section .0900 – homeowners recovery fund

21 NCAC 12a .0901         DEFINITIONS

The following definitions apply to the Board's administration of the Homeowners Recovery Fund established pursuant to Article 1A, Chapter 87 of the General Statutes:

(1)           "Constructing or altering" means contracting for the construction or alteration of a single-family residential dwelling unit.

(2)           "Dishonest conduct" means conduct described in G.S. 87-15.5(3).

(3)           "Incompetent conduct" means conduct which demonstrates a lack of ability or fitness to discharge a duty associated with undertaking to construct or alter a single-family residential dwelling or the supervision of such construction or alteration.

(4)           "Owner or former owner" means a person who contracted with a general contractor for the construction or purchase of a single-family residential dwelling unit.  "Owner or former owner" does not include a person who is a spouse, child, parent, grandparent, sibling, partner, associate, officer, or employee of a general contractor whose conduct caused a reimbursable loss.  In addition, the term does not include general contractors or any financial or lending institution, or any owner or former owner of a single-family residential dwelling unit that has been the subject of an award from the Homeowners Recovery Fund resulting from the same dishonest or incompetent conduct.  "Owner or former owner" does not include the owner or former owner of real property who purchased, owned, constructed, altered, or contracted for construction or alteration of a single-family residential dwelling unit without intending to occupy the single-family residential dwelling unit as a residence.

(5)           "Substantial completion" means that degree of completion of a project, improvement or specified area or portion thereof whereupon the owner can use the same for its intended use.

(6)           "Separately owned residence" means a building whose construction is governed by the residential building code adopted by the Building Code Council pursuant to G.S. 143-138.

History Note:        Authority G.S. 87-4; 87-15.6;

Eff. January 4, 1993;

Amended Eff. April 1, 2014; July 1, 2008; April 1, 2007; April 1, 2001; August 1, 2000; August 1, 1998;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. July 23, 2016;

Recodified from 21 NCAC 12 .0901 Eff. January 2, 2020.