Relieving Housing Bottlenecks.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 1056

Short Title: Relieving Housing Bottlenecks. (Public)
Sponsors: Representatives Alston, Lopez, Prather, and Dahle (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Appropriations, if favorable, Rules, Calendar, and Operations of the House
April 28, 2026
*H1056-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ALLOW RESI DENTIAL DEVELOPMENT IN ALL COMMERCIAL ZO NES, 2
TO PROHIBIT MINIMUM PARKING REQUIREMENTS, TO REQUIRE THE NOR TH 3
CAROLINA HOUSING FIN ANCE AGENCY TO ESTAB LISH A MUNICIPAL 4
HOUSING APPROVAL ACC ELERATION PROGRAM, T O PRESERVE 5
SINGLE-FAMILY HOMEOWNERSHIP, TO ESTABLIS H A WORKFORCE HOUSIN G 6
PRECONSTRUCTION REVO LVING LOAN PROGRAM, AND TO PROVIDE 7
ADDITIONAL FUNDING F OR THE NORTH CAROLIN A HOUSING FINANCE 8
AGENCY. 9
Whereas, housing costs in North Carolina have risen sharply over the past decade, 10
with median home prices increasing by more than 50 percent statewide since 2015 and rents 11
rising significantly in both urban and rural communities; and 12
Whereas, more than one in three renter households in North Carolina are cost 13
burdened, paying over 30 percent of their income toward housing, and hundreds of thousands of 14
households face severe cost burdens, paying more than half of their income for housing; and 15
Whereas, wages for many working families have not kept pace with rising housing 16
costs, placing homeownership further out of reach and increasing financial strain on teachers, 17
first responders, health care workers, and service employees; and 18
Whereas, North Carolina continues to experience strong population growth, adding 19
thousands of new residents each year, while housing production has failed to keep pace with 20
demand, resulting in low vacancy rates and sustained upward pressure on prices; and 21
Whereas, regulatory barriers, infrastructure constraints, and lengthy or unpredictable 22
approval processes increase the cost and time required to build housing, limiting supply and 23
contributing to higher prices; and 24
Whereas, expanding housing supply and removing unnecessary bottlenecks are 25
essential to restoring affordability, strengthening workfor ce stability, and ensuring that North 26
Carolina remains competitive and accessible for current and future residents; and 27
Whereas, the General Assembly declares that addressing housing affordability is an 28
urgent statewide priority and that effective, supply -focused policy reforms are necessary to 29
reduce costs and support price-burdened households across North Carolina; Now, therefore, 30
The General Assembly of North Carolina enacts: 31
32
PART I. ALLOW RESIDENTIAL DEVELOPMENT IN ALL COMMERCIAL ZONES 33
SECTION 1.1. Article 7 of Chapter 160D of the General Statutes is amended by 34
adding a new section to read: 35
General Assembly Of North Carolina Session 2025
Page 2 House Bill 1056-First Edition
"§ 160D-707. Residential development allowed in all commercial zones. 1
(a) In all areas and districts zoned f or commercial use, a local government shall allow 2
residential development by right at a density and intensity no less than that allowed in the least 3
restrictive residential zoning district in the jurisdiction in which residential development is 4
permitted by right. 5
(b) Nothing in this section shall be construed to apply to areas zoned for industrial use or 6
to supersede or diminish any applicable building code, fire code, or other general public health 7
and safety regulations or other building design elements generally applicable to residential 8
development." 9
SECTION 1.2. This Part becomes effective July 1, 2027, and applies to permit 10
applications submitted on or after that date. 11
12
PART II. PROHIBIT PARKING MINIMUMS 13
SECTION 2.1. G.S. 160D-702 reads as rewritten: 14
"§ 160D-702. Grant of power. 15
… 16
(c) A zoning or other development regulation shall not do any of the following: 17
(1) Set a minimum square footage of any structures subject to regulation under 18
the North Carolina Residential Code. 19
(2) Require a or otherwise establish a minimum size, placement, configuration, 20
allocation, location, or number of parking space to be larger than 9 feet wide 21
by 20 feet long unless the parking space is designated for handicap, parallel, 22
or diagonal parking. spaces, except as required by the Americans with 23
Disabilities Act of 1990, 42 U.S.C. § 12101, et seq., as amended, or federal 24
regulations promulgated under that Act. 25
(3) Require additional fire apparatus access roads into developments of one - or 26
two-family dwellings that are not in compliance with the required number of 27
fire apparatus access roads into developments of one- or two-family dwellings 28
set forth in the Fire Code of the North Carolina Residential Code for One- and 29
Two-Family Dwellings. 30
…." 31
SECTION 2.2. This Part becomes effective July 1, 2027, and applies to ordinances 32
and regulations enacted or amended on or after that date. 33
34
PART III. SUPPORT LOCAL GOVERNMENT PERMITTING 35
