Save the American Dream Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 3
HOUSE BILL 765
Committee Substitute Favorable 4/17/25
Committee Substitute #2 Favorable 5/6/25

Short Title: Save the American Dream Act. (Public)
Sponsors:
Referred to:
April 7, 2025
*H765-v-3*
A BILL TO BE ENTITLED 1
AN ACT TO REFORM LOC AL GOVERNMENT DEVELO PMENT REGULATIONS IN 2
THIS STATE AND TO IN CREASE THE NATIONAL POLLUTANT DISCHARGE 3
ELIMINATION SYSTEM GENERAL STORMWATER PERMIT FEE. 4
The General Assembly of North Carolina enacts: 5
SECTION 1.(a) G.S. 160D-101 reads as rewritten: 6
"§ 160D-101. Application. 7
(a) The provisions of this Article shall apply to all development regulations and programs 8
adopted pursuant to this Chapter or applicable or related local acts. To the extent there are 9
contrary provisions in local charters or acts, G.S. 160D-111 is applicable unless this Chapter 10
expressly provides otherwise. The provisions of this Article also apply to any other local 11
ordinance that substantially affects land use and development. 12
(b) The provisi ons of this Article are supplemental to specific provisions included in 13
other Articles of this Chapter. To the extent there are conflicts between the provisions of this 14
Article and the provisions of other Articles of this Chapter, the more specific provisi ons shall 15
control.control, unless a less specific enactment of the General Assembly clearly shows a 16
legislative intent to repeal or supersede the more specific provisions. 17
(c) Local governments may also apply any of the definitions and procedures authorize d 18
by this Chapter to any ordinance that does not substantially affect land use and development 19
adopted under the general police power of cities and counties, Article 8 of Chapter 160A of the 20
General Statutes and Article 6 of Chapter 153A of the General Sta tutes respectively, and may 21
employ any organizational structure, board, commission, or staffing arrangement authorized by 22
this Chapter to any or all aspects of those ordinances. 23
(d) This Chapter does not expand, diminish, or alter the scope of authority fo r planning 24
and development regulation authorized by other Chapters of the General Statutes. 25
(e) Except as provided by local act, notwithstanding any other provision of law , a local 26
government may not exercise development regulation authority except as expr essly authorized 27
by this Chapter. If State law governs a particular subject matter related to a local development 28
regulation authority, a local government shall not enact or enforce development regulations more 29
restrictive than those established by State law, unless the development regulation pertains to 30
floodplain management regulations as described in G.S. 143-138(e)." 31
SECTION 1.(b) G.S. 160D-110(a) reads as rewritten: 32
"(a) G.S. 153A-4 and G.S. 160A-4 are not applicable to this Chapter." 33
SECTION 1.(c) G.S. 160D-111 reads as rewritten: 34
"§ 160D-111. Effect on prior laws. 35
General Assembly Of North Carolina Session 2025
Page 2 House Bill 765-Third Edition
(a) The enactment of this Chapter does not require the readoption of any local 1
government ordinance enacted pursuant to laws that were in effect before January 1, 2020 and 2
are restated or revised herein. The provisions of this Chapter do not affect any act heretofore 3
done, any liability incurred, any right accrued or vested, or any suit or prosecution begun or cause 4
of action accrued as of January 1, 2020. October 1, 2025. The enactment of this Chapter does not 5
amend the geographic area within which local government development regulations adopted 6
prior to January 1, 2020, are effective. 7
(b) G.S. 153A-3 and G.S. 160A-3 are applicable to this Chapter. Nothing in this Chapter 8
repeals or amends a charter or local act in effect as of June 19, 2020, October 1, 2025, unless this 9
Chapter or a subsequent enactment of the General Assembly clearly shows a legislative intent to 10
repeal or supersede that charter or local act.act, or if that charter or local act is inconsistent with 11
the provisions of this Chapter. 12
…." 13
SECTION 1.(d) G.S. 153A-121 is amended by adding a new subsection to read: 14
"(d) This section does not apply to the a doption or enforcement of development 15
regulations under Chapter 160D of the General Statutes." 16
SECTION 1.(e) G.S. 160A-174 is amended by adding a new subsection to read: 17
"(c) This section does not apply to the adoption or enforcement of development 18
regulations under Chapter 160D of the General Statutes." 19
SECTION 2. G.S. 160D-102 reads as rewritten: 20
"§ 160D-102. Definitions. 21
Unless otherwise specifically provided, or unless otherwise clearly required by the context, 22
the words and phrases defined in this section shall have the following meanings indicated when 23
used in this Chapter: 24
(1) Acre. – The actual gross acreage of a parcel or parcels. For purposes of 25
determining allowable residential density, the actual gross acreage shall not 26
be reduced by subtract ing buffers, setbacks, public or private streets, open 27
space or recreation areas, or other nondevelopable areas. 28
(1b) Actual and legitimate needs of the community. – Demonstrable requirements 29
or deficiencies within a local jurisdiction that are substantiated by objective 30
data, recognized standards, or credible assessments. These needs must not be 31
speculative, arbitrary, or a matter of mere preference or convenience, but 32
rather must reflect a bona fide necessity consistent with lawful governmental 33
purposes and be responsive to reasonably foreseeable conditions expected to 34
affect the community. 35
(1d) Administrative decision. – Decisions made in the implementation, 36
administration, or enforcement of development regulations that involve the 37
determination of facts and the application of objective standards set forth in 38
this Chapter or local government development regulations. These are 39
sometimes referred to as ministerial decisio ns or administrative 40
determinations. 41
… 42
(3b) Buffer yard. – A designated landscape area to separate uses or densities ; to 43
reduce impacts of traffic, noise, odor; or to enhance visual appearance. 44
… 45
(15b) Dwelling unit. – A single unit, subject to the North Carolina Residential Code, 46
providing complete, independent living facilities for one or more persons, 47
including permanent provisions for living, sleeping, eating, cooking, and 48
sanitation. 49
…." 50
SECTION 3. G.S. 160D-107 reads as rewritten: 51
General Assembly Of North Carolina Session 2025
House Bill 765-Third Edition Page 3
"§ 160D-107. Moratoria. 1
… 2
(b) Hearing Required. – Except in cases of imminent and substantial threat to public 3
health or safety, the actual and legitimate needs of the community, before adopting a development 4
regulation imposing a development moratorium with a duration of 60 days or any shorter period, 5
the governing board shall hold a legislative hearing and shall publish a notice of the hearing in a 6
newspaper having general circulation in the area not less than seven days before the date set for 7
the hearing. A development moratorium with a duration of 61 days or longer, and any extension 8
of a moratorium so that the total duration is 61 days or longer, is subject to the notice and hearing 9
requirements of G.S. 160D-601. 10
(c) Exempt Projects. – Absent an imminent threat to public health or safety, the actual 11
and legitimate needs of the community, a development moratorium adopted pursuant to this 12
section does not apply to any project for which a valid building permit issued pursuant to 13
G.S. 160D-1108 is outstanding, to any project for which a special use permit application has been 14
accepted as complete, to development set forth in a site-specific vesting plan approved pursuant 15
to G.S. 160D-108.1, to development for which substantial expenditures have already been made 16
in good -faith reliance on a prior valid development approval, or to preliminary or final 17
subdivision plats that have been accepted for review by the local government prior to the call for 18
a hearing to adopt the moratorium. Any preliminary subdivision plat accepted for review by the 19
local government prior to the call for a hearing, if subsequently approved, shall be allowed to 20
proceed to final plat approval without being subject to the moratorium. Notwithstanding the 21
foregoing, if a complete application for a development approval has been submitted prior to the 22
effective date of a moratorium, G.S. 160D-108(b) applies when permit processing resumes. 23
…." 24
SECTION 4. G.S. 160D-108 reads as rewritten: 25
"§ 160D-108. Permit choice and vested rights. 26
… 27
(d) Duration of Vesting. – Upon issuance of a development permit, the statutory vesting 28
granted by subsection (c) of this section for a development project is effective upon filing of the 29
application in accordance with G.S. 143-755, for so long as the permit remains valid pursuant to 30
law. Unless otherwise specified by this section or other statute, local development permits expire 31
one year after issuance unless work authorized by the permit has substantially commenced. A 32
local land development regulation may provide for a longe r permit expiration period. For the 33
purposes of this section, a permit is issued either in the ordinary course of business of the 34
applicable governmental agency or by the applicable governmental agency as a court directive. 35
Except where a longer vesting period is provided by statute or land development regulation, 36
the statutory vesting granted by this section, once established, expires for an uncompleted 37
development project if development work is intentionally and voluntarily discontinued for a 38
period of not less than 24 consecutive months, and the statutory vesting period granted by this 39
section for a nonconforming use of property expires if the use is intentionally and voluntarily 40
discontinued for a period of not less than 24 consecutive months. The 24 -month discontinuance 41
period is automatically tolled during the any of the following: 42
(1) The pendency of any board of adjustment proceeding or civil action in a State 43
or federal trial or appellate court regarding the validity of a development 44
permit, the use of the property, or the existence of the statutory vesting period 45
granted by this section. 46
(2) The 24-month discontinuance period is also tolled during the pendency of any 47
litigation involving the development project or property that is the subject of 48
the vesting. 49
General Assembly Of North Carolina Session 2025
Page 4 House Bill 765-Third Edition
(3) The duration of any emergency declaration issued under G.S. 166A-19.20 or 1
G.S. 166A-19.22 for which the defined emergency area includes the property, 2
in whole or in part. 3
…." 4
SECTION 5. G.S. 160D-108.1 reads as rewritten: 5
"§ 160D-108.1. Vested rights – site-specific vesting plans. 6
… 7
(c) Approval and Amendment of Plans. – If a site -specific vesting plan is based on an 8
approval required by a local development regulation, the local government shall provide 9
whatever notice and hearing is required for that underlying approval. A duration of the underlying 10
approval that is less than two five years does not affect the duration of the site -specific vesting 11
plan established under this section. If the site -specific vesting plan is not based on such an 12
approval, an approval required by a development regulation, a legislative hearing with notice as 13
required by G.S. 160D-602 shall be held. 14
A local government may approve a site-specific vesting plan upon any terms and conditions 15
that may reasonably be necessary to protect the public health, safety, and welfare. actual and 16
legitimate needs of the community. Conditional approval results in a vested right, although 17
failure to abide by the terms and conditions of the approval will result in a forfeiture of vested 18
rights. A local government shall not require a landowner to waive the landowner's vested rights 19
as a condition of developmental approval. A site-specific vesting plan is deemed approved upon 20
the effective date of the local government's decision approving the plan or another date 21
determined by the governing board upon approval. An approved site -specific vesting plan and 22
its conditions may be amended with the approval of the own er and the local government as 23
