GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 S D SENATE BILL DRS45298-TQ-20 Short Title: Local Government Land Use Reform. (Public) Sponsors: Senator Jarvis (Primary Sponsor). Referred to: *DRS45298 -TQ-20* A BILL TO BE ENTITLED 1 AN ACT TO AMEND LOCAL GOVERNMENT PLANNING AND DEVELOPMENT LAWS. 2 The General Assembly of North Carolina enacts: 3 SECTION 1.(a) G.S. 160D-101 reads as rewritten: 4 "§ 160D-101. Application. 5 (a) The provisions of this Article shall apply to all development regulations and programs 6 adopted pursuant to this Chapter or applicable or related local acts. To the extent there are 7 contrary provisions in local charters or acts, G.S. 160D-111 is applicable unless this Chapter 8 expressly provides otherwise. The provisions of this Article also apply to any other local 9 ordinance that substantially affects land use and development. 10 (b) The provisions of this Article are supplemental to specific provisions included in 11 other Articles of this Chapter. To the extent there are conflicts between the provisions of this 12 Article and the provisions of other Articles of this Chapter, the more specific provisions shall 13 control. 14 (c) Local governments may also apply any of the definitions and procedures authorized 15 by this Chapter to any ordinance that does not substantially affect land use and development 16 adopted under the general police power of cities and counties, Article 8 of Chapter 160A of the 17 General Statutes and Article 6 of Chapter 153A of the General Statutes respectively, and may 18 employ any organizational structure, board, commission, or staffing arrangement authorized by 19 this Chapter to any or all aspects of those ordinances. 20 (d) This Chapter does not expand, diminish, or alter the scope of authority for planning 21 and development regulation authorized by other Chapters of the General Statutes. 22 (e) A local government may not exercise planning, zoning, or development regulation 23 authority except as expressly authorized by statute." 24 SECTION 1.(b) This section becomes effective January 1, 2026. Any local 25 government ordinance in effect on, or adopted subsequent to, that date that is inconsistent with 26 this section is void and unenforceable. 27 SECTION 2.(a) G.S. 160D-702 reads as rewritten: 28 "§ 160D-702. (Effective January 1, 2025) Grant of power. 29 (a) A local government may adopt zoning regulations. Except as provided in subsections 30 (b) and (c) of this section, a zoning regulation may regulate and restrict the height, number of 31 stories, and size of buildings and other structures; the percentage of lots that may be occupied; 32 the size of yards, courts, and other open spaces; the density of population; the location and use 33 of buildings, structures, and land. A local government may regulate development, including 34 floating homes, over estuarine waters and over lands covered by navigable waters owned by the 35 State pursuant to G.S. 146-12. A zoning regulation shall provide density credits or severable 36 FILED SENATE Mar 25, 2025 S.B. 688 PRINCIPAL CLERK General Assembly Of North Carolina Session 2025 Page 2 DRS45298-TQ-20 development rights for dedicated rights-of-way pursuant to G.S. 136-66.10 or G.S. 136-66.11. 1 Where appropriate, a zoning regulation may include requirements that street and utility 2 rights-of-way be dedicated to the public, that provision be made of recreational space and 3 facilities, and that performance guarantees be provided, all to the same extent and with the same 4 limitations as provided for in G.S. 160D-804 and G.S. 160D-804.1. 5 (b) Any regulation relating to building design elements adopted under this Chapter may 6 not be applied to any structures subject to regulation under the North Carolina Residential Code 7 except under one or more of the following circumstances: 8 (1) The structures are located in an area designated as a local historic district 9 pursuant to Part 4 of Article 9 of this Chapter. 10 (2) The structures are located in an area designated as a historic district on the 11 National Register of Historic Places. 12 (3) The structures are individually designated as local, State, or national historic 13 landmarks. 14 (4) The regulations are directly and substantially related to the requirements of 15 applicable safety codes adopted under G.S. 143-138. 16 (5) Where the regulations are applied to manufactured housing in a manner 17 consistent with G.S. 160D-908 and federal law. 18 (6) Where the regulations are adopted as a condition of participation in the 19 National Flood Insurance Program. 20 Regulations Except as expressly provided in G.S. 160D-703(b), regulations prohibited by this 21 subsection may not be applied, directly or indirectly, in any zoning district or conditional district 22 unless voluntarily consented to by the owners of all the property to which those regulations may 23 be applied as part of and in the course of the process of seeking and obtaining a zoning 24 amendment or a zoning, subdivision, or development approval,district nor may any suchthe 25 regulations be applied indirectly as part of a review pursuant to G.S. 160D-604 or G.S. 160D-605 26 of any proposed zoning amendment for consistency with an adopted comprehensive plan or other 27 applicable officially adopted plan. 28 For the purposes of this subsection, the phrase "building design elements" means exterior 29 building color; type or style of exterior cladding material; style or materials of roof structures or 30 porches; exterior nonstructural architectural ornamentation; location or architectural styling of 31 windows and doors, including garage doors; the number and types of rooms; and the interior 32 layout of rooms. The phrase "building design elements" does not include any of the following: 33 (i) the height, bulk, orientation, or location of a structure on a zoning lot, (ii) the use of buffering 34 or screening to minimize visual impacts, to mitigate the impacts of light and noise, or to protect 35 the privacy of neighbors, or (iii) regulations adopted pursuant to this Article governing the 36 permitted uses of land or structures subject to the North Carolina Residential Code. 37 Nothing in this subsection affects the validity or enforceability of private covenants or other 38 contractual agreements among property owners relating to building design elements. 