Housing (Property Development)

SB 499, "Allow Housing Near Jobs," requires North Carolina local governments to automatically permit residential development - including converting existing commercial buildings - anywhere areas are currently zoned for commercial, office, or retail use. It eliminates the need for special permits or zoning amendments in these zones, directly affecting developers and local planning departments. The bill does not override building or fire codes but takes effect October 1, 2025, aiming to increase housing options near job centers.

HB 914 allows colleges and religious institutions in qualifying North Carolina cities (population over 50,000 in urban areas) to develop affordable housing on their owned land without needing special zoning approvals or permits. The bill requires 80% of new housing units to be reserved for low-income residents (at or below 80% of median income), with limited exceptions for staff housing. It includes location restrictions, such as avoiding historic districts, heavy industrial areas, and sites where over one-third is currently light industrial. This policy change streamlines development by treating such housing as a "use by right" under existing zoning.

HB 994 allocates $20.3 million in nonrecurring funds and $1 million in recurring funds to support Western North Carolina recovery from Hurricane Helene and expand economic development services. The bill directs $10 million specifically for long-term housing recovery for residents in Western NC whose homes were damaged by Hurricane Helene, $5 million to Community Development Corporations (CDCs) statewide to enhance economic development services, and $300,000 to fund three women’s business centers in Western NC, the Triad, and the Piedmont. An additional $5 million supports the Institute Capital (I-CAP) for statewide economic activities, while the recurring $1 million aids ongoing housing recovery efforts and matches federal disaster funds. The bill directly affects Western NC residents impacted by Hurricane Helene, local CDCs, and small business support organizations through targeted financial assistance.

HB 913 aims to hold local governments accountable for development decisions by allowing or mandating the recovery of attorneys' fees and, in some cases, punitive damages for parties who successfully sue them. It directly affects local governments and individuals or entities involved in development projects. The bill mandates attorneys' fees if a local government intentionally violates development laws, intentionally delays approvals, or acts deceptively to provoke legal action. Additionally, punitive damages, up to ten times the proven harm, can be awarded if a local government acts in a flagrantly unfair or deceptive manner with the intent to cause legal action. However, local governments are protected from these awards if they acted in reasonable reliance on court orders or Attorney General opinions.

HB 24, titled "Restore Down-Zoning Authority," aims to reinstate the power of local governments to initiate "down-zoning." This means local governments would regain the ability to change zoning classifications for properties to allow for less intensive development or use. The bill achieves this by repealing Section 3K.1 of S.L. 2024-57, which had previously restricted this authority. If enacted, it would apply retroactively to December 11, 2024, ensuring that any local ordinances impacted by the repealed section are restored to their status prior to that date.

HB 306 authorizes the Towns of Blowing Rock and Boone, Watauga County, and the Watauga County Board of Education to construct and provide affordable housing for their employees, including public school teachers. These local government units can build housing on their own property, partner with other entities, or contract with businesses for development. They are permitted to rent or sell these units exclusively to their employees, offering below-market rates, financing, and placing resale restrictions. All housing constructed under this act must comply with applicable building codes and zoning ordinances.