HB 765 — Save the American Dream Act.

The Fiscal Research Division shall prepare the fiscal note and transmit it to the sponsor within two weeks after the request is made, unless the sponsor agrees to an extension of time.

This fiscal note shall be attached to the original of each proposed bill or resolution that is reported favorably by any committee of the General Assembly but shall be separate from the bill or resolution and shall be clearly designated as a fiscal note.

A fiscal note attached to a bill or resolution pursuant to this subsection is not a partof the bill or resolution and is not an expression of legislative intent proposed by the bill or resolution.

If a committee of the General Assembly reports favorably a proposed bill or resolution with an amendment that proposes a change in the law that could cause a net increase or decrease the cost of constructing, purchasing, owning, or selling a single-family residence, either directly or indirectly, the chair of the committee shall obtain from the Fiscal Research Division and attach to the amended bill or resolution a fiscal note as provided in this section." SECTION 1.(b) Article 3 of Chapter 159 of the General Statutes is amended by adding a new section to read:

Page 2 House Bill 765-First Edition General Assembly Of North Carolina Session 2025 "§ 159-42.2.

Fiscal note required for ordinances affecting housing affordability.

(a) Prior to adopting, amending, or repealing an ordinance that could cause a net increase or decrease in the cost of constructing, purchasing, owning, or selling a single-family residence, either directly or indirectly, the governing body of a county or city shall have a fiscal note prepared by its planning department or another department designated by the governing body.

The fiscal note shall be submitted to the governing body at least five days prior to the meeting at which the ordinance is to be introduced and shall be made available to the public at that meeting.

For purposes of this section, the term "introduced" has the same meaning as in G.S.

160A-75(c).

In preparing the fiscal note, the planning or other department may consult with relevant trade organizations representing the real estate or home building industries.

The fiscal note shall identify and estimate, for the first five fiscal years the ordinance, or the amendment or repeal thereof, would be in effect, all anticipated effects on costs of the proposed change.

The fiscal note shall be prepared on the basis of a median priced single-family residence and may include an estimate for a larger development as an analysis of the long-range effect of a measure.

If, after careful investigation, the planning or other department determines that no dollar estimate is possible, the fiscal note shall contain a statement to that effect, setting forth the reasons why no dollar estimate can be given.

No comment or opinion shall be included in the fiscal note with regard to the merits of the measure for which the note is prepared.

However, technical and mechanical defects may be noted.

(b) Any resident of the county or city may bring a civil action in the superior court of the county for failure of the governing bodyto have a fiscal note prepared as required bythis section.

If the court determines the governing body failed to have a fiscal note prepared as required by this section, the court shall order that a fiscal note be prepared.

The court shall have no authority to determine the sufficiency of a fiscal note." SECTION 1.(c) This section becomes effective July 1, 2025, and applies to legislation and ordinances introduced for consideration on or after that date.

LIMIT PLANNING AND DEVELOPMENT REGULATION AUTHORITY TO THAT EXPRESSLY GRANTED BY CHAPTER 160D OF THE GENERAL STATUTES SECTION 2.(a) G.S.

(a) Theprovisions ofthisof this Articleshall applyto all development regulations and programs adopted pursuant to this Chapter or applicable or related local acts.

To the extent there are conflicts between the provisions of this *H765-v-2* General Assembly Of North Carolina Session 2025 Article and the provisions of other Articles of this Chapter, the more specific provisions shall control.

(e) ExceptNotwithstanding as provided by local act, notwithstanding any other provision of law, a local government may not exercise planning, zoning, subdivision, or development regulation authority except as expressly authorized by this Chapter.

If a State law or rule governs a particular subject matter related to a House Bill 765-First Edition Page 3 General Assembly Of North Carolina Session 2025 local government's planning, zoning, subdivision, or development regulation authority, a local government shall not enact or enforce planning, zoning, subdivision or development regulations standards, limitations, or requirements that are more restrictive than those established by State law, unless the development regulation pertains to floodplain management regulations as described in G.S.

143-138(e)." SECTION 2.(b) G.S.This section becomes effective January 1, 2026.

160D-110(a)Any readslocal asgovernment rewritten:ordinance in effect on, or adopted subsequent to, that date that is inconsistent with this section is void and unenforceable.

"(a)EXTEND DURATION OF SITE-SPECIFIC VESTING PLANS FROM TWO YEARS TO FIVE YEARS AND LIMIT THE APPLICABILITY OF SUBSEQUENT CHANGES TO LAND DEVELOPMENT REGULATIONS SECTION 3.(a) G.S.

153A-4 and G.S.

160A-4 are not applicable to this Chapter." SECTION 2.(c) G.S.

153A-121 is amended by adding a new subsection to read:

"(d) This section does not apply to the adoption or enforcement of development regulations under Chapter 160D of the General Statutes." SECTION 2.(d) G.S.

160A-174 is amended by adding a new subsection to read:

"(c) This section does not apply to the adoption or enforcement of development regulations under Chapter 160D of the General Statutes." SECTION 3.

G.S.

160D-102 is amended by adding the following new subdivisions to read:

"(1a) Acre.

– The actual gross acreage of a parcel or parcels.

For purposes of determining allowable residential density, the actual gross acreage shall not be reduced by subtracting buffers, setbacks, public or private streets, open space or recreation areas, or other nondevelopable areas.

… (3m) Buffer yard.

– A designated landscape area to separate uses or densities;

to reduce impacts of traffic, noise, odor;

or to enhance visual appearance.

… (15c) Dwelling unit.

– A single unit, subject to the North Carolina Residential Code, providing complete, independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking, and sanitation.

… (23m) Nonconformity.

– Any of the following that was lawfully operated, established, or commenced in accordance with applicable development regulations in effect at the time the nonconformity became nonconforming so long as the nonconformity is not extended, expanded, enlarged, increased, or intensified:

a.

A lot, parcel, or tract of land that fails to meet all current development regulation requirements.

b.

A structure that no longer complies with all current development regulation requirements applicable to that structure.

c.

The use of a property for a purpose or activity, or in a manner, made unlawful by a current development regulation.

Page 2 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 d.

Any dwelling, accessory building, accessory structure, outdoor lighting, fence, wall, sign, off-street parking, vehicular surface area, or private access point." SECTION 4.

G.S.

160D-108 reads as rewritten:

"§ 160D-108.

Permit choice and vested rights.

… (d) Duration of Vesting.

– Upon issuance of a development permit, the statutory vesting granted by subsection (c) of this section for a development project is effective upon filing of the application in accordance with G.S.

143-755, for so long as the permit remains valid pursuant to law.

Unless otherwise specified bythis section or other statute, local development permits expire one year after issuance unless work authorized by the permit has substantially commenced.

A local land development regulation may provide for a longer permit expiration period.

For the purposes of this section, a permit is issued either in the ordinary course of business of the applicable governmental agency or by the applicable governmental agency as a court directive.

Except where a longer vesting period is provided by statute or land development regulation, the statutory vesting granted by this section, once established, expires for an uncompleted development project if development work is intentionally and voluntarily discontinued for a period of not less than 24 consecutive months, and the statutory vesting period granted by this section for a nonconforming use of property expires if the use is intentionally and voluntarily discontinued for a period of not less than 24 consecutive months.

The 24-month discontinuance period is automatically tolled during the any of the following:

(1) The pendency of any board of adjustment proceeding or civil action in a State or federal trial or appellate court regarding the validity of a development permit, the use of the property, or the existence of the statutory vesting period granted by this section.

(2) The 24-month discontinuance period is also tolled during the pendencyof any litigation involving the development project or property that is the subject of the vesting.

(3) The duration of any emergency declaration issued under G.S.

166A-19.20 or G.S.

166A-19.22 for which the defined emergency area includes the property, in whole or in part.

… (h) ProcesstoClaimVestedRight.–Apersonclaimingastatutoryorcommonlawvested right may submit information to substantiate that claim to the zoning administrator or other officer designated by a land development regulation, who shall make an initial determination as to the existence of the vested right.