39 (c) A zoning or other development regulation shall not do any of the following: 40 (1) Set a minimum width, length, or square footage of any structures subject to 41 regulation under the North Carolina Residential Code. 42 (2) Require a parking space to be larger than 9 feet wide by 20 feet long unless 43 the parking space is designated for handicap, parallel, or diagonal parking.Set 44 parking or parking space requirements or allocations except as required by the 45 Americans with Disabilities Act. 46 (3) Require additional fire apparatus access roads into developments of one- or 47 two-family dwellings that are not in compliance with the required number of 48 fire apparatus access roads into developments of one- or two-family dwellings 49 set forth in the Fire Code of the North Carolina Residential Code for One- and 50 Two-Family Dwellings. 51 General Assembly Of North Carolina Session 2025 DRS45298-TQ-20 Page 3 (4) Except as provided under G.S. 136-18(29) and G.S. 160A-307, set a minimum 1 width, length, or square footage for driveways within a development unless 2 the driveway abuts a public road. A "public road" means any road, street, 3 highway, thoroughfare, or other way of passage that is owned and maintained 4 by a city or the Department of Transportation. 5 (5) Set design standards for roads within a development in excess of those 6 required by the Department of Transportation, unless the city agrees to accept 7 ownership and maintenance responsibility for the road prior to or in 8 conjunction with site plan approval. Confirmation of conformity of the 9 improvements consistent with local government design specifications, 10 regulations, or ordinances under this section shall be conducted consistent 11 with G.S. 160D-804.1(1c). Upon confirmation that the improvements have 12 been made consistent with G.S. 160D-804.1(1c), the city shall record with the 13 register of deeds a plat evincing ownership of the road by the city. 14 (d) A zoning regulation or other development regulation adopted by a city with a 15 population of 150,000 or more shall permit by right or by special use the siting of no fewer than 16 five dwellings subject to regulation under the North Carolina Residential Code per acre in areas 17 zoned for residential use. 18 (e) A zoning regulation or other development regulation adopted by a city with a 19 population of 149,999 or less shall permit by right or by special use the siting of no fewer than 20 four dwellings subject to regulation under the North Carolina Residential Code per acre in areas 21 zoned for residential use. 22 (f) Subsections (d) and (e) of this section shall not apply to property used for a bona fide 23 farm purpose as described in G.S. 160D-903 or an open space use as defined in G.S. 160D-1307. 24 (g) A local government shall follow quasi-judicial procedures in adopting a zoning or 25 other development regulation authorized under this section." 26 SECTION 2.(b) This section becomes effective July 1, 2025. Any local government 27 ordinance in effect on, or adopted subsequent to, that date that is inconsistent with this section is 28 void and unenforceable. 29 SECTION 3. G.S. 160D-703 reads as rewritten: 30 "§ 160D-703. Zoning districts. 31 (a) Types of Zoning Districts. – A local government may divide its territorial jurisdiction 32 into zoning districts of any number, shape, and area deemed best suited to carry out the purposes 33 of this Article. Within those districts, it may regulate and restrict the erection, construction, 34 reconstruction, alteration, repair, or use of buildings, structures, or land. Zoning districts may 35 include, but are not be limited to, the following: 36 (1) Conventional districts, in which a variety of uses are allowed as permitted uses 37 or uses by right and that may also include uses permitted only with a special 38 use permit. 39 (2) Conditional districts, in which site plans or individualized development 40 conditions are imposed. 41 (3) Form-based districts, or development form controls, that address the physical 42 form, mass, and density of structures, public spaces, and streetscapes. 43 (4) Overlay districts, in which different requirements are imposed on certain 44 properties within one or more underlying conventional, conditional, or 45 form-based districts. 46 (5) Districts allowed by charter. 