed de 1
novo. In lieu of seeking such a determination or pursuing an appeal under G.S. 160D-405, a 2
person claiming a vested right may bring an original civil action as provided by 3
G.S. 160D-1403.1. This subsection shall apply to the claiming of vested rights in a 4
nonconformity under G.S. 160D-108.2. 5
…." 6
SECTION 4. G.S. 160D-108.1(f)(3) reads as rewritten: 7
"(3) Notwithstanding any provision of this section, the establishment of a vested 8
right does not preclude, change, or impair the authority of a local government 9
to adopt and enforce development regulations governing nonconforming 10
situations or uses.nonconformities." 11
SECTION 5. G.S. 63-31(e) reads as rewritten: 12
"(e) All airport zoning regulations adopted under this Article shall be reasonable, and none 13
shall require the removal, lowering, or other change or alteration of any structure or tree not 14
conforming to the regulations when adopted or amended, or otherwise interfere with the 15
continuance of any nonconforming use, nonconformity as defined in G.S. 160D-102 except as 16
provided in G.S. 63-32, subsection (a)." 17
SECTION 6. G.S. 63-36 reads as rewritten: 18
"§ 63-36. Acquisition of air rights. 19
(a) In any case in which: 20
(1) It is desired to remove, lower, or otherwise terminate a nonconforming use; 21
nonconformity; or 22
(2) The approach protection necessary cannot, because of constitutional 23
limitations, be provided by airport zoning regulations under this Article; or 24
(3) It appears advisable that the necessary approach protection be provided by 25
acquisition of property rights rather than by airport zoning regulations, 26
the political subdivision within which the property or nonconforming use nonconformity is 27
located or the political subdivision owning the airport or served by it may acquire, in the manner 28
provided by the law under which municipalities are authorized to acquire real property for public 29
purposes, such an air right, easement, or other estate or interest in the property or nonconforming 30
use nonconformity in question as may be necessary to effectuate the purposes of this Article. 31
(b) If any political subdivision, or if any board or administrative agency appointed or 32
selected by a political subdivision, shall adopt, administer or enforce any airport zoning 33
regulations which results in the taking of, or in any other injury or damage to any existing 34
structure, such political subdivision shall be liable therefor in damages to the owner or owners of 35
any such property and the liability of the political subdivision shall include any expense which 36
the owners of such property are required to incur in complying with any such zoning regulations. 37
(c) For purposes of this section, "nonconformity" shall have the same meaning as in 38
G.S. 160D-102." 39
SECTION 7. G.S. 160A-31(h) reads as rewritten: 40
"(h) A city council which receives a petition for annexation under this section may by 41
ordinance require that the petitioners file a signed statement declaring whether or not vested 42
rights with respect to the properties subject to the petition have been established under 43
G.S. 160D-108 or G.S. 160D-108.1. G.S. 160D-108, G.S. 160D-108.1, or G.S. 160D-108.2. If 44
the statement declares that such rights have been established, the city may require petitioners to 45
provide proof of such rights. A statement which declares that no vested rights have been 46
established under G.S. 160D-108 or G.S. 160D-108.1 G.S. 160D-108, G.S. 160D-108.1, or 47
G.S. 160D-108.2 shall be binding on the landowner and any such vested right shall be 48
terminated." 49
SECTION 8. G.S. 160A-58.1(d) reads as rewritten: 50 General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 587-First Edition
"(d) A city council which receives a petition for annexation under this section may by 1
ordinance require that the petitioners file a signed statement declaring whether or not vested 2
rights with respect to the properties subject to the petition have been established under 3
G.S. 160D-108 or G.S. 160D-108.1. G.S. 160D-108, G.S. 160D-108.1, or G.S. 160D-108.2. If 4
the statement declares that such rights have been established, the city may require petitioners to 5
provide proof of such rights. A statement which declares that no vested rights have been 6
established under G.S. 160D-108 or G.S. 160D-108.1 G.S. 160D-108, G.S. 160D-108.1, or 7
G.S. 160D-108.2 shall be binding on the landowner and any such vested rights shall be 8
terminated." 9
SECTION 9. G.S. 160D-403(c) reads as rewritten: 10
"(c) Duration of Development Approval. – Unless a different period is specified by this 11
Chapter or other specific applicable law, including for a development agreement, a development 12
approval issued pursuant to this Chapter expires one year after the date of issuance if the work 13
authorized by the development approval has not been substantially commenced. Local 14
development regulations may provide for development approvals of shorter duration for 15
temporary land uses, special events, temporary signs, and similar development. Local 16
development regulations may also provide for development approvals of longer duration for 17
specified types of development approvals. Nothing in this subsection limits any vested rights 18
secured under G.S. 160D-108 or G.S. 160D-108.1.G.S. 160D-108, G.S. 160D-108.1, or 19
G.S. 160D-108.2." 20
SECTION 10.(a) G.S. 136-131.5(c) reads as rewritten: 21
