House committee substitute to the 2nd edition changes the effective date from July 1, 2025, to October 1, 2025, unless otherwise provided. Specifies that the act applies to applications, approvals, and actions filed on or after the effective dates. Voids local ordinances in effect or adopted after the effective date that are inconsistent with the act. Clarifies that unless expressly stated otherwise, the act does not affect any right accrued or vested prior to its enactment.

Makes conforming changes to act’s titles. Makes organizational changes. Adds the following new content.

Part II.

Section 3.

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 development regulations authority, 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. 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).

Specifies that nothing in GS Chapter 160D (concerning local planning and development regulations) amends a charter or local act in effect prior to the effective date unless it is inconsistent with the provisions of GS Chapter 160D. Directs that GS 153A-121 and GS 160A-174 (general ordinance power of counties and cities) do not apply to the adoption or enforcement of development regulations under GS Chapter 160D.

Section 4.

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). 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. Requires a local government to support its determinations by demonstrating there is a rational and substantial relationship between the zoning map, zoning regulations, or zoning amendment and (1) the local government’s comprehensive plan and (2) the actual and legitimate needs of the community. Makes a technical change.

Section 5.

Amends GS 160A-307 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 6.

Amends GS 160D-102 to define dwelling unit to mean a single unit subject to the State’s Residential Code providing complete, independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking, and sanitation. 

Section 7.

Requires a local government, in GS 160D-703 (zoning districts), to classify residential zoning districts based only on the number of dwelling units allowed per acre. Prohibits local governments from classifying residential zoning districts based on the minimum lot size allowed in the district. Provides for determining allowable residential density.

Prevents a local government from: (1) requiring, enforcing, or incorporating into zoning regulations any deed restriction not specifically authorized by law (current law only prevents local governments from imposing conditions or requirements not required by law and allows the parties to consent to such things in writing); (2) requiring, enforcing, or incorporating into the zoning regulations any condition or requirement that the courts have held to be unenforceable if imposed directly by the local government, or (3) accepting any offer by the petitioner to consent to any condition not specifically authorized by law. Applies the above to the approval of any site plan, development agreement, conditional zoning permit, or any other instrument under GS Chapter 160D. Limits persons who may approve development approvals for permitted uses in a zoning district where the development is located to the designated staff member (as described in GS 160D-402). Requires a local government in exercising its authority to support its determination with facts and information, other than mere personal preferences or speculation, that a reasonable person would accept in support of a conclusion that there is a rational and substantial relationship between the conditional district and the public health, safety, and welfare. Makes clarifying and conforming changes.

Section 8.

Specifies, in GS 160D-108, that a vested right obtained by permit or other local government approval does not preclude the use or extinguish the existence of any other vested right or use attached to the property. Expands the events that toll the 24-month discontinuance period to include the duration of any emergency declaration for which the defined emergency area includes the property, in whole or in part.

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). Specifies that the establishment of vested rights under the state precludes the application of the specified laws that impose additional requirements, as described (current law provides that vested rights do not preclude the application of those specified laws). Changes language to refer to development regulation rather than zoning action. Makes further clarifying and technical changes. 

Section 9.

Removes provisions from GS 160D-203 (regarding split jurisdiction) that allow local governments to assign exclusive planning and development regulation jurisdiction to any one local government so long as they have the owner’s written consent. 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. Makes organizational changes. 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 10.

Expands the definition of development permit in GS 143-755 to include (1) legislative approvals, (2) those that are unwritten and (3) those pertaining to conditional zoning. Includes conditional zoning in term land development regulation.

Section 11.

Amends GS 160D-402 as amended by SL 2024-49, as follows. Requires local governments to designate at least one staff member charged with making determinations under the local government’s development regulations for purposes of GS 160D-703. Specifies that the contract or designation of staff under joint local government agreements must specify at least one individual designated as charged with making determinations under each local government's development regulations for purposes of GS 160D-703. Specifies that local governments contracting with an individual, company, council of governments, regional planning agency, metropolitan planning organization, or rural planning agency to designate an individual who is not a city or county employee to work under the supervision of the local government to exercise the functions under GS 160D-402 must specify at least one individual as charged with making determinations under each local government's development regulations for purposes of GS 160D-703.Limits a local government’s powers to fix fees under GS Chapter 160D to the actual, direct and reasonable costs required to support, administer, and implement programs authorized by GS Chapter 160D (was, fix reasonable fees). Makes technical and clarifying changes.

Section 12.

Provides for a timetable for approval of an application for development approval in GS 160D-403, including a 7-calendar day window for the local government to determine if the application is complete upon receipt. Allows applicants to supplement or amend applications. Replaces reference to “regulation authority” with “development regulation authority.” Specifies that the failure of the government or its staff to act before the expiration of the period for review constitutes an approval of the application and that the government must issue a written approval upon demand by the applicant.

Enacts GS 160D-707, setting forth a timetable for rezoning decisions, to include a 7-calendar day window for the local government to determine if the application is complete upon receipt of an application for amendment of a zoning map or zoning regulations. Specifies that the failure of the government or its staff to act before the expiration of the period for review constitutes an approval of the application and that the government must issue a written approval upon demand by the applicant.

Section 13.

Prevents a local government from imposing any waiting period barring a landowner, developer, or applicant from refiling a denied or withdrawn application for a zoning map amendment, and other described down zoning development approvals in GS 160D-601 (procedures for adopting, amending or repealing development regulations-down zoning).

Section 14.

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. Requires, within 10 days after approving a preliminary or final plat, an authorized representative of the local government to enter the approval on the face of the preliminary or final plat. Specifies, that notwithstanding GS 160D-403, once approval has been entered on the face of the plat, the approval is valid and does not expire unless the landowner applies for, and receives, a subsequent development approval. Makes technical changes to GS 160D-804 (contents and requirements of regulations). Specifies, in GS 160D-1403, that any administrative decision implementing a subdivision regulation is subject to appeal as provided in GS 160D-405 (currently, different appeal rights depending on the type of decision at issue).

Section 15.

Replaces references to “ordinance” with “development regulation” in GS 160D-1403.1 (civil actions pertaining to development regulations or approval). Changes the types of actions that can be challenged under the statute to development regulations or development approvals (was, local land development regulations or decisions) and denials thereof. Expands the possible claims under the statute to include that the ordinance is arbitrary or capricious, or that the development approval or denial is ultra vires, preempted, in excess of its 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 to 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. Makes organizational, conforming changes. Adds defined term development permit.

Section 16.

Enacts GS 160D-1403.3, creating a cause of action for the described development permit applicants, and entities for enforcement of the Chapter's provisions and recovery of damages, costs, and disbursements, including reasonable attorneys’ fees, and receipt of other equitable relief. 

Section 17.

Makes conforming changes to GS 6-21.7 (attorneys’ fees awarded in cases where the local government acts outside the scope of authority) to account for new GS 160D-1403.3. Makes clarifying and organizational changes.

Section 18.

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 19.

Now requires local governments, in GS 160D-1102, to annually publish a report on how it used fees from the prior fiscal year for the support, administration, and implementation of its building code enforcement program by October 1.

Section 20.

Now requires under GS 136-102.6, 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 development regulation under GS Chapter 160D. Requires the Division of Highways to issue a general certificate of approval to the municipality or county upon receipt of the performance guarantee as to those streets.

Part III.

Section 21.

Contains severability clause.