FILED SENATE
Mar 24, 2021
GENERAL ASSEMBLY OF NORTH CAROLINA
S.B. 349
SESSION 2021 PRINCIPAL CLERK
S D
SENATE BILL DRS15162-MQ-32A
Short Title: Increase Housing Opportunities. (Public)
Sponsors: Senators Edwards, Newton, and Fitch (Primary Sponsors).
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT TO PROVIDE REFORMS TO LOCAL GOVERNMENT ZONING AUTHORITY TO
3 INCREASE HOUSING OPPORTUNITIES AND TO MAKE VARIOUS CHANGES AND
4 CLARIFICATIONS TO THE ZONING STATUTES.
5 The General Assembly of North Carolina enacts:
6
7 PART I. AFFORDABLE HOUSING OPTIONS
8 SECTION 1.1.(a) Article 7 of Chapter 160D of the General Statutes is amended by
9 adding a new section to read:
10 "§ 160D-707. Middle housing use in residential zones.
11 (a) Definitions. – As used in this section, the term "middle housing" means a residential
12 dwelling that is one of the following, as defined by the North Carolina Building Code Council:
13 (1) A duplex.
14 (2) A triplex.
15 (3) A quadplex.
16 (4) A townhouse.
17 (b) Middle Housing in Residential Zones. – A local government shall allow all middle
18 housing types in areas zoned for residential use, including those that allow for the development
19 of detached single-family dwellings.
20 (c) Regulation and Scope. – A local government may regulate middle housing pursuant
21 to the provisions of this Chapter, provided that the regulations do not act to discourage
22 development of middle housing types through unreasonable costs or delay. In permitting middle
23 housing types, nothing in this section shall be construed to prohibit a local government from
24 permitting single-family dwellings in areas zoned to allow for single-family dwellings. Nothing
25 in this section affects the validity or enforceability of private covenants or other contractual
26 agreements among property owners relating to dwelling type restrictions. Any regulation adopted
27 pursuant to this section shall not apply to an area designated as a local historic district (i) pursuant
28 to Part 4 of Article 9 of this Chapter or (ii) on the National Register of Historic Places. This
29 section shall only apply to areas that are served, or through extension may be served, by one or
30 more of the following:
31 (1) A local government water system.
32 (2) A local government sewer system.
33 (3) A public water system.
34 (4) A wastewater collection or treatment works, the operation of which is
35 primarily to collect or treat municipal or domestic wastewater and for which
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1 a permit is issued under Part 1 of Article 21 of Chapter 143 of the General
2 Statutes."
3 SECTION 1.1.(b) G.S. 160D-102 is amended by adding a new subdivision to read:
4 "(28a) Single-family dwelling. – The term shall include all of the types of middle
5 housing as defined in G.S. 160D-707(a)."
6 SECTION 1.1.(c) This section becomes effective October 1, 2021.
7 SECTION 1.2. The North Carolina Building Code Council (Council) shall adopt
8 amendments to the North Carolina Residential Code for One- and Two-Family Dwellings (Code)
9 to define and include regulation of triplex dwelling units and quadplex dwelling units in order to
10 facilitate regulation of those units in areas zoned for residential use, including those that allow
11 for the development of detached single-family dwellings. Upon adoption of the amendments, the
12 Council and local governments enforcing the Code shall regulate triplex dwelling units and
13 quadplex dwelling units being sited pursuant to G.S. 160D-707, as enacted in this act, under the
14 new amendments to the Code.
15 SECTION 1.3.(a) Part 1 of Article 9 of Chapter 160D of the General Statutes is
16 amended by adding a new section to read:
17 "§ 160D-917. Accessory dwelling units.
18 (a) A local government shall allow the development of at least one accessory dwelling
19 unit which conforms to the North Carolina Residential Code for One- and Two-Family
20 Dwellings, including applicable provisions from State fire prevention code, for each detached
21 single-family dwelling in areas zoned for residential use that allow for development of detached
22 single-family dwellings. For the purposes of this section, the term "accessory dwelling unit"
23 means an attached or detached residential structure that is used in connection with or that is
24 accessory to a single-family dwelling.
25 (b) Development and permitting of an accessory dwelling unit shall not be subject to any
26 of the following requirements:
27 (1) Owner-occupancy of any dwelling unit, including an accessory unit.
28 (2) Minimum parking requirements or other parking restrictions.
29 (3) Conditional use zoning.