SECTION 3.1. Chapter 122A of the General Statutes is amended by adding a new 36
section to read: 37
"§ 122A-5.16. Municipal Housing Approval Acceleration Program. 38
(a) As used in this section, "residential development application" means an application 39
submitted to a local gover nment for the approvals required for the construction of residential 40
dwelling units or the conversion of buildings or portions of buildings into residential dwelling 41
units. This definition includes rezonings, subdivision approvals, site plan approvals, special use 42
permits, and b uilding permits, but excludes post-construction ministerial reviews suc h as 43
inspections and certificates of occupancy. 44
(b) The North Carolina Housing Finance Agency shall establish and administer the 45
Municipal Housing Approval Acceleration Program to reimburse eligible local governments up 46
to one hundred twenty-five percent (125%) for eligible documented costs incurred to accelerate 47
the review and disposition of residential development applications, including approval, denial, 48
and other final action. The Agency shall do all of the following: 49
(1) Develop performance reimbursement limits and eligibility guidelines in 50
consultation with the North Carolina League of Municipalities , taking into 51
General Assembly Of North Carolina Session 2025
House Bill 1056-First Edition Page 3
consideration geography, market conditions, and local capacity. The 1
eligibility guidelines must clearly define and explain which local governments 2
may apply for performance reimbursement under this Program and for which 3
categories of documented costs. 4
(2) Develop a standardized reporting form for local governments to use in 5
applying for performance reimbursement. The form must require a local 6
government to include all of the following from the year in which it is applying 7
for reimbursement: 8
a. Total number of residential development applications received. 9
b. Number of residential development applications that have been 10
approved or denied or remain pending. 11
c. Processing time lines for approvals. 12
d. Amount of eligible costs incurred in granting approvals, identified by 13
category. 14
e. Documentation of eligible costs. 15
(3) Annually review completed applications for performance reimbursement as 16
described in sub division (2) of this subsection and reimburse local 17
governments in accordance with the Agency 's established reimbursement 18
limits. Performance reimbursement amounts may exceed one hundred percent 19
(100%), up to one hundred twenty-five percent (125%), on an individualized 20
basis. The Agency shall consider all of the following local factors in 21
determining whether to reimburse a local government more than one hundred 22
percent (100%): 23
a. Constrained fiscal capacity. 24
b. Constrained staffing availability in rural or small jurisdictions. 25
c. High-growth or high-cost housing markets. 26
d. Extensive reduction in processing time lines for approvals. 27
e. High number of approvals. 28
f. Adoption of best-practice reforms that materially accelerate residential 29
development and housing production. 30
(c) Application. – To receive performance reimbursement for eligible costs, eligible local 31
governments shall first apply to the Agency for reimbursement using the standardized reporting 32
form described in subdivision (2) of subsection (b) of this section. 33
(d) Funds. – The Agency shall use funds appropriated to it for this Program only as 34
provided in this section. 35
(e) Quarterly Report. – The Agency shall report quarterly to the Joint Legislative 36
Economic Development and Global Engagement Oversight Committee and the Fiscal Research 37
Division on all of the following: 38
(1) Total funds obligated and disbursed. 39
(2) Categories of eligible costs being reimbursed. 40
(3) Identification of local governments receiving performance reimbursement. 41
(4) Total number of residential development applications processed by each local 42
government receiving performance reimbursement. 43
(5) Number of residential development applications that have been approved or 44
denied or remain pending for each local government receiving performance 45
reimbursement. 46
(6) Average processing time lines for approvals for each local government 47
receiving performance reimbursement before and after participating in the 48
Program. 49
(7) Any reduction observed by the Agency in processing time lines for approvals 50
attributable to the Program." 51
General Assembly Of North Carolina Session 2025
Page 4 House Bill 1056-First Edition
SECTION 3.2. This Part becomes effective July 1, 2027. 1
2
PART IV. PRESERVE SINGLE-FAMILY HOMEOWNERSHIP 3
SECTION 4.1. Chapter 75 of the General Statutes is amended by adding a new 4
Article to read: 5
"Article 9. 6
"Preservation of Single-Family Homeownership. 7
"§ 75-146. Definitions. 8
The following definitions apply in this Article: 9
(1) Affiliate. – A business entity that wholly or substantially owns, is wholly or 10
substantially owned by, or is under common ownership or control with and 11
that acts directly or indirectly on behalf of, in concert with, or for the benefit 12
