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The North Carolina General Assembly has wrapped up its substantive work for the summer following a brief return to Raleigh in late July and early August to address several items left unfinished earlier in the session. During that time, lawmakers took action on the much-anticipated annual regulatory reform package, budget technical corrections, election law changes, and a few other outstanding measures. While the General Assembly technically remains in session, lawmakers are not expected to return for substantive business until after the November election.
Fourteen bills remain in conference committee, where House and Senate members negotiate the differences between the chambers’ respective versions of the bill, including HB 308: 2026 Criminal Law Changes. Importantly for AANC members, HB 308 includes AANC-requested language to criminalize rental application fraud, one of the Association's newest legislative priorities. AANC will continue working with lawmakers to ensure that provision remains in the final legislation and to move the bill across the finish line.
Also awaiting resolution is HB 356: Various Civil and Insurance Law Changes, which includes a provision of interest to the rental housing industry. Section 11 would allow a rental housing provider that requires residents to maintain insurance coverage to charge a resident the fair market value of coverage obtained on the resident’s behalf if the resident fails to provide proof of the required insurance.
Because both bills remain in conference, negotiators can continue working toward final agreements, and conference reports on the legislation remain eligible for consideration when lawmakers return later this year.
Regulatory Reform Act Signed into Law
Last week, Governor Josh Stein signed SB 445: Regulatory Reform Act of 2026 into law, after passing the legislature with strong bipartisan support. SB 445 contains several significant reforms aimed at reducing unnecessary regulatory barriers, increasing predictability in the development process, and ultimately making it easier and less expensive to build housing in North Carolina.
Key provisions of SB 445 include:
- Glazing requirements (Sec. 9): Caps local ground-floor glass and transparency requirements at 35% for storefront areas and 20% for non-storefront areas, overriding more stringent local mandates that can increase construction costs. Beginning October 1, 2026, any local development regulation that conflicts with the new law is unenforceable, but existing approvals and applications submitted before that date are not affected.
- Longer site-specific vesting periods (Sec. 41): Extends development vested rights from two to five years by default, with local governments able to approve up to eight years. Effective August 1, 2026 and applies to permit applications filed and appeals filed on or after that date.
- Emergency protection for vested rights (Sec. 42): Pauses the clock on vested development rights during declared emergencies so projects do not lose approvals because construction is interrupted by events such as hurricanes. Effective August 1, 2026.
- Residential development in commercial areas (Sec. 43): Cities with populations of at least 80,000 in counties with at least one million residents (currently Cary, Charlotte, and Raleigh) must allow housing, including apartment buildings, on certain commercial, business, or industrial properties being redeveloped and must allow those buildings to reach at least 60 feet in height. Effective August 1, 2026.
- Accessory dwelling units (Sec. 44): Requires municipalities with at least 500,000 residents (excluding coastal areas) to allow at least one ADU on single-family residential lots. Applies to applications for ADU permits submitted on or after January 15, 2027, and local governments must adopt development regulations to implement this section by July 1, 2027.
- Spray foam insulation (Sec. 45): Requires the Building Code Council to recognize qualifying spray foam insulation as code-compliant for wood-framed walls without requiring additional exterior continuous insulation, provided the insulation meets specified R-values and the building passes an air-tightness test. Effective August 11, 2026.
- Energy code compliance (Sec. 46): Under the NC Energy Conservation Code, specifies that the 2022 ANSI/RESNET/ICC Standard 301-2022 "Standard for the Calculation and Labeling of the Energy Performance Index of Dwelling and Sleeping Units." is the standard for calculating the Energy Rating Index. Effective August 11, 2026.
- At-risk building permits: Expands the work developers can undertake before receiving a full building permit, allowing certain foundation-related plumbing and electrical work to proceed earlier. Effective August 11, 2026.
- Development fee transparency: Requires local governments to publish development fees, provide estimates within 10 business days, and provide a binding final fee statement. Effective August 11, 2026.
- Alternative inspections: Allows certain residential solar, battery, and home-power installations to be certified by licensed architects or engineers rather than relying exclusively on local inspections, helping streamline the permitting and inspection process. The bulk of this section is effective July 1, 2027.
Governor Vetoes 2026 Court Changes
Yesterday, Governor Stein vetoed HB 377: 2026 Court Changes, a wide-ranging package of changes to North Carolina's courts and judicial system. The Governor cited concerns with provisions that would allow the Chief Justice to suspend certain trial judges without pay while disciplinary proceedings are pending, arguing that the changes could undermine judicial independence. Legislative leaders have already indicated that they plan to seek an override of the Governor's veto when lawmakers return to Raleigh.
Of interest to the rental housing industry, Section 2 addresses rent payments while an eviction judgment is being appealed. The bill clarifies that when a renter continues making the required periodic rent payments, those payments are sufficient to maintain the stay of execution during the 30-day period for taking an appeal. The clarifying change is intended to provide greater clarity around the requirements for delaying execution of an eviction judgment while an appeal is pending.
Because of the Governor's veto, none of these changes will take effect unless the General Assembly successfully overrides the veto. AANC will continue monitoring HB 377 as lawmakers prepare to return later this year.
With summer coming to an end, attention will now turn to the November 3 general election, when all 170 seats in the North Carolina General Assembly, 120 House seats and 50 Senate seats, will be on the ballot. The outcome will shape the makeup of the legislature heading into the 2027 long session and could have significant implications for AANC's legislative priorities. We will continue monitoring key races across the state and provide additional updates as November approaches.
APARTMENT ASSOCIATION OF NORTH CAROLINA UPDATE
News from AAWNC
AAWNC leaders met with Kye Laughter, Regional Director for Senator Ted Budd (R-NC), to discuss the challenges that their members face as the region continues to recover from the impact of Hurricane Helene.
GREATER CHARLOTTE APARTMENT ASSOCIATION UPDATE
News from GCAA
GCAA is actively engaging with the Charlotte City Council regarding a proposed requirement to add air conditioning to the City’s minimum housing code. After discussing the proposal, the Council’s Housing Committee directed City staff to gather additional information and referred the matter for consideration as part of the City’s state legislative agenda. GCAA is urging the City to provide immediate, targeted assistance to households most vulnerable to extreme heat while allowing 120 days to study the issue, collect relevant data, and develop practical, focused solutions that protect residents without imposing a broad mandate. We will continue monitoring the issue and keep everyone updated as it progresses.
GREATER FAYETTEVILLE APARTMENT ASSOCIATION UPDATE
News from GFAA
GFAA is hosting a Community Coffee: Multifamily Housing Perspectives on Friday, August 21st. A panel of local elected officials from the Cumberland region will be present at the event:
- Rep. Frances Jackson
- Rep. Charles Smith
- Rep. Diane Wheatley
- Rep. Tom McInnis
Panel discussion will be moderated by Ryan Mumper, Loebsack & Brownlee, PLLC. The event is free but pre-registration is required.
PIEDMONT TRIAD APARTMENT ASSOCIATION UPDATE
News from PTAA
Jamestown Local Officials’ Breakfast
Registration is open for the September 9, 2026, Local Officials’ Breakfast at Courtyard Commons in Jamestown. This breakfast is targeted to southern Guilford County (High Point, Jamestown, etc) and Randolph County officials.
Register for the breakfast here. PTAA members must be signed in to register.
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