Governor Allows Regulatory Reform Act of 2025 to Become Law

From REBIC

 

On October 6, 2025, Governor Josh Stein allowed House Bill 926 (Regulatory Reform Act of 2025) to become law without his signature. Although the Governor did not sign the measure, he took no action within the 10-day period prescribed by the North Carolina Constitution, thereby allowing the bill’s provisions to take effect without his signature. Most provisions are effective immediately and may now be relied upon by builders, while certain sections have delayed effective dates as noted below.

As previously reported, the legislation includes several provisions of particular significance to the home building industry:

Exempt Model Homes from Fire Protection Water Supply Requirements
Allows model homes under construction to be exempt from water supply requirements when full fire-flow development is impractical or pending. This change enables model homes to be built and displayed more quickly once a temporary Certificate of Occupancy is issued. Importantly, no other homes in the development may proceed, and no staff or members of the public may enter the model home until the water supply is available. This provision is effective immediately.

Limit Municipal Street Standards
Prohibits local governments from requiring roadway pavement design standards that are more stringent than the minimum pavement design standards adopted by the North Carolina Department of Transportation (NCDOT) for both public and private roads. This section becomes effective January 1, 2026, and applies to projects initiated on or after that date.

Prohibit Fees for Certain Inspection Cancellations
Prevents local inspection departments from charging fees or failing an inspection when a permit holder cancels a scheduled inspection at least one business day in advance. This provision is effective immediately.

No Second Bite for Stormwater Permitting Review
Prohibits the Department of Environmental Quality (DEQ) from requesting additional information during a stormwater permit review that was not previously identified as missing or required by DEQ during its initial review. This provision is effective immediately.

Multijurisdictional Developments
Allows developers to proceed under the regulatory framework of a single jurisdiction when a property spans multiple local governments. In the absence of a mutual agreement between jurisdictions, the developer may elect to follow the regulations of the jurisdiction in which the majority of the development is located, and those regulations will apply to the entire project, including portions that extend beyond that jurisdiction. This provision is effective immediately.

Prohibit Waiting Periods on Refiled Applications
Prevents local governments from imposing waiting periods on applicants who withdraw or are denied zoning map amendments, text amendments, or development approvals. This reform ensures developers can promptly refile withdrawn or denied development applications without unnecessary delays. This provision is effective immediately.

NCHBA extends our sincere appreciation to the members of the General Assembly for their continued support of regulatory reform, particularly the Chairs of the House and Senate Regulatory Reform Committees, Representatives Jeff Zenger (R-Forsyth), Allen Chesser (R-Nash) and Dennis Riddell (R-Alamance), along with Senators Steve Jarvis (R-Davidson), Tim Moffitt (R-Henderson) and Tom McInnis (R-Moore) for their leadership in advancing this important legislation.

If you have any questions about this legislation or other legislative matters, please reach out to Steven Webb at swebb@nchba.org.

Rob’s Take: This kind of victory elevates us all. Every land development discipline should be celebrating this win and leveraging it verbally with their  connections. A big thank you also to our NCHBA for their superior advocacy and vigilance of what makes real estate work best.