of another corporate buyer. 13
(2) Business entity. – A corporation, limited liability com pany, partnership, real 14
estate investment trust, association, joint venture, fund, trust, or other legal 15
entity, whether organized for profit or not for profit, but excluding a 16
governmental entity. 17
(3) Corporate buyer. – An individual or business entity who acquires or holds title 18
to a single-family home for any purpose other than owner-occupancy. 19
(4) Owner-occupant. – An individual who acquires or holds title to a 20
single-family home and who occupies, or intends in good faith to occupy, the 21
home as the individual's primary residence. 22
(5) Single-family home. – A residential structure that is either a fully detached or 23
semi-detached building or that is a row or town home that (i) is separate from 24
any adjacent unit by a ground -to-roof wall, (ii) does not sh are heating or 25
air-conditioning systems or utilities, and (iii) does not have dwelling units 26
located above or below. 27
"§ 75-147. Legislative findings and purpose. 28
(a) The General Assembly finds all of the following: 29
(1) The availability of single -family homes for owner -occupancy is vital to the 30
health, safety, welfare, and prosperity of the people of this State. 31
(2) Homeownership remains one of the principal means by which households 32
build equity, accumulate intergenerational wealth, achieve residential 33
stability, and participate fully in the economic and civic life of their 34
communities. 35
(3) Single-family homes are distinct from other forms of real property in that they 36
are traditionally intended to serve as the primary residences of individuals and 37
families, rather than as a large-scale financial asset class. 38
(4) The large-scale acquisition and holding of single-family homes by corporate, 39
institutional, and other business entities for rental or speculative purposes can 40
reduce the supply of homes available for owner -occupants, intensify 41
competition for entry -level and moderate -cost homes, and contribute to the 42
displacement of prospective homebuyers by portfolio purchasers. 43
(5) When substa ntial numbers of single -family homes are converted from 44
opportunities for family ownership into instruments of large -scale rent 45
extraction, the State suffers not only economic harm, but social and civic harm 46
through reduced neighborhood stability, diminished opportunities for wealth 47
formation, and increased dependence of res idents upon concentrated private 48
market power for basic housing. 49
(6) Single-family homes should, as a matter of public policy, be preserved 50
primarily for ownership and occupancy by individuals and families and should 51
General Assembly Of North Carolina Session 2025
House Bill 1056-First Edition Page 5
not be subject to indefinite aggregatio n by large -scale landlord interests or 1
accumulated at scale by corporate buyers whose principal purpose is to hold 2
such homes as rental inventory, speculative inventory, or other investment 3
assets. 4
(b) Therefore, the purpose of this Article is to protect the single-family housing market 5
from excessive concentration, preserve meaningful opportunities for owner-occupancy, deter the 6
treatment of single -family homes as a large -scale commodity class, and promote the broad 7
distribution of the benefits of homeownership among the people of North Carolina. 8
"§ 75-148. Prohibited large-scale acquisition of single-family homes. 9
(a) It is unlawful for a corporate buyer to purchase, acquire, o r otherwise obtain an 10
ownership interest in a single-family home in this State if, upon consummation of the transaction, 11
that corporate buyer would own, lease -purchase, control, or hold a beneficial interest in more 12
than 25 single-family homes in this State that are used primarily for rental, speculative, or other 13
non-owner-occupancy purposes. 14
(b) For purposes of this section, homes owned or controlled by affiliates are aggregated. 15
(c) A purchase made in violation of this section is an unfair or deceptive act or practice 16
affecting commerce under G.S. 75-1.1. 17
"§ 75-149. Exemptions. 18
This Article does not apply to any of the following: 19
(1) A single-family home acquired by devise, descent, or other inheritance. 20
(2) A single-family home acquired by a lender, loan servicer, or governmental 21
entity through foreclosure, deed in lieu of foreclosure, enforcement of a 22
security interest, tax foreclosure, or similar process, provided the acquiring 23
party does not retain the home for ren tal or speculative purposes longer than 24
24 months after acquisition. 25
(3) A single -family home acquired, in whole or majority part, by a nonprofit 26
organization, community land trust, or public housing -related entity for the 27
purpose of affordable homeownership, transitional housing, community 28
stabilization, or other public or charitable housing purpose. 29
(4) A builder or developer acquiring, constructi ng, or holding a single -family 30
home in the ordinary course of development for initial sale to an 31
