NC H771

Local governments cannot require owners of nonconforming on-premises signs to comply with new regulations without either paying monetary compensation or reimbursing the owner for upgrade costs.

Monetary compensation equals the fair market value of the sign immediately before removal, determined using factors in G.S. 105-317.1(a), excluding any value loss caused by the ordinance change.

Alternatively, local governments may reimburse owners the difference between the sign's fair market value and the reasonable cost to bring it into compliance, with owners then required to upgrade in a timely manner.

Compensation is not required if the parties enter a voluntary agreement, the sign is a public nuisance, removal is needed for public infrastructure projects with relocation offered, or removal is required for damaged structures.

If the parties cannot agree on compensation or reimbursement amounts, the local government may sue in superior court for determination, with the court applying the fair market value factors.