The decision of the zoning administrator or officer may be appealed under G.S.

160D-405.

On appeal, the existence of a vested right shall be reviewed de novo.

In lieu of seeking such a determination or pursuing an appeal under G.S.

160D-405, a person claiming a vested right may bring an original civil action as provided by G.S.

160D-1403.1.

This subsection shall apply to the claiming of vested rights in a nonconformity under G.S.

160D-108.2.

…." SECTION 5.

G.S.

If the site-specific vesting plan is not based on such an House Bill 765-Second Edition Page 3 General Assembly Of North Carolina Session 2025 approval, an approval required by a local development regulation, a legislative hearing with notice as required by G.S.

160D-1115 apply, except that a permit does not expire and shall not be Page 4 House Bill 765-First Edition General Assembly Of North Carolina Session 2025 revoked because of the running of time while a vested right under this section is outstanding.

– (1) A vested right, once established as provided for in this section, precludes any zoning action land development regulation by a local government which would change, alter, impair, prevent, diminish, or otherwise delay the development or use of the property as set forth in an approved site-specific vesting plan, except under one or more of the following conditions:

To the extent that the affected landowner receives compensation for all costs, expenses, and other losses incurred by the landowner, including,butnotlimitedto,allfeespaidin considerationoffinancing, and all architectural, planning, marketing, legal, and other consulting Page 4 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 fees incurred after approval by the local government, together with interest as provided under G.S.

(3) Notwithstanding any provision of this section, the establishment of a vested right does not preclude, change, or impair the authority of a local government to adopt and enforce development regulations governing nonconforming situations or uses.nonconformities.uses.

…." House Bill 765-First Edition Page 5 General Assembly Of North Carolina Session 2025 SECTION 6.3.(b) This section is effective when it becomes law and applies to applications and appeals filed on or after that date.

Article4 1STRENGTHEN ofPROHIBITION ChapterON 160DLOCAL ofGOVERNING theBOARD GeneralCONFLICTS StatutesOF isINTEREST amendedSECTION by4.(a) addingG.S. a new section to read:

"§ 160D-108.2.

Nonconformities.

(a) Amendments in land development regulations are not applicable or enforceable without the written consent of the owner with regard to a nonconformity.

All of the following shall apply to vested rights in a nonconformity established under this section:

(1) The establishment of a vested right under this section does not preclude vesting under one or more other provisions of law or vesting by application of common law principles.

(2) A vested right, once established as provided for in this section or by common law, precludes any action by a local government that would change, alter, impair, prevent, diminish, or otherwise delay the development or use of the property allowed by applicable development regulations, except where a change in State or federal law mandating local government enforcement occurs after the nonconformity was established that has a fundamental and retroactive effect on the development or use.

(3) G.S.

160D-108(h) shall apply to the claiming of nonconformities.

(4) Unless otherwise specified by this section or another statute, a nonconformity may continue until intentionally and voluntarily discontinued.

(b) The statutoryvesting period granted bythis section for a nonconformity expires if the nonconformity is intentionally and voluntarily discontinued for a period of not less than 24 House Bill 765-Second Edition Page 5 General Assembly Of North Carolina Session 2025 consecutive months.

The 24-month discontinuance period shall be automatically tolled during any of the following events:

(1) The pendency of any board of adjustment proceeding or civil action in a State or federal court regarding the validity of the use of the property or the existence of the statutory vesting period granted by this section.

(2) The pendencyof anylitigation involving use of the property that is the subject of the vesting.

(3) The duration of any emergency declaration issued under G.S.

166A-19.20 or G.S.

166A-19.22 for which the defined emergency area includes the property, in whole or in part.

(c) Reconstruction, re-establishment, repair, and maintenance of a nonconformity shall be allowed by right provided the nonconformity is not extended, expanded, enlarged, increased, or intensified by the reconstruction, re-establishment, repair, or maintenance.

(d) This section shall not apply to G.S.

160D-912 and G.S.

160D-912.1." SECTION 7.

G.S.

– A governingboard member shall not participate in or vote on any legislative decision regarding a development regulation adopted pursuant to this Chapter where the oneoutcome or more of the followingmatter apply:being considered is reasonably likely to have a direct, substantial, and readily identifiable financial impact on the member.

(1)A Thegoverning outcomeboard member shall not vote on any zoning amendment if the landowner of the matterproperty beingsubject consideredto isa reasonablyrezoning likelypetition toor havethe aapplicant direct,for substantial,a andtext readilyamendment identifiableis financiala impactperson onwith whom the member.member has a close familial, business, or other associational relationship.where:

A(1) governing board member shall not vote on any zoning amendment if the (2) The landowneroutcome of the propertymatter subjectbeing toconsidered ais rezoningreasonably petitionlikely orto thehave applicant for a textdirect, amendmentsubstantial, isand areadily personidentifiable withimpact whomon the membermember. has a close familial, business, or other associational relationship.

(3)(2) The memberlandowner hasof expressedthe property subject to a rezoning petition or holdsthe applicant for a fixedtext opinionamendment prioris toa theperson hearingwith onwhom the mattermember thathas appearsa notclose susceptiblefamilial, tobusiness, change.or other associational relationship.

(3) The member has a fixed opinion prior to the hearing on the matter that is not susceptible to change.

– Members of appointed boards shall not participate in or vote on any advisory or legislative decision regarding a development regulation adopted pursuant to this Chapter where the oneoutcome orof morethe matter being considered is reasonably likely to have a direct, substantial, and readilyidentifiablefinancialimpact on themember.An appointedboardmember shall not vote on any zoning amendment if the landowner of the followingproperty apply:subject to a rezoning petition or the applicant for a text amendment is a person with whom the member has a close familial, business, or other associational relationship.where:

(1) The outcome of the matter being considered is reasonably likely to have a direct, substantial, and readily identifiable financial impact on the member.

An appointed board member shall not vote on any zoning amendment if the (2) The landowner of the property subject to a rezoning petition or the applicant for a text amendment is a person with whom the member has a close familial, business, or other associational relationship.

(3) The member has expressed or holds a fixed opinion prior to the hearing on the matter that appearsis not susceptible to change.

(c)…." AdministrativeSECTION Staff.4.(b) G.S.

–160D-605 Noreads If a staff member has a conflict of interest under this subsection, the administrative decision shall be assigned to the supervisor of the staff member or such other staff member as mayrewritten: be designated by the development regulation.

A"§ staff160D-605. member shall not makea final decision on anadministrative decisionrequired bythis Chapter ifthe where one or more of the following apply:

(1)Governing Theboard outcomestatement. of that administrative decision would have a direct, substantial, and readilyidentifiable financialimpact onthestaff member orif themember.

(2)(a) ThePlan applicantConsistency. or other person subject to that administrative decision is a person with whom the staff member has a close familial, business, or other associational relationship.

If– aWhen staffadopting memberor hasrejecting aany conflictzoning oftext interestor undermap thisamendment, section, the decisiongoverning board shall beapprove assigneda tobrief thestatement supervisordescribing ofwhether theits staffaction personis Pageconsistent 6 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 or suchinconsistent otherwith staffan personadopted ascomprehensive maybe designated bythe development regulation or otherland-use ordinance.plan.

No (3) The staffrequirement memberfor shalla beplan isconsistencystatement financiallymayalso interestedbemetbyaclearindication orin employedtheminutesofthegoverningboard bythat aat businessthe thattime isof financiallyaction interestedon inthe aamendment developmentthe subjectgoverning toboard regulationwas underaware thisof Chapterand unlessconsidered the staffplanning memberboard's isrecommendations theand ownerany relevant portions of thean landadopted comprehensive or buildingland-use involved.plan.

