Creates new GS 160D-980 (Land-use regulation strategies), allowing municipalities to adopt certain policies for priority consideration of loans or grants under the Wastewater Reserve or the Drinking Water Reserve created under GS 159G-23. Municipalities that adopt the specified policies are eligible to receive priority consideration as specified in GS 159G-23 when they adopt the required number of provisions listed below. For municipalities with fewer than 100,000 residents, the policies are (1) permit by right multifamily development in all residential districts, (2) use local funding subsidies to waive construction-related fees for low- or moderate-income housing, (3) allow multifamily dwellings compatible with single-family dwellings in mixed-use zones, (4) allow at least one accessory dwelling unit for all owner-occupied dwellings in residential districts, (5) create a landlord incentive fund or housing loss mitigation fund for low- and moderate-income housing, and (6) implement a first-time homebuyers education service. For municipalities with more than 100,000 residents, the policies are (1) establish a minimum gross density of four units per acre in residential districts, (2) allow accessory dwelling units as provided above, (3) prohibit parking requirements, (4) allow multifamily residential dwellings in any zoning district allowing single-family dwellings, (5) demonstrate a 30% increase of building permit issuance over a 12-month period, (6) allow multifamily residential development in nonresidential districts within ¼ mile of major transit investment corridors, (7) eliminate building height restrictions of less than three stories in transit-oriented districts, (8) use local funding subsidies to waive construction-related fees for low- or moderate-income housing, (9) allow multifamily dwellings compatible with single-family dwellings in mixed-use zones, (10) create a landlord incentive or housing loss mitigation fund as provided above, (11) enter into a joint acquisition agreement with another local government to acquire property for low- or moderate-income housing, and (12) use a moderate-income housing set aside from a community reinvestment agency or redevelopment agency, to create or subsidize moderate-income housing.

Requires the State Water Infrastructure Authority to create an application for municipalities to use to demonstrate compliance with the policies above, and authorizes an application and approval process.

Directs the Legislative Research Commission to study housing needs of current and future residents of the state through 2050, in collaboration with local governments. Requires a report on the study to be submitted no later than the convening of the 2026 Regular Session.