SB 497 requires all North Carolina local governments to allow "middle housing" types - including duplexes, fourplexes, townhouses, and similar multi-unit structures - in every residentially zoned area, including zones currently permitting only single-family homes. It prohibits local governments from blocking these housing types through excessive regulations, such as requiring public hearings, restricting building height to less than three stories, or mandating commercial building codes or fire sprinklers. The law also prevents restrictions on long-term rentals and private parking arrangements, while exempting historic districts and requiring existing municipal infrastructure (water/sewer systems) to be available. Local governments must use the same permitting processes for middle housing as for single-family homes, with an 18-month implementation deadline. This bill aims to increase housing options and affordability by expanding where multi-unit housing can be developed without changing zoning maps.
HB 626, the Housing Choice Act, allows North Carolina municipalities to adopt specific zoning changes to encourage more housing options and qualify for priority water infrastructure funding. Smaller cities (under 100,000 residents) can permit multifamily housing by right in residential zones, waive fees for affordable housing construction, and allow accessory dwelling units. Larger cities (100,000+ residents) must implement minimum density standards, eliminate parking requirements, and permit duplexes/triplexes in single-family zones. Both sizes must preserve existing affordable housing through incentives or funds and adopt zoning that aligns with state housing goals. The bill directly affects local governments seeking to streamline housing development while meeting criteria for state water infrastructure grants.
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 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 627 requires local governments to allow the construction of at least one accessory dwelling unit (ADU) for each single-family home in residential zones, aiming to increase affordable housing options. The bill prohibits local governments from imposing certain restrictions, such as minimum parking requirements, banning long-term rentals of both units, or setting maximum ADU sizes under 800 square feet. However, local governments may still regulate aspects like setbacks or require ADUs to be smaller than the primary dwelling. Local governments must adopt regulations by January 1, 2027, or ADUs will be permitted without any local limitations.