follows: any substantial modification must be reviewed and approved in the same manner as the 24
original approval; minor modifications may be approved by staff, if such the modifications are 25
defined and authorized by local regulation. 26
… 27
(e) Duration and Termination of Vested Right. – 28
(1) A vested right for a site -specific vesting plan remains vested for a period of 29
two five years. This vesting shall not be extended by any amendments or 30
modifications to a site-specific vesting plan unless expressly provided by the 31
local government. 32
(2) Notwithstanding the provisions of subdivision (1) of this subsection, a local 33
government may provide for rights to be vested for a period exceeding two 34
five years but not exceeding five eight years where warranted in light of all 35
relevant circumstances, including, but not limited to, the size and phasing of 36
development, the level of investment, the need for the development, economic 37
cycles, and market conditions or other considerations. These d eterminations 38
are in the sound discretion of the local government and shall be made 39
following the process specified for the particular form of a site -specific 40
vesting plan involved in accordance with subsection (a) of this section. 41
(3) Upon issuance of a b uilding permit, the provisions of G.S. 160D-1111 and 42
G.S. 160D-1115 apply, except that a permit does not expire and shall not be 43
revoked because of the running of time while a vested right under this section 44
is outstanding. 45
(4) A right vested as provided i n this section terminates at the end of the 46
applicable vesting period with respect to buildings and uses for which no valid 47
building permit applications have been filed. 48
(f) Subsequent Changes Prohibited; Exceptions. – 49
(1) A vested right, once established as provided for in this section, precludes any 50
zoning action development regulation by a local government which would 51
General Assembly Of North Carolina Session 2025
House Bill 765-Third Edition Page 5
change, alter, impair, prevent, diminish, or otherwise delay the development 1
or use of the property as set forth in an approved site -specific vesting plan, 2
except under one or more of the following conditions: 3
a. With the written consent of the affected landowner. 4
b. Upon findings, by ordinance after notice and an evidentiary hearing, 5
that natural or man -made hazards on or in the immediate v icinity of 6
the property, if uncorrected, would pose a serious threat to the public 7
health, safety, and welfare if the project were to proceed as 8
contemplated in the site-specific vesting plan. 9
c. To the extent that the affected landowner receives compensat ion for 10
all costs, expenses, and other losses incurred by the landowner, 11
including, but not limited to, all fees paid in consideration of financing, 12
and all architectural, planning, marketing, legal, and other consulting 13
fees incurred after approval by the local government, together with 14
interest as provided under G.S. 160D-106. Compensation shall not 15
include any diminution in the value of the property which is caused by 16
the action. 17
d. Upon findings, by ordinance after notice and an evidentiary hearing, 18
that the landowner or the landowner's representative intentionally 19
supplied inaccurate information or made material misrepresentations 20
that made a difference in the approval by the local government of the 21
site-specific vesting plan or the phased development plan. 22
e. Upon the enactment or promulgation of a State or federal law or 23
regulation that precludes development as contemplated in the 24
site-specific vesting plan or the phased development plan, in which 25
case the local government may modify the affected provisions, upon a 26
finding that the change in State or federal law has a fundamental effect 27
on the plan, by ordinance after notice and an evidentiary hearing. 28
(2) The establishment of a vested right under this section does not preclude 29
precludes the application of overlay zoning or other development regulations 30
which impose additional requirements but do not affect the allowable type or 31
intensity of use, or ordinances or regulations which are general in nature and 32
are applicable to all property subject to develo pment regulation by a local 33
government, including, but not limited to, building, fire, plumbing, electrical, 34
and mechanical codes. Otherwise applicable new development regulations 35
become effective with respect to property which is subject to a site -specific 36
vesting plan upon the expiration or termination of the vesting rights period 37
provided for in this section. 38
(3) Notwithstanding any provision of this section, the establishment of a vested 39
right does not preclude, change, or impair the authority of a local government 40
to adopt and enforce development regulations governing nonconforming 41
situations or uses.nonconformities. 42
…." 43
SECTION 6. G.S. 160D-203 reads as rewritten: 44
"§ 160D-203. Split jurisdiction. 45
(a) If a parcel of land lies within the planning and development regulation jurisdiction of 46
more than one local government, for the purposes of this Chapter, the local governments may, 47
by mutual agreement pursuant to Article 20 of Chapter 160A of the General S tatutes and with 48
the written consent of the landowner, assign exclusive planning and development regulation 49
jurisdiction under this Chapter for the entire parcel to any one of those local governments. Such 50
a mutual agreement government, the following shall apply: 51
General Assembly Of North Carolina Session 2025
Page 6 House Bill 765-Third Edition
(1) If only one local government has the ability to provide water and sewer 1
services to the parcel at the time a site plan for the parcel is submitted, the 2
local government that has the ability to provide public water and sewer 3
services shall have planning and development regulation jurisdiction over the 4
entire parcel. 5
(2) If all of the local governments have the ability to either provide public water 6
services or public sewer services to the parcel, but not both, at the time a site 7
plan for the parcel is submitted, the landowner may designate which local 8
government's planning and development regulations shall apply to the land. 9
(3) If all or none of the local governments have the ability to provide public water 10
and sewer services to the parcel at the time a site plan for the parcel is 11
submitted, the local government where the majority of the parcel is located 12
shall have jurisdiction over the land. 13
(b) The jurisdiction established by this section shall only be applicable to development 14
regulations and shall not affect taxation or other nonregulatory matters. The mutual agreement 15
shall be evidenced by a resolution formally adopted by each governing board and recorded with 16
the register of deeds in the county where the property is located within 14 days of the adoption 17
of the last required resolution." 18
SECTION 7. G.S. 160D-402, as amended by S.L. 2024-49, reads as rewritten: 19
"§ 160D-402. Administrative staff. 20
(a) Authorization. – Local governments may appoint administrators, inspectors, 21
enforcement officers, planners, technicians, and other staff to develop, administer, and enforce 22
development regulations authorized by this Chapter. Local governments shall designate at least 23
one staff member charged with making determinations under that local government 's 24
development regulations for purposes of G.S. 160D-703. 25
(b) Duties. – Duties assigned to staff may include, but are not limited to, drafting and 26
implementing plans and development regulations to be adopted pursuant to this Chapter; 27
determining whether applications for development approvals are complete; receiving and 28
processing applications for development approvals; providing notices of applications and 29
hearings; making decisions and determinations regarding development regulation 30
implementation; determining whether applications for development approvals meet applicable 31
standards as established by law and local ordinance; conducting inspections; issuing or deny ing 32
certificates of compliance or occupancy; enforcing development regulations, including issuing 33
notices of violation, orders to correct violations, and recommending bringing judicial actions 34
against actual or threatened violations; keeping adequate records; and any other actions that may 35
be required in order adequately to enforce the laws and development regulations under their 36
jurisdiction. A development regulation may require that designated staff members take an oath 37
of office. The local government shall have the authority to enact ordinances, procedures, and fee 38
schedules relating to the administration and the enforcement of this Chapter. The administrative 39
and enforcement provisions related to building permits set forth in Article 11 of this Chapter shall 40
be followed for those permits. 41
(c) Alternative Local Government Staff Arrangements. – A local government may enter 42
into contracts with another city, county, or combination thereof under which the parties agree to 43
create a joint staff for the enforceme nt of State and local laws specified in the agreement. The 44
governing boards of the contracting parties may make any necessary appropriations for this 45
purpose. 46
In lieu of joint staff, a governing board may designate staff from any other city or county to 47
serve as a member of its staff with the approval of the governing board of the other city or county. 48
A staff member, if designated from another city or county under this section, subsection, shall, 49
while exercising the duties of the position, be considered a n agent of the local government 50
exercising those duties. The governing board of one local government may request the governing 51
General Assembly Of North Carolina Session 2025
House Bill 765-Third Edition Page 7
board of a second local government to direct one or more of the second local government's staff 1
members to exercise their powers within part or all of the first local government's jurisdiction, 2
and they shall thereupon be empowered to do so until the first local government officially 3
withdraws its request in the manner provided in G.S. 160D-202. 4
The contract or designation of staff under this subsection shall specify at least one individual 5
designated as charged with making determinations under each local government's development 6
regulations for purposes of G.S. 160D-703. 7
(c1) Alternative Contract Staff Arrangements. – A local government may contract with an 8
individual, company, council of governments, regional planning agency, metropolitan planning 9
organization, or rural planning agency to designate an individual who is not a city or county 10
employee to work under the supervision of t he local government to exercise the functions 11
authorized by this section. The local government shall have the same potential liability, if any, 12
for inspections conducted by an individual who is not an employee of the local government as it 13
does for an individual who is an employee of the local government. The company or individual 14
with whom the local government contracts shall have errors and omissions and other insurance 15
coverage acceptable to the local government. The contract shall require at least one individual 16
designated as charged with making determinations under that local government 's development 17
regulations for purposes of G.S. 160D-703. 18
(d) Financial Support. – The local government may appropriate for the support of the 19
staff any funds that it deems necessary. It shall have power to fix reasonable fees for support, 20
administration, and implementation of programs authorized by this Chapter. Chapter, and those 21
fees shall not exceed the actual, direct, and reasonable costs required to support, administer, and 22
implement programs authorized by this Chapter . All fees collected by a building inspection 23
department for the administration and enforcement of provisions set forth in Article 11 of this 24
Chapter shall be used to support the administration and operations of the building inspection 25
department and for no other purposes. When an inspection, for which the permit holder has paid 26
a fee to the local government, is performed by a marketplace pool Code -enforcement official 27
upon request of the State Fire Marshal under G.S. 143-151.12(9)a., the local government shall 28