NoIf (4)a Thezoning staffmap memberamendment member,is oradopted otherand individualthe oraction anwas employeedeemed ofinconsistent a company contracting with athe localadopted governmentplan, tothe providezoning staffamendment supporthas shallthe engageeffect support,of isalso engagingamending in any workfuture thatland-use ismap inconsistentin withthe hisapproved orplan, herand dutiesno oradditional withrequest theor interestapplication offor thea localplan government,amendment asis determinedrequired. by the local government.

…."A SECTIONplan 8.amendment and a zoning amendment may be considered concurrently.

The plan consistency statement is not subject to judicial review.

If a zoning map amendment qualifies as Page 6 House Bill 765-First Edition General Assembly Of North Carolina Session 2025 a "large-scale rezoning" under G.S.

160D-602(b), the governing board statement describing plan consistency may address the overall rezoning and describe how the analysis and policies in the relevant adopted plans were considered in the action taken.

…." 6 ESTABLISH JURISDICTION FOR LAND THAT LIES WITHIN MORE THAN ONE LOCAL GOVERNMENT SECTION 5.

Such a The mutual agreement government,shall theonly followingbe applicable to development regulations and shall apply:not affect taxation orothernonregulatorymatters.

(1)The Ifmutual onlyagreement oneshall localbe governmentevidenced hasbyaresolution theformally abilityadopted toby provideeach watergoverning board and sewerrecorded serviceswith to the parcelregister atof thedeeds timein athe sitecounty planwhere for the parcelproperty is submitted,located thewithin local14 governmentdays thatof has the abilityadoption toof provide public water and sewer services shall have planning and development regulation jurisdiction over the entirelast parcel.required resolution.

(2)(b) IfNotwithstanding allsubsection (a) of this section, if a parcel of land lies within the planning and development regulation jurisdiction of more than one local governmentsgovernment haveand only one local government has the ability to either provide public water servicesand or public sewer services to the parcel,parcel but not both, at the time a site plan for the parcel is submitted, the landownerlocal maygovernment designatethat whichhas localthe government'sability planningto provide public water and developmentsewer regulationsservices shall applyhave toplanning and development regulation jurisdiction over the land.entire parcel.

(3) If all or none of the local governments have the abilitytoability to either provide public water andservices or public sewer services to the parcelparcel, but not both, at the time a site plan for the parcel is submitted, the localowner governmentof where the majorityparcel ofmay thedesignate parcelwhich islocal locatedgovernment's shallplanning haveand jurisdictiondevelopment overregulations shall apply to the land.

(b)If Theall jurisdictionor establishednone byof thisthe sectionlocal shallgovernments onlyhave bethe applicableability to developmentprovide regulationspublic water and sewer services to the parcel at the time a site plan for the parcel is submitted, the local government where the majority of the parcel is located shall nothave affectjurisdiction taxationover orthe otherland." nonregulatoryCLARIFY matters.LOCAL GOVERNMENT FEES RELATED TO DEVELOPMENT REGULATIONS SECTION 6.

The mutual agreement shall be evidenced by a resolution formally adopted by each governing board and recorded with the register of deeds in the county where the property is located within 14 days of the adoption of the last required resolution." SECTION 9.

160D-402,160D-402(d) reads as amendedrewritten: by S.L.

2024-49,"(d) readsFinancial asSupport. rewritten:

"§ 160D-402.

Administrative staff.

(a) Authorization.

– Local governments may appoint administrators, inspectors, enforcement officers, planners, technicians, and other staff to develop, administer, and enforce development regulations authorized by this Chapter.

Local governments shall designate at least one staff member charged with making determinations under that local government's development regulations for purposes of G.S.

160D-703.

(b) Duties.

– Duties assigned to staff may include, but are not limited to, drafting and implementing plans and development regulations to be adopted pursuant to this Chapter;

determining whether applications for development approvals are complete;

receiving and processing applications for development approvals;

providing notices of applications and hearings;

making decisions and determinations regarding development regulation implementation;

determining whether applications for development approvals meet applicable House Bill 765-Second Edition Page 7 General Assembly Of North Carolina Session 2025 standards as established by law and local ordinance;

conducting inspections;

issuing or denying certificates of compliance or occupancy;

enforcing development regulations, including issuing notices of violation, orders to correct violations, and recommending bringing judicial actions against actual or threatened violations;

keeping adequate records;

and any other actions that may be required in order adequately to enforce the laws and development regulations under their jurisdiction.

A development regulation may require that designated staff members take an oath of office.

The local government shall have the authority to enact ordinances, procedures, and fee schedules relating to the administration and the enforcement of this Chapter.

The administrative and enforcement provisions relatedto buildingpermits set forth in Article11ofthis Chaptershall be followed for those permits.

(c) Alternative Local Government Staff Arrangements.

– A local government may enter into contracts with another city, county, or combination thereof under which the parties agree to create a joint staff for the enforcement of State and local laws specified in the agreement.

The governing boards of the contracting parties may make any necessary appropriations for this purpose.

In lieu of joint staff, a governing board may designate staff from any other city or county to serve as amemberof its staffwith theapproval ofthe governingboard of the other cityor county.

A staff member, if designated from another city or county under this section, subsection, shall, while exercising the duties of the position, be considered an agent of the local government exercising those duties.

The governing board of one local government mayrequest the governing board of a second local government to direct one or more of the second local government's staff members to exercise their powers within part or all of the first local government's jurisdiction, and they shall thereupon be empowered to do so until the first local government officially withdraws its request in the manner provided in G.S.

160D-202.

The contract or designation of staff under this subsection shall specify at least one individual designated as charged with making determinations under each local government's development regulations for purposes of G.S.

160D-703.

(c1) Alternative Contract Staff Arrangements.

– A local government may contract 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 authorized by this section.

The local government shall have the same potential liability, if any, for inspections conducted by an individual who is not an employee of the local government as it does for an individual who is an employee of the local government.

The company or individual with whom the local government contracts shall have errors and omissions and other insurance coverage acceptable to the local government.

The contract shall require at least one individual designated as charged with making determinations under that local government's development regulations for purposes of G.S.

160D-703.

(d) Financial Support.

It shall have power to fix reasonable fees for support, administration, and implementation of programs authorized by this Chapter, and all Chapter.

Chapter,All andsuch those fees shall not exceed the actualamount directreasonably and reasonable costs required to support, administer, and implement programs authorized by this Chapter.Chapter, and shall be used for no other purposes.

All fees collected by a building inspection department for the administration and enforcement of provisions set forth in Article 11 of this Chapter shall be used to support the administration and operations of the building inspection department and for no other purposes.

143-151.12(9)a., the local government shall promptlyreturntothepermitholderthefeecollectedbythelocalpromptly return to the permit holder the fee collected by the local government forsuchinspection.for such inspection.

plumbing, electrical systems, Page 8 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 general building restrictions and regulations, heating and air-conditioning, and the general construction of buildings." REQUIRE DECISIONS ON USES PERMITTED BY RIGHT TO BE DETERMINED ADMINISTRATIVELY IN LARGE CITIES SECTION 10.7.

160D-403,160D-403 reads as amendedrewritten: by S.L.

2024-49, reads as rewritten:

House Bill 765-First Edition Page 7 General Assembly Of North Carolina Session 2025 (a) Development Approvals.

– To the extent consistent with the scope of regulatory development regulation authority granted by this Chapter, no person shall commence or proceed with development without first securing any required development approval from the local government with jurisdiction over the site of the development.

Applications for development approvals may be made by the landowner, a lessee or person holding an option or contract to purchase or lease land, or an authorized agent ofthelandowner.Anof easement holdermayalso applyfor development approval for such the developmentlandowner. as is authorized by the easement.

(a1)An Timeeasement Periodholder may also apply for Approval.development approval for such the development as is authorized by the easement.

–(b) WithinDeterminations 14and calendarNotice days of theDeterminations. filing of an application for a development approval, a local government or its designated administrative staff, as described under G.S.

160D-402,– shallA (i)development determineregulation whetherenacted theunder application is complete and notify the applicantauthority of thethis application'sChapter completenessmay and,designate (ii) if the localstaff governmentmember or itsmembers designatedcharged administrativewith staffmakingdeterminations determinesunderthedevelopment theregulation. application is incomplete, specify all of the deficiencies in the notice to the applicant.

