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North Carolina House Bill H248

North Carolina 2025-2026 Regular Session

North Carolina House Bill H248 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-H 1
4-HOUSE BILL 248
3+H D
4+HOUSE BILL DRH30088-NN-7
5+
56
67
78 Short Title: Live/Work Exemption for One-Family Dwellings. (Public)
8-Sponsors: Representatives Roberson, Price, and Cervania (Primary Sponsors).
9-For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10-Referred to: Housing and Development, if favorable, Judiciary 1, if favorable, Rules, Calendar,
11-and Operations of the House
12-March 3, 2025
13-*H248 -v-1*
9+Sponsors: Representative Roberson.
10+Referred to:
11+
12+*DRH30088 -NN-7*
1413 A BILL TO BE ENTITLED 1
1514 AN ACT TO EXEMPT CERTAIN OWNER-OCCUPIED, SINGLE-FAMILY DWELLINGS 2
1615 WITH PERMITTED BUSINESS USES FROM THE LIVE/WORK REQUIREMENTS OF 3
1716 THE NORTH CAROLINA BUILDING CODE. 4
1817 The General Assembly of North Carolina enacts: 5
1918 SECTION 1.(a) Definitions. – For purposes of this act, the following definitions 6
2019 apply: 7
2120 (1) Home business use. – An accessory commercial or professional activity 8
2221 conducted by the owner-occupant within the dwelling that is incidental to the 9
2322 primary residential use. To qualify as a "home business use," the business 10
2423 must be operated directly by the owner-occupant and not leased or rented to a 11
2524 third party. 12
2625 (2) Live/work unit. – Under the North Carolina State Building Code, a dwelling 13
2726 unit in which more than ten percent (10%) and less than fifty percent (50%) 14
2827 of the space includes a nonresidential use that is operated by the tenant. 15
2928 (3) Owner-occupied. – A dwelling that serves as the primary residence of at least 16
3029 one record owner of the property. For purposes of this act, the owner must 17
3130 physically reside in the dwelling. Temporary absences, such as military 18
3231 deployment or seasonal travel, do not negate owner-occupancy so long as the 19
3332 owner intends to return and no other person assumes primary occupancy. 20
3433 (4) Single-family dwelling. – A residential building that contains only one 21
3534 dwelling unit intended for occupancy by a single family or household and is 22
3635 subject to the North Carolina Residential Code. 23
3736 SECTION 1.(b) Classification and Exemption. – An owner-occupied, single-family 24
3837 dwelling with a home business use, as defined in subsection (a) of this section, shall be subject 25
3938 solely to the same provisions of the North Carolina State Building Code that would apply if the 26
4039 dwelling had no home business use, subject to the conditions of subsection (c) of this section. 27
4140 Notwithstanding any provision of law or code to the contrary, the presence of a home business 28
4241 use shall not: 29
4342 (1) Alter the dwelling's classification as a single-family residence subject to the 30
4443 North Carolina Residential Code for One- and Two-family dwellings; 31
4544 (2) Cause any portion of the dwelling to be considered a separate occupancy or 32
4645 trigger live/work, mixed-use, or commercial requirements under the North 33
47-Carolina Building Code; or 34 General Assembly Of North Carolina Session 2025
48-Page 2 House Bill 248-First Edition
49-(3) Impose any additional requirements under the North Carolina State Building 1
50-Code that would not otherwise apply to a single-family dwelling. 2
51-All other applicable requirements under the North Carolina Residential Code for a 3
52-single-family dwelling remain in effect. 4
53-SECTION 1.(c) Conditions for Exemption. – A dwelling qualifies for the exemption 5
54-under subsection (b) of this section only if all of the following conditions are met: 6
55-(1) Owner-occupancy. – The dwelling is occupied by the business owner as the 7
56-owner's primary residence. 8
57-(2) Home business use. – The activity conducted in the area of the dwelling used 9
58-for business meets the definition of "home business use" as defined in 10
59-subsection (a) of this section. 11
60-(3) Local zoning compliance. – The home business use of the dwelling is 12
61-permitted under applicable local zoning law and is otherwise lawful. 13
62-SECTION 1.(d) Loss of Exemption. – If at any time the dwelling ceases to meet any 14
63-condition of subsection (c) of this section, the exemption provided by subsection (b) of this 15
64-section shall automatically terminate. Upon the termination of the exemption, the dwelling shall 16
65-thereafter be subject to any applicable occupancy classification and associated requirements of 17
66-the North Carolina State Building Code. 18
67-SECTION 2.(a) Prohibition on Reclassification and Change of Occupancy. – 19
68-Notwithstanding G.S. 160D-1115 or any other law, a dwelling exempt under Section 1 of this act 20
69-shall not be reclassified as a live/work unit, commercial occupancy, or mixed occupancy solely 21