promptly return to the permit holder the fee collected by the local government for such inspection. 29
This subsection applies to the following types of inspection: plumbing, electrical systems, 30
general building restrictions and regulations, heating and air -conditioning, and the general 31
construction of buildings." 32
SECTION 8. G.S. 160D-403, as amended by S.L. 2024-49, reads as rewritten: 33
"§ 160D-403. Administrative development approvals and determinations. 34
(a) Development Approvals. – To the extent consistent with the scope of regulatory 35
development regulation authority granted by this Chapter, no person shall commence or proceed 36
with development withou t first securing any required development approval from the local 37
government with jurisdiction over the site of the development. A development approval shall be 38
in writing and may contain a provision requiring the development to comply with all applicable 39
State and local laws. A local government may issue development approvals in print or electronic 40
form. Any development approval issued exclusively in electronic form shall be protected from 41
further editing once issued. Applications for development approvals may be made by the 42
landowner, a lessee or person holding an option or contract to purchase or lease land, or an 43
authorized agent of the landowner. An easement holder may also apply for development approval 44
for such the development as is authorized by the easement. 45
(a1) Time Period for Approval. – Within 14 calendar days of the filing of an application 46
for a development approval, a local government or its designated administrative staff, as 47
described under G.S. 160D-402, shall (i) determine whether the appl ication is complete and 48
notify the applicant of the application 's completeness and , (ii) if the local government or its 49
designated administrative staff determines the application is incomplete, specify all of the 50
deficiencies in the notice to the applicant. The applicant may file an amended application or 51
General Assembly Of North Carolina Session 2025
Page 8 House Bill 765-Third Edition
supplemental information to cure the deficiencies identified by the local government or its 1
designated administrative staff for a completeness review, which s hall be completed within 14 2
calendar days after receiving an amended application or supplemental application from the 3
applicant. Upon the date the application is deemed complete, the local government or its 4
designated administrative staff shall issue a rec eipt letter or electronic response stating that the 5
application is complete and that a 90-calendar day review period has started as of that date. The 6
local government shall approve or deny the application within 90 calendar days of the date the 7
application was deemed complete by the local government or its designated administrative staff, 8
except that if the applicant requests a continuance of the application, the review period shall be 9
tolled for the duration of any continuance. The time period for review may be extended only by 10
agreement with the applicant if the application cannot be reviewed within the specified time 11
limitation due to circumstances beyond the control of the local government. The extension shall 12
not exceed six months. Failure of the local government or its designated administrative staff to 13
act before the expiration of the time period allowed for review shall constitute an approval of the 14
application, and the local government shall issue a written a pproval upon demand by the 15
applicant. 16
…." 17
SECTION 9. G.S. 160D-605(a) reads as rewritten: 18
"(a) Plan Consistency. – When adopting or rejecting any zoning text or map amendment, 19
the governing board shall approve a brief statement describing whether its action is consistent or 20
inconsistent with an a dopted comprehensive or land -use plan. The requirement for a plan 21
consistency statement may also be met by a clear indication in the minutes of the governing board 22
that at the time of action on the amendment the governing board was aware of and considered 23
the planning board's recommendations and any relevant portions of an adopted comprehensive 24
or land-use plan. If a zoning map amendment is adopted and the action was deemed inconsistent 25
with the adopted plan, the zoning amendment has the effect of also amending any future land-use 26
map in the approved plan, and no additional request or application for a plan amendment is 27
required. A plan amendment and a zoning amendment may be considered concurrently. The plan 28
consistency statement is not subject to judicial review. If a zoning map amendment qualifies as 29
a "large-scale rezoning" under G.S. 160D-602(b), the governing board statement describing plan 30
consistency may address the overall rezoning and describe how the analysis and policies in the 31
relevant adopted plans were considered in the action taken." 32
SECTION 10. G.S. 160D-701 reads as rewritten: 33
"§ 160D-701. Purposes. 34
Zoning regulations shall be made in accordance with a comprehensive plan and shall be 35
designed to promote the public health, safety, and genera l welfare. reflect the actual and 36
legitimate needs of the community. To that end, the regulations may address, among other things, 37
the following public purposes: to provide adequate light and air; to prevent the overcrowding of 38
land; to avoid undue concent ration of population; to lessen congestion in the streets; to secure 39
safety from fire, panic, and dangers; to facilitate the efficient and adequate provision of 40
transportation, water, sewerage, schools, parks, and other public requirements; and to promote 41
the health, safety, morals, or general welfare actual and legitimate needs of the community. The 42
regulations shall be made with reasonable consideration, among other things, as to the character 43
of the district and its peculiar suitability for particular us es and with a view to conserving the 44
value of buildings and encouraging the most appropriate use of land throughout the local 45
government's planning and development regulation jurisdiction. The regulations may not include, 46
as a basis for denying a zoning or rezoning request from a school, the level of service of a road 47
facility or facilities abutting the school or proximately located to the school." 48
SECTION 11. G.S. 160D-702 reads as rewritten: 49
"§ 160D-702. Grant of power. 50
General Assembly Of North Carolina Session 2025
House Bill 765-Third Edition Page 9
(a) A local government may adopt zoning regulations. Except as provided in subsections 1
(b) and (c) of this section, a zoning regulation may regulate and restrict the height, number of 2
stories, and size of buildings and other structures; the percentage of lots that may be occupied; 3
the size of yards, courts, and other open spaces; the density of population; the location and use 4
of buildings, structures, and land. A local government may regulate development, including 5
floating homes, over estuarine waters and over lands covered by navigable waters owned by the 6
State pursuant to G.S. 146-12. A zoning regulation shall provide density credits or severable 7
development rights for dedicated rights -of-way pursuant to G.S. 136-66.10 or G.S. 136-66.11. 8
Where appropriate, a zoning regulation may includ e requirements that street and utility 9
rights-of-way be dedicated to the public, that provision be made of recreational space and 10
facilities, and that performance guarantees be provided, all to the same extent and with the same 11
limitations as provided for in G.S. 160D-804 and G.S. 160D-804.1. 12
(b) Any regulation relating to building design elements adopted under this Chapter may 13
not be applied to any structures subject to regulation under the North Carolina Residential Code 14
except under one or more of the following circumstances: 15
(1) The structures are located in an area designated as a local historic district 16
pursuant to Part 4 of Article 9 of this Chapter. 17
(2) The structures are located in an area designated as a historic district on the 18
National Register of Historic Places. 19
(3) The structures are individually designated as local, State, or national historic 20
landmarks. 21
(4) The regulations are directly and substantially related to the requirements of 22
applicable safety codes adopted under G.S. 143-138. 23
(5) Where the regulations are applied to manufactured housing in a manner 24
consistent with G.S. 160D-908 and federal law. 25
(6) Where the regulations are adopted as a condition of participation in the 26
National Flood Insurance Program. 27
Regulations prohibited by this subsection may not be applied, directly or indirectly, in any 28
zoning district or conditional district unless voluntarily consented to by the owners of all the 29
property to which those regulations may be applied as part of and in the course of the process of 30
seeking and obtaining a zoning amendment or a zoning, subdivision, or development approval, 31
district, nor may any such regulations be applied indirectly as part of a review pursuant to 32
G.S. 160D-604 or G.S. 160D-605 of any proposed zoning amendment for consistency with an 33
adopted comprehensive plan or other applicable officially adopted plan. 34
For the purposes of this subsection, the phrase "building design elements" means exterior 35
building color; type or style of exterior cladding material; style or materials of roof structures or 36
porches; exterior nonstructural architectural ornamentation; location or architectural styling of 37
windows and doors, including garage doors; the number and types of rooms; and the interior 38
layout of rooms. The phrase "buildi ng design elements" does not include any of the following: 39
(i) the height, bulk, orientation, or location of a structure on a zoning lot, (ii) the use of buffering 40
or screening to minimize visual impacts, to mitigate the impacts of light and noise, or to p rotect 41
the privacy of neighbors, or (iii) regulations adopted pursuant to this Article governing the 42
permitted uses of land or structures subject to the North Carolina Residential Code. 43
Nothing in this subsection affects the validity or enforceability of private covenants or other 44
contractual agreements among property owners relating to building design elements. 45
(c) A zoning or other development regulation shall not do any of the following: 46
(1) Set a minimum width, length, or square footage of any structure s subject to 47
regulation under the North Carolina Residential Code. 48
(2) Require a or otherwise specify the size, placement, configuration, allocation, 49
location, or number of parking space spaces to be larger than 9 feet wide by 50
20 feet long unless the parking space is designated for handicap, parallel, or 51
General Assembly Of North Carolina Session 2025
Page 10 House Bill 765-Third Edition
diagonal parking. greater than those required by the Americans with 1
Disabilities Act. 2
(3) Require additional fire apparatus access roads into developme nts of one - or 3
two-family dwellings that are not in compliance with the required number of 4
fire apparatus access roads into developments of one- or two-family dwellings 5
set forth in the North Carolina Fire Code of the North Carolina Residential 6
Code for One- and Two-Family Dwellings.Code. 7
(4) Except as provided under G.S. 160A-307, set a minimum width, length, or 8
square footage for driveways within a development unless the driveway abuts 9
a public road. This subdivision shall not be construed to expand, diminish, or 10
alter the Department of Transportation 's authority to regulate driveways 11
adjacent to public roads owned by the State. 12
(5) Except as provided in this subdivision, s et design standards for public roads 13
within a development in excess of those req uired by the Department of 14
Transportation. A city may s et design standards for public roads within a 15
development in excess of those required by the Department of Transportation 16
if the city is finan cially responsible for the cost of the excess and accepts 17
ownership and maintenance responsibility for the public road prior to , or in 18
conjunction with , site plan approval. Confirmation of conformity of the 19
improvements consistent with the city's design standards under this subsection 20
shall be conducted consistent with G.S. 160D-804.1(1c). Upon confirmation 21