Forcities with a population of125,000 people or more, approvals concerning an application for a project that is a permitted use in the zoning district where the project is located shall be made only by the city's administrative staff, as described in G.S.

160D-402.

…." REQUIRE REZONING AND SITE PLAN DECISIONS IN NO MORE THAN 90 DAYS SECTION 8.(a) Article 7 of Chapter 160D of the General Statutes is amended by adding a new section to read:

"§ 160D-707.

Review period for rezoning decisions.

Within 14 calendar days of the filing of an application for amendment of a zoning map or zoning regulations, a local government or its designated administrative staff, as described under G.S.

160D-402, shall (i) determine whether the application is complete and notify the applicant of the application's completeness and (ii) if the local government or its designated administrative staff determines the application is incomplete, specify all the deficiencies in the notice to the applicant.

The local government shall approve or deny the application within 90 calendar days of the original date the application was deemed complete by the local government or its designated administrative staff, except that if the applicant requests a continuance of the application, the review period shall be tolled for the duration of any continuance.

Failure of the local government or its designated administrative staff to act before the expiration of the time period allowed for review shall constitute an approval of the application, and the local government shall issue a written approval upon demand by the applicant.applicant." SECTION 8.(b) G.S.

…160D-403 (c)is Durationamended ofby Developmentadding Approval.a new subsection to read:

–"(a1) UnlessWithin a14 differentcalendar perioddays isof specifiedthe byfiling thisof Chapteran orapplication other specific applicable law, including for a development agreement,approval, a developmentlocal approvalgovernment issuedor pursuantits todesignated thisadministrative Chapterstaff, expiresas onedescribed yearunder afterG.S. the date of issuance if the work authorized by the development approval has not been substantially commenced.

Local160D-402, developmentshall regulations(i) maydetermine providewhether forthe developmentapplication approvalsis complete and notify the applicant of shorterthe durationapplication's forcompleteness temporaryand land(ii) uses,if specialthe events,local temporarygovernment signs,or andits similardesignated development.administrative staff determines the application is incomplete, specify all the deficiencies in the notice to the applicant.

LocalThe developmentapplicant regulations may alsofile providean foramended developmentapplication approvalsor ofsupplemental longerinformation durationto cure the deficiencies Page 8 House Bill 765-First Edition General Assembly Of North Carolina Session 2025 identified by the local government or its designated administrative staff for specifieda typescompleteness ofreview, developmentwhich approvals.shall becompleted within 14 calendar days after receiving an amended application or supplemental application from the applicant.

NothingUpon inthe thisdate subsectionthe limitsapplication anyis vesteddeemed rightscomplete, securedthe underlocal G.S.government or its designated administrative staff shall issue a receipt letter or electronic response stating that the application is complete and that a 90-calendar day review period has started as of that date.

160D-108The local government shall approve or G.S.deny the application within 90 calendar days of the original date the application was deemed complete by the local government or its designated administrative staff, except that if the applicant requests a continuance of the application, the review period shall be tolled for the duration of any continuance.

160D-108.1.G.S.The time period for review may be extended only by agreement with the applicant if the application cannot be reviewed within the specified time limitation due to circumstances beyond the control of the local government.

160D-108,The 160D-108.1,extension orshall 160D-108.2.not exceed six months.

…."Failure of the local government or its designated administrative staff to act before the expiration of the time period allowed for review shall constitute an approval of the application, and the local government shall issue a written approval upon demand by the applicant." SECTION 11.8.(c) This section is effective when it becomes law and applies to applications filed on or after that date.

LIMIT ZONING REGULATION AUTHORITY SECTION 9.

160D-605(a) reads as rewritten:

"(a) Plan Consistency.

– When adopting or rejecting any zoning text or map amendment, the governing board shall approve a brief statement describing whether its action is consistent or House Bill 765-Second Edition Page 9 General Assembly Of North Carolina Session 2025 inconsistent with an adopted comprehensive or land-use plan.

The requirement for a plan consistencystatement mayalso bemetbyaclearindication in theminutesofthegoverningboard that at the time of action on the amendment the governing board was aware of and considered the planning board's recommendations and any relevant portions of an adopted comprehensive or land-use plan.

If a zoning map amendment is adopted and the action was deemed inconsistent with the adopted plan, the zoning amendment has the effect of also amending any future land-use map in the approved plan, and no additional request or application for a plan amendment is required.

A plan amendment and a zoning amendment may be considered concurrently.

The plan consistency statement is not subject to judicial review.

If a zoning map amendment qualifies as a "large-scale rezoning" under G.S.

160D-602(b), the governing board statement describing plan consistency may address the overall rezoning and describe how the analysis and policies in the relevant adopted plans were considered in the action taken." SECTION 12.

G.S.

Regulations prohibited by this subsection may not be applied, directly or indirectly, in any zoning district or conditional district unless voluntarily consented to by the owners of all the property to which those regulations may be applied as part of and in the course of the process of House Bill 765-First Edition Page 9 General Assembly Of North Carolina Session 2025 seeking and obtaining a zoning amendment or a zoning, subdivision, or development approval, district, nor may any such regulations be applied indirectly as part of a review pursuant to G.S.

location or architectural styling of Page 10 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 windows and doors, including garage doors;

(2) Require a or otherwise specify the size of parking space spaces, placement of parking spaces, configuration of parking spaces, or allocation of parking spaces to be larger than 9 feet wide by 20 feet long unless the parking space is designated for handicap, parallel, or diagonal parking.greaterparking. than those required by the Americans with Disabilities Act.

(3)(2a) RequireEstablish additionalor firerequire apparatusparking accessor roadsparking intospace developmentsrequirements of one- or two-familyallocations dwellingsexcept thatas are not in compliance with the required numberby of fire apparatus access roads into developments of one- or two-familydwellings set forth in the NorthAmericans Carolinawith FireDisabilities CodeAct. of the North Carolina Residential Code for One- and Two-Family Dwellings.Code.

This subsection applies to parking space sizes, parking spaces required within a particular development, the location of parking spaces within a particular development, and the configuration of parking spaces within a particular development.

(3) Require additional fire apparatus access roads into developments of one- or two-family dwellings that are not in compliance with the required number of fire apparatus access roads into developments of one- or two-familydwellings set forth in the Fire Code of the North Carolina Residential Code for One- and Two-Family Dwellings.

ThisA subdivision"public shallroad" notmeans beany construedroad, tostreet, expand,highway, diminish,thoroughfare, or alterother theway Department of Transportation'spassage authoritythat tois regulateowned drivewaysand adjacentmaintained toby publica roadscity ownedor by the State.Department of Transportation.

(5)This Exceptsubdivision asshall providednot inbe thisconstrued subdivision,to setexpand, designdiminish, standardsor foralter publicthe roadsDepartment withinof aTransportation's developmentauthority into excessregulate ofdriveways thoseadjacent requiredto roads owned by the DepartmentState. of Transportation.

A(5) citySet may set design standards for public roads within a development in excess of those required by the Department of TransportationTransportation, ifexcept thethat a city ismay financiallyset responsibledesign standards for theroads costwithin a development in excess of those required by the excessDepartment andof Transportation if the city accepts ownership and maintenance responsibility for the public road prior to,to or in conjunction with,with site plan approval.

Confirmation of conformity of the improvements consistent with thecity'slocal government design standardsspecifications, underthisregulations, subsectionor ordinances under this section shall be conducted consistent with G.S.

160D-804.1(1c), the citylocal government shall record with the register of deeds a plat evidencingevincing the city's ownership of the publicroad road.by the city.

