North Carolina Lawmakers Target Local Land-Use Powers

A proposal in the North Carolina General Assembly could shift land use power from local governments to the state, the latest in a growing national trend of lawmakers attempting to override local zoning to spur residential development and theoretically bring down housing costs.

The state House Committee on Housing and Development is reviewing a proposal that would standardize development timelines, restrict cities’ ability to impose design and infrastructure requirements and allow more multifamily construction in commercial zones, the Charlotte Business Journal reported.

Backed by a bipartisan group of lawmakers, the proposal is co-sponsored by Rep. Jeff Zenger, a Republican developer from Forsyth County, and Rep. Carla Cunningham, a Democrat from Charlotte.

Zenger says the proposal is a response to regulatory bloat that’s driven up the cost of construction.

“Starter homes are $350,000 to $400,000, which is a huge expectation to put on young people who would be entering into the housing market,” he said.

The proposal would extend the life of development permits, require faster application reviews and weaken municipalities’ ability to require elements like sidewalks, parking minimums or street buffers. Decisions on permitted-use approvals would be made by municipal employees, not elected or appointed boardmembers.

It also mandates that residential zoning be classified by dwelling units per acre, rather than minimum lot sizes, and it would require local governments to allow multifamily housing in commercial zones with height minimums up to 60 feet in large cities.

The legislation echoes policies in other states where lawmakers are curbing local control to boost housing production.

The Texas Legislature two years ago allowed builders to bypass local review by using third-party inspections. California’s Builder’s Remedy and SB 9 override single-family zoning under certain affordability conditions.

Florida’s Live Local Act, passed in 2023, lets developers build higher-density housing in commercial areas if a portion is set aside as affordable. New York’s Charter Revision Commission is taking a look at “fair share” housing models built on similar zoning bypasses.

But the North Carolina League of Municipalities is pushing back, calling the measure a “cookie-cutter” fix that favors developers at the expense of local planning. Builders are “climbing onto the affordable housing crisis to get what they want,” said the league’s Scott Mooneyham.

Gov. Josh Stein supports parts of the proposal, especially provisions to allow accessory dwelling units and residential development by right in commercial and industrial zones. A final vote is expected later this year.

Whether the proposal delivers on affordability remains uncertain. Economists warn that broader market forces, including interest rates, labor shortages and pandemic-era supply disruptions, are what’s driving housing costs higher.

— Judah Duke