that the improvements have been made consistent with G.S. 160D-804.1(1c), 22
the city shall record with the register of deeds a plat evi dencing the city 's 23
ownership of the public road. 24
(6) Require installation of sidewalks or improvement of existing sidewalks for 25
any residential, commercial, or school property unless the sidewalk is either 26
of the following: 27
a. Connected to an existing sidewalk. 28
b. Will be connected to a planned adjacent sidewalk that the local 29
government demonstrates through credible and reliable facts and 30
information, based on a development approval , will be constructed 31
within two years of the residential, commercial, or school property site 32
plan approval. 33
(7) For cities with a population of 125,000 or more, according to the most recent 34
decennial federal census, establish setback or buffer yard requirements for a 35
multifamily development that exceeds 15 units per acre. 36
(d) In exercising its authority under this section, a local government shall support its 37
determinations by demonstrating there is a rational and substantial relationship between the 38
zoning map , zoning regulations, or zoning amendment and (i) the local government's 39
comprehensive plan and (ii) the actual and legitimate needs of the community, through findings 40
of facts and information, other than mere personal preferences or speculation, that a reasonable 41
person would accept in support of a conclusion. 42
(e) For purposes of this section, the term "public road " shall mean any road, street, 43
highway, thoroughfare, or other way of passage that is owned and maintained by a city or the 44
Department of Transportation." 45
SECTION 12. G.S. 160D-703 reads as rewritten: 46
"§ 160D-703. Zoning districts. 47
(a) Types of Zoning Districts. – A Except as provided in subsection (a1) of this section, 48
a local government may divide its territorial jurisdiction into zoning districts of any number, 49
shape, and area deemed best suited to carry out the purposes of this Article. Within those districts, 50
it may regulate and restrict the erection, construction, reconstruction, alteration, repair, or use of 51
General Assembly Of North Carolina Session 2025
House Bill 765-Third Edition Page 11
buildings, structures, or land. Zoning By illustration, zoning districts may include, but are not be 1
limited to, include any of the following: 2
(1) Conventional districts, in which a variety of uses are allowed as permitted uses 3
or uses by right and that may also include uses permitted only with a special 4
use permit. 5
(2) Conditional districts, i n which site plans or individualized development 6
conditions are imposed. 7
(3) Form-based districts, or development form controls, that address the physical 8
form, mass, and density of structures, public spaces, and streetscapes. 9
(4) Overlay districts, in whi ch different requirements are imposed on certain 10
properties within one or more underlying conventional, conditional, or 11
form-based districts. 12
(5) Districts allowed by charter. 13
(a1) Residential Zoning Districts Classified Based on Density. – A local government shall 14
classify residential zoning districts based on the number of dwelling units allowed per acre. A 15
local government shall not classify residential zoning districts based on the minimum lot size 16
allowed in the district. 17
(a2) Permitted Uses in Countie s. – In areas zoned for residential use, a county zoning 18
regulation in a county with a population of 275,000 or more, according to the 2020 federal 19
decennial census, shall allow by right the siting of no fewer than six dwelling units per acre. 20
(a3) Permitted Uses in Cities. – A city zoning regulation shall allow the following uses by 21
right: 22
(1) In areas zoned for residential use in a city with a population between 55,000 23
and 124,999, according to the 2020 federal decennial census, the siting of no 24
fewer than five dwelling units per acre. 25
(2) In areas zoned for residential use in a city with a population of 125,000 or 26
more, according to the 2020 federal decennial census, the siting of no fewer 27
than six dwelling units per acre. 28
(3) In areas zoned for non-agricultural commercial, business, or industrial use in 29
a city with a population of 125,000 or more, according to the 2020 federal 30
decennial census, the siting of building s and structures subject to the North 31
Carolina Residential Code and multifamily housing structures with more than 32
four residential dwelling units, with a maximum height restriction of not less 33
than 60 feet. 34
(a4) Exemption from Building Design Elements and Buffer Yards . – In a city with a 35
population of 125,000 or more, according to the most recent decennial federal census, buildings 36
and structures subject to the North Carolina Residential Code and uses allowable under 37
subdivision ( 2) or ( 3) of subsection (a3) of this se ction shall not be subject to either of the 38
following: 39
(1) Building design elements as defined under G.S. 160D-702(b). 40
(2) Buffer yards or other landscape buffering regulations. 41
(a5) Applicability of Permitted Uses. – Subsections (a2) and (a3) of this section do not 42
apply to land used for a bona fide farm purpose as described in G.S. 160D-903 or an open space 43
land purpose as described in G.S. 160D-1307. Nothing in subsection (a2) or (a3) of this section 44
shall be construed to expand, diminish, or alter the scope of authority for planning, development, 45
or land use regulations set forth in Chapter 143 or Chapter 113A of the General Statutes. 46
However, to the extent a local government asserts that a parcel is subject to planning, 47
development, or land use standards authorized under Chapter 143 or Chapter 113A of the General 48
Statutes, the local government must support its determination with facts and information, other 49
than mere personal preferences or speculation, that a reasonable person would accept in support 50
General Assembly Of North Carolina Session 2025
Page 12 House Bill 765-Third Edition
of its conclusion. Subsections (a2) and (a3) of this section apply regardless of whether the 1
dwelling units are located on multiple adjacent lots or a single lot. 2
(b) Conditional Districts. – Property may be placed in a conditional district only in 3
response to a petition by all owners of the property to be included. Specific conditions may be 4
proposed by the petitioner or the local government or its agencies, but only t hose conditions 5
approved by the local government and consented to by the petitioner in writing may be 6
incorporated into the zoning regulations. Unless consented to by the petitioner in writing, 7
Notwithstanding any other provision of law, in the exercise of the authority granted by this 8
section, a local government may not (i) require, enforce, or incorporate into the zoning 9
regulations any condition or requirement not authorized by otherwise applicable law, regulations 10
any condition, requirement, or deed res triction not specifically authorized by law, (ii) require, 11
enforce, or incorporate into the zoning regulations any condition or requirement that the courts 12
have held to be unenforceable if imposed directly by the local government, or (ii i) accept any 13
offer by the petitioner to consent to any condition not specifically authorized by law , including, 14
without limitation, taxes, impact fees, building design elements within the scope of 15
G.S. 160D-702(b), driveway -related improvements in excess of those allowed in 16
G.S. 136-18(29) and G.S. 160A-307, or other unauthorized limitations on the development or 17
use of land. This subsection shall also apply to the approval of any site plan, development 18
agreement, conditional zoning permit, or any other instrument under this Chapter. Conditions 19
and site-specific standards imposed in a conditional district shall be limited to those that address 20
the conformance of the development and use of the site to local government ordinances, plans 21
adopted pursuant to G.S. 160D-501, or the impacts reasonably expected to be generated by the 22
development or use of the site. The zoning regulation may provide that defined minor 23
modifications in conditional district standards that do not involve a change in uses permitted or 24
the density of overal l development permitted may be reviewed and approved administratively. 25
Any other modification of the conditions and standards in a conditional district shall follow the 26
same process for approval as are applicable to zoning map amendments. If multiple parce ls of 27
land are subject to a conditional zoning, the owners of individual parcels may apply for 28
modification of the conditions so long as the modification would not result in other properties 29
failing to meet the terms of the conditions. Any modifications ap proved apply only to those 30
properties whose owners petition for the modification. 31
(b1) Limitations. – For parcels where multifamily structures are an allowable use, a local 32
government may not impose a harmony requirement for permit approval if the developm ent 33
contains affordable housing units for families or individuals with incomes below eighty percent 34
(80%) of the area median income. 35
(c) Uniformity Within Districts. – Except as authorized by the foregoing, all zoning 36
regulations shall be uniform for each class or kind of building throughout each district but the 37
zoning regulations in one district may differ from those in other districts. 38
(d) Standards Applicable Regardless of District. – A zoning regulation or unified 39
development ordinance may also include development standards that apply uniformly 40
jurisdiction-wide rather than being applicable only in particular zoning districts. 41
(e) Staff Approvals. – Development approvals for a development that is a permitted use 42
in the zoning district where the development is located shall be made only by the designated staff 43
member as described in G.S. 160D-402. 44
(f) Basis for Conditional District. – In exercising its authority under subsection (b) of this 45
section, a local government shall support its determinations with facts and information, other 46
than mere personal preferences or speculation, that a reasonable person would accept in support 47
of a conclusion that there is a rational and substantial relationship between the conditional district 48
and the actual and legitimate needs of the community." 49
SECTION 13. Article 7 of Chapter 160D of the General Statutes is amended by 50
adding a new section to read: 51
General Assembly Of North Carolina Session 2025
House Bill 765-Third Edition Page 13
"§ 160D-707. Review period for rezoning decisions. 1
Within 14 calendar days of the filing of an application for amendment of a zoning map or 2
zoning regulations, a local government or its designated administrative staff, as described under 3
G.S. 160D-402, shall (i) determine whether the application is complete and notify the applicant 4
of the application's completeness and, (ii) if the local government or its designated administrative 5
staff determines the application is incomplete, specify all the deficiencies in the notice to the 6
applicant. The applicant may file an amended application or supplemental information to cure 7
the deficiencies identified by the local government or its designated administrative staff for a 8
completeness review, which shal l be completed within 14 calendar days after receiving an 9
amended application or supplemental application from the applicant . Upon the date the 10
application is deemed complete, the local government or its designated administrative staff shall 11
issue a receipt letter or electronic response stating that the application is complete and that a 12
90-calendar day review period has started as of that date. The local government shall approve or 13
deny the application within 90 calendar days of the da te the application was deemed complete 14
by the local government or its designated administrative staff, except that if the applicant requests 15
a continuance of the application, the review period shall be tolled for the duration of any 16
continuance. The time period for review may be extended only by agreement with the applicant 17
if the application cannot be re viewed within the specified time limitation due to circumstances 18
beyond the control of the local government. The extension shall not exceed six months. Failure 19