(6) Require installation of sidewalks or improvement of existing sidewalks for any residential,commercial commercial, or school property unless the sidewalk (i) is eitherconnected to an existing sidewalk or (ii) will connect to a planned adjacent sidewalk that the Page 10 House Bill 765-First Edition General Assembly Of North Carolina Session 2025 local government believes, based on a development approval, will be constructed within two years of the following:commercial or school property site plan approval.

a.(7) For cities with a population of 125,000 people or more, establish setback or buffer yard requirements for a multifamily development that exceeds 15 units per acre." 8 REQUIRE ZONING DISTRICTS TO BE BASED ON DENSITY AND CLARIFY PROHIBITION ON CONDITIONS NOT AUTHORIZED BY LAW SECTION 10.(a) G.S.

Connected160D-102 tois anamended existingby sidewalk.adding a new subdivision to read:

b."(15a) Dwelling unit.

Will– beA connectedsingle tounit aproviding plannedcomplete, adjacentindependent sidewalkliving thatfacilities thefor localone governmentor believes,more basedpersons, onincluding apermanent developmentprovisions approval,for willliving, besleeping, constructedeating, withincooking, twoand yearssanitation." ofSECTION the10.(b) residential,G.S. commercial, or school property site plan approval.

(7) For cities with a population of 125,000 or more, according to the most recent decennial federal census, establish setback or buffer yard requirements for a multifamily development that exceeds 15 units per acre.

(d) In exercising its authority under this section, a local government shall support its determinations by demonstrating there is a rational and substantial relationship between the House Bill 765-Second Edition Page 11 General Assembly Of North Carolina Session 2025 zoning map, zoning regulations, or zoning amendment and the health, safety, and welfare of the public through finding of facts and information, other than mere personal preferences or speculation, that a reasonable person would accept in support of a conclusion.

(e) For purposes of this section, the term "public road" shall mean any road, street, highway, thoroughfare, or other way of passage that is owned and maintained by a city or the Department of Transportation." SECTION 13.

G.S.

Zoning By illustration, zoning districts may include, but are not be limited to, include any of the following:

(1) Conventionaldistricts,inwhichavarietyofusesareallowedasConventionaldistricts,inwhichavarietyofusesareallowedaspermitteduses permitteduses or uses by right and that may also include uses permitted only with a special use permit.

– In areas zoned for residential use, a county zoning or other development regulation in a county shall allow the following uses by rightright: in an area with public sewer connections:

(1) In a county with a population of 49,999 or less, according to the most recent decennial federal census, the siting of no fewer than four dwelling units per acre.

(2) In a county with a population between 50,000 and 274,999, according to the most recent decennial federal census, the siting of no fewer than five dwelling units per acre.

(3) In a countywithcounty apopulationof275,000orwith more,a accordingpopulation toof themost275,000 recentor decennialmore, federal census, the siting of no fewer than six dwelling units per acre.

– A city zoning or other development regulation in a city shall allow the following uses by rightright: in an area with public sewer connections:

(1) In areas zoned for residential use in a city with a population of 19,999 or less, according to the most recent decennial federal census, the siting of no fewer than four dwelling units per acre.

(2) In areas zoned for residential use in a city with a population between 20,000 and 124,999, according to the most recent decennial federal census, the siting of no fewer than five dwelling units per acre.

House Bill 765-First Edition Page 11 General Assembly Of North Carolina Session 2025 (3) In areas zoned for residential use in a city with a population of 125,000 or more, according to the most recent decennial federal census, the siting of no Page 12 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 fewer than six dwelling units per acre.

The minimum dwelling unit requirement may be met by duplexes, triplexes, and quadruplexes.quadruplexes, which shall be permitted by right.

(4) In areas zoned for non-agricultural commercial, business, or industrial use in a city with a population of 125,000 or more, accordingall to the most recent decennial federal census, the siting of buildings and structures subject to the Northfollowing: Carolina Residential Code and multifamily housing structures with more than four residential dwelling units, with a maximum height restriction of not less than 60 feet.

a.

Duplexes.

b.

Triplexes.

c.

Quadruplexes.

d.

Multifamily housing structures with more than four residential dwelling units, with a maximum height restriction of not less than 60 feet.

– In a city with a population of 125,000 people or more, according to the most recent decennial federal census, buildings and structures subject to the North Carolina Residential Code and uses allowable under subdivision (3) or (4) of subsection (a3) of this section shall not be subject to either of the following:

(2) BufferLandscape yards or other landscape buffering regulations.

– Subsections (a2) and (a3) of this sectionsection, doas notapplicable, apply to landall usedstructures forsubject ato bonathe fideNorth farmCarolina purposeResidential asCode describedand inshall G.S.apply regardless of whether the structures are located on multiple lots or on a single lot.

Subsections (a2) and (a3) of this section do not apply to land used for a bona fide farm purpose as described in G.S.

Unless consented to by the petitioner in writing, Notwithstanding any other provision of law, in the exercise of the authority granted by this section, a local government may not (i) require, enforce, or incorporate into the zoning regulations anyanycondition conditionorrequirementnot authorized byotherwise applicablelaw, regulations, or requirementrequire notas authorizeda byotherwisecondition applicableof law,approval regulationsof anysite plan, development agreement, conditional zoning permit, or any other instrument any condition, requirement, or deed restriction not specifically authorized by law, (ii) require, enforce, or incorporate into the zoning regulations any condition or requirement that the courts have held to be unenforceable if imposed directly by the local government, or (iii)(ii) accept any offer by the petitioner to consent to any condition not specifically authorized by law, including, without limitation, taxes, impact fees, building design elements within the scope of G.S.

This subsection shall also apply to the approval of any site plan, development agreement, conditional zoning permit, or any other instrument under this Chapter.

Any other modification ofoftheconditions the conditions and standardsstandardsin in a conditionalconditionaldistrict district shall followfollowthesame the same process forforapproval approval as are applicable to zoning map amendments.

If multiple parcels of land are subject to a conditional zoning, the ownersownersofindividualparcels ofmayapplyfor individualmodificationofthe parcels may apply for modification of the conditions so long as the modification would not result in other properties failing to meet the terms of the conditions.

Page 12 House Bill 765-First Edition General Assembly Of North Carolina Session 2025 (b1) Limitations.

– For parcels where multifamily structures are an allowable use, a local government may not impose a harmony requirement for permit approval if the development House Bill 765-Second Edition Page 13 General Assembly Of North Carolina Session 2025 contains affordable housing units for families or individuals with incomes below eighty percent (80%) of the area median income.

– Except as authorized by the foregoing, all zoning regulations shall be uniform for each class or kind of building throughout each district but the zoning regulations in one district may differ from those in other districts.

(e) StaffDefinition. Approvals.

– DevelopmentFor approvalspurposes forof athis developmentsection, thatthe isterm "acre" means the actual gross acreage of a permittedparcel useor inparcels thewithin a zoning district whereand theshall developmentnot isbe locatedreduced shallfor bepurposes madeof onlybydetermining allowable residential density by subtracting buffers, setbacks, public or private streets, open space or recreation areas, or other nondevelopable areas from the designateddensity staffcalculation." memberSECTION as10.(c) describedThis insection G.S.becomes effective January 1, 2026.

160D-402.Any local government ordinance in effect on, or adopted subsequent to, that date that is inconsistent with this section is void and unenforceable.

(f)ADMINISTRATIVE BasisSUBDIVISION forConditionalAPPROVALS District.SECTION 11.

– In exercisingits authorityunder subsection (b)ofthis section, a local government shall support its determinations with facts and information, other than mere personal preferences or speculation, that a reasonable person would accept in support of a conclusion there is a rational and substantial relationship between the conditional district and the health, safety, and welfare of the public." SECTION 14.

Article 7 of Chapter 160D of the General Statutes is amended by adding a new section to read:

"§ 160D-707.

Review period for rezoning decisions.

Within 14 calendar days of the filing of an application for amendment of a zoning map or zoning regulations, a local government or its designated administrative staff, as described under G.S.

160D-402, shall (i) determine whether the application is complete and notify the applicant of the application's completeness and, (ii) if the local government or its designated administrative staff determines the application is incomplete, specify all the deficiencies in the notice to the applicant.

