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County pauses UDO rezoning work after state’s SB 382 limits down‑zoning authority

2138983 · January 21, 2025
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Summary

Planning staff told commissioners that North Carolina Senate Bill 382 restricts local authority to adopt down‑zonings without written consent of all affected landowners; the county agreed by consensus to pause county‑initiated rezonings and monitor the legislative session before moving forward.

Chance Mullis, county planning staff, briefed the Chatham County Board of Commissioners on Jan. 21 about the implementation implications of North Carolina Senate Bill 382 for the county’s newly adopted Unified Development Ordinance and rezoning work.

The matter matters because SB 382 contains language that limits local governments’ ability to adopt down‑zonings (changes that reduce allowable intensity of use, for example from commercial to residential) without written consent of all impacted property owners and includes retroactive elements that have already invalidated some local actions in other jurisdictions.

Mullis told the board SB 382 “really just restricts local government’s discretion to amend local zoning ordinances” and described the bill’s down‑zoning provisions and a 180‑day retroactive window in the statute that has created legal uncertainty for jurisdictions that adopted UDOs and made rezoning decisions before the law took effect. He summarized potential impacts on Chatham’s UDO: county‑initiated application of agricultural and rural‑agricultural districts to implement Plan Chatham could be treated as down‑zonings; detailed provisions such as use tables, setbacks, buffer and landscaping requirements, sign rules and even some building‑design thresholds could be interpreted as density‑reducing changes subject to the consent requirement.

Mullis said staff and the county’s consultant conducted a high‑level legal review and are tracking national and state guidance (including input from the North Carolina chapter of the American Planning Association, the Association of County Commissioners and the UNC School of Government). He recommended a pause in drafting and advancing county‑initiated rezoning maps until the General Assembly addresses SB 382 in the upcoming long session. Mullis told the board the county had already been communicating with local legislators, including Representative Robert Reives and Senator Natalie Murdock, and with statewide associations advocating for legislative fixes.

Commissioners debated how quickly they might expect legislative action; staff told the board it could be weeks to months and that many jurisdictions are coordinating to press for amendments or repeal of the down‑zoning language. Several commissioners said they preferred staff recommendation to hold off on finalizing county‑initiated rezoning maps but to remain “ready to resume work as soon as changes occur.” Chair Howard asked for consensus. Commissioners agreed by voice that staff should pause map preparation and continue close monitoring and outreach to legislators and statewide organizations.

Ending: Staff will continue to track statutory developments, to work with the county attorney and consultant on UDO compliance options, and will return to the board promptly if the legislative picture clarifies enough to resume mapping and rezoning steps.