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HB 661

Building Industry Efficiency Act of 2025.

2025-2026 Session Introduced by Jonathan Almond and 25 co-sponsors

HB 661 limits local street standards to NCDOT levels, requires acceptance/maintenance of PE-signed developer streets, bans certain inspection fees, and requires disclosures.

Special Message Sent To Senate
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Bill Summary · HB 661

Summary — HB 661: Building Industry Efficiency Act of 2025

Status: Passed House and Senate; transmitted to Senate (Special Message sent). Enacted as Act No. 514 (signed/returned June 2025). Check the enrolled act for final, section‑specific effective dates (bill text shows some sections effective 7/1/2025 and others effective 1/1/2026).

Purpose
- Reduce regulatory friction and cost in residential development and public‑street acceptance by (a) limiting certain local requirements that exceed state standards, (b) preventing some inspection cancellation fees, and (c) clarifying acceptance/maintenance obligations for developer‑constructed streets and pedestrian facilities.

Key provisions (organized by topic)
- Inspection cancellation fees (Section 1.1)
- Prohibits a local inspection department from charging a permit holder a fee or failing an inspection for a building/structure under the NC Residential Code if the permit holder cancels a scheduled inspection more than one business day before the inspection.

  • Municipal street design standards (Section 1.2)

    • Prohibits municipalities from requiring design methodology or construction standards for new municipal streets (to be accepted by the municipality) that are more stringent than standards used by the NC Department of Transportation (NCDOT), when projects use funds that are not wholly municipal.

  • Private street design standards and acceptance (Section 1.3)

    • Municipalities cannot impose private‑street standards stricter than NCDOT’s.
    • Municipalities must accept engineered street designs that do not meet NCDOT minimums if:
    • The design is signed and sealed by a licensed professional engineer (Chapter 89C), and
    • Vehicular traffic and fire‑apparatus access requirements are met.
    • If designs fall below NCDOT minimums, developers must disclose that fact to prospective buyers per G.S. 136‑102.6(f).
    • Local governments receive a broad release from liabilities arising from review/acceptance of signed & sealed engineered designs submitted under this provision.

  • Municipal/county acceptance of developer‑built pedestrian/street improvements (Sections 1.4–1.5)

    • Municipalities that require developers to construct pedestrian facilities/street improvements (including in extraterritorial jurisdiction) must accept those improvements into the municipal public road system for maintenance and repair upon project completion.
    • Counties may not require developers to build pedestrian/public road improvements outside a project boundary unless the county obtains an agreement from NCDOT or the applicable municipality that the improvement will be accepted into a public road system for maintenance and repair.

  • Public street dedication / abandonment (Section 1.6 and related amendments to G.S. 136‑96)

    • Revises and clarifies procedures and presumptions about dedication, withdrawal, and abandonment of streets, recording of withdrawal declarations, cotenants’ rights, and treatment when dedicating corporations are defunct. (Text substitutes/clarifies statutory language on abandonment and withdrawal recording.)

Who is affected
- Developers and permit holders: lower potential costs (no late cancellation fee), clearer ability to use engineer‑designed streets, but potential new buyer disclosures and responsibilities.
- Municipalities and counties: reduced authority to impose standards stricter than NCDOT; obligation to accept certain improvements and potentially assume maintenance; reduced liability when accepting PE‑signed designs (but may need intergovernmental agreements).
- NCDOT: central reference standard; may be called upon for acceptance coordination.
- Licensed professional engineers: increased role and liability in signing designs.
- Prospective buyers/homeowners: will receive disclosures when private streets or features do not meet NCDOT minimums.
- Local inspection offices: procedural adjustments to scheduling/cancellation rules.

Potential impacts and considerations
- Expected to lower development costs and speed project delivery where local requirements previously exceeded NCDOT standards.
- Shifts responsibility and risk: municipalities may assume maintenance obligations (or must negotiate acceptance agreements), and buyers may face streets built to non‑NCDOT minimums (with required disclosures).
- Public safety and long‑term maintenance concerns could arise if designs that fall below NCDOT minima are accepted; protections include fire‑apparatus access requirements and engineer certification.
- Fiscal effects on local governments may include changes in fee revenue and added maintenance obligations; developers may benefit from reduced design and approval costs.

Next steps / procedural notes
- The bill text includes section‑specific effective dates; some sections are staged to apply only to projects initiated on or after the effective date. Review the final enrolled act (Act No. 514) for the exact effective dates and any technical changes made during enactment.

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

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