The applicant may file an amended application or supplemental information to cure the deficiencies identified by the local government or its designated administrative staff for a completeness review, which shall be completed within 14 calendar days after receiving an amended application or supplemental application from the applicant.

Upon the date the application is deemed complete, the local government or its designated administrative staff shall issue a receipt letter or electronic response stating that the application is complete and that a 90-calendar day review period has started as of that date.

The local government shall approve or deny the application within 90 calendar days of the date the application was deemed complete bythelocal government orits designatedadministrativestaff, except thatiftheapplicant requests a continuance of the application, the review period shall be tolled for the duration of any continuance.

The time period for review may be extended only by agreement with the applicant if the application cannot be reviewed within the specified time limitation due to circumstances beyond the control of the local government.

The extension shall not exceed six months.

Failure of the local government or its designated administrative staff to act before the expiration of the time period allowed for review shall constitute an approval of the application, and the local government shall issue a written approval upon demand by the applicant." SECTION 15.

Page 14 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 (2) The county health director or local public utility, as appropriate, as to proposed water or sewerage systems.

(3) AdesignatedA planningboard,technicaldesignated reviewcommitteeoflocalplanning board, technical review committee of local government staff members, or other designated body or staff person.

WithinThe 10review daysofficer, afterpursuant approvingto aG.S. preliminary or final plat, an authorized representative of the local government shall enter the approval on the face ofthepreliminaryor final plat.

Thereview47-30.2, officer,pursuantHouse toBill G.S.765-First Edition Page 13 General Assembly Of North Carolina Session 2025 shall not certifya subdivision plat that has not been approved in accordance with these provisions nor shall the clerk of superior court order or direct the recording of a plat if the recording would be in conflict with this section." 5 ALLOW TINY HOUSES AND ACCESSORY DWELLING UNITS IN RESIDENTIAL DISTRICTS IN LARGE CITIES SECTION 12.

47-30.2,shallArticle not9 certifyof aChapter subdivision160D plat that has not been approved in accordance with these provisions nor shall the clerk of superior court order or direct the recordingGeneral ofStatutes ais platamended ifby theadding recordingtwo wouldnew besections into conflictread: with this section.

(e)"§ Notwithstanding160D-974. G.S.

160D-403(c),Tiny oncehouses approvalin hasresidential beendistricts entered on the face of the plat in accordancelarge withcities. this section, the approval shall be valid and not expire unless the landowner applies for, and receives, a subsequent development approval." SECTION 16.

(a) Applicability.– Thissectionappliesonlyto citieswithapopulationof125,000people or more.

(b) Definitions.

– As used in this section, the term "tiny house" means a detached single-family dwelling unit that is no greater than 600 square feet, built to standards applicable to the North Carolina Residential Code, and is either constructed or mounted on a foundation and is connected to utilities.

The term does not include a recreational vehicle or manufactured home that has not been affixed to real property.

(c) Small Housingin Residential Zones.

– Acityshall allow small housingin areas zoned for residential or mixed-use residential, including those that allow for the development of detached single-family dwellings.

(d) Regulation and Scope.

– Nothing in this section affects the validity or enforceability of private covenants or other contractual agreements among propertyowners relating to dwelling type restrictions.

Any regulation adopted pursuant to this section shall not apply to an area designated as a local historic district (i) pursuant to Part 4 of Article 9 of this Chapter or (ii) on the National Register of Historic Places, unless approved by the local historic preservation authority.

Forsepticsystems, acitymayrequireanewsystem or an upgradeto an existingsystem if it is determined that the existing system is incapable of handling extra capacity.

"§ 160D-975.

Accessory dwelling units.

(a) Applicability.– Thissectionappliesonlyto citieswithapopulationof125,000people or more.

(b) A city shall allow the development of at least one accessory dwelling unit which conforms to the North CarolinaResidential Code,including applicable provisions from theNorth Carolina Fire Code, for each detached single-family dwelling that is greater than 600 square feet, in areas zoned forresidential usethatallow fordevelopment of detached single-familydwellings.

An accessory dwelling unit may be built or sited concurrently with the primary dwelling or after the primary dwelling has been constructed or sited.

Nothing in this section shall prohibit a local government from permitting accessory dwelling units in any area not otherwise required under this section.

For the purposes of this section, the term "accessory dwelling unit" means an attached or detached residential structure that is used in connection with or that is accessory to a primary single-family dwelling and that has less total square footage than the primary single-family dwelling.

(c) Development and permitting of an accessory dwelling unit shall not be subject to any of the following requirements:

(1) Owner-occupancy of any dwelling unit, including an accessory unit.

(2) Minimum parking requirements or other parking restrictions, including the imposition of additional parking requirements where an existing structure is converted for use as an accessory dwelling unit.

(3) Conditional use zoning.

(d) In permitting accessory dwelling units under this section, a city shall not do any of the following:

(1) Prohibit the connection of the accessory dwelling unit to existing utilities serving the primary dwelling unit.

Page 14 House Bill 765-First Edition General Assembly Of North Carolina Session 2025 (2) Charge any fee, other than a building permit fee, that exceeds the amount charged for any single-family dwelling unit similar in nature.

(e) Except as otherwise provided in this section, a city may regulate accessory dwelling units pursuant to this Chapter, provided that the regulations do not act to discourage development or siting of accessory dwelling units through unreasonable costs or delay.

Nothing in this section shall affect the validity or enforceability of private covenants or other contractual agreements among property owners relating to dwelling type restrictions.

(f) A city may impose a setback minimum for accessory dwelling units of 5 feet or the setback minimum imposed generally upon lots in the same zoning classification, whichever is less." AMEND REQUIREMENTS FOR ESTABLISHMENT OF HISTORIC DISTRICTS SECTION 13.

160D-912 reads as rewritten:

"§ 160D-912.

Outdoor advertising.

(a) As used in this section, the term "off-premises outdoor advertising" includes off-premises outdoor advertising signs visible from the main-traveled way of any road.

(b) A local government may require the removal of an off-premises outdoor advertising sign that is nonconforming under a local ordinance not in compliance with a development regulation and may regulate the use of off-premises outdoor advertising within its planning and development regulation jurisdiction in accordance with the applicable provisions of this Chapter and subject to G.S.

136-131.1 and G.S.

136-131.2.

(c) A local government shall give written notice of its intent to require removal of off-premises outdoor advertising not in compliance with a development regulation by sending a letter by certified mail to the last known address of the owner of the off-premises outdoor advertising and the owner of the property on which the off-premises outdoor advertising is located.

(d) No local government may enact or amend an ordinance of general applicability to require the removal of any nonconforming, lawfully erected off-premises outdoor advertising sign that is not in compliance with a development regulation without the payment of monetary compensation to the owners of the off-premises outdoor advertising, except as provided below.

The payment of monetary compensation is not required if:

(1) The local government and the owner of the nonconforming off-premises outdoor advertising enter into a relocation agreement pursuant to subsection (g) of this section.

House Bill 765-Second Edition Page 15 General Assembly Of North Carolina Session 2025 (2) The local government and the owner of the nonconforming off-premises outdoor advertising enter into an agreement pursuant to subsection (k) of this section.

(3) The off-premises outdoor advertising is determined to be a public nuisance or detrimental to the health or safety of the populace.

(4) The removal is required for opening, widening, extending, or improving streets or sidewalks, or for establishing, extending, enlarging, or improving any of the public enterprises listed in G.S.

160A-311, and the local government allows the off-premises outdoor advertising to be relocated to a comparable location.

(5) The off-premises outdoor advertising is subject to removal pursuant to statutes, ordinances, or regulations generally applicable to the demolition or removal of damaged structures.

(d1) This subsection Subsection (d) of this section shall be construed subject to and without any reduction in the rights afforded to owners of off-premises outdoor advertising signs along interstate and federal-aid primary highways in this State as provided in Article 13 of Chapter 136 of the General Statutes.

