AANC Government Affairs Update | June 27, 2025

Legislative Update,

NC UPDATE | from AANC

 

LEGISLATIVE UPDATE
It was a busy week in Raleigh, with the General Assembly sending a few dozen bills to the Governor’s desk, an uptick after months of minimal activity. And while shrimp trawling was the biggest topic of conversation at the legislature this week, AANC successfully advanced several key priorities through the process.
 
Lawmakers left Raleigh Thursday afternoon without agreeing on an adjournment resolution. The Senate approved a plan to reconvene once a month through the fall to consider specific issues, but the House did not take up the measure. Speaker Destin Hall indicated he plans to work with House Democratic Leader Rep. Robert Reives to determine a legislative schedule for the remainder of the year. Meanwhile, Senate leaders stated that if the House failed to act on the resolution, they will only hold skeletal, no-vote sessions moving forward. Therefore, the plan to take up additional measures, including a new state budget, is to be determined.
 
The Governor has 10 days to sign, veto, or allow a bill to become law from the date the bill makes it to his desk. AANC will share a full update on legislative wins and ongoing priorities in the weeks ahead.


.AANC'S SUCCESS THIS WEEK

Development and building code
H768: Emerg. Comm. Code Exempts/Sanitary Board/401 –  If or when H768 becomes law, this change has the potential to save developers tens of thousands of dollars and is a huge win for the industry. This provision exempts certain apartment buildings and lodging facilities, specifically, R-2 Type V apartment buildings that meet egress rules, and two-story or shorter buildings with direct exterior exits, from emergency responder communication coverage requirements under Section 510 of the North Carolina Fire Code. It also states that existing systems in exempt buildings do not have to be removed but outlines how they may be disconnected if desired.  After approval by both chambers, H768 was presented to the Governor on June 26.

Judiciary
S690: Various Real Estate and Business Law Changes AND H620: AOC Agency Requests-AB – After the provision’s initial home in H620/S648: AOC Agency Requests-AB stalled late last week, AANC was able to successfully work with lawmakers and stakeholders to quickly find a new home for this top AANC priority provision, which clarifies the purpose of a 2024 law change to G.S. 42-26. The 2024 law change was championed by AANC to discourage frivolous appeals by allowing for a rental housing provider to recover attorney’s fees from a resident only if the rental housing provider is the prevailing party and the resident appealed the eviction case to a higher court without a valid reason, such as to cause delay or in bad faith.

The two bills have nearly identical language, which simply cleans up the placement of “prevailing party” so as to not discourage landlords to settle cases. The 2024 law placement of “prevailing party” could have had the unintended consequence of encouraging all summary ejectments to push to judgement rather than settle in cases where both parties wish to settle or “pay and stay.” By placing the change in subsection (3) and not creating a new subsection (4), it applies the prevailing party standard to all attorney fees, even those that might be negotiated in a settlement. This is because, in summary ejectments, rental housing providers are only allowed to change the fees allowed by statute.

Once signed into law, this change applies retroactively to September 9, 2024, the date the 2024 law became effective. After approval by both chambers, both S690 and H620 were presented to the Governor on June 27.

H96: Expedited Removal of Unauthorized Persons – This legislation is a result of a compromise reached with law enforcement organizations. H96 will create an expedited process for the removal of an unauthorized person from residential property.  After approval by both chambers, H96 was presented to the Governor on June 27.

Renters insurance
H737: DOI Omnibus Bill – A provision was included in the bill that prohibits rental housing providers from requiring coverage from a specific carrier or agent. Upon learning that the provision was there to stay, AANC negotiated to have an amendment included to clarify that the resident may be charged for the cost of insurance if they fail to provide proof of coverage within three days of request by the rental housing provider. After approval by both chambers, H737 was presented to the Governor on June 26.


BUILDING CODE COUNCIL UPDATE
A 2024 law shifted the balance of appointment power for the North Carolina Building Code Council. Previously, all council members were appointed by the Governor, but the new law allocates seven appointments to the Governor and six to the legislature. Additionally, the law requires a supermajority of nine out of thirteen members to approve changes, significantly reducing the Governor’s unilateral influence over the Council’s decisions.
 
Consequently, earlier this year Governor Josh Stein challenged this change in court, arguing it violated the separation of powers. This lawsuit has kept the Council from being seated until the lawsuit works its way through the courts. This week a three-judge panel ruled in favor of the legislature, finding that the Governor did not meet the legal burden to prove the law unconstitutional. As a result, the new structure remains in effect while any potential appeals are pending. If the Governors appeals the ruling, this will continue to delay the seating of the Council and thereby the effective date of the 2024 Building Code.


VIRTUAL STATEWIDE DUKE ENERGY MEETING - ALL ARE WELCOME!
The next virtual statewide Duke Energy meeting will be held on Monday, July 28th at 9:30 a.m. Members of all North Carolina local affiliates are invited to join representatives from Duke Energy to hear information on issues impacting property management and development.

If you have any questions or topics you would like addressed during the meeting, please email Sarah Dubose at GAD@aanconline.org by MONDAY, JULY 14.  

REGISTRATION REQUIREDRegister here.

 

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