Bill
HB 1056
HB 1056 broadens residential development in commercial zones, caps parking minimums, speeds permitting, funds workforce housing, and restricts corporate ownership of single-family
Purpose and intent
- HB 1056 targets rising housing costs and bottlenecks in North Carolina by pursuing supply-focused reforms.
- The bill aims to expand residential development, reduce parking mandates, accelerate local permitting for housing, preserve single-family homeownership from large-scale corporate purchases, support workforce housing development, and increase funding for the North Carolina Housing Finance Agency (NCHFA).
Key provisions
1) Allow residential development in all commercial zones
- Section 1.1 adds a new § 160D-707.
- Requirement: In all commercial zones, local governments must allow residential development by right at a density/intensity no less than the least restrictive residential district in the jurisdiction.
- Exclusions: Does not apply to industrial zones or override building, fire, or other public health and safety regulations.
- Effective date: July 1, 2027 (applies to permit applications submitted on or after that date).
2) Prohibit parking minimums
- Section 2.1 amends § 160D-702 to prohibit:
- Minimum square footage requirements for structures under the Residential Code.
- Minimum parking space sizes or quantities larger than 9 feet by 20 feet, except for handicapped, ADA, or certain designated parking, and subject to federal requirements.
- Additional fire apparatus access requirements beyond those in the Fire Code for certain single- or two-family dwellings.
- Effective date: July 1, 2027 (applies to ordinances/regulations enacted or amended on/after).
3) Municipal Housing Approval Acceleration Program
- Section 3.1 adds § 122A-5.16.
- NCHFA program to reimburse eligible local governments up to 125% of eligible documented costs to accelerate residential development approvals (including rezonings, subdivisions, site plans, special permits, and building permits; not post-construction ministerial reviews).
- Program administration: Guidelines, standardized reporting, annual review, and quarterly reporting to oversight committees.
- Reimbursement can exceed 100% (up to 125%) based on local factors (fiscal capacity, rural staffing, high-growth markets, processing time reductions, number of approvals, best-practice reforms).
- Effective date: July 1, 2027.
4) Preserve single-family homeownership
- Section 4 introduces Article 9 in Chapter 75 to curb large-scale corporate acquisition of single-family homes.
- Key definitions: Affiliate, corporate buyer, owner-occupant, single-family home.
- Prohibition: A corporate buyer may not acquire ownership of more than 25 single-family homes in the state if that would give control of rental/ non-owner-occupancy properties.
- Exemptions: Inheritances, certain foreclosures, nonprofits or community land trusts for affordable purposes, and typical development activity by builders for initial owner-occupant sale.
- Enforcement: AG authority; courts may enjoin acquisitions, divest, disgorge profits, award damages, and impose civil penalties up to $10,000 per violated home.
- Effective date: October 1, 2026 (applies to acquisitions occurring on/after).
5) Workforce housing preconstruction revolving loan program
- Section 5 adds § 122A-5.17.
- NCHFA establishes a revolving loan program for preconstruction costs (surveys, due diligence, permits, site work) for workforce housing (defined as 60%–120% of county or state AMI, whichever higher).
- Loan limits: Up to $1,000,000 per loan; 80% reserved for Tier 1/2 counties; 20% for Tier 3 counties (per development tier designations).
- Annual reporting due by February 15 to legislative oversight committees.
6) Increased funding for NCHFA
- Section 6.1: A one-time $120 million appropriation (2026-2027) to establish the Municipal Housing Approval Acceleration Program.
- Section 6.2: $40 million nonrecurring from the Economic Development Project Reserve to the North Carolina Housing Trust Fund for the workforce preconstruction program.
Effective dates (summary)
- Parking minimums, residential-in-commercial-zone expansion, and accelerated permitting provisions: July 1, 2027.
- Single-family ownership protections: October 1, 2026 (acquisitions after that date).
- Overall act becomes law when enacted; various programs implement as specified above.
Potential impact
- Increases housing supply by enabling more residential development in commercial zones and reducing parking-related constraints.
- Streamlines local permitting for housing projects, potentially shortening timelines and lowering costs (via the acceleration program).
- Aims to curb large-scale corporate ownership of single-family homes, protecting owner-occupancy opportunities.
- Supports workforce housing through preconstruction financing, with targeted geographic allocations.
- Generates significant new funding for housing programs to support these reforms.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