70-because of the presence of a home business use, and no reinspection or reissuance of a certificate 22
71-of occupancy shall be required solely on that basis. 23
72-SECTION 2.(b) Preemption of Local Ordinances. – No county or municipality shall 24
73-enact or enforce any ordinance, rule, or policy that: 25
74-(1) Requires an owner-occupied, single-family dwelling meeting the exemption 26
75-requirements of Section 1(b) of this act to be classified or regulated under the 27
76-commercial or live/work provisions of the North Carolina Building Code; or 28
77-(2) Imposes any construction, fire-safety, or structural requirement more stringent 29
78-than, or in addition to, those specified by the North Carolina Residential Code 30
79-for single-family dwellings, solely because the dwelling is used for a home 31
80-business use meeting the requirements of Section 1(b) of this act. 32
81-SECTION 2.(c) To implement the provisions of this act, the following shall apply: 33
82-(1) The North Carolina Building Code Council shall adopt permanent rules to 34
83-amend the applicable provisions of the North Carolina State Building Code in 35
84-a manner consistent with the provisions of Section 1 of this act. 36
85-(2) The North Carolina Residential Code Council shall adopt permanent rules to 37
86-amend the applicable provisions of the North Carolina Residential Code in a 38
87-manner consistent with the provisions of Section 1 of this act. 39
88-(3) Notwithstanding G.S. 150B-19(4), the rules adopted pursuant to this section 40
89-shall be substantively identical to the provisions of Section 1 of this act and 41
90-shall become effective as provided in G.S. 150B-21.3(b)(1), as though 10 or 42
91-more written objections had been received in accordance with 43
92-G.S. 150B-21.3(b)(2). 44
93-(4) Rules adopted under this section shall not be subject to review under Part 3 of 45
94-Article 2A of Chapter 150B of the General Statutes. 46
95-SECTION 2.(d) Sunset. – Section 1 of this act shall expire on the date that permanent 47
96-rules adopted by the North Carolina Building Code Council and North Carolina Residential Code 48
97-Council under subsection (c) of this section become effective. 49
98-SECTION 2.(e) Exceptions and Limitations. – The provisions of this section are 50
99-subject to the following exceptions and clarification: 51 General Assembly Of North Carolina Session 2025
100-House Bill 248-First Edition Page 3
101-(1) Local zoning and police powers. – Nothing in this act shall be construed to 1
102-limit or modify the authority of a county or municipality to regulate land use 2
103-or to prohibit or restrict particular business activities under its zoning or police 3
104-powers, including, but not limited to, adult establishments as defined in 4
105-G.S. 14-202.10, uses involving highly flammable materials, or other 5
106-operations deemed unlawful or hazardous under State or federal law. 6
107-(2) Private covenants not superseded. – This act does not supersede any valid 7
108-private covenant, deed restriction, or homeowners' association bylaw that 8
109-prohibits or limits home-based businesses. Property owners remain subject to 9
110-any private land-use restrictions that apply to their property, and nothing in 10
111-this section shall be construed to alter or invalidate such private agreements. 11
112-(3) Compliance with other laws. – A home-based business shall comply with all 12
113-applicable State and federal laws, rules, and regulations, including health and 13
114-safety laws, occupational licensing requirements, and environmental 14
115-standards. Nothing in this act shall be construed to exempt a home-based 15
116-business from any State or federal permit, license, or approval requirement. 16
117-SECTION 3. Effective Date. – This act is effective when it becomes law and applies 17
118-to all existing owner-occupied, single-family dwellings and to all owner-occupied, single-family 18
119-dwellings constructed, renovated, or used for home business use on or after that date. 19
46+Carolina Building Code; or 34
47+(3) Impose any additional requirements under the North Carolina State Building 35
48+Code that would not otherwise apply to a single-family dwelling. 36
49+H.B. 248
50+Feb 27, 2025
51+HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
52+Page 2 DRH30088-NN-7
53+All other applicable requirements under the North Carolina Residential Code for a 1
54+single-family dwelling remain in effect. 2
55+SECTION 1.(c) Conditions for Exemption. – A dwelling qualifies for the exemption 3
56+under subsection (b) of this section only if all of the following conditions are met: 4
57+(1) Owner-occupancy. – The dwelling is occupied by the business owner as the 5
58+owner's primary residence. 6
59+(2) Home business use. – The activity conducted in the area of the dwelling used 7
60+for business meets the definition of "home business use" as defined in 8
