House committee substitute to the 1st edition reorganizes the act in its entirety and makes the following changes.
Changes the act’s effective date to October 1, 2025 (unless otherwise provided), and applies to applications, approvals, and actions filed on or after that date. Specifies that any local government ordinance in effect on, or adopted subsequent to, October 1, 2025, that is inconsistent with the act is void and unenforceable. Removes differing effective dates from changes to GS 160D-101, GS 160D-108.1, GS 160D-403, GS 160D-703,GS 120-36.7, and GS 160D-1110, so that the general October 1, 2025, effective date applies.
Removes proposed new GS 162A-901 (reservation of water and sewer capacity for a proposed development).
Section 1.
Amends GS 160D-601(d)-(e) (procedures for adopting, amending or repealing development regulations-down zoning) as follows. Changes the definition of down-zoning or down-zone so that it pertains zoning regulations (was, ordinances) that reduces the substantive permitted uses of the land (was, permitted uses) specified in a zoning ordinance (was, zoning ordinance or land development regulation) to fewer uses, as described. Removes definition’s component pertaining to nonconformity on land not in a residential zoning district. Narrows the down-zoning amendments prohibited by the statute without the property owners’ consent to those that only pertain to a zoning regulation (was, regulation and map) unless it is initiated by a local government. Applies retroactively to December 11, 2024. Provides that any development ordinance affected by Section 3K.1 of SL 2024-57 will be treated as if it remained in effect from June 14, 2024, to December 11, 2024.
Section 3 (was, Section 10(a)).
Adds the following defined terms to GS 160D-102: acre, buffer yard, and nonconformity.
Section 4.
Specifies that GS 160D-108(h) (process to claim vested rights) applies to the claiming of vested rights in nonconformity under GS 160D-108.2. Removes provisions expiring the 24-month statutory vesting period for a nonconforming use of property as part of a development project if the use is intentionally and voluntarily discontinued. Automatically tolls the vesting period for the duration of any emergency declaration issued under GS 166A-19.20 or GS 166A-19.22 for which the defined emergency area includes the property, in whole or in part.
Section 6.
Enacts GS 160D-108.2 which specifies that amendments in land development regulations are not applicable or enforceable without the written consent of the owner with regard to a nonconformity. Lists four criteria that apply to vested rights in a nonconformity established under the statute. Deems the 24-month statutory vesting period for a nonconformity expired if the use is intentionally and voluntarily discontinued for a period of not less than 24 months. Automatically tolls the vesting period for three listed reasons, including the duration of any emergency declaration issued under GS 166A-19.20 or GS 166A-19.22 for which the defined emergency area includes the property, in whole or in part. Exempts GS 160D-912 and GS 160-912.1 from GS 160D-108.2. Directs that the reconstruction, re-establishment, repair, and maintenance of a nonconformity is allowed by right provided the nonconformity is not extended, expanded, enlarged, increased, or intensified by the reconstruction, re-establishment, repair, or maintenance.
Section 7 (was, Section 4).
Makes organizational and clarifying changes to GS 160D-109(c).
Section 8 (was, Section 5).
Makes organizational changes. Removes provisions authorizing local governments by mutual agreement and with the landowner’s written consent, to assign exclusive planning and development regulation jurisdiction for the entire parcel to any one of the local governments when a parcel of land lies within the planning and development regulation jurisdiction of more than one local government. Makes conforming changes.
Section 9 (was, Section 6).
Clarifies that the act amends GS 160D-402 as it was amended by SL 2024-49 (was, just GS 160D-402). Requires local governments to designate at least one staff member charged with making determinations under the local government’s development regulations for purposes of GS 160D-703. Specifies that the contract or designation of staff under joint local government agreements must specify at least one individual designated as charged with making determinations under each local government's development regulations for purposes of GS 160D-703. Specifies that local governments contracting with an individual, company, council of governments, regional planning agency, metropolitan planning organization, or rural planning agency to designate an individual who is not a city or county employee to work under the supervision of the local government to exercise the functions under GS 160D-402 must specify at least one individual as charged with making determinations under each local government's development regulations for purposes of GS 160D-703. Makes technical and clarifying changes.
Section 10 (was, Section 7).
Clarifies that the authority granted by GS Chapter 160D is development regulation authority (was, regulatory authority). Lays out a time period for approval of an application for a development approval. Specifies that failure of a local government or its designated administrative staff to act before the expiration of the time period allowed for review shall constitute an approval of the application, and the local government must issue a written approval upon demand by the applicant. Expands the vested rights that are not limited by the statute to include those in GS 160D-108.2.
