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The NC legislative session is winding down, with lawmakers having the option to return monthly for the remainder of the year to consider specific measures. With that in mind, we wanted to share which bills were passed into law during the 2025 long session which impact the multifamily rental housing industry.
This information is provided for general informational purposes only and does not constitute legal advice. You should not act or rely on any information contained herein without seeking the advice of a qualified attorney who is familiar with your specific circumstances.
OPERATIONS AND MANAGEMENT
H737: DOI Omnibus Bill (S.L. 2025-45)
- What this does: Among its provisions, amends landlord-tenant law to clarify rules around insurance requirements in residential leases. Rental housing providers cannot require residents to purchase insurance from a specific carrier or agent. If a resident fails to provide proof of required coverage within three business days of a rental housing provider’s request, the rental housing provider may obtain the coverage on the resident’s behalf and charge the resident the actual cost plus an administrative fee of up to $50 per year.
- Why it matters: This law codifies standard industry practice and ensures that rental housing providers can cover their costs in cases where they must obtain coverage on behalf of the resident.
- Effective date: July 1, 2025
- Official NCGA bill summary
S690: Various Real Estate and Business Law Changes (S.L. 2025-52) + H620: AOC Agency Requests-AB (S.L. 2025-54)
- What this does: The two bills provide substantively identical clarification regarding the application of a 2024 law on the recovery of attorney’s fees in eviction cases. The corrective legislation ensures that attorney fees are recoverable only when rental housing providers prevail as the prevailing party and the resident appeals in bad faith, while preserving the ability to negotiate settlements without adverse legal consequences.
- Why it matters: Although purely clarifying and technical, this fix corrects the placement of the term “prevailing party” to ensure it does not inadvertently discourage rental housing providers from reaching settlements, thereby promoting fairer and more efficient resolution of summary ejectment cases.
- Effective date: Applies retroactively to September 9, 2024.
- Official NCGA bill summaries: S690 + H620
SB 55: Expedited Removal of Unauthorized Persons (S.L. 2025-88)
- What this does: Establishes a new expedited civil process for removing unauthorized occupants (commonly referred to as squatters) from residential property. It applies ONLY when the occupant has no valid lease, ownership interest, rental agreement, or pending litigation with the property owner. To qualify, the property owner (or their agent) must show that the individual entered without permission, has no legal claim to the property, was directed to leave, and has never paid rent or been recognized as a resident. Once a complaint is filed, the sheriff must serve the summons and complaint within 24 hours, and a magistrate hearing must occur within 48 hours of service. If the court rules for the property owner, the occupant must vacate within four hours of the order being served; refusal to comply constitutes criminal trespass. Property owners may move any belongings left behind to the property line. The bill also provides immunity for law enforcement, magistrates, and property owners acting in good faith during the process, while allowing limited civil remedies if a wrongful removal occurs.
- Why it matters: This provides a much-needed expedited process for removing unauthorized occupants who have no lease or legal right to a home. By requiring sheriff service within 24 hours, a court hearing within 48 hours, and removal within four hours of an order, the law prevents months of lost rental income and reduces the risk of property damage. The law also strengthens resident safety by quickly addressing security risks, clarifies the distinction between lawful residents and unlawful occupants, and offers liability protections for property owners acting in good faith.
- Effective date: December 1, 2025
- Official NCGA bill summary
BUILDING CODE AND DEVELOPMENT
H47: Disaster Recovery Act of 2025-Part 1 (S.L. 2025-2)
- What this does: Delays the effective date of the 2024 North Carolina State Building Code until 12 months after the State Fire Marshal certifies that (1) the Building Code Council and Residential Code Council have published, printed, and distributed the Code to required officials, made it available for public purchase, and (2) the Residential Code Council is fully constituted.
- Why it matters: By postponing the effective date, the law provides developers, builders, and property owners with certainty and additional time to plan for compliance, preventing costly confusion or disruption from premature enforcement of new standards. This ensures that projects already in development can move forward under clear and stable rules while the 2024 Code is properly rolled out.
- Effective date: March 20, 2025
- Official NCGA bill summary
H251: Various Disaster Recovery Reforms (S.L. 2025-18)
- What this does: This bill prohibits discrimination by the State based on political affiliation or speech when providing disaster recovery assistance and makes looting temporary housing in a declared emergency a Class F felony. It also temporarily exempts certain commercial buildings in Helene-affected counties from upgraded fire-resistant window requirements and allows owners of buildings damaged by historic floods to reconstruct within the base floodplain to the same or lesser extent as before the flood, regardless of newer regulations. Finally, the bill exempts processing tree stumps into mulch or soil amendments from State composting rules and requires local governments in affected counties to transport vegetative debris to composting sites for reuse when costs are equal to or less than landfill disposal.
- Why it matters: This bill helps protect both property owners and residents during and after disasters while reducing recovery costs and regulatory burdens. Prohibiting discrimination in disaster assistance ensures fair access for all residents and makes looting of temporary housing a felony for added security. Temporary exemptions from upgraded building codes and flexibility for reconstructing flood-damaged buildings help owners repair or rebuild properties more quickly and affordably. Streamlined rules for processing storm debris and requirements for local governments to favor composting over landfill disposal further reduce costs and operational challenges. Altogether, these measures seek to support faster recovery, protect residents, and help maintain housing availability in affected areas.
