§ 122C-147. Financing and title of area authority property. - North Carolina Statutes

§122C‑147.  Financing and title of area authority property.

(a)        Repealed by SessionLaws 1993, c. 321, s. 220(i).

(b)        Unless otherwisespecified by the Secretary, State appropriations to area authorities shall beused exclusively for the operating costs of the area authority; providedhowever:

(1)        The Secretary mayspecify that designated State funds may be used by area authorities (i) for thepurchase, alteration, improvement, or rehabilitation of real estate to be usedas a facility or (ii) in contracting with a private, nonprofit corporation orwith another governmental entity that operates facilities for the mentally ill,developmentally disabled, or substance abusers and according to the terms ofthe contract between the area authority and the private, nonprofit corporationor with the governmental entity, for the purchase, alteration, improvement,rehabilitation of real estate or, to make a lump sum down payment or periodicpayments on a real property mortgage in the name of the private, nonprofit corporationor governmental entity.

(2)        Upon cessation ofthe use of the facility by the area authority, if operated by the areaauthority, or upon termination, default, or nonrenewal of the contract ifoperated by a contractual agency, the Department shall be reimbursed inaccordance with rules adopted by the Secretary for the Department'sparticipation in the purchase of the facility.

(c)        All real propertypurchased for use by the area authority shall be provided by local or federalfunds unless otherwise allowed under subsection (b) of this section or byspecific capital funds appropriated by the General Assembly. The title to thisreal property and the authority to acquire it is held by the county where theproperty is located. The authority to hold title to real property and theauthority to acquire it, including the area authority's authority to financeits acquisition by an installment contract under G.S. 160A‑20, may beheld by the area authority or by the contracting governmental entity with theapproval of the board or boards of commissioners of all the counties thatcomprise the area authority. The approval of a board of county commissionersshall be by resolution of the board and may have any necessary or properconditions, including provisions for distribution of the proceeds in the eventof disposition of the property by the area authority. Real property may not beacquired by means of an installment contract under G.S. 160A‑20 unlessthe Local Government Commission has approved the acquisition. No deficiencyjudgment may be rendered against any unit of local government in any action forbreach of a contractual obligation authorized by this subsection, and thetaxing power of a unit of local government is not and may not be pledgeddirectly or indirectly to secure any moneys due under a contract authorized bythis subsection.

(d)        The area authoritymay lease real property.

(e)        Equipment necessaryfor the operation of the area authority may be obtained with local, State,federal, or donated funds, or a combination of these.

(f)         The area authoritymay acquire or lease personal property. An acquisition may be accomplished byan installment contract under G.S. 160A‑20 or by a lease‑purchaseagreement. An area authority may not acquire personal property by means of aninstallment contract under G.S. 160A‑20 without the approval of the boardor boards of commissioners of all the counties that comprise the areaauthority. The approval of a board of county commissioners shall be byresolution of the board and may have any necessary or proper conditions,including provisions for distribution of the proceeds in the event ofdisposition of the property by the area authority. The area authority may notacquire personal property by means of an installment contract under G.S. 160A‑20without the approval of the Local Government Commission, when required by thatstatute. No deficiency judgment may be rendered against any unit of localgovernment in any action for breach of a contractual obligation authorized bythis subsection, and the taxing power of a unit of local government is not andshall not be pledged directly or indirectly to secure any moneys due under acontract authorized by this subsection. Title to personal property may be heldby the area authority.

(g)        All area authorityfunds shall be spent in accordance with the rules of the Secretary. Failure tocomply with the rules is grounds for the Secretary to stop participation in thefunding of the particular program. The Secretary may withdraw funds from aspecific program of services not being administered in accordance with anapproved plan and budget after written notice and subject to an appeal asprovided by G.S. 122C‑145 and Chapter 150B of the General Statutes.

(h)        Notwithstandingsubsection (b) of this section and in addition to the purposes listed in thatsubsection, the funds allocated by the Secretary for services for members ofthe class identified in Willie M., et al. vs. Hunt, et al. (C‑C‑79‑294,Western District) may be used for the purchase, alteration, improvement, orrehabilitation of real property owned or to be owned by a nonprofit corporationor by another governmental entity and used or to be used as a facility.

(i)         Notwithstandingsubsection (c) of this section and in addition to the purposes listed in thatsubsection, funds allocated by the Secretary for services for members of theclass identified in Willie M., et al. vs. Hunt, et al. (C‑C‑79‑294,Western District) may be used for the purchase, alteration, improvement, orrehabilitation of real property used by an area authority as long as the titleto the real property is vested in the county where the property is located oris vested in another governmental entity. If the property ceases to be used inaccordance with the annual plan, the unamortized part of funds spent under thissubsection for the purchase, alteration, improvement, or rehabilitation of realproperty shall be returned to the Department, in accordance with the rules ofthe Secretary.

(j)         Notwithstandingsubsection (c) of this section the area authority, with the approval of theSecretary, may use local funds for the alteration, improvement, andrehabilitation of real property owned by a nonprofit corporation or by anothergovernmental entity under contract with the area authority and used or to beused as a facility. Prior to the use of county appropriated funds for thispurpose, the area authority shall obtain consent of the board or boards ofcommissioners of all the counties that comprise the area authority. The consentshall be by resolution of the affected board or boards of county commissionersand may have any necessary or proper conditions, including provisions fordistribution of the proceeds in the event of disposition of the property. (1973,c. 476, s. 133; c. 613; 1977, c. 568, s. 1; c. 679, s. 7; 1979, c. 358, s. 29;1981, c. 51, s. 3; 1983, c. 5; c. 25; c. 402; 1985, c. 589, s. 2; 1987, c. 720,s. 3; c. 784; 1989, c. 625, s. 17; 1993, c. 321, s. 220(h), (i); 1993 (Reg.Sess., 1994), c. 592, s. 1; 1995, c. 305, s. 1.)