AANC Government Affairs Update | June 4, 2026
Session Update
After a week-long break around the Memorial Day holiday, lawmakers returned to Raleigh and quickly resumed work on several major issues. Behind closed doors, House and Senate leaders continue negotiations on a final state budget agreement ahead of the new fiscal year beginning on July 1. At the same time, committees remained busy, bills continued advancing through the legislative process, and several bills of interest saw meaningful developments. Below is a recap of the key legislative activity from this week
Rental application fraud passes the Senate
One of AANC’s top legislative priorities for 2026 - addressing rental application fraud and making it a criminal offense - continues to advance through the General Assembly. In May, AANC’s lobbying team worked with Senate Judiciary Chairs Sens. Danny Britt, Warren Daniel, and Buck Newton to amend HB 308: 2026 Criminal Law Changes to include the rental application fraud language (Section 10.2).
The bill passed the Senate this week with a strong bipartisan vote of 47-2, demonstrating broad support for the proposal. HB 308 will next return to the House for a concurrence vote on the Senate changes. If the House does not concur, the bill would be sent to a conference committee for further negotiations.
AANC largely credits the strong support for this proposal in the Senate to everyone who helped educate lawmakers on the issue during Lobby Day. We couldn't do it without you!
House and Senate roll out separate regulatory reform bills
Before the Memorial Day break, the House unveiled its regulatory reform proposal (bill summary here). The bill returned this week for additional committee consideration before advancing to the House floor, where it passed by a vote of 85-28. Several important provisions for the industry include:
- Expand vested rights protections by extending site-specific development plan vesting for up to five years (or eight years if authorized locally) and shielding approved projects from later-adopted land development regulations.
- Expand the alternate inspection method in construction to include home power installations.
- Allow developer choice for performance guarantees for driveway and encroachment projects.
- Allow the City of Winston-Salem to delegate the authority for rezoning of property to its planning board.
- Require larger municipalities to allow residential redevelopment in commercial and industrial zoning districts, including multifamily housing, with building heights of at least 60 feet.
- Codify the NC Supreme Court's decision requiring courts and administrative law judges to apply de novo review of agency decisions rather than defer to agency interpretations.
In addition to the House proposal, the Senate released its own regulatory reform legislation (bill summary here) this week. The bill contains a number of policy and regulatory changes of interest to the industry, including:
- Allow landlords of mobile home park and tiny home communities to bill tenants for master-metered water service.
- Align North Carolina dust-lead hazard standards with federal standards adopted by the U.S. EPA.
- Require DEQ to approve certain prefabricated permeable pavement systems as stormwater management technologies and establish design standards for their use.
- Allow certain spray foam insulation systems to satisfy building energy code requirements without additional continuous insulation if specified insulation and air-sealing standards are met.
- Expand permit choice protections to include conditional zoning, rezonings, and stormwater permits, while requiring compliance with applicable federal law.
- Require local governments to act on development and rezoning applications within 90 days of deeming them complete, with failure to act resulting in automatic approval.
- Require residential zoning density to be calculated based on dwelling units per acre rather than minimum lot size, while limiting local governments' ability to reduce allowable density through development regulations.
- Require local governments to publicly disclose development fees, provide upfront project-specific fee estimates, and cap final fees at the estimated amount provided to the applicant.
- Extend vested development rights by pausing the 24-month project discontinuance clock during declared emergencies affecting the property.
- Make changes to HOA laws including fines, association liens, and association records and contracts.
Once both chambers have passed their respective versions, legislative leaders will work to reconcile the differences and negotiate a final compromise package. If you have any feedback on these proposals, including concerns, questions, or very positive provisions, please reach out to Sarah DuBose at GAD@aanconline.org.
AANC testifies on parking lot reform legislation
This week, AANC and local affiliates continued to advocate for HB 369: Parking Lot Reform/Stormwater Control, which would help housing developers by reducing or eliminating costly local parking mandates, providing greater flexibility in site design, and lowering construction costs. in addition to several local affiliates contacting their local legislative delegations, AANC lobbyist Bo Heath testified before the Senate Agriculture, Energy, and Environment Committee on the costs associated with unnecessary parking requirements and the impact those costs have on housing affordability. The committee continues to review the bill and discuss potential modifications, including issues specific to North Carolina's coastal communities.