Statewide Housing Reforms Stalled

A post-crossover breakdown and refocus on why HB 765 and local action still matter

Last week marked a major checkpoint at the NC General Assembly: the crossover deadline, the point by which most bills must pass at least one chamber to stay alive for the rest of the legislative session.

For pro-housing advocates, it's the moment where clarity sets in.

Some promising proposals moved forward. Many other housing reforms we were excited to see filed did not. And one major omnibus bill — HB 765 — is carrying the weight of many reforms we still believe in.

Let’s start with what made it across the line, and what didn’t. Here’s a snapshot of the housing and zoning bills we’ve been tracking

If you want to explore the full list of hundreds of bills still in play this session, you can browse them directly on the NC General Assembly’s website here.

What does this mean for housing advocates?

Several of the strongest statewide housing reform bills that we wrote about earlier this year, the ones that would have opened up missing middle housing, allowed single-stair apartment buildings, and brought ADUs to every residential lot, unfortunately stalled before crossover. That’s a disappointment. These bills had bipartisan support and clear policy logic. But they didn’t get the traction they needed.

But there’s still reason to be hopeful.

Some meaningful reforms are moving forward, via different bills: HB 765 and HB 369. Both tackle key development regulations that making housing more difficult to build.

HB 765

This broad development reform package is still alive and will continue to be discussed this session. It is supported by several key Republican lawmakers (and the NC Home Builders Association and includes key housing wins:

🏠 It prevents cities from making it difficult to build ADUs

🚘 It blocks parking mandates for new development

These provisions apply to larger cities only in the current draft, but it’s a start. This would include places like Raleigh, Durham, Cary, Charlotte and Wilmington. These are cities where the demand for housing is high, and outdated zoning rules have kept supply low.

As an omnibus it also includes several other important reforms that could unlock more housing:

📜 90-day rezoning review timeline to prevent indefinite delays on development proposals

🏢 Prohibition on excessive setback and buffer yard requirements for higher-density housing, especially near single-family zones

🏘️ Minimum residential density standards for large cities and counties — preventing exclusionary low-density zoning

📋 Administrative approvals required for by-right uses, reducing unnecessary political discretion

📋 Limits on local design mandates that go beyond state transportation standards — helping prevent overregulation of site layouts

🗝️ Protection of property owners' vested rights and clarifications on rules for downzoning and nonconforming uses

NOTE: the liability provisions related to local government officials unfair or deceptive development actions are no longer in HB765, but lives on in a modified form in HB913, which did pass cross-over

And HB 765 also isn’t alone when it comes to parking reform.

HB 369

This more targeted bill appears to have also survived crossover. It limits cities’ ability to mandate oversized parking spaces, oversized fire access roads, and importantly:

🚘 it prevents municipalities from requiring a minimum number of parking spaces at all, that’s right no required parking, residential or commercial.

🏠 it prevents cities from setting minimum house size requirements too.
A practice that is at the heart of exclusionary zoning and a reason that affordable starter homes are disappearing.

Together, HB 765 and HB 369 reflect a shift in how legislators are thinking about the varied impacts zoning regulations and local government procedures have on housing affordability.

There’s going to be further discussion.

While HB 765 has real momentum, it’s also attracted concern.

Some opponents are calling it a “bad neighbor bill,” claiming it undermines local control. They worry about faster rezoning timelines, the loss of buffer zones between housing types, and limited ability to require sidewalks in areas without existing ones.

At CITYBUILDER, we share the concerns about provisions that limit sidewalk and bike lane implementation. We believe local governments and developers need to do cooperate more, not less, on safe pedestrian and bicycle infrastructure. Cities should be able to require sidewalks and better street design, and that part of the bill needs revision.

But we also believe it’s time to call out what “local control” has often meant in practice: delays, denials, and development patterns that exclude. Our friends over at Carolina Forward said it best:

✍️ The Housing Crisis Deserves Action

Originally published by Carolina Forward, 6 May 2025.
Shared here with permission.

“North Carolina faces significant challenges in the years ahead. A growing population, shifting economic landscape, and changing climate all demand long-term strategy, rather than short-term politics. At a time when lawmakers claim to be concerned about economic competitiveness and opportunity, addressing the housing crisis should be a top priority.

House Bill 765 is not a silver bullet for the housing crisis. Nevertheless, it represents a balanced, thoughtful approach to a complex problem. It respects the legitimate role of local government while acknowledging the reality that some state-level standards are necessary and fair to promote access to affordable housing for all North Carolinians. It, along with the other housing reforms offered this session, is good policy for our state – and deserves lawmakers’ support.”

We’ll be tracking HB 765 closely as it moves to the Finance Committee, and we’ll keep you posted on any new amendments, advocacy opportunities, or developments.

This moment also reinforces something we’ve always known: statewide reform matters, but local action is where change takes root.

That’s where CITYBUILDER has already led. Our board members helped legalize duplexes in Raleigh, reform zoning in Durham, and model the kind of local change other cities can follow. This year, we’ll be working to protect those wins and push further.

And we’re here for you while we do it. Our work depends on support from our members and community — from small donations to paid subscriptions — and we’re deeply grateful for it.

Your support helps us stay focused, stay grounded, and keep organizing for more housing choices, more walkable neighborhoods, and a more inclusive future. Thanks for being here with us. Let’s keep building together.