North Carolina 2025-2026 Regular Session

North Carolina House Bill H626 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 1
4		-	HOUSE BILL 626
	3	+	H D
	4	+	HOUSE BILL DRH10262-MQ-89
	5	+
5	6
6	7
7	8		Short Title: Housing Choice Act. (Public)
8		-	Sponsors: Representatives Alston, Dahle, and G. Brown (Primary Sponsors).
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: Rules, Calendar, and Operations of the House
11		-	April 2, 2025
12		-	H626 -v-1
	9	+	Sponsors: Representative Alston.
	10	+	Referred to:
	11	+
	12	+	DRH10262 -MQ-89
13	13		A BILL TO BE ENTITLED 1
14	14		AN ACT TO ENACT THE HOUSING CHOICE ACT. 2
15	15		The General Assembly of North Carolina enacts: 3
16	16		SECTION 1. Article 9 of Chapter 160D of the General Statutes is amended by 4
17	17		adding a new Part to read: 5
18	18		"Part 7. Municipal Land-Use Regulation Strategies. 6
19	19		"§ 160D-980. Land-use regulation strategies. 7
20	20		(a) A municipality with less than 100,000 residents may adopt, by ordinance or policy, 8
21	21		the following provisions to be eligible for priority consideration under G.S. 159G-23: 9
22	22		(1) Permit, by right, multifamily residential development in all districts zoned for 10
23	23		residential use. 11
24	24		(2) Identify and utilize local funding subsidies or other sources of revenue to 12
25	25		waive construction-related fees for the construction of low- or 13
26	26		moderate-income housing. 14
27	27		(3) Allow multifamily residential dwellings compatible in scale and form with 15
28	28		detached single-family residential dwellings within mixed-use zones. 16
29	29		(4) Allow the development of at least one, internal or detached accessory dwelling 17
30	30		unit, with owner-occupancy of the primary dwelling required, in all residential 18
31	31		zoning districts that allow the development of single-family dwellings, which 19
32	32		conform to the North Carolina Residential Code for One- and Two-Family 20
33	33		Dwellings. 21
34	34		(5) Preserve existing low- or moderate-income housing by creating and utilizing 22
35	35		a landlord incentive program or establishing a locally funded housing loss 23
36	36		mitigation fund. 24
37	37		(6) Implement home-buyers education services for first-time homebuyers. 25
38	38		(b) A municipality with 100,000 or more residents may adopt, by ordinance or policy, 26
39	39		the following provisions to be eligible for priority consideration under G.S. 159G-23: 27
40	40		(1) Establish a minimum gross density of four units per acre across all residential 28
41	41		zoning districts that allow single-family dwellings. 29
42	42		(2) Allow the development of at least one, internal or detached accessory dwelling 30
43	43		unit, with owner-occupancy of the primary dwelling required, in all residential 31
44	44		zoning districts that allow the development of single-family dwellings, which 32
45	45		conform to the North Carolina Residential Code for One- and Two-Family 33
46	46		Dwellings. 34
47		-	(3) Prohibit parking requirements. 35 General Assembly Of North Carolina Session 2025
48		-	Page 2 House Bill 626-First Edition
	47	+	(3) Prohibit parking requirements. 35
	48	+	H.B. 626
	49	+	Mar 31, 2025
	50	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	51	+	Page 2 DRH10262-MQ-89
49	52		(4) Allow multifamily residential dwellings, including duplexes and triplexes, in 1
50	53		any zoning district that allows single-family dwellings. 2
51	54		(5) Demonstrate a thirty percent (30%) increase in building permit issuance over 3
52	55		a 12-month time period. 4
53	56		(6) Allow multifamily residential development in nonresidential zoning districts 5
54	57		that are within 1/4 mile of major transit investment corridors, commercial 6
55	58		centers, or employment centers. 7
56	59		(7) Eliminate multifamily building height restrictions of less than three stories in 8
57	60		zoning districts designated as transit-oriented districts. 9
58	61		(8) Identify and utilize local funding subsidies or other sources of revenue to 10
59	62		waive construction-related fees for the construction of moderate-income 11
60	63		housing. 12
61	64		(9) Allow multifamily residential dwellings compatible in scale and form with 13
62	65		detached single-family residential dwellings within mixed-use zoning 14
63	66		districts. 15
64	67		(10) Preserve existing moderate-income housing by creating and utilizing a 16
65	68		landlord incentive program or establishing a housing loss mitigation fund. 17
66	69		(11) Enter into a joint acquisition agreement with another local political 18
67	70		subdivision for the purpose of combining resources to acquire property for 19
68	71		low- to moderate-income housing. 20
69	72		(12) Demonstrate utilization of a moderate-income housing set aside from a 21
70	73		community reinvestment agency, redevelopment agency, or community 22
71	74		development and renewal agency to create or subsidize moderate-income 23
