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.