"(c) A nonconforming sign not conforming to State standards shall not be relocated 22
pursuant to this section unless the nonconformity is removed nonconforming sign is brought into 23
conformity with State law, rules, and regulations as part of the relocation." 24
SECTION 10.(b) The catchline of G.S. 136-131 reads as rewritten: 25
"§ 136-131. Removal of certain existing nonconforming advertising. signs." 26
SECTION 10.(c) G.S. 136-133.1(d) reads as rewritten: 27
"(d) Except as provided in subsection (e) of this section, trees existing at the time the 28
outdoor advertising sign was erected may only be removed within the zone created in subsection 29
(a) of this section if the applicant satisfies one of the following two options selected by the 30
applicant: (i) reimbursement to the Department pursuant to G.S. 136-93.2 or (ii) trees that existed 31
at the time of the erection of the outdoor advertising sign may be removed if the applicant agrees 32
to remove two nonconforming outdoor advertising signs for each outdoor advertising sign at 33
which removal of existing trees is requested. The surrendered nonconforming signs must be fully 34
disassembled before any removal of existing trees is permitted and shall not be eligible for future 35
outdoor advertising permits in perpetuity." 36
SECTION 10.(d) G.S. 160D-912 reads as rewritten: 37
"§ 160D-912. Outdoor advertising. 38
(a) As used in this section, the term "off-premises outdoor advertising" includes 39
off-premises outdoor advertising sign visible from the main-traveled way of any road. 40
(b) A local government may require the removal of an off-premises outdoor advertising 41
sign that is nonconforming under a local ordinance not in compliance with a development 42
regulation and may regulate the use of off-premises outdoor advertising within its planning and 43
development regulation jurisdiction in accordance with the applicable provisions of this Chapter 44
and subject to G.S. 136-131.1 and G.S. 136-131.2. 45
(c) A local government shall give written notice of its intent to require removal of 46
off-premises outdoor advertising not in compliance with a development regulation by sending a 47
letter by certified mail to the last known address of the owner of the off-premises outdoor 48
advertising and the owner of the property on which the off-premises outdoor advertising is 49
located. 50 General Assembly Of North Carolina Session 2025
Senate Bill 587-First Edition Page 5
(d) No local government may enact or amend an ordinance of general applicability to 1
require the removal of any nonconforming, lawfully erected off-premises outdoor advertising 2
sign that is not in compliance with a development regulation without the payment of monetary 3
compensation to the owners of the off-premises outdoor advertising, except as provided below. 4
The payment of monetary compensation is not required if: 5
(1) The local government and the owner of the nonconforming off-premises 6
outdoor advertising enter into a relocation agreement pursuant to subsection 7
(g) of this section. 8
(2) The local government and the owner of the nonconforming off-premises 9
outdoor advertising enter into an agreement pursuant to subsection (k) of this 10
section. 11
(3) The off-premises outdoor advertising is determined to be a public nuisance or 12
detrimental to the health or safety of the populace. 13
(4) The removal is required for opening, widening, extending, or improving 14
streets or sidewalks, or for establishing, extending, enlarging, or improving 15
any of the public enterprises listed in G.S. 160A-311, and the local 16
government allows the off-premises outdoor advertising to be relocated to a 17
comparable location. 18
(5) The off-premises outdoor advertising is subject to removal pursuant to 19
statutes, ordinances, or regulations generally applicable to the demolition or 20
removal of damaged structures. 21
(d1) This subsection Subsection (d) of this section shall be construed subject to and 22
without any reduction in the rights afforded to owners of off-premises outdoor advertising signs 23
along interstate and federal-aid primary highways in this State as provided in Article 13 of 24
Chapter 136 of the General Statutes. Nothing in this section shall be construed to diminish the 25
rights given to owners or operators of nonconformities as set forth in G.S. 160D-108 and 26
G.S. 160D-108.2 or the rights of owners or operators of outdoor advertising signs in Article 11 27
of Chapter 136 of the General Statutes. 28
(e) Monetary compensation is the fair market value of the off-premises outdoor 29
advertising in place immediately prior to its removal and without consideration of the effect of 30
the ordinance or any diminution in value caused by the ordinance requiring its removal. Monetary 31
compensation shall be determined based on the following: 32
(1) The factors listed in G.S. 105-317.1(a). 33
(2) The listed property tax value of the property and any documents regarding 34
value submitted to the taxing authority. 35
(f) If the parties are unable to reach an agreement under subsection (e) of this section on 36
monetary compensation to be paid by the local government to the owner of the nonconforming 37
off-premises outdoor advertising sign for its removal and the local government elects to proceed 38
with the removal of the sign,off-premises outdoor advertising, the local government may bring 39
an action in superior court for a determination of the monetary compensation to be paid. In 40
