§ 146-29.1. Lease or sale of real property for less than fair market value. - North Carolina Statutes

§146‑29.1.  Lease or sale of real property for less than fair marketvalue.

(a)        Real property ownedby the State or any State agency may not be sold, leased, or rented at lessthan fair market value to any private entity that operates, or is established tooperate for profit.

(b)        Real property ownedby the State or by any State agency may be sold, leased, or rented at less thanfair market value to a public entity. "Public entity" means a county,municipal corporation, local board of education, community college, specialdistrict or other political subdivision of the State and the United States orany of its agencies. Any such sale, lease, or rental shall be reported at least30 days prior to the sale, lease, or rental to the Joint Legislative Commissionon Governmental Operations and the Fiscal Research Division of the LegislativeServices Office, with the details of such transaction.

(c)        Real property ownedby the State or by any State agency may be sold, leased, or rented at less thanmarket value to a private, nonprofit corporation, association, organization orsociety if the Department of Administration determines both of the following:

(1)        The transaction isin consideration of public service rendered or to be rendered by the nonprofit.

(2)        The property will beused in connection with the nonprofit's tax‑exempt purpose and not inconnection with its unrelated trade or business, as defined in section 513 ofthe Code. For the purposes of this subdivision, the term "Code" hasthe same meaning as in G.S. 105‑228.90.

The transaction shall be reportedin detail at least 30 days prior to the sale, lease, or rental to the JointLegislative Commission on Governmental Operations and the Fiscal ResearchDivision of the Legislative Services Office. The fact that any sale of propertyunder this subsection shall not be subject to a reversionary interest in theState shall be expressly made known to the Joint Legislative Commission onGovernment Operations, and the Governor and Council of State, prior to thetransaction being authorized.

(d)        Any sale, lease, orrental of real property made in conformity with the provisions of this sectionis not a violation of G.S. 66‑58(a).

(e)        All sales, leases,or rentals, prior to July 15, 1986, of real property owned by the State or anyState agency are not invalid because of a conflict with G.S. 66‑58(a) orwith a prior version of this section, but any renewal of any such lease orrental agreement on or after July 15, 1986, shall conform to the requirementsof this section. (1985, c. 479, s. 172(a); 1985 (Reg. Sess., 1986), c.1014, s. 188(a); 1993, c. 561, s. 32(c); 1999‑252, s. 2.)