On December 11, 2024, the North Carolina General Assembly voted to override the Governor’s veto and enact the Disaster Recovery Act of 2024 – Part III, Session Law 2024-57 (Part III). In addition to addressing recovery topics, the legislation made major changes to state law. This blog summarizes the provisions affecting local planning and development regulations.
Note that the recovery legislation in Part III follows the legislation in Parts I and II. Those prior changes were summarized in this blog on Planning and Permitting Aspects of Helene Recovery Legislation.
State-Wide Changes
The Disaster Recovery Act of 2024 – Part III made notable changes to development regulations state-wide. With regard to planning and permitting law, it delayed implementation of the State Building Code and limited local government authority for down-zonings.
Delay 2024 North Carolina State Building Code. The 2024 North Carolina Building Code was set to take effect on January 1, 2025. Section 1F.3 of Part III postpones the effective date until July 1, 2025.
Limits on Down-Zoning. Section 3K.1 of Part III amends G.S. 160D-601(d) to broadly define “down-zoning” and provide that local governments cannot adopt a down-zoning without written consent from all impacted landowners. The precise interpretation and impact of this law are not immediately clear, but one thing is clear: the law dramatically alters the authority for local governments to amend local zoning ordinances. I explored the meaning and implications in this blog on the Limits on “Down-Zoning.”
Permit Extensions for Affected Area
Beyond those state-wide changes to development rules, there are many changes for the affected area, defined to be the counties designated by presidential major disaster declaration (“[t]he counties designated before, on, or after the effective date of this act under a major disaster declaration by the President of the United States under the Stafford Act (P.L. 93-288) as a result of Hurricane Helene.”)
Development Approval Extension. Under Section 1D.3 of Part III, a range of development approvals for the area affected by Hurricane Helene are extended through 2027.
The law has a detailed definition of “development approval,” including development permits, building permits, subdivision plats, certificates of appropriateness, erosion and sedimentation plans, and other local development approvals, as well as environmental permits, utility permits, and other permits and determinations from state agencies. The law does not extend federal permits or permits with durations specified by federal law.
If a “development approval” is valid at any time between January 1, 2024, and December 31, 2027, “the running of the period of the development approval and any associated [statutory] vested right . . . is suspended within the affected area during the period beginning January 1, 2024, and ending December 31, 2027.”
As stated in the law, “[t]he provisions of this section shall be liberally construed to effectuate the purposes of this section.”
Temporary Housing
Rules for Temporary Manufactured and Modular Homes. Section 1F.4 of Part III authorizes the Office of State Fire Marshall to adopt rules and provide guidance related to the placement, construction, installation, and connection of temporary manufactured and modular dwellings in the affected area. The law defines “temporary manufactured and modular dwelling” as “a manufactured housing unit that is designed for utilization as a temporary dwelling in the affected area.” Labels or seals for approved dwellings will indicate that such dwellings meet the State Building Code. Local inspections departments may still enforce rules for utility service connections, local zoning, and foundation permits.
Connecting Temporary Housing to Wastewater. Section 1D.9 of Part III states that a local health department may not deny a homeowner’s request to connect temporary housing to an existing subsurface wastewater treatment system as long as the owner signs an affidavit form provided by the Department of Health and Human Services. The connection may last up to 12 months or until permanent housing is established, whichever comes first. This section expires June 1, 2025.
Tree Ordinances and Erosion & Sedimentation Control
Pause Tree Ordinance Enforcement. Section 1D.8 of Part III provides the following: “no local government in the affected area may enforce any ordinance regulating the removal, replacement, and preservation of trees on private property, including tree removal, trimming, or maintenance activities, or require a permit for those activities, on the portion of any private property that is more than 10 feet from the property boundary.” There are exceptions for public safety and tree cutting regulated by state or federal law (such as protected habitats, riparian buffers, and wetlands). This section expires March 1, 2025.
Erosion and Sedimentation Control. Section 1D.7 calls for state agencies and local permitting offices in the affected area to waive requirements for an erosion and sedimentation control plan in advance of land-disturbing activity. Instead, persons conducting land-disturbing activity must install required control measures, notify the agency of the date of initiating the land-disturbing activity, and submit a plan within 30 days of initiating the land-disturbing activity. This section expires March 1, 2025.
Water, Sewer, and Septic
Reallocating Water and Sewer Allocations. Section 1D.3 Part III provides extensions for a range of development permits, and it also addresses reallocating water and sewer resources from projects that are stalled. A local government may reallocate reserved capacity from projects that are not ready to proceed if the local government does the following:
- Establishes an allocation plan for existing capacity that determines actual capacity and provides for a fair and equitable process to distribute the remaining capacity.
- Establishes a reallocation plan to meet requests for capacity above permitted capacity that is fair and equitable and requires the following:
- That an applicant for a new or additional allocation demonstrates the ability to begin construction.
- That the holder of a development permit suspended under subsection (b) of this section demonstrates the ability or intent to begin construction in no less than 120 days in order to retain the reserved capacity.
- Does not reallocate capacity to exceed the amount of the reserved capacity
Water, Sewer, and Septic System Permits. Additionally, Part III amends certain infrastructure and environmental health permits. Section 1D.4 extends validity for certain on-site wastewater permits. Section 1D.5 allows for temporary public water systems. Section 1D.6 allows for temporary public and haul wastewater permits.
Other Changes
License Extensions for Adult Care Homes and Family Care Homes. Part III adds to the extensions included in Parts I and II of the Disaster Recovery Act. Under Section 15.2 of Part I (for provisional licenses) and under Section 4B.1 of Part II (for initial licenses), the Department of Health and Human Services is authorized to extend provisional and initial licenses for adult care homes and family care homes located in the affected area if a home’s license was due to expire between September 25, 2024, and March 25, 2025. Extensions may be up to 60 days for provisional licenses and up to 90 days for initial licenses. Section 1C.1 of Part III provides extensions for facilities in the affected area that hold a valid adult care home or family care home license. Facility licenses are extended to March 1, 2025, and the deadline to submit renewal applications and fees is extended to March 1, 2025.
If local development permits are tied to state-issued licenses, then local permits may be impacted.
Conclusion
The North Carolina General Assembly already made notable legislative changes related to local planning and permitting in Disaster Recovery Act, Parts I and II. The General Assembly added to those changes with Part III (summarized here). As recovery continues, additional recovery legislation may impact development regulations.