determining monetary compensation, the court shall consider the factors set forth in subsection 41
(e) of this section. Upon payment of monetary compensation for the sign,off-premises outdoor 42
advertising, the local government shall own the sign.off-premises outdoor advertising. 43
(g) In lieu of paying monetary compensation, a local government may enter into an 44
agreement with the owner of a nonconforming off-premises outdoor advertising sign to relocate 45
and reconstruct the sign.off-premises outdoor advertising. The agreement shall include the 46
following: 47
(1) Provision for relocation of the sign off-premises outdoor advertising to a site 48
reasonably comparable to or better than the existing location. In determining 49
whether a location is comparable or better, the following factors shall be taken 50
into consideration: 51 General Assembly Of North Carolina Session 2025
Page 6 Senate Bill 587-First Edition
a. The size and format of the sign.off-premises outdoor advertising. 1
b. The characteristics of the proposed relocation site, including visibility, 2
traffic count, area demographics, zoning, and any uncompensated 3
differential in the sign owner's cost to the owner of the off-premises 4
outdoor advertising to lease the replacement site. 5
c. The timing of the relocation. 6
(2) Provision for payment by the local government of the reasonable costs of 7
relocating and reconstructing the sign,off-premises outdoor advertising 8
including the following: 9
a. The actual cost of removing the sign.off-premises outdoor advertising. 10
b. The actual cost of any necessary repairs to the real property for 11
damages caused in the removal of the sign.off-premises outdoor 12
advertising. 13
c. The actual cost of installing the sign off-premises outdoor advertising 14
at the new location. 15
d. An amount of money equivalent to the income received from the lease 16
of the sign off-premises outdoor advertising for a period of up to 30 17
days if income is lost during the relocation of the signoff-premises 18
outdoor advertising. 19
(h) For the purposes of relocating and reconstructing a nonconforming off-premises 20
outdoor advertising sign pursuant to subsection (g) of this section, a local government, consistent 21
with the welfare and safety of the community as a whole, may adopt a resolution or adopt or 22
modify its ordinances to provide for the issuance of a permit or other approval, including 23
conditions as appropriate, or to provide for dimensional, spacing, setback, or use variances as it 24
deems appropriate. 25
(i) If a local government has offered to enter into an agreement to relocate a 26
nonconforming off-premises outdoor advertising sign pursuant to subsection (g) of this section 27
and within 120 days after the initial notice by the local government the parties have not been able 28
to agree that the site or sites offered by the local government for relocation of the sign 29
off-premises outdoor advertising are reasonably comparable to or better than the existing site, 30
the parties shall enter into binding arbitration to resolve their disagreements. Unless a different 31
method of arbitration is agreed upon by the parties, the arbitration shall be conducted by a panel 32
of three arbitrators. Each party shall select one arbitrator, and the two arbitrators chosen by the 33
parties shall select the third member of the panel. The American Arbitration Association rules 34
shall apply to the arbitration unless the parties agree otherwise. 35
(j) If the arbitration results in a determination that the site or sites offered by the local 36
government for relocation of the nonconforming signoff-premises outdoor advertising are not 37
comparable to or better than the existing site, and the local government elects to proceed with the 38
removal of the sign,off-premises outdoor advertising the parties shall determine the monetary 39
compensation under subsection (e) of this section to be paid to the owner of the sign.off-premises 40
outdoor advertising. If the parties are unable to reach an agreement regarding monetary 41
compensation within 30 days of the receipt of the arbitrators' determination and the local 42
government elects to proceed with the removal of the sign, off-premises outdoor advertising then 43
the local government may bring an action in superior court for a determination of the monetary 44
compensation to be paid by the local government to the owner for the removal of the 45
sign.off-premises outdoor advertising. In determining monetary compensation, the court shall 46
consider the factors set forth in subsection (e) of this section. Upon payment of monetary 47
compensation for the sign,off-premises outdoor advertising, the local government shall own the 48
sign.off-premises outdoor advertising. 49
(k) Notwithstanding the provisions of this section, a local government and an 50
off-premises outdoor advertising sign owner may enter into a voluntary agreement allowing for 51 General Assembly Of North Carolina Session 2025
Senate Bill 587-First Edition Page 7
the removal of the sign off-premises outdoor advertising after a set period of time in lieu of 1
monetary compensation. A local government may adopt an ordinance or resolution providing for 2
a relocation, reconstruction, or removal agreement. 3
(l) A local government has up to three years from the effective date of an ordinance 4
enacted under this section to pay monetary compensation to the owner of the off-premises 5
