Fayetteville UDO Chapter 30 has historically conditioned some ADU approvals on owner-occupancy of one of the two dwelling units. Verification is by recorded affidavit. North Carolina has no statewide preemption of owner-occupancy mandates. Restrictive covenants under NCGS 47F (NC Planned Community Act) and NCGS 47C (NC Condominium Act) may impose additional restrictions enforceable by HOAs.
Fayetteville Code of Ordinances Chapter 30 (UDO) conditions ADU approval on the property owner's residency in one of the two dwellings (principal or ADU) in several zoning contexts. The owner typically files a notarized owner-occupancy affidavit with Cumberland County Register of Deeds as part of the permit. Sale of the property generally requires a new affidavit if the ADU continues in use. North Carolina has no statewide ADU preemption rule: NC, unlike California (AB 671) or Washington (HB 1337), has not enacted statewide owner-occupancy preemption. Practical impact: investor purchase-and-rent-both-units strategies are restricted under the current ordinance. Properties in Haymount, Downtown, Liberty Point Local Historic Districts, and older neighborhoods like Eutaw, Massey Hill, and Westover commonly explore ADUs. Private restrictions stack on top: NCGS 47F (NC Planned Community Act) and NCGS 47C (NC Condominium Act) authorize HOAs to enforce declarations with broader restrictions, fines, and lien rights. Historic district properties also face Historic Resources Commission (HRC) standards under UDO 30-5.E. NCGS 160D-704 governs special use permits where applicable. Military families on Fort Liberty (Bragg) regularly rent out ADUs in nearby neighborhoods; the owner-occupancy mandate complicates that arrangement during deployments unless one of the two units is occupied by a designated family member.
Failure to maintain owner-occupancy may trigger revocation of the ADU permit and require ceasing rental of one unit. Continuing rental in violation may be enforced under UDO 30-5.J civil penalties up to $500 per day. False statements on the owner-occupancy affidavit can be referred for prosecution under NCGS 14-209 (perjury) or 14-100 (obtaining property by false pretenses). HOA/condo violations follow declaration-based fines and may escalate to lien rights under NCGS 47F-3-116 and 47C-3-116.
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