Removes provisions from GS 160D-403 that required that approvals concerning an application for a development project that is a permitted use in the zoning district where the project is located be made by the city's administrative staff if the city has a population of at least 125,000 people.
Section 12 (was, Section 9).
Amends GS 160D-702, concerning grants of power to local government to adopt zoning regulations as follows. Makes technical and organizational changes. Amends the things that a zoning or development regulation cannot do to now include the following:
- Require or otherwise specify the size of parking spaces, placement of parking spaces, configuration of parking spaces, or allocation of parking spaces than those required by the Americans with Disabilities Act (was, within a particular development).
- Specifies that the prohibition on setting limits on driveways within a development does not alter the Department of Transportation’s (DOT) authority to regulate driveways adjacent to public roads owned by the State (was, just adjacent to roads owned by the State).
- Except as provided, set design standards for public roads within a development in excess of those required by DOT. Specifies that a city may set design standards for public roads within a development in excess of those required by DOT if the city is financially responsible for the cost of the excess and accepts ownership and maintenance responsibility for the public road prior to, or in conjunction with, site plan approval. Confirmation of conformity of the improvements consistent with city's design standards will be conducted consistent with GS 160D-804.1(1c). Upon confirmation that the improvements have been made consistent with GS 160D-804.1(1c), directs the city to record with the register of deeds a plat evidencing the city's ownership of the public road (was, prohibition against setting design standards for roads with a development in excess of those required by DOT, with an exception for a city that accepts ownership and maintenance responsibility for the road prior to or in conjunction with site plan approval, subject to confirmation of conformity requirements).
- Expands the type of property subject to site plan approval as part of the exception against requiring the installation of sidewalks or improvement of existing sidewalks for any commercial or school property, to include residential property.
- Clarifies that the population requirements must be according to the most recent decennial federal census in order for the setback prohibitions to apply.
Requires a local government to support its determinations by demonstrating there is a rational and substantial relationship between the zoning map, zoning regulations, or zoning amendment and the health, safety, and welfare of the public through finding of facts and information, other than mere personal preferences or speculation, that a reasonable person would accept in support of a conclusion.
Section 13 (was, Section 10).
Amends GS 160D-703 (zoning districts), as follows. Modifies the permitted use in city areas zoned for non-agricultural commercial, business, or industrial use with a population of 125,000 or more according to the most recent decennial federal census to allow the siting of building and structures subject to the North Carolina Residential Code (NCRC) and multifamily housing structures with more than four residential dwelling units, with a maximum height restriction of not less than 60 feet (was, just 125,000 or more and also allowed duplexes, triplexes, and quadraplexes, with no reference to the NCRC). Clarifies throughout the statute that the population estimate must be according to the most recent decennial federal census. Makes clarifying change to the exemption from local design standards and buffer yards. Removes provisions specifying which parts of the statute apply to structures subject to the NCRC and apply regardless of whether it is a single lot or multiple lots. Applies the statute’s provisions on conditional districts to the approval of any site plan, development agreement, conditional zoning permit, or any other instrument under GS Chapter 160D. Requires development approvals for a development that is a permitted use in the zoning district where the development is located to be made only by the designated staff member as described in GS 160D-402. Requires a local government, in exercising its authority on conditional districts, to support its determinations with facts and information, other than mere personal preferences or speculation, as described. Removes defined term acre. Makes organizational changes.
Section 15 (was, Section 11).
Amends GS 160D-803 (review process, filing, and recording of subdivision plats) to require, within 10 days after approving a preliminary or final plat, an authorized representative of the local government to enter the approval on the face of the preliminary or final plat. Specifies, that notwithstanding GS 160D-403, once approval has been entered on the face of the plat, the approval is valid and does not expire unless the landowner applies for, and receives, a subsequent development approval.
Section 16.
Amends GS 160D-912 (outdoor advertising), as follows. Clarifies that “off-premises outdoor advertising” includes the described signs. Replaces references to signs (both conforming and nonconforming) with “off-premises outdoor advertising” throughout the statute. Now authorizes removal of an off-premises outdoor advertising if it is not in compliance with a development regulation (was, local ordinance). Makes organizational, conforming and clarifying changes. Specifies that nothing in GS 160D-912 should be construed to diminish the rights given to owners or operators of nonconformities as set forth in GS 160D-108 and GS 160D-108.2 or the rights of owners or operators of outdoor advertising signs set forth in Article 11 of GS Chapter 136.