outdoor advertising provided the affected property off-premises outdoor advertising remains in 6
place until the compensation is paid. 7
(m) This section does not apply to any ordinance in effect on July 1, 2004. A local 8
government may amend an ordinance in effect on July 1, 2004, to extend application of the 9
ordinance to off-premises outdoor advertising located in territory acquired by annexation or 10
located in the extraterritorial jurisdiction of the city. A local government may repeal or amend 11
an ordinance in effect on July 1, 2004, so long as the amendment to the existing ordinance does 12
not reduce the period of amortization in effect on June 19, 2020. 13
(n) The provisions of this section shall not be used to interpret, construe, alter, or 14
otherwise modify the exercise of the power of eminent domain by an entity pursuant to Chapter 15
40A or Chapter 136 of the General Statutes. 16
(o) Nothing in this section shall limit a local government's authority to use amortization 17
as a means of phasing out nonconforming uses other than off-premises outdoor advertising." 18
SECTION 10.(e) G.S. 160D-912.1 reads as rewritten: 19
"§ 160D-912.1. On-premises advertising. 20
(a) As used in this section, the following definitions apply: 21
(1) Monetary compensation. – An amount equal to the sum of (i) the greater of 22
the fair market value of the nonconforming on-premises advertising sign that 23
is not in compliance with a development regulation in place immediately prior 24
to the removal or the diminution in value of the real estate resulting from the 25
removal of the on-premises advertising sign and (ii) the cost of a new 26
on-premises advertising sign that conforms to the local government's 27
development regulations. 28
(2) On-premises advertising sign. – A sign visible from any local or State road or 29
highway that advertises activities conducted on the property upon which it is 30
located or advertises the sale or lease of the property upon which it is located. 31
(3) Reconstruction. – Erecting or constructing anew, including any new or 32
modern instrumentalities, parts, or equipment that were allowed under the 33
local development rules in place at the time the on-premises advertising sign 34
was erected. 35
(b) Notwithstanding any local development regulation to the contrary, a lawfully erected 36
on-premises advertising sign may be relocated or reconstructed within the same parcel so long 37
as the square footage of the total advertising surface area is not increased, and the on-premises 38
advertising sign complies with the local development rules regulations in place at the time the 39
on-premises advertising sign was erected. The construction work related to the relocation of the 40
lawfully erected on-premises advertising sign shall commence within two years after the date of 41
removal. The local government shall have the burden to prove that the on-premises advertising 42
sign was not lawfully erected. 43
(c) A local government may require the removal of a lawfully erected on-premises 44
advertising sign under a local development regulation only if the local government pays the 45
owner of the sign monetary compensation for the removal. Upon payment of monetary 46
compensation, the local government shall own the on-premises advertising sign and remove it in 47
a timely manner. 48
(d) Nothing in this section shall be construed to diminish the rights given to owners or 49
operators of nonconforming uses, including nonconforming structures,nonconformities as set 50 General Assembly Of North Carolina Session 2025
Page 8 Senate Bill 587-First Edition
forth in G.S. 160D-108 G.S. 160D-108 and G.S. 160D-108.2 or the rights of owners or operators 1
of outdoor advertising signs in Article 11 of Chapter 136. " 2
SECTION 11.(a) G.S. 160D-601, as amended by Section 3K.1(a) of S.L. 2024-57 3
reads as rewritten: 4
"§ 160D-601. Procedure for adopting, amending, or repealing development regulations. 5
… 6
(d) Down-Zoning. – No amendment to zoning regulations or a zoning map a zoning 7
regulation that down-zones property shall be initiated, enacted, or enforced without the written 8
consent of all property owners whose property is the subject of the down-zoning 9
amendment.amendment, unless the down-zoning amendment is initiated by the local 10
government. 11
(e) For purposes of this section, "down-zoning" or "down-zone" means a zoning 12
ordinance regulation that affects an area of land in one of the following ways: 13
(1) By decreasing the development density of the land to be less dense than was 14
allowed under its previous usage. 15
(2) By reducing the substantive permitted uses of the land that are specified in a 16
zoning ordinance or land development regulation to fewer uses than were 17
allowed under its previous usage. 18
(3) By creating any type of nonconformity on land not in a residential zoning 19
district, including a nonconforming use, nonconforming lot, nonconforming 20
structure, nonconforming improvement, or nonconforming site element." 21
SECTION 11.(b) This section is effective when it becomes law and applies 22
retroactively to December 11, 2024. Any development ordinance affected by Section 3K.1 of 23
S.L. 2024-57 shall be treated as if it remained in effect from June 14, 2024, to December 11, 24
2024. 25
SECTION 12. Except as otherwise provided, this act is effective when it becomes 26
law and applies to any nonconformity existing on or after December 11, 2024. 27