30 (c) In permitting accessory dwelling units under this section, a local government shall
31 not do any of the following:
32 (1) Prohibit the connection of the accessory dwelling unit to existing utilities
33 serving the primary dwelling unit.
34 (2) Charge any fee other than a building permit that does not exceed the amount
35 charged for any single-family dwelling unit similar in nature.
36 (3) Establish development setbacks that differ from the development setbacks
37 applicable for a similarly situated lot in the same zoning classification."
38 SECTION 1.3.(b) This section becomes effective October 1, 2021.
39 SECTION 1.4.(a) G.S. 42A-3 reads as rewritten:
40 "§ 42A-3. Application; exemptions.
41 (a) The provisions of this Chapter shall apply to any person, partnership, corporation,
42 limited liability company, association, or other business entity who acts as a landlord or real
43 estate broker engaged in the rental or management of residential property for vacation rental as
44 defined in this Chapter. The provisions of G.S. 160A-424 and G.S. 153A-364 shall apply to
45 properties covered under this Chapter.
46 (b) The provisions of this Chapter shall not apply to:
47 (1) Lodging provided by hotels, motels, tourist camps, and other places subject to
48 regulation under Chapter 72 of the General Statutes.
49 (2) Rentals to persons temporarily renting a dwelling unit when traveling away
50 from their primary residence for business or employment purposes.
51 (3) Rentals to persons having no other place of primary residence.
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1 (4) Rentals for which no more than nominal consideration is given.
2 (5) Accessory dwelling units permitted pursuant to G.S. 160D-917."
3 SECTION 1.4.(b) This section becomes effective October 1, 2021.
4 SECTION 1.5. Local governments shall adopt land use ordinances and regulations
5 or amend their comprehensive plans to implement the provisions in this Part no later than October
6 1, 2021.
7 SECTION 1.6. Except as otherwise provided, this Part is effective when it becomes
8 law.
9
10 PART II. VARIOUS CHANGES AND CLARIFICATIONS TO THE ZONING
11 STATUTES FOR MORE HOUSING OPPORTUNITIES
12 SECTION 2.1. G.S. 160D-108 reads as rewritten:
13 "§ 160D-108. Permit choice and vested rights.
14 (a) Findings. – The General Assembly recognizes that local government approval of
15 development typically follows significant investment in site evaluation, planning, development
16 costs, consultant fees, and related expenses. The General Assembly finds that it is necessary and
17 desirable to provide for the establishment of certain vested rights in order to ensure reasonable
18 certainty, stability, and fairness in the development regulation process, to secure the reasonable
19 expectations of landowners, and to foster cooperation between the public and private sectors in
20 land-use planning and development regulation. The provisions of this section and
21 G.S. 160D-108.1 strike an appropriate balance between private expectations and the public
22 interest.
23 (b) Permit Choice. – If a land development regulation is amended between the time a
24 development permit application was submitted and a development permit decision is made or if
25 a land development regulation is amended after a development permit decision has been
26 challenged and found to be wrongfully denied or illegal, G.S. 143-755 applies.
27 (b1) Substantial Compliance. – A development permit application that substantially
28 complies with the provision of information required by ordinance or regulation shall be sufficient
29 to accept and process a request for a local or State development permit. Minor omissions in the
30 application shall not be a sufficient basis to make an application ineligible for vesting. A local
31 development regulation shall not condition the acceptance or processing of a development permit
32 application upon the application for or issuance of a State permit, nor shall a State development
33 regulation condition the acceptance or processing of a development permit application upon a
34 local permit, unless specifically authorized by statute.
35 (c) Vested Rights. – Amendments in land development regulations are not applicable or
36 enforceable without the written consent of the owner with regard to any of the following:
37 (1) Buildings or uses of buildings or land for which a development permit
38 application has been submitted and subsequently issued in accordance with
39 G.S. 143-755.
40 (2) Subdivisions of land for which a development permit application authorizing
41 the subdivision has been submitted and subsequently issued in accordance
42 with G.S. 143-755.
43 (3) A site-specific vesting plan pursuant to G.S. 160D-108.1.
44 (4) A multi-phased development pursuant to subsection (f) of this section.
45 (5) A vested right established by the terms of a development agreement
46 authorized by Article 10 of this Chapter.
47 The establishment of a vested right under any subdivision of this subsection does not preclude
48 vesting under one or more other subdivisions of this subsection or vesting by application of
49 common law principles. A vested right, once established as provided for in this section or by
50 common law, precludes any action by a local government that would change, alter, impair,
51 prevent, diminish, or otherwise delay the development or use of the property allowed by the
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1 applicable land development regulation or regulations, except where a change in State or federal
2 law mandating local government enforcement occurs after the development application is
3 submitted that has a fundamental and retroactive effect on the development or use.