owner-occupant, and not for long-term rental portfolio purposes. 32
(5) An individual acting in the individual 's own name for personal, family, or 33
household purposes. 34
"§ 75-150. Enforcement; remedies. 35
(a) The Attorney General shall have the same authority under this Article to investigate, 36
bring civil actions, seek injunctive relief, and obtain other remedies as provided under this 37
Chapter. 38
(b) In addition to any other relief authorized by law, a court may do any of the following 39
upon finding a violation of this Article: 40
(1) Enjoin the acquisition or continued ownership of a single -family home 41
acquired in violation of this Article. 42
(2) Order divestiture of a single-family home acquired in violation of this Article 43
within a reasonable period set by the court. 44
(3) Order disgorgement to the State of any rents, proceeds, appreciation, fees, or 45
other profits derived from a single-family home acquired or held in violation 46
of this Article. 47
(4) Award restitution, damages, costs, and reasonable attorneys' fees. 48
(5) Impose a civil penalty of not more than ten thousand dollars ($10,000) per 49
home acquired in violation of this Article, 50
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(c) A court may join affiliates and other interested parties as necessary to ensure a full 1
accounting of ownership and effective enforcement of this Article. 2
(d) The remedies under this Article are cumulative and do not limit any other rights or 3
remedies available under law." 4
SECTION 4.2. This Part becomes effective October 1, 2026, and applies to 5
acquisitions occurring on or after that date. 6
7
PART V. ESTABLISH WORKFORCE HOUSING PRECONSTRUCTION REVOLVING 8
LOAN PROGRAM 9
SECTION 5. Chapter 122A of the General Statutes is amended by adding a new 10
section to read: 11
"§ 122A -5.17. Revolving loan fund to finance short-term workforce housing 12
preconstruction costs. 13
(a) Definitions. – The following definitions apply in this section: 14
(1) Preconstruction costs. – Land surveys, environmental due diligence and soil 15
testing, utility connections, planning and permit fees, and site clearing and 16
grading. 17
(2) Workforce housing. – Housing that is affordable to households earning 18
between sixty percent (60%) and one hundred twenty percent (120%) of the 19
county area median income or the State area median income, whichever is 20
higher. 21
(b) Program. – The North Carolina Housing Finance Agency shall establish and 22
administer the Workforce Housing Preconstruction Revolving Loan Program for the purpose of 23
making revolving loans for preconstruction costs for workforce housing projects before 24
developers obtain permanent, private financing. The Agency shall establish guidelines for project 25
equity requirements for applicants between twenty percent (20%) and thirty-five percent (35%) 26
based on market conditions in the county where the project is located. Funds appropriated to the 27
North Carolina Housing Trust Fund for the Workforce Housing Preconstruction Revolving Loan 28
Program shall be used by the Agency only as provided in this section. 29
(c) Requirements. – The following shall apply to loans issued pursuant to this section: 30
(1) No loan shall exceed one million dollars ($1,000,000). 31
(2) Eighty percent (80%) of loans shall be reserved for projects in counties 32
designated as development tier one and tier two areas, as defined in 33
G.S. 143B-437.08. 34
(3) Twenty percent (20%) of loans shall be reserved for projects in counties 35
designated as a development tier three area, as defined in G.S. 143B-437.08. 36
For the purposes of this subsection, the development tier designation that is in effect as of the 37
beginning of a fiscal year shall be applied for all loans issued for that fiscal year. 38
(d) Report. – Before February 15 of each year, the Agency shall report to the Joint 39
Legislative Oversight Committee on General Government and the Fiscal Research Division on 40
the number of loans made under this section in the previous calendar year, the amount of each 41
loan, and the recipient of each loan." 42
43
PART VI. INCREASE FU NDING FOR NORTH CARO LINA HOUSING FINANCE 44
AGENCY 45
SECTION 6.1. There is appropriated from the General Fund to the North Carolina 46
Housing Finance Agency the sum of one hundred twenty million dollars ($120,000,000) in 47
nonrecurring funds for the 2026-2027 fiscal year as a directed grant to establish the Municipal 48
Housing Approval Acceleration Program pursuant to this act. 49
SECTION 6.2. The State Controller shall transfer the sum of forty million dollars 50
($40,000,000) in nonrecurring funds f or the 2026 -2027 fiscal year from funds available in the 51
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Economic Development Project Reserve, established in Section 2.2 of S.L. 2021 -180, to the 1
North Carolina Housing Trust Fund for the Workforce Housing Preconstruction Revolving Loan 2
Program established by this act. 3
4
PART VII. EFFECTIVE DATE 5
SECTION 7. Except as otherwise provided, this act is effective when it becomes 6
law. 7