47 (b) Conditional Districts. – Property may be placed in a conditional district only in 48 response to a petition by all owners of the property to be included. Specific conditions may be 49 proposed by the petitioner or the local government or its agencies, but only those conditions 50 approved by the local government and consented to by the petitioner in writing may be 51 General Assembly Of North Carolina Session 2025 Page 4 DRS45298-TQ-20 incorporated into the zoning regulations. Unless consented to by the petitioner in 1 writing,Notwithstanding any other provision of law, in the exercise of the authority granted by 2 this section, a local government may not (i) require, enforce, or incorporate into the zoning 3 regulations any condition or requirement not authorized by otherwise applicable law, regulations, 4 or require as a condition of approval of any site plan, development agreement, conditional zoning 5 permit, or any other instrument any condition, requirement, or deed restriction not specifically 6 authorized by law, or any condition or requirement that the courts have held to be unenforceable 7 if imposed directly by the local government, or (ii) accept any offer by the petitioner to consent 8 to any condition not specifically authorized by law, including, without limitation, taxes, impact 9 fees, building design elements within the scope of G.S. 160D-702(b), driveway-related 10 improvements in excess of those allowed in G.S. 136-18(29) and G.S. 160A-307, or other 11 unauthorized limitations on the development or use of land. Conditions and site-specific 12 standards imposed in a conditional district shall be limited to those that address the conformance 13 of the development and use of the site to local government ordinances, plans adopted pursuant 14 to G.S. 160D-501, or the impacts reasonably expected to be generated by the development or use 15 of the site. The zoning regulation may provide that defined minor modifications in conditional 16 district standards that do not involve a change in uses permitted or the density of overall 17 development permitted may be reviewed and approved administratively. Any other modification 18 of the conditions and standards in a conditional district shall follow the same process for approval 19 as are applicable to zoning map amendments. If multiple parcels of land are subject to a 20 conditional zoning, the owners of individual parcels may apply for modification of the conditions 21 so long as the modification would not result in other properties failing to meet the terms of the 22 conditions. Any modifications approved apply only to those properties whose owners petition 23 for the modification. 24 (b1) Limitations. – For parcels where multifamily structures are an allowable use, a local 25 government may not impose a harmony requirement for permit approval if the development 26 contains affordable housing units for families or individuals with incomes below eighty percent 27 (80%) of the area median income. 28 (c) Uniformity Within Districts. – Except as authorized by the foregoing, all regulations 29 shall be uniform for each class or kind of building throughout each district but the regulations in 30 one district may differ from those in other districts. 31 (d) Standards Applicable Regardless of District. – A zoning regulation or unified 32 development ordinance may also include development standards that apply uniformly 33 jurisdiction-wide rather than being applicable only in particular zoning districts. 34 (e) A local government shall follow quasi-judicial procedures in adopting a zoning or 35 other development regulation authorized under this section." 36 SECTION 4. G.S. 160D-406 reads as rewritten: 37 "§ 160D-406. Quasi-judicial procedure. 38 (a) Process Required. – Boards shall follow quasi-judicial procedures in determining 39 appeals of administrative decisions, special use permits, conditional use permits, certificates of 40 appropriateness, variances, or any other quasi-judicial decision. 41 …." 42 SECTION 5. G.S. 6-21.7 reads as rewritten: 43 "§ 6-21.7. Attorneys' fees; cities or counties cities, counties, or local elected officials acting 44 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 47 authority,authority or that its action was arbitrary and capricious, the court shall award reasonable 48 attorneys' fees and costs to the party who successfully challenged the city's or county's action. In 49 any action in which a city or county is a party, upon finding by the court that the city or county 50 took action inconsistent with, or in violation of, G.S. 160D-108(b) or G.S. 143-755, or that its 51 General Assembly Of North Carolina Session 2025 DRS45298-TQ-20 Page 5 action was arbitrary and capricious, the court shall award reasonable attorneys' fees and costs to 1 the party who successfully challenged the local government's failure to comply with any of those 2 provisions. In all other matters, the court may award reasonable attorneys' fees and costs to the 3 prevailing private litigant. For purposes of this section, "unambiguous" means that the limits of 4 authority are not reasonably susceptible to multiple constructions. 5 (b) In any action in which any county commissioner, alderman, councilman, or other 6 local elected official is a party, upon a finding by the court that the commissioner, alderman, 7 councilman, or other local elected official's individual act was fraudulent, unlawful, arbitrary and 8 capricious, beyond the scope of his or her statutory authority, or malicious or corrupt, may be 9 held personally liable for an injury or damage resulting from the act and reasonable attorneys' 10 fees shall be awarded by the court to a party who successfully challenged the act of the 11 commissioner, alderman, councilman, or other local elected official. Where the court finds that 12 the commissioner, alderman, councilman, or other local elected official's act was fraudulent, 13 unlawful, arbitrary and capricious, beyond the scope of his or her statutory authority, or malicious 14 or corrupt, the defenses of public official immunity, legislative immunity and judicial immunity 15 are waived. A commissioner, alderman, councilman, or other local elected official shall not be 16 personally liable in damages or otherwise for an unlawful act of an officer or employee of the 17 city or county, unless the act is committed by the authority of the commissioner, alderman, 18 councilman, or other local elected official, or he or she has notice or knowledge thereof, or unless 19 the act is committed under circumstances which would cause, or would have caused, a reasonably 20 prudent person to have knowledge of the act." 21 SECTION 6. G.S. 160A-307 reads as rewritten: 22 "§ 160A-307. Curb cut regulations. 