Nothing in this section shall be construed to diminish the rights given to owners or operators of nonconformities as set forth in G.S.

160D-108 and G.S.

160D-108.2 or the rights of owners or operators of outdoor advertising signs in Article 11 of Chapter 136 of the General Statutes.

(e) Monetary compensation is the fair market value of the off-premises outdoor advertising in place immediately prior to its removal and without consideration of the effect of theordinanceoranydiminutioninvaluecausedbytheordinancerequiringitsremoval.Monetary compensation shall be determined based on the following:

(1) The factors listed in G.S.

105-317.1(a).

(2) The listed property tax value of the property and any documents regarding value submitted to the taxing authority.

(f) If the parties are unable to reach an agreement under subsection (e) of this section on monetary compensation to be paid by the local government to the owner of the nonconforming off-premises outdoor advertising sign for its removal and the local government elects to proceed with the removal of the sign, off-premises outdoor advertising, the local government may bring an action in superior court for a determination of the monetary compensation to be paid.

In determining monetary compensation, the court shall consider the factors set forth in subsection (e) of this section.

Upon payment of monetary compensation for the sign, off-premises outdoor advertising, the local government shall own the sign.off-premises outdoor advertising.

(g) In lieu of paying monetary compensation, a local government may enter into an agreement with the owner of a nonconforming off-premises outdoor advertising sign to relocate and reconstruct the sign.

off-premises outdoor advertising.

The agreement shall include the following:

(1) Provision for relocation of the sign off-premises outdoor advertising to a site reasonably comparable to or better than the existing location.

In determining whether a location is comparable or better, the following factors shall be taken into consideration:

a.

The size and format of the sign.off-premises outdoor advertising.

b.

The characteristics of the proposed relocation site, including visibility, traffic count, area demographics, zoning, and any uncompensated differential in the sign owner's cost to the owner of the off-premises outdoor advertising to lease the replacement site.

c.

The timing of the relocation.

Page 16 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 (2) Provision for payment by the local government of the reasonable costs of relocating and reconstructing the sign, off-premises outdoor advertising including the following:

a.

The actual cost of removingthe sign.off-premises outdoor advertising.

b.

The actual cost of any necessary repairs to the real property for damages caused in the removal of the sign.off-premises outdoor advertising.

c.

The actual cost of installing the sign off-premises outdoor advertising at the new location.

d.

An amount of money equivalent to the income received from the lease of the sign off-premises outdoor advertising for a period of up to 30 days if income is lost during the relocation of the sign.off-premises outdoor advertising.

(h) For the purposes of relocating and reconstructing a nonconforming off-premises outdoor advertising sign pursuant to subsection (g) of this section, a local government, consistent with the welfare and safety of the community as a whole, may adopt a resolution or adopt or modify its ordinances to provide for the issuance of a permit or other approval, including conditions as appropriate, or to provide for dimensional, spacing, setback, or use variances as it deems appropriate.

(i) If a local government has offered to enter into an agreement to relocate a nonconforming off-premises outdoor advertising sign pursuant to subsection (g) of this section and within 120 days after the initial notice bythe local government the parties have not been able to agree that the site or sites offered by the local government for relocation of the sign off-premises outdoor advertising are reasonably comparable to or better than the existing site, the parties shall enter into binding arbitration to resolve their disagreements.

Unless a different method of arbitration is agreed upon by the parties, the arbitration shall be conducted by a panel of three arbitrators.

Each party shall select one arbitrator, and the two arbitrators chosen by the parties shall select the third member of the panel.

The American Arbitration Association rules shall apply to the arbitration unless the parties agree otherwise.

(j) If the arbitration results in a determination that the site or sites offered by the local government for relocation of the nonconforming sign off-premises outdoor advertising are not comparable to or better than the existing site, and the local government elects to proceed with the removal of the sign, off-premises outdoor advertising, the parties shall determine the monetary compensation undersubsection (e)ofthis sectionto bepaid to theownerofthe sign.

off-premises outdoor advertising.

If the parties are unable to reach an agreement regarding monetary compensation within 30 days of the receipt of the arbitrators' determination and the local government elects to proceed with the removal of the sign, off-premises outdoor advertising then the local government may bring an action in superior court for a determination of the monetary compensation to be paid by the local government to the owner for the removal of the sign.

off-premises outdoor advertising.

In determining monetary compensation, the court shall consider the factors set forth in subsection (e) of this section.

Upon payment of monetary compensation for the sign, off-premises outdoor advertising, the local government shall own the sign.off-premises outdoor advertising.

(k) Notwithstanding the provisions of this section, a local government and an off-premises outdoor advertising sign owner may enter into a voluntary agreement allowing for the removal of the sign off-premises outdoor advertising after a set period of time in lieu of monetarycompensation.

A local government may adopt an ordinance or resolution providing for a relocation, reconstruction, or removal agreement.

(l) A local government has up to three years from the effective date of an ordinance enacted under this section to pay monetary compensation to the owner of the off-premises House Bill 765-Second Edition Page 17 General Assembly Of North Carolina Session 2025 outdoor advertising provided the affected property off-premises outdoor advertising remains in place until the compensation is paid.

(m) This section does not apply to any ordinance in effect on July 1, 2004.

A local government may amend an ordinance in effect on July 1, 2004, to extend application of the ordinance to off-premises outdoor advertising located in territory acquired by annexation or located in the extraterritorial jurisdiction of the city.

A local government may repeal or amend an ordinance in effect on July 1, 2004, so long as the amendment to the existing ordinance does not reduce the period of amortization in effect on June 19, 2020.

(n) The provisions of this section shall not be used to interpret, construe, alter, or otherwise modify the exercise of the power of eminent domain by an entity pursuant to Chapter 40A or Chapter 136 of the General Statutes.

(o) Nothing in this section shall limit a local government's authority to use amortization as a means of phasing out nonconforming uses other than off-premises outdoor advertising." SECTION 17.

G.S.

160D-912.1 reads as rewritten:

"§ 160D-912.1.

On-premises advertising.

(a) As used in this section, the following definitions apply:

(1) Monetary compensation.

– An amount equal to the sum of (i) the greater of the fair market value of the nonconforming on-premises advertising sign that is not in compliance with a development regulation in place immediatelyprior to the removal or the diminution in value of the real estate resulting from the removal of the on-premises advertising sign and (ii) the cost of a new on-premises advertising sign that conforms to the local government's development regulations.

(2) On-premises advertising sign.

– A sign visible from any local or State road or highway that advertises activities conducted on the property upon which it is located or advertises the sale or lease of the property upon which it is located.

(3) Reconstruction.

– Erecting or constructing anew, including any new or modern instrumentalities, parts, or equipment that were allowed under the local development rules in place at the time the on-premises advertising sign was erected.

(b) Notwithstanding any local development regulation to the contrary, a lawfully erected on-premises advertising sign may be relocated or reconstructed within the same parcel so long as the square footage of the total advertising surface area is not increased, and the on-premises advertising sign complies with the local development rules regulations in place at the time the on-premises advertising sign was erected.

The construction work related to the relocation of the lawfully erected on-premises advertising sign shall commence within two years after the date of removal.

The local government shall have the burden to prove that the on-premises advertising sign was not lawfully erected.

(c) A local government may require the removal of a lawfully erected on-premises advertising sign under a local development regulation only if the local government pays the owner of the on-premises advertising sign monetary compensation for the removal.

Upon payment of monetarycompensation, the local government shall own the on-premises advertising sign and remove it in a timely manner.

(d) Nothing in this section shall be construed to diminish the rights given to owners or operators of nonconforming uses, including nonconforming structures, nonconformities as set forth in G.S.

160D-108 G.S.

160D-108 and G.S.

160D-108.2 or the rights of owners or operators of outdoor advertising signs in Article 11 of Chapter 136.Chapter 136 of the General Statutes." SECTION 18.

G.S.

