RALEIGH - Decades-old deed restrictions have stopped some construction in one established neighborhood where old homes are being razed to make way for new ones.

Now an effort is under way to strike the restrictions from the books. Some residents are raising questions.

Homeowner Francis J. Hale III has started to gather support from neighbors who want the restrictions to remain. Hale said he doesn't mind allowing existing homes that don't meet the rules to stay. But he'd like to prevent more from being built. "I hate to give up the fight," he said.

Finco Holdings LLC is behind the effort to get rid of the restrictions in the Sunset Hills Extended neighborhood off Wade Avenue. The firm built a house on Duplin Road that doesn't meet the requirements for setbacks and lot size, property owners in the neighborhood say. The firm learned of them when a potential buyer for the house discovered them in a title search of the property.

Steve Fincher, a member of Finco, declined to comment last week.

"We're optimistic that the issue will be resolved," said Robert J. Ramseur Jr., an attorney representing Finco. "Our conversations with the neighbors [have] been encouraging."

Sunset Hills Extended makes up about four blocks, including sections of Duplin and Banbury roads and Brooks Avenue. In the past five years, several of the older homes have been torn down. Much larger ones were built in their places.

The dispute is the latest as Raleigh's older neighborhoods grapple with the loss of older homes for new ones. The city is working on an in-depth study of the teardown trend. The City Council expects staffers to recommend regulations that could restrict the activity next year.

Hale and other longtime property owners say they also weren't aware of the 1944 restrictions. In Sunset Hills Extended, some provisions are more restrictive than the city's building requirements.

The restrictions, for instance, require that buildings must stand at least 40 feet from the street and 10 feet from the side property lines. All homes also must be built on at least two lots. Basements can't be used as living quarters.

The U.S. Supreme Court has declared one of the restrictions, which allows only white people to live in the neighborhood except for servants, unconstitutional. It is a common restriction in several of the city's older neighborhoods.

The restrictions were binding until 1968. They are automatically extended for 10-year periods unless a majority of property owners agrees to change them, according to a letter to homeowners from Ramseur, seeking signatures to let the restrictions expire. The restrictions affect 99 owners.

George Wooten, president of G.R. Wooten Construction, has signed the letter and hopes the restrictions are allowed to expire.

Wooten, who owns three lots in the neighborhood, tore down the home that sat on them and has plans to build two houses. One, a 5,000-square-foot home on the market for nearly $1 million, was completed about three weeks ago. But a second house would mean that each would sit on 1.5 lots -- less than the two lots required.

Wooten said many other existing homes -- new and old -- don't appear to comply with the restrictions. Ramseur estimates about a third of the homes don't meet the rules.

Wooten said, "If worse comes to worse, I can put it together as one piece of property and not build the second house."

Meanwhile, Hale continues to gather signatures from neighbors who want the restrictions to remain. So far, he has 25, he said Friday.

Allen Burris, a retired political science professor and former dean at Meredith College, moved to the neighborhood in 1969. He signed Hale's petition.

"I would like to see the ... [restrictions] retained, but I don't want to get into any legal or vindictive business" with people who don't comply, he said.

Hale said he'd like neighbors to sit down together to find a resolution that would allow Finco to sell the house.

"And then," Hale said, "we will say 'no more' and get some reasonable restrictions."

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