Section 17.
Modifies the calculation of monetary compensation under GS 160D-912.1 (on-premises advertising) so that it refers to an on-premises advertising sign that is not in compliance with a development regulations (was, nonconforming on-premises advertising sign). Now directs that the statute cannot be construed to diminish rights given to owners and operators of nonconformities, including those set out in GS 160D-108.2. Make technical, clarifying, and conforming changes.
Section 18 (was, Section 13).
Clarifies that the local government can periodically amend historic districts subject to development regulations under GS 160D-944 (was, just regulation). Replaces references to zoning regulations with development regulations throughout the statute. Makes conforming changes.
Section 19 (was, Section 12).
Amends new GS 160D-974, as follows. Replaces references to “small housing” with “tiny housing.” Clarifies: (1) that the population estimate must be according to the most recent decennial federal census and (2) that the regulations authorized under the statute are development regulations. Makes organizational and technical changes to GS 160D-975.
Section 20.
Now requires local governments, in GS 160D-1102, to annually publish a report on how it used fees from the prior fiscal year for the support, administration, and implementation of its building code enforcement program by October 1.
Section 22.
Specifies, in GS 160D-1403, that any administrative decision implementing a subdivision regulation is subject to appeal as provided in GS 160D-405. (Currently, different appeal rights depending on the type of decision at issue.)
Section 23 (was, Section 15).
Replaces references to “ordinance” with “development regulation” in GS 160D-1403.1 (civil actions pertaining to development regulations or approval). Changes the types of actions that can be challenged under the statute to development regulations or development approvals (was, local land development regulations or decisions). Makes organizational, conforming changes. Removes defined term local government official and adds development permit.
Section 24 (was, Section 16).
Incorporates the standing provisions of GS 160D-1403.1 into GS 160D-1403.3 (private remedies) (was, standing conferred to any person, association, organization, society, or entity).
Section 25 (was, Section 17(b)).
Expands the conduct upon which suit can be brought under new GS 160D-1406 to include gross negligence or wrongful conduct. Provides that the suit must name the board member(s) of the decision making entity individually. Makes clarifying change.
Section 26.
Specifies, in GS 63-31, that airport zoning regulations cannot interfere with the continuance of any nonconformity as defined in GS 160D-101 (was, non-conforming use).
Section 27.
Amends GS 63-36 (acquisition of air rights), as follows. Replaces references to “nonconforming use” with “nonconformity” (as defined in GS 160D-102).
Section 28 (was, Section 1).
Limits GS 120-36.7’s (NCGA bill) and GS 159-42.2’s (local government ordinance) fiscal note requirement so that it pertains to home affordability to bills and resolutions that could increase the described costs for buildings or structures subject to the NCRC (was, single-family residence). Makes conforming changes. Expands the scope of the authorized civil action against a local government under GS 159-42.2 to include failure to have an accurate or sufficient fiscal note. Gives the court authority to determine the sufficiency of the fiscal note in such actions.
Section 30 (was, Section 18).
Now requires under GS 136-102.6, that the Division of Highways of DOT accept a performance guarantee as provided under GS 160D-804.1 to ensure completion of streets that are required by a development regulation under GS Chapter 160D (was, municipal or county subdivision control ordinance). Removes technical changes to the statute.
Section 31.
Makes technical and clarifying changes to GS 136-131.5 (relocation of lawfully existing outdoor advertising signs).
Section 32.
Changes the title of GS 136-131 from “removal of existing nonconforming advertising” to “removal of certain existing nonconforming signs.”
Section 33.
Replaces references to “signs” with “outdoor advertising signs” in GS 136-133.1. Makes conforming changes, including to the statute's title.
Section 34.
Expands the list of vested rights that must be addressed in a petition for annexation to a city under GS 160A-31 to include GS 160D-108.2.
Section 35.
Expands the list of vested rights that must be addressed in a petition for annexation of noncontiguous areas to a city under GS 160A-58.1 to include GS 160D-108.2.
Section 37.