(a) Anylocal government may, as part of a zoning regulation adopted pursuant to Article 7 of this Chapter or as a development regulation enacted or amended pursuant to Article 6 of this Page 18 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 Chapter, designate and from time to time amend one or more historic districts within the area subject to the development regulation.

Where historic districts are designated as separate use districts, the zoning development regulation may include as uses by right or as special uses those uses found by the preservation commission to have existed during the period sought to be restored or preserved or to be compatible with the restoration or preservation of the district.

(c) The governing board may also, in its discretion, refer the report and proposed boundaries under subsection (b) of this section to any local preservation commission or other interested body for its recommendations prior to taking action to amend the zoning development regulation.

With respect to anyanychanges changes in the boundaries of a district, subsequent to its initial establishment, or the creation of additional districts within the jurisdiction, the investigative studies and reports required by subdivision (1) of subsection (b) of this section shall be prepared by the preservation commission and shall be referred to the planning board for its review and comment according to procedures set forth in the zoning development regulation.

Changes in the boundaries of an initial district or House Bill 765-First Edition Page 15 General Assembly Of North Carolina Session 2025 proposal for additional districts shall also be submitted to the Department of Natural and Cultural Resources in accordance with the provisions of subdivision (2) of subsection (b) of this section.

On receipt of these reports and recommendations, the local government may proceed in the same manner as would otherwise be required for the adoption or amendment of any appropriate zoning regulation.developmentregulation.regulation, regulation, except that the governing board shall unanimously approve the adoption of the district.

160D-914 applies to zoning or other development regulations pertaining to historic districts, and the authority under that statute for the ordinance to regulate the location or screening of solar collectors may encompass requiring the use of plantings or other measures to ensurethat theuse ofsolarcollectors is not incongruous with thespecialcharacter ofthe district." REQUIRE ONLY A SHELL PERMIT FOR THE CONSTRUCTION OF MULTIFAMILY DEVELOPMENTS SECTION 19.14.(a) G.S.

Article160D-1110(d) 9reads ofas Chapterrewritten: 160D of the General Statutes is amended by adding the following two new sections to read:

"§"(d) 160D-974.A local government shall not do any of the following:

Tiny(1) housesRequire inmore residentialthan districtsone inbuilding certainpermit cities.for the complete installation or replacement of any natural gas, propane gas, or electrical appliance on an existing structure when the installation or replacement is performed by a person licensed under G.S.

House87-21 Billor 765-SecondG.S. Edition Page 19 General Assembly Of North Carolina Session 2025 (a) Tiny Housing in Residential Zones.

–87-43. A city shall allow tiny housing in areas zoned for residential or mixed-use residential, including those that allow for the development of detached single-family dwellings.

(b)The Regulationcost andof Scope.the building permit for this work shall not exceed the cost of any one individual trade permit issued by that local government.

–The Nothinglocal ingovernment thisshall sectionnot affectsincrease the validitycosts or enforceability of privateany covenantsfees orto otheroffset contractualthe agreementsloss amongof propertyownersrevenue relatingcaused toby dwellingthis typeprovision. restrictions.

Any(2) developmentRequire regulationmore adoptedthan pursuantone tobuilding thispermit sectionfor shallsimultaneous notprojects applyat to an area designated as a local historic district (i) pursuant to Part 4 of this Article or (ii) on the Nationaltime RegisteroftheapplicationlocatedatthesameaddressandsubjecttotheNorthCarolina ofResidential HistoricCode. Places, unless approved bythe local historic preservation authority.

For(3) septicRequire systems,more athan city may require a newshell systempermit orfor an upgrade to an existing system if it is determined that the existingconstruction system is incapable of handlinga increasedmultifamily capacity.development project.

(c)Upon Definitions.the request of the permittee, the local government shall issue certificates of occupancy for individual units in a multifamily development project permitted under a shell permit as the units meet the criteria for issuance of a certificate of occupancy.

–For Aspurposes usedof in this section,subdivision, the"shell termpermit" "tiny housing" means a detachedpermit single-familythat dwellingallows unitfor thatthe isstructural noconstruction greaterof thana 600building squarebut feet,does builtnot toresult standardsin applicablethe toissuance theof Northa Carolinacertificate Residentialof Code,occupancy." andSECTION14.(b) isThis eithersectionis constructedeffective orwhenit mountedbecomeslawand onapplies ato foundationpermit andapplications isfiled connectedon toor utilities.after that date.

TheEXPAND termCAUSES doesFOR notCIVIL includeACTION aINVOLVING recreationalCLAIMS vehicleINVOLVING orQUESTIONS manufacturedOF homeINTERPRETATION thatAND hasCLARIFY notSTANDING beenIN affixedSUCH toCASES realSECTION property.15.

(d) Applicability.

– This section applies only to cities with a population of 125,000 or more, according to the most recent decennial federal census.

"§ 160D-975.

Accessory dwelling units in certain cities.

(a) A city shall allow the development of at least one accessory dwelling unit which conforms to the North CarolinaResidential Code,including applicable provisions from theNorth Carolina Fire Code, for each detached single-family dwelling that is greater than 600 square feet, in areas zoned forresidential usethatallow fordevelopment of detached single-familydwellings.

An accessory dwelling unit may be built or sited concurrently with the primary dwelling or after the primary dwelling has been constructed or sited.

Nothing in this section shall prohibit a local government from permitting accessory dwelling units in any area not otherwise required under this section.

(b) Development and permitting of an accessory dwelling unit shall not be subject to any of the following requirements:

(1) Owner-occupancy of any dwelling unit, including an accessory unit.

(2) Minimum parking requirements or other parking restrictions, including the imposition of additional parking requirements where an existing structure is converted for use as an accessory dwelling unit.

(3) Conditional use zoning.

(c) In permitting accessory dwelling units under this section, a city shall not do any of the following:

(1) Prohibit the connection of the accessory dwelling unit to existing utilities serving the primary dwelling unit.

(2) Charge any fee, other than a building permit fee, that exceeds the amount charged for any single-family dwelling unit similar in nature.

(d) Except as otherwise provided in this section, a city may regulate accessory dwelling units pursuant to this Chapter, provided that the development regulations do not act to discourage development or siting of accessory dwelling units through unreasonable costs or delay.

Nothing in this section shall affect the validity or enforceability of private covenants or other contractual agreements among property owners relating to dwelling type restrictions.

(e) A city may impose a setback minimum for accessory dwelling units of 5 feet or the setback minimum imposed generally upon lots in the same zoning classification, whichever is less.

(f) For the purposes of this section, the term "accessorydwelling unit" means an attached or detached residential structure that is used in connection with or that is accessory to a primary single-family dwelling and that has less total square footage than the primary single-family dwelling.

Page 20 House Bill 765-Second Edition General Assembly Of North Carolina Session 2025 (g) This section applies only to cities with a population of 125,000 or more, according to the most recent decennial federal census." SECTION 20.

160D-1102(c) reads as rewritten:

"(c) No later than October 1 of 2023, 2024, and 2025, each year, every local government shall publish an annual financial report on how it used fees from the prior fiscal year for the support, administration, and implementation of its building code enforcement program as required by G.S.

160D-402(d).

This report is in addition to any other financial report required by law." SECTION 21.

G.S.

160D-1110(d) is amended by adding a new subdivision to read:

"(3) Require more than a shell permit for the construction of a multifamily development.

Upon the request of the permittee, the local government shall issue certificates of occupancy for individual units in a multifamily development permitted under a shell permit as the units meet the criteria for issuance of a certificate of occupancy.

For purposes of this subdivision, "shell permit"means apermit that allows forthe structural construction of abuilding but does not result in the issuance of a certificate of occupancy." SECTION 22.

G.S.

160D-1403 reads as rewritten:

"§ 160D-1403.

Appeals of decisions on subdivision plats.

(a) When a subdivision regulation adopted under this Chapter provides that the decision whether to approve or deny a preliminary or final subdivision plat is quasi-judicial, then that decision of the board is subject to review by the superior court by a proceeding in the nature of certiorari.

G.S.