72	75		housing." 24
73	76		SECTION 2. G.S. 159G-23 reads as rewritten: 25
74	77		"§ 159G-23. Priority consideration for loan or grant from Wastewater Reserve or Drinking 26
75	78		Water Reserve. 27
76	79		The considerations for priority in this section apply to a loan or grant from the Wastewater 28
77	80		Reserve or the Drinking Water Reserve. The Division of Water Infrastructure must consider the 29
78	81		following items when evaluating applications: 30
79	82		(1) Public necessity. – A project that promotes public health and protects the 31
80	83		environment, improves a system that is not in compliance with permit 32
81	84		requirements or is under orders from the Department, enables a moratorium 33
82	85		to be lifted, or replaces failing septic tanks with a wastewater collection 34
83	86		system. 35
84	87		(2) Effect on impaired waters. – A project that improves designated impaired 36
85	88		waters of the State, with greater priority given to projects that improve 37
86	89		designated impaired waters of the State that serve as a public water supply for 38
87	90		a large public water system. For purposes of this subdivision, a large public 39
88	91		water system is one serving more than 175,000 service connections. 40
89	92		(3) Efficiency. – A project that achieves efficiencies in meeting the State's water 41
90	93		infrastructure needs or reduces vulnerability to drought consistent with Part 42
91	94		2A of Article 21 and Article 38 of Chapter 143 of the General Statutes by one 43
92	95		of the following methods: 44
93	96		a. The combination of two or more wastewater or public water systems 45
94	97		into a regional wastewater or public water system by merger, 46
95	98		consolidation, or another means. 47
96	99		b. Conservation or reuse of water, including bulk water reuse facilities 48
97	100		and waterlines to supply reuse water for irrigation and other approved 49
98	101		uses. 50 General Assembly Of North Carolina Session 2025
99		-	~~House Bill 626-First Edition~~ Page 3
	102	+	DRH10262-MQ-89 Page 3
100	103		c. Construction of an interconnection between water systems intended 1
101	104		for use in drought or other water shortage emergency. 2
102	105		d. Repair or replacement of leaking waterlines to improve water 3
103	106		conservation and efficiency or to prevent contamination. 4
104	107		e. Replacement of meters and installation of new metering systems. 5
105	108		(4) Comprehensive land-use plan. – A project that is located in a city or county 6
106	109		that has adopted or has taken significant steps to adopt a comprehensive 7
107	110		land-use plan under Chapter 160D of the General Statutes. The existence of a 8
108	111		plan has more priority than steps taken to adopt a plan, such as adoption of a 9
109	112		zoning ordinance. A plan that exceeds the minimum State standards for 10
110	113		protection of water resources has higher priority than one that does not. A 11
111	114		project is considered to be located in a city or county if it is located in whole 12
112	115		or in part in that unit. A land-use plan is not considered a comprehensive 13
113	116		land-use plan unless it has provisions that protect existing water uses and 14
114	117		ensure compliance with water quality standards and classifications in all 15
115	118		waters of the State affected by the plan. 16
116	119		(5) Flood hazard ordinance. – A project that is located in a city or county that has 17
117	120		adopted a flood hazard prevention ordinance under G.S. 143-215.54A. A plan 18
118	121		that exceeds the minimum standards under G.S. 143-215.54A for a flood 19
119	122		hazard prevention ordinance has higher priority than one that does not. A 20
120	123		project is considered to be located in a city or county if it is located in whole 21
121	124		or in part in that unit. If no part of the service area of a project is located within 22
122	125		the 100-year floodplain, the project has equal consideration under this 23
123	126		subdivision as if it were located in a city or county that has adopted a flood 24
124	127		hazard prevention ordinance. The most recent maps prepared pursuant to the 25
125	128		National Flood Insurance Program or approved by the Department determine 26
126	129		whether an area is within the 100-year floodplain. 27
127	130		(6) Sound management. – A project submitted by a local government unit that has 28
128	131		demonstrated a willingness and ability to meet its responsibilities through 29
129	132		sound fiscal policies and efficient operation and management. 30
130	133		(6a) Asset management plan. – A project submitted by a local government unit 31
131	134		with more than 1,000 service connections that has developed and is 32
132	135		implementing an asset management plan. 33
133	136		(7) Capital improvement plan. – A project that implements the applicant's capital 34
134	137		improvement plan for the wastewater system or public water system it 35