61+subsection (a) of this section. 9
62+(3) Local zoning compliance. – The home business use of the dwelling is 10
63+permitted under applicable local zoning law and is otherwise lawful. 11
64+SECTION 1.(d) Loss of Exemption. – If at any time the dwelling ceases to meet any 12
65+condition of subsection (c) of this section, the exemption provided by subsection (b) of this 13
66+section shall automatically terminate. Upon the termination of the exemption, the dwelling shall 14
67+thereafter be subject to any applicable occupancy classification and associated requirements of 15
68+the North Carolina State Building Code. 16
69+SECTION 2.(a) Prohibition on Reclassification and Change of Occupancy. – 17
70+Notwithstanding G.S. 160D-1115 or any other law, a dwelling exempt under Section 1 of this act 18
71+shall not be reclassified as a live/work unit, commercial occupancy, or mixed occupancy solely 19
72+because of the presence of a home business use, and no reinspection or reissuance of a certificate 20
73+of occupancy shall be required solely on that basis. 21
74+SECTION 2.(b) Preemption of Local Ordinances. – No county or municipality shall 22
75+enact or enforce any ordinance, rule, or policy that: 23
76+(1) Requires an owner-occupied, single-family dwelling meeting the exemption 24
77+requirements of Section 1(b) of this act to be classified or regulated under the 25
78+commercial or live/work provisions of the North Carolina Building Code; or 26
79+(2) Imposes any construction, fire-safety, or structural requirement more stringent 27
80+than, or in addition to, those specified by the North Carolina Residential Code 28
81+for single-family dwellings, solely because the dwelling is used for a home 29
82+business use meeting the requirements of Section 1(b) of this act. 30
83+SECTION 2.(c) To implement the provisions of this act, the following shall apply: 31
84+(1) The North Carolina Building Code Council shall adopt permanent rules to 32
85+amend the applicable provisions of the North Carolina State Building Code in 33
86+a manner consistent with the provisions of Section 1 of this act. 34
87+(2) The North Carolina Residential Code Council shall adopt permanent rules to 35
88+amend the applicable provisions of the North Carolina Residential Code in a 36
89+manner consistent with the provisions of Section 1 of this act. 37
90+(3) Notwithstanding G.S. 150B-19(4), the rules adopted pursuant to this section 38
91+shall be substantively identical to the provisions of Section 1 of this act and 39
92+shall become effective as provided in G.S. 150B-21.3(b)(1), as though 10 or 40
93+more written objections had been received in accordance with 41
94+G.S. 150B-21.3(b)(2). 42
95+(4) Rules adopted under this section shall not be subject to review under Part 3 of 43
96+Article 2A of Chapter 150B of the General Statutes. 44
97+SECTION 2.(d) Sunset. – Section 1 of this act shall expire on the date that permanent 45
98+rules adopted by the North Carolina Building Code Council and North Carolina Residential Code 46
99+Council under subsection (c) of this section become effective. 47
100+SECTION 2.(e) Exceptions and Limitations. – The provisions of this section are 48
101+subject to the following exceptions and clarification: 49
102+(1) Local zoning and police powers. – Nothing in this act shall be construed to 50
103+limit or modify the authority of a county or municipality to regulate land use 51 General Assembly Of North Carolina Session 2025
104+DRH30088-NN-7 Page 3
105+or to prohibit or restrict particular business activities under its zoning or police 1
106+powers, including, but not limited to, adult establishments as defined in 2
107+G.S. 14-202.10, uses involving highly flammable materials, or other 3
108+operations deemed unlawful or hazardous under State or federal law. 4
109+(2) Private covenants not superseded. – This act does not supersede any valid 5
110+private covenant, deed restriction, or homeowners' association bylaw that 6
111+prohibits or limits home-based businesses. Property owners remain subject to 7
112+any private land-use restrictions that apply to their property, and nothing in 8
113+this section shall be construed to alter or invalidate such private agreements. 9
114+(3) Compliance with other laws. – A home-based business shall comply with all 10
115+applicable State and federal laws, rules, and regulations, including health and 11
116+safety laws, occupational licensing requirements, and environmental 12
117+standards. Nothing in this act shall be construed to exempt a home-based 13
118+business from any State or federal permit, license, or approval requirement. 14
119+SECTION 3. Effective Date. – This act is effective when it becomes law and applies 15
120+to all existing owner-occupied, single-family dwellings and to all owner-occupied, single-family 16
121+dwellings constructed, renovated, or used for home business use on or after that date. 17