Enacts Article 12, “Water and Sewer Regulation” to GS Chapter 162A to require all public water and sewer service providers to plan for future growth and allocate water and wastewater system capacity in a fair, transparent, and accountable manner. Specifies that the act may be cited as the “Water and Sewer Capacity Allocation and Planning Act.” Defines ten terms, including allocation or capacity allocation (a reservation of a specific quantity of water or sewer capacity for a particular project). Requires local governments to approve capacity allocation requests in line with the Article. Specifies that once approved, a capacity allocation guarantees the local governmental unit to provide water service or sewer service for that project up to the approved allocation amount. Provides for an application limited to the three listed prongs of information and only other information the local government unit determines is necessary for it to determine whether it has available capacity to serve the project. Sets forth a timeline for the local government unit’s process to approve the allocation (as described), if available capacity exists and the application is complete. Specifies that the initial reservation period will be for 24 months after the date the allocation is approved. Requires a local governmental unit to extend the initial reservation period or extension reservation period for additional 12-months provided the two specified conditions are satisfied. Directs that requests for allocations are to be granted in chronological order of submission, except for emergency allocations under the statute or requests to reserve capacity in line with GS 115C-521.
Requires an approved applicant to notify the local government unit if it determines that the allocation necessary to serve the project will increase or decrease by more than 10% of the approved allocation. Directs the local government to approve any deceases in allocation and adjust its capacity accordingly. Allows the local government to determine if it has capacity to approve increases and then to approve the request if so. Provides for notice if it does not have capacity and for termination procedures if any offer of the government does not meet the project capacity of the approved applicant. Provides for return of allocations upon expiration or termination of allocation, including allocations that are not used in full.
Specifies that approved allocations are deemed a vested element of the project for the duration of the reservation period, as described. Prevents an approved applicant from transferring an unused allocation to a different project. However, if the project for which an allocation has been reserved is sold or the development rights are assigned to a successor in interest, the allocation will transfer to the successor in interest and the allocation and reservation period will be honored and may not be terminated or revoked by the local governmental unit. Requires notice to the local governmental unit if a project is sold or transferred.
Prevents a local governmental unit from unreasonably delaying an approved applicant's ability to connect the approved applicant's project to the local governmental unit's infrastructure. Directs a local governmental unit to begin providing water service or sewer service to an approved applicant within 90 days after receiving a request from the approved applicant to begin providing water service or sewer service, provided (1) the project is connected to the local governmental unit's infrastructure, and (2) the request is made within the reservation period under the statute.
Enacts GS 162A-1003, requiring each local government unit to prepare an annual report by October 1 documenting facility capacity and available capacity, to include at minimum, the eight described matters and to publish each report on its website. Specifies that the first annual report is due on October 1, 2026. Requires the Department of Environmental Quality (DEQ) to make the annual reports available to the public.
Provides for State enforcement authority by DEQ, as described, civil penalties, and judicial review by an application whose application was denied, in new GS 162A-1004.
Repeals GS 162A-900 (limits on allocating service for residential development).
For applicants that, on or after July 1, 2020, received a service commitment from a public water system, public sewer system, or public water and sewer system confirming availability of capacity for the applicant's development project, but whose capacity needs have not been provided, requires the system to reserve, allocate, and provide those applicants with the capacity assured in the system's service commitment in the chronological order that the service commitment was issued before the system reserves, allocates, or provides capacity to another applicant.
LOCAL GOV. DEVELOPMENT REGULATIONS OMNIBUS.
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| View NCGA Bill Details | 2025-2026 Session |
AN ACT TO REFORM LOCAL GOVERNMENT DEVELOPMENT REGULATIONS IN THIS STATE.Intro. by Zenger, Brody, Winslow, Cunningham.
Bill History:
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Thu, 3 Apr 2025 House: Filed
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Mon, 7 Apr 2025 House: Passed 1st Reading
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Tue, 8 Apr 2025 House: Serial Referral To Regulatory Reform Stricken
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Tue, 8 Apr 2025 House: Serial Referral To Judiciary 2 Added
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Tue, 8 Apr 2025 House: Serial Referral To Regulatory Reform Added
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Mon, 14 Apr 2025 House: Serial Referral To Regulatory Reform Stricken
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Thu, 17 Apr 2025 House: Reptd Fav Com Substitute
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Thu, 17 Apr 2025 House: Serial Referral To Judiciary 2 Stricken
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Thu, 17 Apr 2025 House: Re-ref Com On Rules, Calendar, and Operations of the House
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Mon, 28 Apr 2025 House: Withdrawn From Com
Bill Summaries:
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Bill H 765Summary date: Apr 17 2025 - View Summary
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Bill H 765 (2025-2026)Summary date: Apr 7 2025 - View Summary
Section 1
Amends GS 120-36.7, enacting a new subsection to require a fiscal note be prepared by the Fiscal Research Division and attached to every bill and resolution introduced in the NCGA that proposes a change that could cause a net increase or decrease in the cost of constructing, purchasing, owning, or selling a single-family residence. Requires the fiscal note to identify and estimate all anticipated effects on costs for the first five years that the proposed change would be in effect. Details required bases for the estimates. Provides for instances where the Fiscal Research Division determines no estimate is possible. Prohibits including comments on the merits but allows for noting technical and mechanical defects. Describes the procedure for requesting a fiscal note, the timeline within which the note must be prepared and transmitted, and its attachment to the bill. Makes the requirements applicable to bills which are reported favorably by a committee with an amendment that proposes a change covered by the subsection.
