Contains whereas clauses.

Section 1.

Adds new Article 7A, Protection of Family Child Care Home Operations, to GS Chapter 110. Defines four terms, including HOA governing document (any declaration, covenant, condition, restriction, bylaw, rule, or regulation of a homeowners association, condominium association, planned community, or similar entity that governs the use of residential property).

Voids any provision of an HOA governing document that prohibits, restricts, conditions, or penalizes the operation of a licensed family childcare home by an appropriately licensed member or resident. Prohibits a homeowners association (HOA) or condominium association (COA) from (1) denying, suspending, revoking, or conditioning membership rights or community privileges based solely on operation of a licensed family child care home; (2) imposing fees, assessments, fines, or penalties based solely on operation of a licensed family child care home; or (3) requiring HOA or COA approval to operate a licensed family child care home. States that nothing in this section prohibits an HOA or COA from enforcing rules of general applicability to the extent such roles do not impose more burdensome requirements on licensed family child care homes than on other residential uses.

Prohibits landlords from including lease provisions that prohibit, restrict, or penalize tenants for operating a licensed family child care home at the leased premises and voids any such provision. Prohibits landlords from taking adverse action against tenants based solely on operation or intent to operate a licensed family child care home. Provides that a tenant operating a licensed family child care home must comply with other applicable lease terms and carry sufficient liability insurance. Authorizes landlords to require tenant’s written notice of intent to operate a licensed family child care home, copy of license issued pursuant to GS 110-88, and maintenance of liability insurance coverage.

Provides that a licensed family child care home is a residential use of property for the purposes of local land use and zoning regulation and is permitted in any zoning district where single-family or multi-family residential uses are permitted. Prohibits local governments from adopting or enforcing a zoning ordinance, development regulation, or land use restriction that (1) unfairly burdens a licensed family child care home relative to other residential dwellings in the zoning district, (2) imposes discretionary approval processes applicable to licensed family child care homes but not to other residential uses, (3) limits the number of licensed family child care homes in a zoning district based solely on the child care use, or (4) requires compliance with commercial or institutional zoning standards. Allows a local government to impose only development standards that would apply to the residential use of the property generally. Provides that nothing in this section limits Child Care Commission or Department of Health and Human Services (DHHS) standards regarding the health, safety, and physical environment of licensed child care facilities.

Permits a licensed operator to bring a civil action in superior court for violations of this Article seeking declaratory and injunctive relief, actual damages, and (if prevailing party) attorneys' fees and costs. Permits Attorney General to bring an enforcement action on State’s behalf.

Specifies that Article applies to all HOA governing documents, lease agreements, and local zoning ordinances adopted before, on, or after the effective date of this act and any conflicting document provisions are void and unenforceable to the extent of the conflict.

Section 2.

Adds new GS 47F-3-123 to prohibit HOAs from prohibiting, restricting, or penalizing the operation of a licensed family child care home by a lot owner or tenant with a valid license issued pursuant to GS 110-88.

Section 3.

States that nothing in this act is intended to abrogate reasonable health, safety, building code, or fire code requirements applicable to child care facilities.

Section 4.

Appropriates $75,000 for 2025-26 from the General Fund to the Department of Health and Human Services, Division of Child Development and Early Education to (1) develop and disseminate plain-language guidance for licensed family child care home operators regarding their rights under Article 7A of GS Chapter 110; (2) create model response templates and informational materials for licensed operators in disputes with HOAs, landlords, and local governments; and (3) update specified DHHS materials to inform current and prospective licensees of this act’s protections.

Appropriates $100,000 for 2025-26 from the General Fund to the Department of Justice, Office of the Attorney General to (1) train attorneys and staff in the Consumer Protection or other appropriate division on the enforcement provisions of Article 7A of GS Chapter 110, (2) establish a complaint intake process for licensed operators alleging violations of specified Article provisions, and (3) prepare and publish an annual summary of complaints received and enforcement actions taken under this act for annual submission by October 1 to the specified NCGA committee.

Effective when the act becomes law and applies to all acts, ordinances, and agreements entered into on or after that date. Voids all contrary existing provisions of HOA governing documents and lease agreements as of the effective date.