- Effective date: June 26, 2025.
- Official NCGA bill summary
H768: Emerg. Comm. Code Exempts/Sanitary Board/401 (S.L. 2025-50)
- What this does: Exempts 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 NC Fire Code.
- Why it matters: By limiting these requirements to higher-risk buildings, the law helps avoid unnecessary construction expenses for lower-risk properties while maintaining safety standards, ultimately supporting more affordable development. This provision is projected to reduce development costs by tens of thousands of dollars per qualifying project.
- Effective date: July 2, 2025
- Official NCGA bill summary
S387: Brownfields Property Reuse Act Revisions (S.L. 2025-53)
- What this does: Extends the property tax exclusion for brownfields properties by allowing an additional five-year exclusion for qualifying improvements. It also updates the timing and process for fee payments, authorizes DEQ to recover unexpected implementation and monitoring costs, and creates a new enforcement fee for developers out of compliance with brownfields notice requirements.
- Why it matters: By extending the property tax exclusion, it provides an additional tax relief that can make redevelopment projects more financially viable. By updating the fee structure and strengthening compliance measures, the law helps encourage the reuse of underutilized or contaminated properties for new multifamily rental housing and mixed-use development.
- Effective date: July 2, 2025. The property tax exclusion is effective for taxes imposed on taxable years beginning on or after July 1, 2025.
- Official NCGA bill summary
H559: Elevators/Interim Code Council Appt.-AB (S.L. 2025-63)
- What this does: Increases the maximum fees that may be charged by the NC Department of Labor for the inspection of elevators, amusement devices, and passenger tramways, and grants the authority to make annual inflationary adjustments. Creates a new fee of up to $1,000 for expedited inspections of elevators and amusement devices. Separately, this legislation changes the timeline that the Governor may make to the Building Code Council from 10 days during the adjournment of any regular legislative session to more than 90 days.
- Why it matters: Developers and building operators will need to budget for increasing costs, in line with inflation, for the inspection of their buildings’ elevators.
- Effective date: July 7, 2025
- Official NCGA bill summary
H23: Various State and Local Gov't Provisions (S.L. 2025-67)
- What this does: Requires the Building Code Council to amend the Code, and those enforcing the Code prior to the amendment, to include railroad rights-of-way as part of “public ways” for unlimited area building classification for certain existing buildings which also meet specified parcel and building criteria.
- Why it matters: Expanding the definition of “public ways” to include railroad rights-of-way for certain unlimited area buildings allows these areas to count toward clearance requirements. This can provide greater flexibility in site planning and building design, potentially enabling larger or more efficiently configured developments near rail corridors. This can also reduce regulatory hurdles, increase usable building area, and support more innovative or cost-effective development of properties that meet the specified criteria.
- Effective date: July 7, 2025
- Official NCGA bill summary
H402: Limit Rules With Substantial Financial Costs (S.L. 2025-82)
- What this does: Implements comprehensive oversight mechanisms for state administrative rules with substantial economic impact. The legislation establishes graduated approval requirements based on projected five-year fiscal impact thresholds. Proposed regulations with economic impacts between $1 million and $10 million require detailed fiscal impact analyses and two-thirds commission approval. Regulations exceeding $10 million in five-year impact require unanimous commission approval, while those surpassing $20 million cannot take effect without explicit General Assembly authorization.
- Why it matters: This adds new safeguards against costly regulations by requiring heightened review and approval for rules with significant economic impacts. By tying regulatory approval to fiscal thresholds, the law helps prevent the adoption of overly burdensome requirements that could increase construction, compliance, or operating costs for housing providers.
- Effective date: July 29, 2025, and applies to rules adopted on or after that date.
- Official NCGA bill summary
UPDATES ON RELEVANT LEGISLATION NOT YET LAW
Regulatory Reform
Several regulatory reform bills with the potential to benefit the multifamily rental housing industry were filed in 2025. Those showing the most progress toward the end of the long session, and with the potential to move forward later this year or in 2026, include:
We will continue to support the objectives of these bills as discussions on their path forward continue during the interim months and the 2026 short session.
State Budget
North Carolina has not yet passed a comprehensive biennial budget for 2025–2027. Although both the House and Senate have passed their respective budget proposals, they are still resolving differences in a conference committee. Because a new budget was not enacted by the start of the fiscal year on July 1, the state is operating under a continuing resolution, which maintains funding at prior-year levels to ensure government operations continue uninterrupted while negotiations continue. Once the legislature reaches an agreement, the budget will be sent to the Governor for approval. If signed, the budget will take effect immediately; if vetoed, the state remains under the continuing resolution until the veto is overridden or a new budget is passed and approved. Lawmakers have left open the possibility to come back and pass a new biennial budget in the coming months if they are able to come to an agreement.
While a comprehensive biennial budget is still a work in progress, the legislature has passed several smaller funding bills, with a heavy focus on Hurricane Helene recovery:
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