Enacts GS 159-42.2, establishing a similar requirement applicable to governing bodies of local governments. Requires governing bodies of cities and counties to have a fiscal note prepared by their planning department (or another department designated by the body) and submitted to the body at least five days prior to a meeting where an ordinance is to be introduced that would cause a net increase or decrease in the cost of constructing, purchasing, owning, or selling a single-family residence. Requires the fiscal note be made available to the public at the meeting. Defines "introduced". Allows the department preparing the fiscal note to consult with relevant specified trade organizations. Requires the fiscal note to identify and estimate all anticipated effects on costs for the first five years that the proposed change would be in effect. Details required bases for the estimates. Provides for instances where the department determines no estimate is possible. Prohibits including comments on the merits but allows for noting technical and mechanical defects. Creates a cause of action for residents against a governing body for noncompliance. Authorizes a court to order that a fiscal note be prepared and prohibits a court from determining the sufficiency of a fiscal note.
Applies to legislation and ordinances introduced for consideration on or after July 1, 2025.
Section 2
Amends GS 160D-101, repealing the provision specifying that GS Chapter 160D (Planning and Zoning) does not impact local governments' scope of authority for planning and development regulation authorized by state law in other GS Chapters. Instead, enacts a new subsection barring local governments from exercising planning, zoning, subdivision, or development regulation authority beyond that expressly authorized by GS Chapter 160D. Prohibits local governments from enacting or enforcing more restrictive planning, zoning, subdivision or development regulations standards, limitations, or requirements than those expressly provided by State law or rule governing a particular subject matter, if any, except for regulations pertaining to floodplain management. Effective January 1, 2026. Deems void any noncompliant ordinance in effect or subsequently adopted on or after that date.
Section 3
Amends GS 160D-108.1 regarding site-specific vesting plans based on an approval required by a local government regulation. Now deems that a duration of the underlying approval less than five years (was two years) does not affect the duration of the site-specific vesting plan. Extends the duration of vested rights for site-specific vesting plans from two to five years. Now allows a local government to provide for rights to be vested for a period exceeding five years and up to eight years (was two years and up to five years). Changes language to refer to land development regulation rather than zoning action. Makes further clarifying and technical changes.
Section 4
Amends GS 160D-109 to bar members of local government governing boards and appointed boards from participating in or voting on any legislative decision (or, for appointed board members, any advisory decision) regarding a development regulation adopted under the Chapter where the member has a fixed opinion prior to the hearing on the matter that is not susceptible to change, or the member has undisclosed ex parte communication about the matter. Makes organizational and clarifying changes.
Amends GS 160D-605 regarding the required statement governing boards must approve when adopting or rejecting any zoning text or map amendment describing whether its action is consistent or inconsistent with an adopted comprehensive or land-use plan. Makes the plan consistency statement subject to judicial review (currently exempt from judicial review).
Section 5
Makes organizational changes to GS 160D-203 regarding split jurisdiction. Adds a new subsection to direct planning and development regulation jurisdiction over parcels that lie within the jurisdiction of more than one local government as follows. Specifies that:
- if only one local government has the ability to provide water and sewer services to the parcel at the time a site plan is submitted, that local government has jurisdiction over the entire parcel;
- if all of the local governments have the ability to provide either water or sewer services, but not both, at the time the site plan is submitted, the owner can designate which local government's regulations will apply to the parcel; and
- if all or none of the local governments have the ability to provide water and sewer services at the time the site plan is submitted, the local government where the majority of the parcel is located has jurisdiction over the entire parcel.
Section 6
Amends GS 160D-402, authorizing governing boards to set fees for the support, administration, and implementation of programs authorized by GS Chapter 60, to specify that such fees cannot exceed the amount reasonably required for those purposes (previously, authorized boards to fix reasonable fees).