of the local government or its designated administrative staff to act before the expiration of the 20
time period allowed for review shall constitute an approval of the application, and the local 21
government shall issue a written approval upon demand by the applicant." 22
SECTION 14. G.S. 160D-803 reads as rewritten: 23
"§ 160D-803. Review process, filing, and recording of subdivision plats. 24
(a) Any subdivision regulation adopted pursuant to this Article shall contain provisions 25
setting forth the pr ocedures and standards to be followed in granting or denying approval of a 26
subdivision plat prior to its registration. 27
(b) A subdivision regulation shall provide that the following agencies be given an 28
opportunity to make recommendations concerning an individual subdivision plat before the plat 29
is approved: 30
(1) The district highway engineer as to proposed State streets, State highways, 31
and related drainage systems. 32
(2) The county health director or local public utility, as appropriate, as to 33
proposed water or sewerage systems. 34
(3) Any other agency or official designated by the governing board. 35
(c) The subdivision regulation may shall provide that final decisions on preliminary plats 36
and final plats are administrative and to be made by any of the following: 37
(1) The governing board. 38
(2) The governing board on recommendation of a designated body. 39
(3) A designated planning board, technical review committee of local government 40
staff members, or other designated body or staff person. 41
If the final decision on a subdivision plat is administrative, the decision may be assigned to a 42
staff person or committee comprised entirely of staff persons, and notice of the decision shall be 43
as provided by G.S. 160D-403(b). If the final decision on a subdivision plat is quasi-judicial, the 44
decision shall be assigned to the governing board, the planning board, the board of adjustment, 45
or other board appointed pursuant to this Chapter, and the procedures set forth in G.S. 160D-406 46
shall apply. 47
(d) After the effective date that a subdivision regulation is adopted, no subdivision within 48
a local government's planning and development regulation jurisdiction shall be filed or recorded 49
until it shall have been submitted to and approved by the governing board or appropriate body, a 50
staff person or committee comprised entirely of staff persons, as specified in the subdivision 51
General Assembly Of North Carolina Session 2025
Page 14 House Bill 765-Third Edition
regulation, and until this approval shall have been entered on the face of the plat in writing by an 1
authorized representative of the local government. Within 10 days after approving a preliminary 2
or final plat, an authorized representative of the local government shall enter the approval on the 3
face of the preliminary or final plat. The review officer, pursuant to G.S. 47-30.2, shall not certify 4
a subdivision plat that has not been approved in accordance with these provisions nor shall the 5
clerk of superior court order or direct the recording of a plat if the recording would be in conflict 6
with this section. 7
(e) Notwithstanding G.S. 160D-403(c), once approval has been entered on the face of the 8
plat in accordance with this section, the approval shall be val id and not ex pire unless the 9
landowner applies for, and receives, a subsequent development approval." 10
SECTION 15. G.S. 160D-804 reads as rewritten: 11
"§ 160D-804. Contents and requirements of regulation. 12
(a) Purposes. – A subdivision regulation may provide for the orderly growth and 13
development of the local government; for the coordination of transportation networks and 14
utilities within proposed subdivisions with existing or planned streets and highways and wi th 15
other public facilities; and for the distribution of population and traffic in a manner that will avoid 16
congestion and overcrowding and will create conditions that substantially promote public health, 17
safety, and general welfare.the actual and legitimate needs of the community. 18
… 19
(d) Recreation Areas and Open Space. – The regulation may provide for the dedication 20
or reservation of recreation areas serving residents of the immediate neighborhood within the 21
subdivision or, alternatively, for payment of fun ds to be used to acquire or develop recreation 22
areas serving residents of the development or subdivision or more than one subdivision or 23
development within the immediate area. All funds received by cities a local government pursuant 24
to this subsection shal l be used only for the acquisition or development of recreation, park, or 25
open space sites. All funds received by counties pursuant to this subsection shall be used only 26
for the acquisition of recreation, park, or open space sites. Any formula enacted to determine the 27
amount of funds that are to be provided under this subsection shall be based on the value of the 28
development or subdivision for property tax purposes. The regulation may allow a combination 29
or partial payment of funds and partial dedication of land when the governing board determines 30
that this combination is in the best interests of the citizens of the area to be served. 31
…." 32
SECTION 16. G.S. 160D-944 reads as rewritten: 33
"§ 160D-944. Designation of historic districts. 34
(a) Any local government may, as part of a zoning regulation adopted pursuant to Article 35
7 of this Chapter or as a development regulation enacted or amended pursuant to Article 6 of this 36
Chapter, designate and from time to time amend one or more historic districts within the area 37
subject to the development regulation. Historic districts established pursuant to this Part shall 38
consist of areas that are deemed to be of special significance in terms of their history, prehistory, 39
architecture, or culture and to possess integrity of design, setting, materials, feeling, and 40
association. 41
A development regulation may treat historic districts either as a separate use district 42
classification or as districts that overlay other zoning districts. Where historic districts are 43
designated as separate use districts, the zoning development regulation may include as uses by 44
right or as special uses those uses found by the preservation commission to have existed during 45
the period sought to be restored or preserved or to be compatible with the restora tion or 46
preservation of the district. 47
(b) No historic district or districts shall be designated under subsection (a) of this section 48
until all of the following occur: 49
General Assembly Of North Carolina Session 2025
House Bill 765-Third Edition Page 15
(1) An investigation and report describing the significance of the buildings, 1
structures, features, sites, or surroundings included in the proposed district and 2
a description of the boundaries of the district have been prepared. 3
(2) The Department of Natural and Cultural Resources, acting through the State 4
Historic Preservation Officer or his or her designee, has made an analysis of 5
and recommendations concerning the report and description of proposed 6
boundaries. Failure of the Department to submit its written analysis and 7
recommendations to the governing board within 30 calendar days after a 8
written request for the analysis has been received by the Department relieves 9
the governing board of any responsibility for awaiting the analysis, and the 10
governing board may at any subsequent time take any necessary action to 11
adopt or amend its zoning regulation. 12
(3) Seventy-five percent (75%) of the property owners in the proposed district 13
sign a petition requesting designation of the district. 14
(c) The governing board may also, in its discretion, refer the report and proposed 15
boundaries under subsection (b ) of this section to any local preservation commission or other 16
interested body for its recommendations prior to taking action to amend the zoning development 17
regulation. With respect to any changes in the boundaries of a district, subsequent to its initia l 18
establishment, or the creation of additional districts within the jurisdiction, the investigative 19
studies and reports required by subdivision (1) of subsection (b) of this section shall be prepared 20
by the preservation commission and shall be referred to the planning board for its review and 21
comment according to procedures set forth in the zoning development regulation. Changes in the 22
boundaries of an initial district or proposal for additional districts shall also be submitted to the 23
Department of Natural and Cultural Resources in accordance with the provisions of subdivision 24
(2) of subsection (b) of this section. 25
On receipt of these reports and recommendations, the local government may proceed in the 26
same manner as would otherwise be required for the adoption or amendment of any appropriate 27
zoning regulation.development regulation, except that the governing board shall unanimously 28
approve the adoption of the district. 29
(d) G.S. 160D-914 applies to zoning or other development regulations pertaining to 30
historic districts, and the authority under that statute for the ordinance to regulate the location or 31
screening of solar collectors may encompass requiring the use of plantings or other measures to 32
ensure that the use of solar collectors is not incongruous with the special character of the district." 33
SECTION 17. Article 9 of Chapter 160D of the General Statutes is amended by 34
adding the following two new sections to read: 35
"§ 160D-974. Tiny houses in residential districts in certain cities. 36
(a) Tiny Housing in Residential Zones. – A city shall allow tiny housing in areas zoned 37
for residential or mixed-use residential, including those that allow for the development of 38
detached single-family dwellings. 39
(b) Regulation and Scope. – Nothing in this section affects the validity or enforceability 40
of private covenants or other contractual agreements among property owners relating to dwelling 41
type restrictions. Any development regulation adopted pursuant to this section shall not apply to 42
an area designated as a local historic district (i) pursuant to Part 4 of this Article or (ii) on the 43
National Register of Historic Places, unless approved by the local historic preservation authority. 44
For septic systems, a city may require a new system o r an upgrade to an existing system if it is 45
determined that the existing system is incapable of handling increased capacity. 46
(c) Definitions. – As used in this section, the term "tiny housing" means a detached 47
single-family dwelling unit that is no greater than 600 square feet, built to standards applicable 48
to the North Carolina Residential Code, and is either constructed or mounted on a foundation and 49
is connected to utilities. The term does not include a recreational vehicle or manufactured home 50
that has not been affixed to real property. 51
General Assembly Of North Carolina Session 2025
Page 16 House Bill 765-Third Edition
(d) Applicability. – This section applies only to cities with a population of 125,000 or 1
more, according to the most recent decennial federal census. 2
"§ 160D-975. Accessory dwelling units in certain cities. 3
(a) A city shall allow the development of at least one accessory dwelling unit which 4
conforms to the North Carolina Residential Code, including applicable provisions from the North 5
Carolina Fire Code, for each detached single-family dwelling that is greater than 600 square feet, 6
in areas zoned for residential use that allow for development of detached single-family dwellings. 7
An accessory dwelling unit may be built or sited concurrently with the primary dwelling or after 8
the primary dwelling has been constructed or sited. Nothing in this section shall prohibit a local 9
government from permitting accessory dwelling units in any area not otherwise required under 10
this section. 11
(b) Development and permitting of an accessory dwelling unit shall not be subject to any 12
of the following requirements: 13
(1) Owner-occupancy of any dwelling unit, including an accessory unit. 14
(2) Minimum parking requirements or other parking restrictions , including the 15
imposition of additional parking requirements where an existing structure is 16
converted for use as an accessory dwelling unit. 17
(3) Conditional use zoning. 18
(c) In permitting accessory dwelling units under this section, a city shall not do any of 19
