NC S281

Authorizes North Carolina cities to establish municipal service districts for converting private residential streets to public streets.

Property tax in such districts capped at 30% of the city's ad valorem tax rate and may only fund street transfer costs, condition evaluation, and design/construction to meet public street standards.

Requires 60% petition signature approval from lot owners in the homeowners' association and allows the association's executive board to transfer street-related common elements to the city despite conflicting covenants or planned community documents.

Applies only to nongated private residential roads in cities located primarily in counties with 750,000+ population adjacent to counties with 250,000+ population, or vice versa.

Service district must be abolished once streets are upgraded to public standards and all costs recovered; if the city later abandons the streets, street-related common elements must be returned to the owners' association.