4 (d) Duration of Vesting. – Upon issuance of a development permit, the statutory vesting
5 granted by subsection (c) of this section for a development project is effective upon filing of the
6 application in accordance with G.S. 143-755, for so long as the permit remains valid pursuant to
7 law. Unless otherwise specified by this section or other statute, local development permits expire
8 one year after issuance unless work authorized by the permit has substantially commenced. A
9 local land development regulation may provide for a longer permit expiration period. For the
10 purposes of this section, a permit is issued either in the ordinary course of business of the
11 applicable governmental agency or by the applicable governmental agency as a court directive.
12 Except where a longer vesting period is provided by statute or land development regulation,
13 the statutory vesting granted by this section, section or common law vesting, once established,
14 expires for an uncompleted development project if development work is intentionally and
15 voluntarily discontinued for a period of not less than 24 consecutive months, and the statutory
16 vesting period granted by this section or common law vesting for a nonconforming use of
17 property expires if the use is intentionally and voluntarily discontinued for a period of not less
18 than 24 consecutive months. The 24-month discontinuance period is automatically tolled during
19 the pendency of any board of adjustment proceeding or civil action in a State or federal trial or
20 appellate court regarding the validity of a development permit, the use of the property, or the
21 existence of the statutory vesting period granted by this section. The 24-month discontinuance
22 period is also tolled during the pendency of any litigation involving the development project or
23 property that is the subject of the vesting.
24 (e) Multiple Permits for Development Project. – Subject to subsection (d) of this section,
25 where multiple local development permits are required to complete a development project, the
26 development permit applicant may choose the version of each of the local land development
27 regulations applicable to the project upon submittal of the application for the initial development
28 permit. This Except as provided in subsection (f) of this section, this provision is not applicable
29 only for those subsequent development permit applications filed within after 18 months of the
30 latter of (i) the date following the approval of an initial of cessation of work related to the
31 uncompleted development project or (ii) the date of issuance of the immediately preceding local
32 development permit. For purposes of the vesting protections of this subsection, an erosion and
33 sedimentation control permit or a sign permit is not an initial development permit.
34 (f) Multi-Phased Development. – A multi-phased development is vested for the entire
35 development with the land development regulations then in place at the time a site plan approval
36 is granted for the initial phase of the multi-phased development. A right which has been vested
37 as provided for in this subsection remains vested for a period of seven years from the time a site
38 plan approval is granted for the initial phase of the multi-phased development.
39 (g) Continuing Review. – Following issuance of a development permit, a local
40 government may make subsequent inspections and reviews to ensure compliance with the
41 applicable land development regulations in effect at the time of the original application.
42 (h) Process to Claim Vested Right. – A person claiming a statutory or common law vested
43 right may submit information to substantiate that claim to the zoning administrator or other
44 officer designated by a land development regulation, who shall make an initial determination as
45 to the existence of the vested right. The decision of the zoning administrator or officer may be
46 appealed under G.S. 160D-405. On appeal, the existence of a vested right shall be reviewed de
47 novo. In lieu of seeking such a determination or pursuing an appeal under G.S. 160D-405, a
48 person claiming a vested right may bring an original civil action as provided by
49 G.S. 160D-1403.1.
50 (i) Miscellaneous Provisions. – The vested rights granted by this section run with the
51 land except for the use of land for outdoor advertising governed by G.S. 136-131.1 and
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1 G.S. 136-131.2 in which case the rights granted by this section run with the owner of a permit
2 issued by the North Carolina Department of Transportation. Nothing in this section precludes
3 judicial determination, based on common law principles or other statutory provisions, that a
4 vested right exists in a particular case or that a compensable taking has occurred. Except as
5 expressly provided in this section, nothing in this section shall be construed to alter the existing
6 common law.
7 (j) Definitions. – As used in this section, the following definitions apply:
8 (1) Development. – As defined in G.S. 143-755(e)(1).
9 (2) Development permit. – As defined in G.S. 143-755(e)(2).
10 (3) Land development regulation. – As defined in G.S. 143-755(e)(3).
11 (4) Multi-phased development. – A development containing 25 acres or more that
12 is both of the following:
13 a. Submitted for development permit approval to occur in more than one
14 phase.
15 b. Subject