Live/Work Exemption for One-Family Dwellings.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 248

Short Title: Live/Work Exemption for One-Family Dwellings. (Public)
Sponsors: Representatives Roberson, Price, and Cervania (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Housing and Development, if favorable, Judiciary 1, if favorable, Rules, Calendar,
and Operations of the House
March 3, 2025
*H248-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO EXEMPT CER TAIN OWNER-OCCUPIED, SINGLE-FAMILY DWELLINGS 2
WITH PERMITTED BUSINESS USES FROM THE LIVE/WORK REQUIREMENTS OF 3
THE NORTH CAROLINA BUILDING CODE. 4
The General Assembly of North Carolina enacts: 5
SECTION 1.(a) Definitions. – For purposes of this act, the following definitions 6
apply: 7
(1) Home business use. – An accessory commercial or professional activity 8
conducted by the owner-occupant within the dwelling that is incidental to the 9
primary residential use. To qualify as a "home business use," the business 10
must be operated directly by the owner-occupant and not leased or rented to a 11
third party. 12
(2) Live/work unit. – Under the North Carolina State Building Code, a dwelling 13
unit in which more than ten percent (10 %) and less than fifty percent (50%) 14
of the space includes a nonresidential use that is operated by the tenant. 15
(3) Owner-occupied. – A dwelling that serves as the primary residence of at least 16
one record owner of the property. For purposes of this act, th e owner must 17
physically reside in the dwelling. Temporary absences, such as military 18
deployment or seasonal travel, do not negate owner-occupancy so long as the 19
owner intends to return and no other person assumes primary occupancy. 20
(4) Single-family dwelli ng. – A residential building that contains only one 21
dwelling unit intended for occupancy by a single family or household and is 22
subject to the North Carolina Residential Code. 23
SECTION 1.(b) Classification and Exemption. – An owner-occupied, single-family 24
dwelling with a home business use, as defined in subsection (a) of this section, shall be subject 25
solely to the same provisions of the North Carolina State Building Code that would apply if the 26
dwelling had no home business use, subject to the conditions o f subsection (c) of this section. 27
Notwithstanding any provision of law or code to the contrary, the presence of a home business 28
use shall not: 29
(1) Alter the dwelling's classification as a single -family residence subject to the 30
North Carolina Residential Code for One- and Two-family dwellings; 31
(2) Cause any portion of the dwelling to be considered a separate occupancy or 32
trigger live/work, mixed -use, or commercial requirements under the North 33
Carolina Building Code; or 34
General Assembly Of North Carolina Session 2025
Page 2 House Bill 248-First Edition
(3) Impose any additional requirements under the North Carolina State Building 1
Code that would not otherwise apply to a single-family dwelling. 2
All other applicable requirements under the North Carolina Residential Code for a 3
single-family dwelling remain in effect. 4
SECTION 1.(c) Conditions for Exemption. – A dwelling qualifies for the exemption 5
under subsection (b) of this section only if all of the following conditions are met: 6
(1) Owner-occupancy. – The dwelling is occupied by the business owner as the 7
owner's primary residence. 8
(2) Home business use. – The activity conducted in the area of the dwelling used 9
for business meets the definition of "home business use" as defined in 10
subsection (a) of this section. 11
(3) Local zoning compliance. – The home business use of the dwelling is 12
permitted under applicable local zoning law and is otherwise lawful. 13
SECTION 1.(d) Loss of Exemption. – If at any time the dwelling ceases to meet any 14
condition of subsection (c) of this section, the exemption provided by subsection (b) of this 15
section shall automatically terminate. Upon the termination of the exemption, the dwelling shall 16
thereafter be subject to any applicable occupancy classification and associated requirements of 17
the North Carolina State Building Code. 18
SECTION 2.(a) Prohibition on Reclassificatio n and Change of Occupancy. – 19
Notwithstanding G.S. 160D-1115 or any other law, a dwelling exempt under Section 1 of this act 20
shall not be reclassified as a live/work unit, commercial occupancy, or mixed occupancy solely 21
because of the presence of a home business use, and no reinspection or reissuance of a certificate 22
of occupancy shall be required solely on that basis. 23
SECTION 2.(b) Preemption of Local Ordinances. – No county or municipality shall 24
enact or enforce any ordinance, rule, or policy that: 25
(1) Requires an owner-occupied, single-family dwelling meeting the exemption 26
requirements of Section 1(b) of this act to be classified or regulated under the 27
commercial or live/work provisions of the North Carolina Building Code; or 28
(2) Imposes any construction, fire-safety, or structural requirement more stringent 29
than, or in addition to, those specified by the North Carolina Residential Code 30
for single-family dwellings, solely because the dwelling is used for a home 31
business use meeting the requirements of Section 1(b) of this act. 32
SECTION 2.(c) To implement the provisions of this act, the following shall apply: 33
(1) The North Carolina Building Code Council shall adopt permanent rules to 34
amend the applicable provisions of the North Carolina State Building Code in 35
a manner consistent with the provisions of Section 1 of this act. 36
(2) The North Carolina Residential Code Council shall adopt permanent rules to 37
amend the applicable provisions of the North Carolina Residential Code in a 38
manner consistent with the provisions of Section 1 of this act. 39
(3) Notwithstanding G.S. 150B-19(4), the rules adopted pursuant to this section 40
shall be substantively identical to the provisions of Section 1 of this act and 41
shall become effective as provided in G.S. 150B-21.3(b)(1), as though 10 or 42
more written objections had been received in accordance with 43
G.S. 150B-21.3(b)(2). 44
(4) Rules adopted under this section shall not be subject to review under Part 3 of 45
Article 2A of Chapter 150B of the General Statutes. 46
SECTION 2.(d) Sunset. – Section 1 of this act shall expire on the date that permanent 47
rules adopted by the North Carolina Building Code Council and North Carolina Residential Code 48
Council under subsection (c) of this section become effective. 49
SECTION 2.(e) Exceptions and Limita tions. – The provisions of this section are 50
subject to the following exceptions and clarification: 51
General Assembly Of North Carolina Session 2025
House Bill 248-First Edition Page 3
(1) Local zoning and police powers. – Nothing in this act shall be construed to 1
limit or modify the authority of a county or municipality to regulate land us e 2
or to prohibit or restrict particular business activities under its zoning or police 3
powers, including, but not limited to, adult establishments as defined in 4
G.S. 14-202.10, uses involving highly flammable materials, or other 5
operations deemed unlawful or hazardous under State or federal law. 6
(2) Private covenants not superseded. – This act does not supersede any valid 7
private covenant, deed restriction, or homeowners' association bylaw that 8
prohibits or limits home-based businesses. Property owners remain subject to 9
any private land -use restrictions that apply to their property, and nothing in 10
this section shall be construed to alter or invalidate such private agreements. 11
(3) Compliance with other laws. – A home-based business shall comply with all 12
applicable State and federal laws, rules, and regulations, including health and 13
safety laws, occupational licensing requirements, and environmental 14
standards. Nothing in this act shall be construed to exempt a home -based 15
business from any State or federal permit, license, or approval requirement. 16
SECTION 3. Effective Date. – This act is effective when it becomes law and applies 17
to all existing owner-occupied, single-family dwellings and to all owner-occupied, single-family 18
dwellings constructed, renovated, or used for home business use on or after that date. 19