Hillsborough Municipal Code Ch. 15.30 Time Limits for Completion of Construction

This chapter shall be known as the "Construction Completion Chapter."

(Ord. 658 § 3 (part), 2005)

It is the intent of this chapter to:

A. Assure the safety of construction practices, structures, and other improvements, through encouragement of final inspections on all construction requiring building permits.

B. Set and enforce reasonable time limits for the completion of all construction requiring building permits in order to protect property values and prevent the creation of public nuisances.

(Ord. 658 § 3 (part), 2005)

This chapter shall apply to all construction (including, but not limited to, all additions, alterations, modifications, repairs and improvements) that requires a building permit.

(Ord. 658 § 3 (part), 2005)

For the purposes of this chapter, construction shall be complete upon the final performance of all construction work, including, but not necessarily limited to, exterior repairs and remodeling, total compliance with all conditions of application approval, and the clearing and cleaning of all construction-related materials and debris from the site. Final inspection and approval of the construction work by the town shall mark the date of construction completion. Deadlines for the completion of landscaping are set forth in Section 17.56.090.

(Ord. 658 § 3 (part), 2005)

Construction completion shall mean that construction being conducted under a particular permit is substantially completed within the following applicable time period:

(Ord. 658 § 3 (part), 2005)

(Ord. No. 739, § 4, 7-11-2016)

The building official may extend the time for completion set forth in Section 15.30.050 for a period not to exceed ninety days after considering the impact on neighboring residences and the good faith and diligence of the property owner in moving forward with the project. The property owner must apply for the extension at least five business days prior to the expiration of the time limit then in effect. Requests for time extensions for completion of construction are subject to type B public notice as described in Section 1.20.010 of the Code. As a condition of granting an extension for completion of construction, the building official may establish additional requirements for the project to meet to insure compliance with any conditions imposed by the architecture and design review board and, if applicable, by the city council, as well as compliance with all applicable state and federal law and regulations, including, without limitation, stormwater management, recycling, and parking requirements and to address neighborhood impacts. Failure to adhere to such requirements may result in the issuance of a stop work order and shall constitute a nuisance under Chapter 8.16 of the Code.

The property owner may apply for additional extensions, but no single extension may be for a period exceeding ninety days.

(Ord. No. 692, § 2, 9-13-2010; Ord. No. 739, § 4, 7-11-2016)

A. If a property owner fails to complete construction by the applicable time limit established in this chapter, the property owner shall be subject to the following penalties payable to the town:

B. Penalties, fees and costs due to the town pursuant to this chapter are due each day as the penalties accrue.

C. Any violation of this chapter shall constitute a public nuisance and, in addition to being subject to any other remedies allowed by law, may be abated as provided by law.

(Ord. 658 § 3 (part), 2005)

A. Before a building permit may be issued, the property owner or his representative shall deliver to the building department a refundable deposit (in cash or in the form of a payment penalty bond) in the amount of two percent of the estimated value of the work as determined by the chief building official, but not less than five hundred dollars deposit. Any bond shall be in the amount of the deposit and in form and contents satisfactory to the town and shall cover a minimum time period of the applicable time limit plus two years.

B. If construction is completed (as defined in Section 15.30.040) by the applicable time limit, the town shall refund the construction completion deposit or return the bond.

C. If a property owner fails to complete construction by the applicable time limit, the applicable penalties shall accrue daily.

D. If the owner believes that the failure to meet the applicable time limit was caused by circumstances beyond the owner's control and those circumstances are among those listed as grounds for appeal in Section 15.30.080(B), the owner may file a written statement to that effect with the chief building official on or before the construction deadline and provide documentation substantiating such grounds of appeal and the effect on the construction. If the owner makes such filing, no part of the deposit shall be forfeited to the town and no demand shall be made against the bond if construction is completed within one year after the applicable time limit. If construction is thus completed and the chief building official concurs with the owner's statement as to the cause of the failure to meet the deadline, the chief building official may waive the penalty and return the cash deposit or bond to the owner. If the chief building official does not concur with the owner's statement, it shall be treated as an appeal under Section 15.30.080 and all the provisions of that section shall apply.

E. Except as set subsection D of this section, if construction is completed after the applicable time limit, the town shall draw on the deposit or bond in the amount of the applicable penalties; provided, however, that in the event of an appeal, the town shall not draw on the deposit or bond until the hearing panel has rendered its decision as set forth in Section 15.30.080(C).

F. After construction is completed and all applicable fines received by the town, any remaining deposit shall be refunded or the bond shall be returned.

(Ord. 658 § 3 (part), 2005)

(Ord. No. 761, § 7, 1-13-2020)

A. A penalty imposed pursuant to this chapter may be appealed to a hearing panel, as described in subsection E of this section, on the grounds that the property owner was unable to comply with the applicable time limit for reasons beyond the control of the property owner and the owner's representatives. There shall be no right to appeal until construction is completed.

B. The grounds for appeal shall include, but not be limited to, labor stoppages, acts of war or terrorism, and natural disasters, but shall not include delays caused by the winter rainy season, the issuance of any stop work order, the use of custom and/or imported materials, the use of highly specialized subcontractors, significant or numerous or late design changes, site access difficulties, failure of materials suppliers to provide materials in a timely manner, or delays associated with project financing, unless a failure or delay was caused by a labor stoppage, act of war or terrorism or natural disaster.

C. The appeal of penalties shall be filed in writing with the building official within ten calendar days from the date of construction completion, with payment of an appeal fee in the amount established from time to time by resolution of the city council. The building official shall notify the appellant in writing of the date of the hearing on the appeal. Such notice shall be sent at least two weeks before the date of the hearing, which shall be held no later than sixty days after the date of filing of the appeal. Notice to persons other than the appellant shall not be required; the hearing shall not be a public hearing.

D. At the time the appeal is filed or within two weeks thereafter, the appellant shall submit documentary and other evidence sufficient to establish that design decisions, construction drawings and documents, bids and construction contracts, permit applications, and compliance with all required permit conditions were undertaken in a diligent and timely manner. Documentary evidence shall include dated design contracts, date stamped plans, dated construction contracts and material orders, and proof of timely payment of any deposits or fees required pursuant to any of the foregoing items. The documentary and other evidence shall demonstrate to the hearing panel's satisfaction that construction delays resulted from circumstances fully out of the applicant's control and despite diligent and clearly documented efforts to achieve construction completion within the applicable time limit. Penalties shall not be modified or cancelled unless the evidence required by this subsection is submitted at the time of appeal.

E. The hearing panel shall consist of the two persons who are the mayor's appointees to the hearing panel set forth in Section 8.16.050, plus a third person appointed by the building official. The third person shall be knowledgeable in construction matters.

F. The hearing panel shall affirm, modify or cancel the penalty based on the evidence submitted pursuant to subsection D of this section.

(Ord. 658 § 3 (part), 2005)

A. This chapter shall apply to all construction for which a building permit was issued on or after the effective date of the ordinance codified in this chapter.

B. Any penalty due under Section 15.30.070 in excess of the deposit made under Section 15.30.080 shall be a personal debt owned to the town by the property owner(s) and, in addition to all other means of enforcement and collection, shall become a lien against the subject property and shall be subject to the same penalties (including interest thereon at the maximum rate allowed by law from the date the lien attaches until the date of payment) and the same procedure and sale in case of delinquency as provided for ordinary municipal taxes.

(Ord. 658 § 3 (part), 2005)