Section 7
Amends GS 160D-403 to require that approvals concerning an application for a development project that is a permitted use in the zoning district where the project is located be made by the city's administrative staff if the city has a population of at least 125,000 people.
Section 8
Enacts GS 160D-707 (concerning applications for amendment of a zoning map or zoning regulations) and amends GS 160D-403 (concerning applications for development approval), establishing a 14-day period within which a local government or their designated staff must determine whether an application for amendment of a zoning map or zoning regulations, or development approval, is complete and notify the applicant of the application's completeness or deficiencies. Establishes a second 14-day period within which a determination of completeness must be made for amended applications or supplemental information submitted to cure identified deficiencies. Requires the local government or their designated staff to issue a receipt letter or electronic response upon the date the application is deemed complete, starting a 90-calendar day review period within which the application must be approved or denied. Tolls the review period at an applicant's request of a continuance. Permits extension of the review period up to six months only by agreement with the applicant and due to circumstances beyond the control of local government. Deems failure to act within the review period to constitute approval of the application, requiring written approval be issued upon demand by the applicant.
Section 9
Amends GS 160D-702 regarding local government authority to adopt zoning regulations. Regarding the general prohibition against applying any regulations relating to the building design elements adopted under the Chapter to any structures subject to regulation under the Residential Code, now prohibits applying these prohibited regulations to any zoning district or conditional district, without exception (current law allows property owners to voluntarily consent to application in the course of seeking and obtaining a zoning amendment or a zoning, subdivision, or development approval). Modifies and adds to the prohibited scope of zoning and development regulations (regulations) as follows. Prohibits regulations from setting a minimum width, length, or square footage (was square footage only) of any structures subject to the Residential Code. Prohibits establishing or requiring parking or parking space requirements or allocations except pursuant to the Americans with Disabilities Act (ADA) (replacing the prohibition against requiring a parking space to be larger than 9 feet wide by 20 feet long, with exceptions for handicap, parallel, or diagonal parking spaces). Specifies that the parking space prohibition applies to parking space sizes, parking spaces required for a particular development and their location and configuration within a particular development. Adds a new prohibition against setting a minimum width, length, or square footage for driveways within a development, unless the driveway abuts a public road, as defined, or pursuant to specified state law. Specifies that the prohibition does not impact the Department of Transportation's (DOT) authority to regulate driveways adjacent to State roads. Adds a new prohibition against setting design standards for roads with a development in excess of those required by DOT, with an exception for a city that accepts ownership and maintenance responsibility for the road prior to or in conjunction with site plan approval, subject to confirmation of conformity requirements. Adds a new prohibition against requiring the installation of sidewalks or improvement of existing sidewalks for any commercial or school property, with two described exceptions, including that the sidewalk is connected to an existing sidewalk. Adds a new prohibition against establishing a setback or buffer years requirements for a multifamily development that exceeds 15 units per acre, limited to cities with a population of at least 125,000.
Section 10
Amends GS 160D-102 to define dwelling unit to mean a single unit providing complete, independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking, and sanitation.
Amends GS 160D-703, adding a new requirement for local governments to classify residential zoning districts based on the number of dwelling units allowed per acre and prohibits classification based on the minimum lot size allowed. Enacted as new subsection (a2), establishes siting uses statutorily permitted by right in areas zoned for residential use in a county, based on county population, ranging from no fewer than four dwelling units per acre for counties with a population of 49,999 or less, and no fewer than six dwelling units per acre for counties with a population of 275,000 or more. Enacted as new subsection (a3), establishes siting uses statutorily permitted by right in areas zoned for residential use in a city, based on city population, with no fewer than four dwelling units per acre for cities with a population of 19,999 or less, and no fewer than six dwelling units (which may be met by duplexes, triplexes, and quadruplexes permitted by right) per acre for cities with population of 125,000 or more. Adds statutory uses of right for areas zoned for non-agricultural commercial, business, or industrial use in a city with a population of 125,000 or more for duplexes, triplexes, quadruplexes, and multifamily structure with more than four residential dwelling units, with a maximum height restriction as specified. Deems the statutory uses and structure of right for described for cities with a population of 125,000 or more exempt from local design standards (unless adopted as a condition of participation in the National Flood Insurance Program) or landscape buffering regulations. Deems new subsections (a2) and (a3) applicable to all structure subject to the Residential Code regardless of whether the structures are located on multiple lots or a single lot; excludes land used for a bona fide farm purpose or open space land purpose from the scope of new subsections (a2) and (a3). Regarding conditional districts, prohibits local governments from: (1) requiring, enforcing, or incorporating into the zoning regulations, or requiring as a condition of approval of any site plan, development agreement, conditional zoning permit, or any other instrument any condition, requirement, or deed restriction not specifically authorized by law, or any condition or requirement that courts have held to be unenforceable if imposed directly by the local government; or (2) accepting any offer by the petitioner to consent to any condition not specifically authorized by law, including listed conditions and standards (current law prohibited conditions or requirements not authorized by otherwise applicable law unless the petitioner consented in writing). Defines "acre".
