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HB 595

An Act amending the act of June 13, 1967 (P.L.31, No.21), known as the Human Services Code, in public assistance, providing for behavioral health and physical health services integration.

2025-2026 Regular Session Introduced by Mark Gillen and 4 co-sponsors

The bill allows targeted, limited rental inspections to address blight and hazards while restricting broad rental registration, fees, or permits for landlords.

Referred to Health
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WeVote Research Nonpartisan
Bill Summary · HB 595

HB 595 — Rental Inspections (Summary)

Status: Reported Favorably (Reptd Fav)
Introduced: (document lists multiple dates; core text below reflects North Carolina HB 595, “Rental Inspections”)

Purpose / Intent

To clarify and limit how and when local governments may conduct periodic inspections of rental housing while giving municipalities a targeted tool to address blight, health, safety, and crime/disorder problems in specific areas. The bill balances enabling inspections for hazardous conditions with protections for landlords against broad, mandatory registration, fee, or permitting regimes.

Key provisions

  • Periodic inspections (general rule)

    • Inspection departments may make periodic inspections only when there is "reasonable cause" to believe unsafe, unsanitary, hazardous, or unlawful conditions exist.
    • "Reasonable cause" includes: (i) landlord/owner history of verified violations (see definition below), (ii) an existing complaint or inspection request, (iii) actual knowledge of an unsafe condition, or (iv) visible violations from outside the property.
    • If an inspector finds an immediate safety hazard in one unit of a multifamily building, they may inspect additional units in that building even without a specific complaint.

  • Targeted-area inspections (exception)

    • Local governments may adopt periodic inspections as part of a targeted effort to address blighted or potentially blighted areas that the governing board designates.
    • Aggregate targeted area may not exceed 1 square mile or 5% of the local government's area (whichever is greater).
    • Targeting must reflect a neighborhood revitalization strategy and consist of property meeting statutory definitions of "blighted area/parcel."
    • Local governments must: (i) notify owners/residents in the affected area, (ii) hold a legislative hearing, and (iii) adopt a plan addressing the ability of low‑income property owners to comply with minimum housing standards.

  • Limits on local authority and fees

    • Local governments may not adopt broad ordinances requiring owners/managers to obtain permits or register rental property — except for individual properties that meet specified thresholds of verified violations or that are identified in the top 10% of properties with crime/disorder problems.
    • Localities may not require enrollment in a government program as a precondition for a certificate of occupancy.
    • Special fees/taxes targeted only at residential rental property are prohibited except where allowed by general law; a limited fee may apply to an individual problem unit/property (cap: $500 in any 12‑month period when verified violations are found), subject to statutory exceptions.
    • Violations of rental registration ordinances may not be criminal offenses.
    • Local governments may not require inspections as a condition of providing local utility service.

  • Definitions and enforcement specifics

    • "Verified violation" = aggregate of housing/code violations in an individual rental unit within a 72‑hour period, and violations not corrected within 21 days of written notice. Repeat violations (occurring more than twice in 12 months) may remove the option to cure.
    • For tenant‑caused violations where code deems behavior a violation by the owner, a landlord's filing of a summary ejectment within 30 days counts as correction.
    • If a property is placed in the top 10% for crime/disorder, local government must notify the landlord of which incidents will be counted and must assist with addressing criminal activity (including cooperation with eviction proceedings); lack of cooperation means those incidents cannot be counted against the property.
    • Property owners may appeal local actions under this section to the housing appeals board, zoning board of adjustment, planning board, or governing board.

Who is affected

  • Landlords and property owners of rental housing (single- and multi-family) — especially those with prior violations or properties in designated targeted areas.
  • Renters occupying inspected units (inspection protections and remedies affect habitability).
  • Local governments — provides a targeted inspection tool but curtails broad registration, fee, and permitting regimes.
  • Low‑income property owners are specifically considered in the compliance plan requirement.

Potential impacts

  • Public health & safety: Empowers targeted inspections to address hazardous conditions and emergent safety threats in multifamily buildings.
  • Limits on municipal regulation: Restricts sweeping rental registration or fee programs, narrowing local revenue/ enforcement options and protecting property owners from blanket requirements.
  • Equity considerations: Requires localities to plan for low‑income owners’ ability to comply; also imposes procedural safeguards (notice, hearings, appeals).
  • Enforcement burden: Places procedural duties on local governments (notification, hearings, assistance with evictions) and defines strict timelines for corrections and repeat-violation treatment.

Procedural notes

  • The text above mirrors North Carolina legislative language included in the bill packet; the bill has been through committee reporting in prior sessions (reported favorably in committee). Exact legislative status/timelines may vary by session and jurisdiction; consult the state legislature’s docket for the current status and bill version.

Compiled from official sources — confirm details with the bill’s official record.

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