AANC Government Affairs Update | July 2, 2025
EXCITING WINS FOR THE MULTIFAMILY INDUSTRY IN NC!
A quick update to let you know that H768, H620 and S690, all detailed below, were just signed into law a few minutes ago. These are huge wins for our industry and were our biggest priorities this year.
Additionally, H737 was signed into law yesterday. We are working on an interpretation of the renters insurance provision and will communicate more information about that and all of the new session laws soon.
Development and building code
H768: Emerg. Comm. Code Exempts/Sanitary Board/401 – H768 has the potential to save developers tens of thousands of dollars and is a huge win for the industry. This provision exempts certain apartment buildings and lodging facilities, specifically, R-2 Type V apartment buildings that meet egress rules, and two-story or shorter buildings with direct exterior exits, from emergency responder communication coverage requirements under Section 510 of the North Carolina Fire Code. It also states that existing systems in exempt buildings do not have to be removed but outlines how they may be disconnected if desired. Signed into law July 2, 2025
Judiciary
S690: Various Real Estate and Business Law Changes AND H620: AOC Agency Requests-AB – After the provision’s initial home in H620/S648: AOC Agency Requests-AB stalled, AANC was able to successfully work with lawmakers and stakeholders to quickly find a new home for this top AANC priority provision, which clarifies the purpose of a 2024 law change to G.S. 42-26. The 2024 law change was championed by AANC to discourage frivolous appeals by allowing for a rental housing provider to recover attorney’s fees from a resident only if the rental housing provider is the prevailing party and the resident appealed the eviction case to a higher court without a valid reason, such as to cause delay or in bad faith.
The two bills have nearly identical language, which simply cleans up the placement of “prevailing party” so as to not discourage landlords to settle cases. The 2024 law placement of “prevailing party” could have had the unintended consequence of encouraging all summary ejectments to push to judgement rather than settle in cases where both parties wish to settle or “pay and stay.” By placing the change in subsection (3) and not creating a new subsection (4), it applies the prevailing party standard to all attorney fees, even those that might be negotiated in a settlement. This is because, in summary ejectments, rental housing providers are only allowed to change the fees allowed by statute. This change applies retroactively to September 9, 2024, the date the 2024 law became effective. Both S690 and H620 were signed into law July 2, 2025
Renters insurance
H737: DOI Omnibus Bill – A provision was included in the bill that prohibits rental housing providers from requiring coverage from a specific carrier or agent. Upon learning that the provision was there to stay, AANC negotiated to have an amendment included to clarify that the resident may be charged for the cost of insurance if they fail to provide proof of coverage within three days of request by the rental housing provider. Signed into law July 1, 2025