Effective January 1, 2026. Deems void any inconsistent local government ordinance in effect on or after that date.
Section 11
Amends GS 160D-803 to require (was permit) subdivision regulations to provide that final decisions on preliminary plats and final plats are administrative and made by a staff person or committee comprised entirely of staff persons (current law permits the decisions to be made by the governing board, the governing board on recommendation of a designated body, or a designated planning board, technical review committee of local government staff, or other designated body or staff person). Eliminates language referencing quasi-judicial decisions. Makes conforming changes.
Section 12
Applicable to cities with a population of at least 125,000 people, enacts GS 160D-974 to mandate cities to allow small housing (appears to intend "tiny houses") in areas zoned for residential or mixed-use residential, including those that allow for the development of detached single-family dwellings. Provides a savings clause for private covenants or other contractual agreements among property owners. Excludes areas designated as a local historic district unless approved by the local historic preservation authority. Authorizes a city to require a new septic system or upgrade an existing system if determined that the existing system in incapable of handling extra capacity. Defines "tiny house".
Applicable to cities with a population of at least 125,000 or more, enacts GS 160D-975 to mandate cities to allow the development of at least one accessory dwelling unit, conforming to the Residential Code, for each detached single-family dwelling that is greater than 600 square feet, in areas zoned for residential use that allow for development of detached single-family dwellings. Allows the accessory building to be built or sited concurrently with or after the primary dwelling. Specifies that the statute does not prohibit permitting accessory dwelling units in any area not otherwise required by the statute. Defines "accessory dwelling unit". Lists three requirements from which development and permitting of an accessory dwelling unit are excepted from, including owner-occupancy requirements. Lists prohibitions for cities in connection with permitting accessory dwelling units, including prohibiting connection of the accessory dwelling unit to existing utilities serving the primary dwelling unit and charging fees that exceed the amount charged for single-family dwelling units similar in nature (other than building permit fees). Authorizes cities to regulate accessory dwelling units so long as the regulations do not act to discourage their development or siting through unreasonable costs or delay. Provides a savings clause for private covenants or other contractual agreements among property owners. Authorizes cities to impose a minimum setback for accessory dwelling units of the lesser of five feet or the setback minimum imposes generally upon lots in the same zoning classification.
Section 13
Amends GS 160D-944, adding new criteria for the designation of a historic district. Now requires that 75% of the property owners in the proposed district sign a petition requesting designation of the district. Adds a new requirement for the governing board of the local government to unanimously approve the adoption of the district.
Section 14
Amends GS 160D-1110 to prohibit local governments from requiring more than a shell permit, defined as a permit that allows for the structural construction of a building but does not result in the issuance of a certificate of occupancy, for the construction of a multifamily development project. Directs local governments to issue certificates of occupancy for individual units in a multifamily development project permitted under a shell permit as units meet the criteria for issuance, upon request of the permittee.
Section 15
Amends GS 160D-1403.1, allowing for persons with standing to bring a claim to challenge the enforceability, validity, or effect of a local land development regulation or decision (limited to local land development regulation under existing law). Expands the possible claims to include that the ordinance is arbitrary or capricious, or that the decision of an administrative staff member, local government decision-making board or governing board, or local government official made pursuant to the authority of GS 160D-702 or GS 160D-703 (regarding zoning regulations and zoning districts), is ultra vires, preempted, in excess of tis statutory authority, made upon unlawful procedure, made in error of law, arbitrary and capricious, or an abuse of discretion. Adds to the criteria for standing to bring a claim to allow a claim be brought by an association, organization, society, or entity whose membership is comprised of any individual or entity identified in two existing criteria for standing relating to development permit applicants. Defines "local government official".