the following: 20
(1) Prohibit the connection of the accessory dwelling unit to existing utilities 21
serving the primary dwelling unit. 22
(2) Charge any fee , other than a building permit fee, that exceeds the amount 23
charged for any single-family dwelling unit similar in nature. 24
(d) Except as otherwise provided in this section, a city may regulate accessory dwelling 25
units pursuant to this Chapter, provided that the development regulations do not act to discourage 26
development or siting of accessory dwelling units through unreasonable costs or delay. Nothing 27
in this section shall affect the validity or enforceability of private covenants or other contractual 28
agreements among property owners relating to dwelling type restrictions. 29
(e) A city may impose a setback minimum for accessory dwelling units of 5 feet or the 30
setback minimum imposed generally upon lots in the same zoning classification , whichever i s 31
less. 32
(f) For the purposes of this section, the term "accessory dwelling unit" means an attached 33
or detached residential structure that is used in connection with or that is accessory to a primary 34
single-family dwelling and that has less total square footage than the primary single-family 35
dwelling. 36
(g) This section applies only to cities with a population of 125,000 or more, according to 37
the most recent decennial federal census." 38
SECTION 18. G.S. 160D-905 reads as rewritten: 39
"§ 160D-905. Amateur radio antennas. 40
A local government ordinance based on health, safety, the actual and legitimate needs of the 41
community or aesthetic considerations that regulates the placement, screening, or height of the 42
antennas or support structures of amateur radio operators must reasonably accommodate amateur 43
radio communications and mu st represent the minimum practicable regulation necessary to 44
accomplish the purpose of the local government. A local government may not restrict antennas 45
or antenna support structures of amateur radio operators to heights of 90 feet or lower unless the 46
restriction is necessary to achieve a clearly defined health, safety, or aesthetic objective of the 47
local government." 48
SECTION 19. G.S. 160D-1006(a)(6) reads as rewritten: 49
General Assembly Of North Carolina Session 2025
House Bill 765-Third Edition Page 17
"(6) A description, where appropriate, of any conditions, terms, restrictions, or 1
other requirements for the protection of public health, safety, or welfare. that 2
reflect the actual and legitimate needs of the community." 3
SECTION 20. G.S. 160D-1102(c) reads as rewritten: 4
"(c) No later than October 1 of 2023, 2024, and 2025, each year, every local government 5
shall publish an annual financial report on how it used fees from the prior fiscal year for the 6
support, administration, and implementation of its building code enforcement program as 7
required by G.S. 160D-402(d). This report is in addition to any other financial report required by 8
law." 9
SECTION 21. G.S. 160D-1110(d) is amended by adding a new subdivision to read: 10
"(3) Require more than a shell permit for the construction of a multifamily 11
development. Upon the request of the permittee, th e local government shall 12
issue c ertificates of occupancy for individual units in a multifamily 13
development permitted under a shell permit as the units meet the criteria for 14
issuance of a certificate of occupancy. For purposes of this subdivision, "shell 15
permit" means a permit that allows for the structural construction of a building 16
but does not result in the issuance of a certificate of occupancy." 17
SECTION 22. G.S. 160D-1208(b) reads as rewritten: 18
"(b) The housing appeals board shall fix a reasonable time for hearing appeals, shall give 19
due notice to the parties, and shall render its decision within a reasonable time. Any party may 20
appear in person or by agent or attorney. The board may reverse or affirm, wholly or partly, or 21
may modify the decision or o rder appealed from, and may make any decision and order that in 22
its opinion ought to be made in the matter, and, to that end, it has all the powers of the public 23
officer, but the concurring vote of four members of the board is necessary to reverse or modif y 24
any decision or order of the public officer. The board also has power in passing upon appeals, 25
when unnecessary hardships would result from carrying out the strict letter of the ordinance, to 26
adapt the application of the ordinance to the necessities of the case to the end that the spirit of the 27
ordinance is observed, public safety and welfare the actual and legitimate needs of the community 28
secured, and substantial justice done." 29
SECTION 23. G.S. 160D-1403 reads as rewritten: 30
"§ 160D-1403. Appeals of decisions on subdivision plats. 31
(a) When a subdivision regulation adopted under this Chapter provides that the decision 32
whether to approve or deny a preliminary or final subdivision plat is quasi -judicial, then that 33
decision of the board is subject to revi ew by the superior court by a proceeding in the nature of 34
certiorari. G.S. 160D-406 and this section apply to those appeals. 35
(b) When a subdivision regulation adopted under this Chapter provides that the decision 36
whether to approve or deny a preliminary or final subdivision plat is administrative, or for For 37
any other administrative decision implementing a subdivision regulation, the following applies: 38
(1) If made by the governing board or planning board, the decision is subject to 39
review by filing an action in superior court seeking appropriate declaratory or 40
equitable relief within 30 days from receipt of the written notice of the 41
decision, which shall be made as provided in G.S. 160D-403(b). 42
(2) If made by the staff or a staff committee, the decision is subject to appeal as 43
provided in G.S. 160D-405. 44
(c) For purposes of this section, a subdivision regulation is deemed to authorize a 45
quasi-judicial decision if the decision -making entity under G.S. 160D-803(c) is authorized to 46
decide whether to approve or deny the plat based not only upon whether the application complies 47
with the specific requirements set forth in the regulation but also on whether the application 48
complies with one or more generally stated standards requiring a discretionary decision to be 49
made." 50
SECTION 24.(a) G.S. 160D-1403.1 reads as rewritten: 51
General Assembly Of North Carolina Session 2025
Page 18 House Bill 765-Third Edition
"§ 160D-1403.1. Civil action for declaratory relief, injunctive relief, other remedies; joinder 1
of complaint and petition for writ of certiorari in certain cases. 2
(a) Civil Action. – Except as otherwise provided in this section for claims involving 3
questions of interpretation, in lieu of any remedies available under G.S. 160D-405 or 4
G.S. 160D-108(h), a person with standing, as defined in subsection (b) of this section, may bring 5
an original civ il action seeking declaratory relief, injunctive relief, damages, or any other 6
remedies provided by law or equity, in superior court or federal court to challenge the 7
enforceability, validity, or effect of a local land development regulation or development approval 8
for any of the following claims: 9
(1) The ordinance, development regulation, either on its face or as applied, is 10
unconstitutional. 11
(2) The ordinance, development regulation, either on its face or as applied, is ultra 12
vires, preempted, arbitrary or capricious, or is otherwise in excess of statutory 13
authority. 14
(3) The ordinance, development regulation, either on its face or as applied, 15
constitutes a taking of property. 16
(4) The development approval is ultra vires, preempted, in excess of its statutory 17
authority, made upon unlawful procedure, made in error of law, arbitrary and 18
capricious, or an abuse of discretion. 19
(a1) Appeals of Administrative Decisions. – If the decision development approval being 20
challenged under subsection (a) of this section is from an administrative official charged with 21
enforcement of a local land development regulation, the party with standing must first bring any 22
claim that the ordinance development regulation was erroneously interpreted to the applicable 23
board of adjustment pursuant to G.S. 160D-405. An adverse ruling from the board of adjustment 24
may then be challenged in an action brought pursuant to this subsection with the court hearing 25
the matter de novo together with any of the claims listed in this subsection. 26
(b) Standing. – Any of the following criteria provide standing to bring an action under 27
this section: 28
(1) The person has an ownership, leasehold, or easement interest in, or possesses 29
an option or contract to purcha se the property that is the subject matter of a 30
final and binding decision made by an administrative official charged with 31
applying or enforcing a land development regulation. 32
(2) The person was a development permit applicant before the decision -making 33
board whose decision is being challenged. 34
(3) The person was a development permit applicant who is aggrieved by a final 35
and binding decision of an administrative official charged with applying or 36
enforcing a land development regulation. 37
(4) An a ssociation, or ganization, society, or entity whose membership is 38
comprised of an individual or entity identified in subdivision (2) or (3) of this 39
subsection. 40
… 41
(g) Definitions. – The definitions definition of "development permit " in G.S. 143-755 42
shall apply in this section." 43
SECTION 24.(b) G.S. 143-755(e) reads as rewritten: 44
"(e) For purposes of this section, the following definitions apply: 45
(1) Development. – Without altering the scope of any regulatory authority granted 46
by statute or local act, any of the following: 47
a. The construction, erection, alteration, enlargement, renovation, 48
substantial repair, movement to another site, or demolition of any 49
structure. 50
b. Excavation, grading, filling, clearing, or alteration of land. 51
General Assembly Of North Carolina Session 2025
House Bill 765-Third Edition Page 19
c. The subdivision of land as defined in G.S. 160D-802. 1
d. The initiation of substantial change in the use of land or the intensity 2
of the use of land. 3
(2) Development permit. – An administrative administrative, legislative, or 4
quasi-judicial approval that is written and that is required prior to commencing 5
development or undertaking a specific activity, project, or development 6
proposal, including any of the following: 7
a. Zoning permits. 8
b. Site plan approvals. 9
c. Special use permits. 10
d. Variances. 11
e. Certificates of appropriateness. 12
f. Plat approvals. 13
g. Development agreements. 14
h. Building permits. 15
i. Subdivision of land. 16
j. State agency permits for development. 17
k. Driveway permits. 18
l. Erosion and sedimentation control permits. 19
m. Sign permit. 20
n. Conditional zoning. 21
(3) Land development regulation. – Any State statute, rule, or regulation, or local 22
ordinance affecting the development or use of real property, including any of 23
the following: 24
a. Unified development ordinance. 25
b. Zoning regulation, including zoning maps. 26
c. Subdivision regulation. 27
d. Erosion and sedimentation control regulation. 28
e. Floodplain or flood damage prevention regulation. 29
f. Mountain ridge protection regulation. 30
g. Stormwater control regulation. 31
h. Wireless telecommunication facility regulation. 32
i. Historic preservation or landmark regulation. 33
j. Housing code. 34
k. Conditional zoning." 35
SECTION 25. Article 14 of Chapter 160D of the General Statutes is amended by 36
adding a new section to read: 37
"§ 160D-1403.3. Private remedies. 38
In addition to any other remedy otherwise provided by law, any person with standing under 39
subdivision (2), (3), or (4) of G.S. 160D-1403.1(b) may b ring a civil action to enforce the 40
provisions of this Chapter and recover damages, costs , and disbursements, including costs of 41
investigation and reasonable attorneys' fees, and receive other equitable relief as determined by 42
the court." 43
SECTION 26. G.S. 6-21.7 reads as rewritten: 44
"§ 6-21.7. Attorneys' fees; cities or counties acting outside the scope of their authority. 45
(a) In any action in which a city or county is a party, upon a finding by the court that the 46
city or county violated a statute or case law setting forth unambiguous limits on its authority, the 47
