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RALEIGH, N.C. (WNCN) — Homeowners in many North Carolina cities could soon have more freedom to build backyard cottages, garage apartments and in-law suites under a regulatory reform bill approved unanimously by the state Senate on Wednesday.
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The Regulatory Reform Act would require cities with more than 50,000 residents, excluding coastal communities, to allow accessory dwelling units (ADUs) in lots zoned for single-family homes.
“We have a shortage of about 700,000 homes over the next few years, and we need to do what we can to address that,” said state Sen. Steve Jarvis (R-Davidson). “We have many people that cannot afford a big house, and this gives a more affordable option that they can purchase.”
State Sen. Jay Chaudhuri (D-Wake) said accessory dwelling units, like tiny homes and garage apartments, can serve several purposes for homeowners.
“It can be used to house an adult child. It can be used to put aging parents. It can provide a source of rental income,” he said.
The bill would also make it easier to redevelop existing commercial properties into residential and mixed-use housing by requiring certain cities to allow residential uses by right on qualifying redevelopment sites.
That provision only applies to cities with more than 80,000 residents in counties with more than 1 million residents, like Raleigh in Wake County and Charlotte in Mecklenburg County,
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“The argument is time is money,” said Chaudhuri. “It can accelerate the ability to build housing faster.”
Chaudhuri said many people are being priced out of the communities they serve.
“We’ve got to balance local government decisions against the fact that we’ve got teachers who can’t live in the very county they teach. We’ve got police officers who can’t live in the very counties that they are protecting,” he said.
The North Carolina League of Municipalities said they don’t expect the accessory dwelling unit provision to “have much of an effect.” They said many cities and towns already allow accessory dwelling units in “substantial sections of areas” zoned for single-family homes.
The Senate approved the measure unanimously. The bill now goes to the House, where it’s expected to pass.
If it becomes law, impacted communities have until July 2027 to update their local development rules.
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