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Mooresville adopts stormwater ordinance to align with House Bill 488, shifts funding timeline
Summary
The Mooresville Board of Commissioners adopted an amendment to Chapter 25 of the town code to align with North Carolina House Bill 488, replacing 'escrow' language with 'segregated funds account' and changing the timing for the 5% initial deposit to prior to construction completion; the accounts will be held by property owners/HOAs and require town consent before expenditures.
The Mooresville Board of Commissioners on Oct. 20 adopted an amendment to Chapter 25 of the town code of ordinances to align local stormwater provisions with North Carolina House Bill 488.
Marissa Houston, deputy water resources director, told the board the update replaces the ordinance term 'escrow account' with 'segregated funds account' and changes when the initial funding is required. "To align with this House Bill, 5% has to be deposited prior to completion or construction of these stormwater control measures," Houston said. Under the revised language, funds are deposited for long-term maintenance of post-construction stormwater control measures and are recorded with Iredell County so they run with the property.
Houston said the segregated funds can be held by a property owner, a homeowners association or a property owners association and may be used only for sediment removal, structural replacement, vegetation maintenance, major repair or reconstruction; the town must consent before disbursements. She described the change as clarifying financial responsibility for maintenance and aligning town code with state statute.
Commissioners asked for clarification on retroactivity and administration. Houston stated the change is not retroactive: it applies to new projects moving forward and the town lacks legal authority to impose the requirement on historic stormwater control measures. Commissioner West asked whether funds already collected under prior rules remain available; Houston said funds historically held by the town may exist, but distribution would involve legal review.
There was no public comment on the item. Commissioner DeWeese moved to adopt the ordinance; the motion was seconded and approved by voice vote.
The ordinance change takes local effect according to the town's adoption process and aligns Mooresville’s post-construction maintenance language with state law. The town's water-resources office and planning staff will administer the new process and work with property owners and HOAs on the segregated funds agreements.