court shall award reasonable attorneys' fees and costs to the party who successfully challenged 48
the city's or county's action. In any action in which a city or county is found to be liable under 49
G.S. 160D-1403.1, the court shall award reasonable attorneys ' fees and costs to the party who 50
successfully challenged the acts of the city or county under G.S. 160D-1403.1. 51
General Assembly Of North Carolina Session 2025
Page 20 House Bill 765-Third Edition
(b) In any action in which a city or county is a party, upon finding by the court that the 1
city or county took action inconsistent with, or in violation of, G.S. 160D-108(b) or 2
G.S. 143-755, the court shall award reasonable attorneys' fees and costs to the party who 3
successfully challenged the local government's failure to comply with any of those provisions. 4
(c) In all other matters, matters not covered by subsection (a) or (b) of this section, the 5
court may award reasonable attorneys' fees and costs to the prevailing private litigant. 6
(d) For purposes of this section, "unambiguous" means that the limits of authority are not 7
reasonably susceptible to multiple constructions." 8
SECTION 27. Article 11 of Chapter 130A of the General Statutes is a mended by 9
adding a new section to read: 10
"§ 130A -343.5. Wastewater systems for property within service area of a public or 11
community wastewater system. 12
(a) Notwithstanding G.S. 130A-55(16), 153A -284, 160A -317, 162A -6(a)(14d), and 13
162A-14(2), a property owner may install a wastewater system in accordance with this Article to 14
serve any undeveloped or unimproved property located so as to be served by a public or 15
community wastewater system. 16
(b) Notwithstanding G.S. 130A-55(16), 153A -284, 1 60A-317, 162A -6(a)(14d), and 17
162A-14(2), a property owner of developed or improved property located so as to be served by 18
a public or community wastewater system may install a wastewater system in accordance with 19
this Article if the public or community was tewater system has not yet installed sewer lines 20
directly available to the property or otherwise cannot provide wastewater service to the property 21
at the time the property owner desires wastewater service. 22
(c) Upon compliance with this Article, the property owner installing a wastewater system 23
pursuant to subsection (a) or (b) of this section shall not be required to connect to the public or 24
community wastewater system for so long as the wastewater system installed in accordance with 25
this Article remains compliant and in use. A property owner may opt to connect to the public or 26
community wastewater system if the property owner so desires. 27
(d) Nothing in this section shall require a property owner to install a wastewater system 28
in accordance with this Article if the property is located so as to be served by a public or 29
community wastewater system and the public or community wastewater system is willing to 30
provide wastewater service to the property. 31
(e) This section shall not apply, and a public or community wastewater system may 32
mandate connection to that public or community wastewater system , in any of the following 33
situations: 34
(1) The wastewater system in accordance with this Article serving the property 35
has failed and cannot be repaired. 36
(2) The public authority or unit of government operating the public water system 37
is being assisted by the Local Government Commission. 38
(3) The public authority or unit of government operating the public or community 39
wastewater system is in the process of expanding or repairing the public or 40
community wastewater system and is actively making progress to having 41
wastewater lines installed and directly available to provide wastewater service 42
to that property within the 24 months o f the time the property owner applies 43
for a permit under this Article." 44
SECTION 28. G.S. 136-102.6 is amended by adding a new subsection to read: 45
"(c1) Notwithstanding anything to the contrary in this section, the Division of H ighways 46
shall accept a performance guarantee as provided under G.S. 160D-804.1 to ensure completion 47
of streets that are required by a development regulation under Chapter 160D of the General 48
Statutes. On receipt of the performance guarantee, the Division of Highways shall issue a 49
certificate of approval to the municipality or county as to those streets." 50
SECTION 29. G.S. 160A-307 reads as rewritten: 51
General Assembly Of North Carolina Session 2025
House Bill 765-Third Edition Page 21
"§ 160A-307. Curb cut regulations. 1
(a) A Except as expressly permitted by Chapter 160D of the General Statutes, a city may 2
not regulate by ordinance regulate the size, location, direction of traffic flow, and manner of 3
construction of driveway connections into any street or alley. The To the extent allowed by 4
Chapter 160D of the General Statutes, the ordinance may require the construction or 5
reimbursement of the cost of construction and public dedication of medians, acceleration and 6
deceleration lanes, and traffic storage lanes for driveway connections into any street or alley if 7
all of the following apply: 8
(1) The city has sho wn through substantial evidence the need for such the 9
improvements is reasonably attributable to the traffic using the driveway. 10
(2) The city has shown through substantial evidence the improvements serve the 11
traffic of the driveway. 12
(b) No street or alley under the control of the Department of Transportation may be 13
improved without the consent of the Department of Transportation. A city shall not require the 14
applicant to acquire right -of-way from property not owned by the applicant. However, an 15
applicant may voluntarily agree to acquire such right-of-way. 16
(c) For purposes of this section, "substantial evidence " means facts and information, 17
other than mere personal preferences or speculation, that a reasonable person would accept in 18
support of a conclusion." 19
SECTION 30.(a) Chapter 162A of the General Statutes is amended by adding a new 20
Article to read: 21
"Article 12. 22
"Water and Sewer Allocation. 23
"§ 162A-1000. Short title and purpose. 24
(a) This Article shall be known and may be cited as the "Water and Sewer Capacity 25
Allocation and Planning Act." 26
(b) The purpose of this Article is to require all public water and sewer service providers 27
to plan for future growth and allocate water and wastewater system capacity in a fair, transparent, 28
and accountable manner. Th is act will ensure that sufficient water supply and wastewater 29
treatment capacity is available for anticipated development and that capacity is allocated without 30
discrimination or abuse. 31
"§ 162A-1001. Definitions. 32
For the purposes of this Article, the following definitions apply: 33
(1) Allocation or c apacity allocation. – A reservation of a specific quantity of 34
water or sewer capacity for a particular project. 35
(2) Applicant. – Any person, business, developer, property owner, or entity that 36
has received preliminary or final site plan approval, as defined under 37
G.S. 160D-102(29), for a project and submits an application for allocation for 38
a new development or expansion of an existing development to a public water 39
or sewer provider. 40
(3) Approved applicant. – An applicant whose application for allocation has been 41
approved. 42
(4) Available capacity. – The portion of a facility's capacity that is not currently 43
being used by exi sting customers and is not already reserved by prior 44
allocations. Available capacity is determined by establishing a facility's 45
capacity minus the sum of (i) current actual usage, (ii) any local government 46
project allocation, and (iii) any outstanding allocations for projects in their 47
reservation period. 48
(5) Capacity or system capacity. – The actual capacity of a facility. For 49
wastewater systems, actual capacity refers to hydraulic capacity, meaning the 50
maximum volume of wastewater that can be collected, conveyed, and treated 51
General Assembly Of North Carolina Session 2025
Page 22 House Bill 765-Third Edition
under the facility's permit limits without violation. For water systems, actual 1
capacity refers to the actual available water supply, meaning the reliable 2
quantity of water that can be treated and delivered, accounting for permitted 3
withdrawal limits and treatment plant output, wells, or other sources, 4
including any contractual or bulk supply capacity available to the local 5
governmental unit. 6
(6) Department. – The Department of Environmental Quality. 7
(7) Facility. – As defined in G.S. 162A-201(4). 8
(8) Local government project. – Any of the following: 9
a. A project that serves a bona fide public purpose. 10
b. An economic development project that is reasonably likely to increase 11
employment opportunities or support growth of manufacturin g or 12
commerce within the facility's service area. 13
c. An interlocal agreement between local governments to provide water 14
or sewer allocation under G.S. 160A-461, 160A-462, or 162A-88.1. 15
(9) Local government project allocation. – The amount of allocation a local 16
governmental unit can demonstrate through competent and reliable evidence 17
is minimally necessary to serve a local government project within the facility's 18
service area for which preliminary or final approval has been granted by the 19
governing body of a local government served by the facility. 20
(10) Local governmental unit. – As defined in G.S. 162A-201(5) and any 21
third-party persons who own or operate a facility on behalf of a local 22
governmental unit. 23
(11) Project. – A development, as defined by G.S. 160D-102(12), for which water 24
or sewer service is requested and is within the facility 's service area . This 25
includes new developments , and expansion or additions to existing 26
developments, that require new or additional water or sewer service. 27
(12) Substantial expenditure. – A significant or considerable outlay of money, 28
resources, or financial investment, viewed in light of the stage in which the 29
project exists, that is not merely nominal or trivial. 30
"§ 162A-1002. Allocation process. 31
(a) Allocation Request. – A local governmental unit shall approve capacity allocation 32
requests in accordance with this Article. Once approved, a capacity allocation guarantees the 33
local governmental unit shall provide water service or sewer service for that project up to the 34
approved allocation amount. 35
(b) Form of Application. – A local governmental unit may request only the following 36
information from an applicant, and may not require any other information that is not necessary 37
for the local governmental unit to determine whether it has available capacity to serve the project: 38
(1) The name, address, and other relevant contact information of the applicant. 39
(2) Documentation evidencing that the applicant has received preliminary or final 40
approval for a site plan, as defined under G.S. 160D-102(29), for the project. 41
(3) The amount of capacity allocation requested in gallons per day or other 42
similarly objective measurement. 43
(4) The anticipated date the project will begin utilizing the capacity allocation. 44
(c) Approval of Allocation Request. – Not later than 10 days after receiving an 45
application for allocation, a local governmental unit shall approve the allocation if available 46
capacity exists and the application is complete. Upon approving the allocation, the local 47
governmental unit shall provide the applicant with written documentation specifyin g (i) t he 48
amount of allocation reserved, (ii) the project for which the allocation has been reserved, (iii) the 49
date of the allocation approval , and ( iv) t he date the reservation period expires. The local 50
General Assembly Of North Carolina Session 2025
House Bill 765-Third Edition Page 23
governmental unit shall approve or deny applications for allocation according to the following 1
process: 2
(1) The local governmental unit shall approve the total allocation requested by the 3
applicant unless the request for allocation exceeds the local governmental 4
unit's available capacity, in which case the local governmental unit shall, 5
within 10 days after receiving the application for allocation, offer to provide 6
the applicant with allocation equivalent to the available capacity, if any. The 7
