Housing

SB 291 limits cities' ability to regulate short-term rentals (like Airbnb) by prohibiting ordinances that ban them, restrict rental nights, require owner occupancy, or classify them as commercial use. Cities may still require a $25 permit for short-term rentals, with revocation only after five health/safety violations (after allowing appeal), and must enforce occupancy limits (two adults per bedroom), parking plans, residential zoning compliance, and posting of local noise/waste/parking rules. The bill directly affects property owners using short-term rentals and cities seeking to regulate them, establishing state-level uniformity instead of local rules. Key provisions allow cities to enforce basic safety and zoning standards but block broader restrictions on how owners operate rentals.

SB 724 prohibits unauthorized camping in public parks, sidewalks, and other public spaces (like non-designated areas), except for temporary sites specifically approved for homeless encampments. It defines "public camping" as using tents, bedding, or personal items on public property without authorization, making violations a misdemeanor punishable by fines or short jail time (with first offenses directed to shelters instead of charges). Local governments must enforce this ban and cannot allow regular camping on non-designated public areas, while citizens can sue municipalities that fail to comply. The bill also withholds state homelessness funding from counties or cities that violate these provisions and fail to correct violations after notice.

HB 24, titled "Restore Down-Zoning Authority," aims to reinstate the power of local governments to initiate "down-zoning." This means local governments would regain the ability to change zoning classifications for properties to allow for less intensive development or use. The bill achieves this by repealing Section 3K.1 of S.L. 2024-57, which had previously restricted this authority. If enacted, it would apply retroactively to December 11, 2024, ensuring that any local ordinances impacted by the repealed section are restored to their status prior to that date.

HB 690, "The Citizens Support Act," directs several state and local agencies to ensure that state-funded benefits are provided only to U.S. citizens and noncitizens legally authorized to reside in the United States. The Department of Health and Human Services, Department of Commerce, Housing Finance Agency, and local housing authorities must develop plans to review eligibility criteria and verify the immigration status of applicants for various benefits, including housing, welfare, and medical assistance. State-funded institutions of higher education are required to adopt policies to verify applicants' legal residency for tuition and educational benefits. Additionally, the Division of Employment Security must implement a policy to verify legal residency for unemployment benefit applicants. These agencies are also mandated to report on their implementation progress and any federal laws that prevent them from denying benefits.

HB 781 bans unauthorized public camping or sleeping on public property across North Carolina, directly affecting individuals experiencing homelessness and local governments. It prohibits counties and municipalities from allowing such activities, but permits them to designate specific public property for temporary camping for up to one year. These designated sites must meet standards for safety, sanitation (including restrooms and water), and access to behavioral health services, and prohibit illegal substance use. Such designations require certification from the Department of Health and Human Services, which assesses factors like shelter bed availability and proximity to residential areas. Residents or businesses can take legal action against local governments that fail to enforce the ban.

HB 437 establishes "Drug-Free Homeless Service Zones" within 300 feet of facilities that provide homeless services (like shelters or transitional housing) using public funds. It increases penalties for drug offenses committed in these zones: individuals 21+ face Class E felony charges, while facility operators allowing such offenses face Class 1 misdemeanor charges. Facilities must display visible signs identifying the zone, and the law applies to offenses committed on or after December 1, 2025. The bill directly affects homeless service providers, their operators, and individuals committing drug offenses in designated zones.