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“Swimming Pool Bill” includes provisions from HB 765

 

RALEIGH—A sweeping housing proposal in North Carolina is generating intense debate over how to address the state’s housing shortage and at what cost to local governments.

Senate Bill 205, originally drafted as a swimming pool regulation measure, now contains broad housing reforms. The bill evolved from House Bill 765 and is under negotiation in the General Assembly. Proponents, including the N.C. Chamber of Commerce, Realtors Association, and Home Builders Association, say it’s urgently needed to close the state’s growing housing gap.

A 2024 Chamber-commissioned report estimated North Carolina needs over 764,000 additional housing units. More than half of that shortfall — 422,000 units — is in for-sale homes, with the largest gap among middle-income earners (121–150% of area median income).

SB 205 proposes allowing denser development and infill housing, particularly in areas zoned for single-family use. It also shortens local review periods for development applications, aiming to speed up approvals.

However, critics warn that the bill undermines local zoning authority. It amends Chapter 160D to limit what local governments can regulate unless specifically allowed by state law. Opponents call it a power grab by Raleigh that sidelines cities and counties.

One key concern is that the bill allows courts to review local zoning decisions for “consistency” with adopted plans. Detractors fear this could lead to a flood of lawsuits from developers when rezoning requests are denied.

Another controversial provision could expose county commissioners to punitive damages in zoning disputes, a move critics say could chill opposition to controversial projects. The bill also restricts officials from voting on projects if they’ve had private discussions about them, potentially disqualifying community-engaged leaders.

Additional areas under threat include local authority over tree protection, buffers, building design, stormwater rules, impact fees, and historic preservation. Critics argue the legislation strips municipalities of essential planning tools and concentrates decision-making in the General Assembly.

“This is a massive power grab,” said one local official. “It silences communities and transfers control to Raleigh.”

Opponents urge residents to contact state lawmakers. As of June 20, SB 205 was pending in the House Rules Committee after being removed from that day’s agenda without explanation.