local governmental unit shall reserve the reduced allocation for a project under 8
this subsection provided the applicant agrees, in writing, to the reduced 9
allocation. 10
(2) Except as expressly provided in this section, a local governmental unit may 11
not deny, reduce, or otherwise modify the amount of an allocation requested 12
through an application if available capacity exists sufficient to accommodate 13
an application's allocation request. 14
(3) A local governmental unit shall not require an applicant to agree to any 15
condition not otherwise authorized by this section, or to accept any offer by 16
the applicant to consent to any condition not otherwise authorized by law. 17
These conditions include, without limitation, any of the following: 18
a. Payment of taxes, impact fees, or other fees or contributions to any 19
fund. 20
b. Adherence to any restrictions related to development regulations under 21
Chapter 160D of the General Statutes, including those within the scope 22
of G.S. 160D-702(c). 23
c. Adherence to any restriction related to building design elements within 24
the scope of G.S. 160D-702(b). 25
(4) A local governmental unit shall not implement a scoring or preference system 26
to allocate water service or sewer service among applicants, except as 27
specifically authorized by this section. 28
(d) Reservation Period. – The initial reservation period shall be for 24 months after the 29
date the allocation is approved. A local governmental unit shall extend the initia l reservation 30
period or extension reservation period for an additional 12 months provided (i) the applicant 31
notifies the local governmental unit that it requires an extension of the initial reservation period 32
or extension reservation period not later than 90 days prior to the expiration of the initial 33
reservation period or extension reservation period and, (ii) concurrent with its notification, the 34
applicant provides the local governmental unit with documentation demonstrating that the 35
applicant has made substantial expenditure towards the completion of the project or the applicant 36
provides documentation of a valid building permit. 37
(e) Allocations Approved in Chronological Order. – Except for requests to reserve 38
capacity in accordance with G.S. 115C-521 and under subsection (k) of this section, allocations 39
shall be granted in the chronological order that completed applications are received by the local 40
governmental unit. 41
(f) Denial of Allocation Request. – A local governmental unit shall deny an application 42
for allocation, within 10 days after receiving an application for allocation , only if one of the 43
following applies: 44
(1) The applicant cannot demonstrate approval of a preliminary or final site plan, 45
as defined in G.S. 160D-102(29). 46
(2) The local governmental unit does not have any available capacity. 47
(3) The applicant has rejected, in writing, the local governmental unit 's offer to 48
provide allocation equivalent to its available capacity as provided in 49
subdivision (1) of subsection (c) of this section, if any. 50
General Assembly Of North Carolina Session 2025
Page 24 House Bill 765-Third Edition
(g) Modification of Allocation. – In the event an approved applicant determines that the 1
allocation necessary to serve the project increases or decreases by more than ten percent (10%) 2
of the approved allocation, the approved applicant shall immediately notify the local 3
governmental unit, and the following shall apply: 4
(1) If the allocation approved by the local governmental unit decreases by more 5
than ten percent (10%), the local governmental unit shall adjust its available 6
capacity accordingly and the local governmental unit shall honor the approved 7
allocation, less the decrease in necessary allocation. 8
(2) If the allocation approved by the provider increases by more than ten percent 9
(10%), the local governmental unit shall increase the allocation provided 10
available capacity exists. In the event available capacity does not exist, the 11
local governmental unit shall not ify the approved applicant that the local 12
governmental unit does not have available capacity and extend an offer to the 13
approved applicant to increase the allocation in an amount equivalent to the 14
available capacity. If the approved applicant determines th at the existing 15
allocation or the offer by the local governmental unit to increase the allocation 16
in an amount equivalent to the local governmental unit 's available capacity 17
does not meet the needs of the project, the approved applicant shall 18
immediately notify the local governmental unit that it intends to terminate the 19
allocation. 20
(3) In the event the allocation is terminated by the applicant, the provider shall 21
adjust its available capacity accordingly. 22
(h) Expiration or Termination of Allocation. – Upon expiration or termination of 23
allocation, including allocations that are not used in full, the local governmental unit shall return 24
the expired, terminated, or unused capacity to its available capacity balance. Upon a return of the 25
expired, termina ted, or unused capacity to the local governmental unit 's available capacity 26
balance, the local governmental unit shall recalculate its available capacity and shall make it 27
available to future applicants for allocation. 28
(i) Vested Right. – Allocation approv ed under this section shall be deemed a vested 29
element of the project for the duration of the reservation period. The vested right to allocation 30
during the reservation period shall be in addition to any other vested rights the project may have 31
by law and s hall run with the land for the benefit of the project. During the vesting period, the 32
local governmental unit may not revoke or reduce the allocation except by request of the 33
applicant or as described in this section. 34
(j) Transferability of Allocation. – Allocation shall be provided to the project described 35
in the application. An approved applicant may not transfer an unused allocation to a different 36
project. If the project for which an allocation has been reserved is sold or the development rights 37
are assigned to a successor in interest, the allocation shall transfer to the successor in interest and 38
the allocation and reservation period shall be honored and may not be terminated or revoked by 39
the local governmental unit. In the event the project for which the allocation was reserved is sold 40
or transferred to a successor in interest, the approved applicant shall immediately notify the local 41
governmental unit of the sale or transfer. 42
(k) Emergency Allocations. – Notwithstanding any other provision of this section, a local 43
governmental unit shall provide priority in allocation to applications demonstrating a substantial 44
threat to public health, safety, or welfare that can be mitigated only by the immediate provision 45
of water service or sewer service. An applicant seeking an emergency allocation must present 46
competent evidence to the local governmental unit of the risk to the public health, safety, or 47
welfare. Upon verifying that the application constitutes an emergency, the local governmental 48
unit shall approve allocation in the minimum amount necessary to abate the emergency on a 49
priority basis. 50
General Assembly Of North Carolina Session 2025
House Bill 765-Third Edition Page 25
(l) Use of Allocation. – A local governmental unit shall not unreasonably delay an 1
approved applicant's ability to connect the approved applicant's project to the local governmental 2
unit's infrastructure. A local gov ernmental unit shall begin providing water service or sewer 3
service to an approved applicant within 90 days after receiving a request from the approved 4
applicant to begin providing water service or sewer service, provided (i) the project is connected 5
to the local governmental unit's infrastructure and (ii) the request is made within the reservation 6
period described in subsection (d) of this section. 7
"§ 162A-1003. Planning and reporting. 8
(a) Each local governmental unit shall prepare an annual report not later than October 1 9
of each year documenting facility capacity and available capacity. The report shall include, at a 10
minimum, all of the following information for each facility of the local governmental unit: 11
(1) The current system capacity. 12
(2) The current available capacity. 13
(3) The amount of capacity allocated to approved developments or projects not 14
yet connected to the local governmental unit's infrastructure. 15
(4) The remaining available capacity for new allocations. 16
(5) Any changes in capacity since the last report. 17
(6) Any planned improvements or expansion s and the expected impact on 18
capacity. 19
(7) The current actual usage of the facility, including average daily demand and 20
peak daily demand over the year immediately preceding the preparation of the 21
report. 22
(8) If the local governmental unit receives State or federal funding for water or 23
sewer infrastructure, a description of efforts to expand capacit y to meet 24
growth, including progress on any State-funded projects. 25
(b) The Department shall make the annual reports available to the public. Each local 26
governmental unit shall also post the annual report on the website of that local governmental unit, 27
if any. 28
"§ 162A-1004. Enforcement and remedies. 29
(a) State Enforcement Authority. – If the Department finds that a local governmental unit 30
has violated any requirement of this Article, the Department may take appropriate preventive or 31
remedial enforcement action authorized by Part 1 of Article 21 of Chapter 143 of the General 32
Statutes. 33
(b) Civil Penalties. – A local governmental unit that fails to comply with the provisions 34
of this Article or willfully fails to administer or enforce the provisions of this Article shall be 35
subject to a civil penalty pursuant to G.S. 143-215.6A(e). 36
(c) Judicial Review. – Any applicant whose application was denied by a local 37
governmental unit, or who is otherwise aggrieved or injured by the action of a local governmental 38
unit, may file an action in the superior court of the county where the local governmental unit is 39
located or where the project is located. In any civil action brought under this section, the court 40
may award reasonable attorneys' fees to a prevailing plaintiff who brought the action." 41
SECTION 30.(b) G.S. 162A-900, as enacted by S.L. 2024 -45 and S.L. 2024-49, is 42
repealed. 43
SECTION 30.(c) For applicants that, on or after July 31, 2020, received a service 44
commitment from a public water system, public sewer system, or public water and sewer system 45
confirming availability of capacity for the applicant's development project, but whose capacity 46
needs have not been provided, the system shall reserve, allocate, and provide those applicants 47
with the capacity assured in the system's service commitment in the chronological order that the 48
service commitment was issued before the system reserves, allocates, or provides capacity to 49
another applicant. 50
General Assembly Of North Carolina Session 2025
Page 26 House Bill 765-Third Edition
SECTION 30.(d) The annual report required by G.S. 162A-1003, as enacted by this 1
act, shall be due October 1, 2026. 2
SECTION 30.1.(a) G.S. 143-215.3D(a)(10)b. reads as rewritten: 3
"b. The fee for coverage under a construction or industrial NPDES general 4
permit is one hundred twenty twenty-five dollars 5
($120.00).($125.00)." 6
SECTION 30.1.(b) This section becomes effective July 1, 2025, and applies to 7
permit applications received on or after that date. 8
SECTION 31. If any provision of this act or the application thereof to any person or 9
circumstances is held invalid, such invalidity shall not affect other provisions or applications of 10
this act that can be given effect without the invalid provision or application and, to this end, the 11
provisions of this act are declared to be severable. 12
SECTION 32. Except as otherwise provided, this act becomes effective October 1, 13
2025, and applies to applications, approvals, and actions filed on or after that date. Any local 14
government ordinance in effect on, or adopted subsequent to, October 1, 2025, that is inconsistent 15
with this section is void and unenforceable. Unless expressly stated otherwise, the provisions of 16
this act do not affect any right accrued or vested prior to its enactment. 17