Section 16
Enacts GS 160D-1403.3, creating a cause of action for any person, organization, society, or entity for enforcement of the Chapter's provisions and recovery of damages, costs, and disbursements, and receipt of other equitable relief.
Section 17
Amends GS 160D-110, excluding the Chapter from the scope of GS 153A-4 and GS 160A-4 (directing for the broad construction of the Chapters and local acts).
Enacts GS 160D-1406 to allow recovery of actual damages resulting from any development decision, or lack thereof, in a civil action instituted by any person with standing under GS 160D-1402(c) (standing for appeals of quasi-judicial decisions of decision-making boards when the appeal is in the nature of certiorari). Makes recovery available for decision from any member of the decision-making body who (1) engaged in impermissible violations of due process; (2) considered evidence or other material gained outside of an evidentiary hearing when making a quasi-judicial decision; or (3) acted maliciously, arbitrarily, and capriciously, or unlawfully. Permits the award of punitive damages. Authorizes the court to compel disclosure of information necessary to a proper administration of justice, subject to the common law of legislative privilege and immunity. Provides for the award of attorneys' fees and costs.
Amends GS 6-21.7 to require courts to award reasonable attorneys' fees and costs to a party who successfully challenged acts of the member of a decision-making board under new GS 160D-1406. Makes organizational and clarifying changes.
Amends GS 153A-121 (concerning counties) and GS 160A-174 (concerning cities), specifying that the statutes, which grant counties' and cities' general ordinance-making power, do not apply to the adoption or enforcement of development regulations under GS Chapter 160D.
Section 18
Amends GS 136-102.6, adding a new subsection to mandate that the Division of Highways of DOT accept a performance guarantee as provided under GS 160D-804.1 to ensure completion of streets that are required by a municipal or county subdivision control ordinance. Requires issuance of the certificate of approval to the municipality or county upon receipt of the performance guarantee. Makes clarifying changes.
Section 19
Amends GS 160A-37 to generally prohibit cities from regulating the size, location, direction of traffic flow, and manner of construction of driveway connections into any street or alley unless expressly permitted by GS Chapter 160D (current law grants cities the express authority to regulate these matters by ordinance). For permitted ordinances under GS Chapter 160D, requires that the city have shown through substantial evidence (1) the need for the improvements is reasonably attributable to the traffic using the driveway and (2) the improvements serve the traffic of the driveway. Defines "substantial evidence".
Section 20
Enacts GS 162A-901 to require public water systems, public sewer systems, or public water and sewer systems (systems) serving the site for a proposed development to respond within 30 days of receiving a completed application for service commitment as to whether the system has capacity to serve the proposed development. Defines "proposed development". Limits reservation of capacity to applicants with an active application for development approval. Mandates reservation of capacity for the proposed development for 24 months from the date of the completed application for service commitment unless the system does not have capacity or is under a moratorium precluding expansion, as specified. Requires systems to prepare a plan for expansion of capacity within 90 days of denial of a reservation application that includes required specified components. Prohibits denial of access to the system by the system or a local government upon the applicant incurring costs associated with the proposed development in reliance on the reservation. Provides for extension of the reservation of capacity until construction is completed so long as the development application remains active or the work has commenced and continued under a valid development permit. Directs systems to notify the applicant that the reservation will expire within 90 days of the initial 24-month period.
Requires that, for applicants that, on or after July 1, 2020, received a service commitment from a system confirming availability of capacity for the applicant's development project, but whose capacity needs have not been provided, systems reserve, allocate, and provide those applicants with the capacity assured in the service commitment in the chronological order that the service commitment was issued before the system reserves, allocates, or provides capacity to another applicant.
Section 21
Enacts GS 130A-343.5 allowing property owners to: (1) install a wastewater system to serve any undeveloped or unimproved property located so as to be served by a public or community wastewater system; and (2) install a wastewater system on developed or unimproved property located so as to be served by a public or community wastewater system, if the public or community wastewater system has not yet installed sewer lines directly available to the property or otherwise cannot provide wastewater service to the property at the time the owner desires wastewater service. Prohibits requiring the property owner to connect to the public or community wastewater system so long as the wastewater system installed pursuant to Article 11 (Wastewater Systems) remains compliant and in use. Permits owners to opt-in to connection. Provides for construction of the section and lists three instances in which the section does not apply and a public or community wastewater system can mandate connection, including when the public authority or unit of government operating the system is being assisted by the Local Government Commission.
Section 22
Includes a severability clause.