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Bill Summary · SB 395

Summary — SB 395 (Disaster Relief Eviction Moratorium Act)

Status & basic info
- Title: Disaster Relief Eviction Moratorium Act
- Sponsor (primary): Sen. Applewhite
- Statutory placement: Adds subsection (c3) & (c4) to G.S. 166A‑19.20 (North Carolina Emergency Management statute)
- Status (as provided): Passed 1st Reading / introduced in 2025
- Effective timing: The act takes effect when enacted and applies to executive orders issued on or after that date.

Purpose
- Authorizes the Governor, when a state of emergency is declared, to issue an executive order instituting a temporary residential eviction moratorium in the emergency area to prevent mass displacement and homelessness resulting from disaster‑related job loss, displacement, or other economic hardship.

Key provisions
- Governor’s authority: If a state of emergency is declared (by the Governor or General Assembly), the Governor may issue an executive order imposing a residential eviction moratorium in the emergency area when the Governor finds the disaster would otherwise cause widespread homelessness.
- Scope of “eviction”: Defined broadly to include formal eviction proceedings, nonrenewal of a lease for reasons related to nonpayment of rent, or any other involuntary removal from a rental unit.
- Duration limits:
- Initial moratorium: up to 90 calendar days.
- Extensions: may be extended by the Governor in 30‑day increments, but total moratorium duration may not exceed 180 calendar days.
- Exclusivity of rescission/alteration: An executive order issued under this subsection remains in effect unless rescinded by the Governor; the General Assembly and Council of State are expressly prohibited from rescinding, modifying, or otherwise affecting such a moratorium.
- Judicial standard: The statute declares the moratorium presumptively valid for protecting public health, safety, and welfare and directs courts to evaluate legal challenges under a rational‑basis standard.
- Rental assistance authority: If a moratorium is issued, the Governor may direct available State and federal funds (consistent with applicable law) toward rental assistance programs to mitigate impacts on landlords and tenants.

Who would be affected
- Tenants: Protections from involuntary displacement during declared emergencies covered by the moratorium.
- Landlords and property owners: Temporary restriction on eviction-based remedies and potential financial impacts; possible access to rental assistance funds if the Governor directs them.
- Courts and legal system: Expectation of moratorium‑related filings; statutory direction that challenges be reviewed under rational‑basis standard.
- State agencies & budget: Potential reallocation or use of State/federal funds for rental assistance; fiscal impacts depend on availability and use of funds in any given emergency.

Potential impacts and considerations
- Housing stability: Intended to prevent sudden increases in homelessness during disasters by pausing evictions tied to economic hardship.
- Landlord remedies and finances: Short‑term limits on eviction may affect cash flow for landlords; rental assistance authority is aimed at mitigation but is subject to availability and legal constraints.
- Legal challenges: The bill strengthens the moratorium’s legal posture (presumption of validity; rational‑basis review) and restricts legislative or Council of State interference, but disputes over scope, duration, funding use, or landlord rights could arise.
- Administrative implementation: Requires coordination among the Governor’s office, relevant state agencies, court administrators, and local service providers to deliver rental assistance and manage moratorium effects.

Procedural/timeline note
- Applies only while a covered state of emergency is in effect and only to executive orders issued on or after the law’s effective date; the moratorium itself is subject to the statutory 90‑day/180‑day limits described above.

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

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