135	138		manages, so long as the capital improvement plan sets out the applicant's 36
136	139		expected water infrastructure needs for at least 10 years. 37
137	140		(8) Coastal habitat protection. – A project that implements a recommendation of 38
138	141		a Coastal Habitat Protection Plan adopted by the Environmental Management 39
139	142		Commission, the Coastal Resources Commission, and the Marine Fisheries 40
140	143		Commission pursuant to G.S. 143B-279.8. If no part of the service area of a 41
141	144		project is located within a county subject to that Plan, the project has equal 42
142	145		priority under this subdivision with a project that receives priority under this 43
143	146		subdivision. 44
144	147		(9) Affordability. – The relative affordability of a project for a community 45
145	148		compared to other communities in North Carolina. 46
146	149		(10) Merger and Regionalization. – A project to provide for the planning of 47
147	150		regional public water and wastewater systems, to provide for the orderly 48
148	151		coordination of local actions relating to public water and wastewater systems, 49
149	152		or to help realize economies of scale in regional public water and wastewater 50
150	153		systems through consolidation, management, merger, or interconnection of 51 General Assembly Of North Carolina Session 2025
151		-	Page 4 ~~House Bill 626-First Edition~~
	154	+	Page 4 DRH10262-MQ-89
152	155		public water and wastewater systems. If an applicant demonstrates that it is 1
153	156		not feasible for the project to include regionalization, the funding agency shall 2
154	157		assign the project the same priority under this subdivision as a project that 3
155	158		includes regionalization. 4
156	159		(11) Improve regional coordination. – A project that addresses a potential conflict 5
157	160		between local plans or implements a measure in which local water supply 6
158	161		plans could be better coordinated. 7
159	162		(12) Water conservation measures for drought. – A project that includes adoption 8
160	163		of water conservation measures by a local government unit that are more 9
161	164		stringent than the minimum water conservation measures required pursuant to 10
162	165		G.S. 143-355.2. 11
163	166		(13) Low-income residents. – A project that is located in an area annexed by a 12
164	167		municipality under Article 4A of Chapter 160A of the General Statutes in 13
165	168		order to provide water or sewer services to low-income residents. 14
166	169		(14) Disproportionate burden to protect water supply of higher-wealth neighboring 15
167	170		local government unit. – Wastewater system improvements made by a local 16
168	171		government unit in order to protect or preserve the water supply of a 17
169	172		neighboring local government unit that has a lower poverty rate, lower utility 18
170	173		bills, higher population growth, higher median household incomes, and lower 19
171	174		unemployment. 20
172	175		(15) Land-use regulation strategies. – A municipality with less than 100,000 21
173	176		residents that can demonstrate the adoption of at least two of the land-use 22
174	177		provisions in G.S. 160D-980(b) or a municipality with 100,000 or more 23
175	178		residents that can demonstrate the adoption of at least five of the land-use 24
176	179		provisions in G.S. 160D-980(c)." 25
177	180		SECTION 3. The State Water Infrastructure Authority (Authority) shall create and 26
178	181		provide a form or application for municipalities to demonstrate compliance with the land-use 27
179	182		regulation strategies outlined in this act. The Authority may establish deadlines for submission 28
180	183		of the form or application and shall determine compliance with any requirements or criteria to be 29
181	184		considered eligible for prioritization for water infrastructure funding. A municipality may submit 30
182	185		the form or application once annually, and subsequent eligibility shall only be considered and 31
183	186		certified based upon new data or adoption of new land-use regulation strategies. 32
184	187		SECTION 4.(a) The Legislative Research Commission (LRC) shall study, in 33
185	188		collaboration with various municipalities, counties, and regional councils of government, the 34
186	189		housing needs for the current and future residents of the State. The LRC shall, as a part of its 35
187	190		study, establish methods for calculating regional housing needs, existing housing stock estimates, 36
188	191		housing shortages, and an estimate of the number of housing units needed to accommodate the 37
189	192		anticipated population growth of the State through 2050. 38
190	193		SECTION 4.(b) The LRC shall report its findings and any legislative proposals to 39
191	194		the 2025 General Assembly no later than by the convening of the 2026 Regular Session. 40
192	195		SECTION 5. This act is effective when it becomes law. 41