23 (a) A Except as expressly permitted by Chapter 160D of the General Statutes, a city may 24 not regulate by ordinance regulate the size, location, direction of traffic flow, and manner of 25 construction of driveway connections into any street or alley. The To the extent allowed by 26 Chapter 160D of the General Statutes, the ordinance may require the construction or 27 reimbursement of the cost of construction and public dedication of medians, acceleration and 28 deceleration lanes, and traffic storage lanes for driveway connections into any street or alley if 29 all of the following apply: 30 (1) The city has shown through substantial evidence the need for such the 31 improvements is reasonably attributable to the traffic using the driveway. 32 (2) The city has shown through substantial evidence the improvements serve the 33 traffic of the driveway. 34 (b) No street or alley under the control of the Department of Transportation may be 35 improved without the consent of the Department of Transportation. A city shall not require the 36 applicant to acquire right-of-way from property not owned by the applicant. However, an 37 applicant may voluntarily agree to acquire such right-of-way." 38 SECTION 7. G.S. 160D-1403.1 reads as rewritten: 39 "§ 160D-1403.1. Civil action for declaratory relief, injunctive relief, other remedies; joinder 40 of complaint and petition for writ of certiorari in certain cases. 41 (a) Civil Action. – Except as otherwise provided in this section for claims involving 42 questions of interpretation, in lieu of any remedies available under G.S. 160D-405 or 43 G.S. 160D-108(h), a person with standing, as defined in subsection (b) of this section, may bring 44 an original civil action seeking declaratory relief, injunctive relief, damages, or any other 45 remedies provided by law or equity, in superior court or federal court to challenge the 46 enforceability, validity, or effect of a local land development regulation for any of the following 47 claims: 48 (1) The ordinance, either on its face or as applied, is unconstitutional. 49 (2) The ordinance, either on its face or as applied, is ultra vires, preempted, or 50 otherwise in excess of statutory authority.authority or jurisdiction. 51 General Assembly Of North Carolina Session 2025 Page 6 DRS45298-TQ-20 (3) The ordinance, either on its face or as applied, constitutes a taking of property. 1 (4) The decision of a local government or local government official made 2 pursuant to a local government's authority under G.S. 160D-702, 3 G.S. 160D-703, or both, is ultra vires, preempted, in excess of its statutory 4 authority or jurisdiction, made upon unlawful procedure, made in error of law, 5 arbitrary and capricious, or an abuse of discretion. 6 If the decision being challenged is from an administrative official charged with enforcement 7 of a local land development regulation, the party with standing must first bring any claim that the 8 ordinance was erroneously interpreted to the applicable board of adjustment pursuant to 9 G.S. 160D-405. An adverse ruling from the board of adjustment may then be challenged in an 10 action brought pursuant to this subsection with the court hearing the matter de novo together with 11 any of the claims listed in this subsection. 12 (b) Standing. – Any of the following criteria provide standing to bring an action under 13 this section: 14 (1) The person has an ownership, leasehold, or easement interest in, or possesses 15 an option or contract to purchase the property that is the subject matter of a 16 final and binding decision made by an administrative official charged with 17 applying or enforcing a land development regulation. 18 (2) The person was a development permit applicant before the decision-making 19 board whose decision is being challenged. 20 (3) The person was a development permit applicant who is aggrieved by a final 21 and binding decision of an administrative official charged with applying or 22 enforcing a land development regulation. 23 (4) An association, organization, society, or entity whose membership is 24 comprised of an individual or entity identified in subdivisions (1) through (3) 25 of this subsection. 26 …." 27 SECTION 8. Article 14 of Chapter 160D of the General Statutes is amended by 28 adding a new section to read: 29 "§ 160D-1403.3. Private remedies. 30 In addition to any other remedy otherwise provided by law, any person injured by a violation 31 of this Chapter may bring a civil action and recover damages, costs, and disbursements, including 32 costs of investigation and reasonable attorney's fees, and receive other equitable relief as 33 determined by the court." 34 SECTION 9. Except as otherwise provided, this act becomes effective January 1, 35 2026. 36