Proposed NC Bill Could Revolutionize ADU Development Across the State

A new North Carolina Senate bill would require all local governments to allow accessory dwelling units on single-family properties. Here's what Senate Bill 495 means for eastern NC homeowners and what could change if it becomes law.

North Carolina legislators have introduced groundbreaking legislation that could transform ADU development across the state. Senate Bill 495, sponsored by Senators Moffitt and Mayfield, would mandate that local governments allow at least one accessory dwelling unit on every single-family residential property in areas zoned for such use. If passed, this bill would override many local restrictions that currently limit or prohibit ADU development.

At Plank Construction, we're closely watching this legislation because it could significantly expand ADU opportunities for eastern NC families. While many communities in our region already permit ADUs, this bill would standardize regulations statewide and remove common barriers that make ADU development difficult or impossible in some jurisdictions.

Let's explore what this proposed legislation would require and how it might affect ADU development in eastern North Carolina.

What the Bill Requires

The bill mandates that a local government shall allow the development of at least one accessory dwelling unit which conforms to the North Carolina Residential Code for One- and Two-Family Dwellings for each single-family detached dwelling in areas zoned for residential use that allow for development of single-family detached dwellings. ncleg

This means every homeowner with a single-family house in a residential zone would have the right to add an ADU, either as new construction or by converting existing space. An accessory dwelling unit may be built or sited concurrently or after the primary single-family detached dwelling has been constructed or sited. ncleg

The legislation defines accessory dwelling units broadly, stating that the term "accessory dwelling unit" means an attached or detached residential structure that is used in connection with, or that is an accessory to, a primary single-family detached dwelling and that has less total square footage than the primary single-family detached dwelling. ncleg

What Local Governments Cannot Do Under This Bill

The proposed legislation specifically prohibits local governments from implementing common restrictions that currently limit ADU development. In permitting accessory dwelling units, a local government shall not prohibit the use of the primary single-family detached dwelling and the accessory dwelling for long-term rentals by separate households. ncleg This addresses concerns that some jurisdictions prevent both units from being rented simultaneously.

Parking restrictions would be eliminated under the bill. Local governments cannot establish minimum parking requirements or other parking restrictions, including imposition of additional parking requirements where an existing structure is converted for use as an accessory dwelling unit. ncleg This removes a common barrier where municipalities require additional parking that small lots cannot accommodate.

The legislation prevents excessive fees by stating that local governments cannot charge any fees in excess of those charged for the permitting of a single-family detached dwelling similar in nature. ncleg This ensures ADU permitting doesn't become prohibitively expensive.

Size restrictions would be limited, as local governments cannot set a maximum accessory dwelling unit size of less than 800 square feet. ncleg This guarantees that ADUs can be large enough to function as real housing rather than tiny, impractical spaces.

The bill also prohibits requiring ADUs to be placed in conditional zoning districts and prevents restrictions on connecting ADUs to existing utility systems serving the primary dwelling when capacity exists.

What Local Governments Can Still Regulate

While the bill removes many restrictions, it allows local governments some regulatory authority. A local government may impose a setback minimum for accessory dwelling units of 10 feet or the setback minimum imposed generally upon lots in the same zoning classification, whichever is less. ncleg

Local governments can also require that accessory dwelling units be located to the side or rear of the primary single-family detached dwelling ncleg and require that accessory dwelling units be smaller than the primary single-family detached dwelling. ncleg

These limited regulatory powers maintain some local control while preventing the restrictive policies that currently prohibit or severely limit ADU development in many areas.

Important Exemptions

The legislation includes specific exemptions that preserve certain property rights and historic preservation goals. Nothing in this section shall apply to the validity or enforceability of private covenants or other contractual agreements among property owners related to dwelling type restrictions. ncleg This means HOA covenants can still prohibit ADUs even if local government regulations cannot.

Historic preservation districts are also exempt. The bill does not apply to properties located in a historic preservation district established pursuant to Part 4 of this Article or properties designated as a National Historic Landmark by the United States Department of Interior. ncleg This protects historically significant areas from changes that might compromise their character.

The legislation also exempts an accessory dwelling unit that is not connected to water and sewer ncleg, ensuring that ADUs meet minimum health and safety standards.

Implementation Timeline

If passed, the bill includes clear deadlines for implementation. This section becomes effective October 1, 2025, and applies to applications for accessory dwelling unit permits submitted on or after that date. ncleg

Local governments would have time to adjust their regulations. Local governments shall adopt development regulations to implement the provisions in this act no later than January 1, 2027. ncleg

The bill includes a strong compliance incentive: If a local government fails to adopt development regulations as required by this act by January 1, 2027, accessory dwelling units shall be allowed in that local government without any limitations. ncleg This ensures that local governments cannot simply ignore the legislation.

What This Means for Eastern NC

Most eastern NC communities already permit ADUs with varying degrees of restriction. Pitt County, Craven County, and other jurisdictions have updated regulations in recent years to accommodate ADU development. However, this legislation would standardize rules and remove barriers that still exist.

The 800-square-foot minimum size requirement would benefit eastern NC homeowners by ensuring ADUs can be large enough for comfortable living. Many current regulations allow smaller maximum sizes that create cramped, less functional spaces.

Eliminating parking requirements particularly helps urban and established neighborhood properties where lot sizes might not accommodate additional parking. This has been a barrier in some eastern NC communities where parking requirements make ADUs impractical on typical residential lots.

The prohibition on excessive fees ensures that ADU development remains financially accessible. Some jurisdictions currently charge special use permit fees or other charges that add thousands to project costs beyond standard building permit fees.

Potential Challenges and Opposition

Historic districts in places like New Bern, Washington, and other eastern NC communities with designated historic areas would retain ability to restrict ADUs. Homeowners in these districts shouldn't expect this legislation to override historic preservation regulations.

HOA restrictions remain enforceable under this bill, meaning many newer eastern NC subdivisions with restrictive covenants could still prohibit ADUs regardless of what local government regulations allow. Homeowners should check HOA documents even if this bill passes.

Some local governments might resist implementation despite the legislation's requirements. The compliance mechanism requiring unrestricted ADU allowance if regulations aren't adopted by January 2027 should motivate cooperation, but political opposition could create friction during implementation.

What Homeowners Should Do Now

Don't wait for this legislation to pass before exploring ADU possibilities. Current eastern NC regulations in most areas already allow ADU development, and construction under existing rules counts toward establishing ADU acceptance in your neighborhood.

If you live in an area with restrictive ADU regulations, this bill could dramatically change your options. Begin planning now so you're ready to move forward if and when the legislation passes.

Verify HOA status before assuming this bill solves all regulatory barriers. If your property has HOA restrictions prohibiting accessory structures, this legislation won't override those private covenants.

Stay informed about the bill's progress through the NC General Assembly. Contact your state legislators to voice support if you favor ADU-friendly policies, or concerns if you have reservations about the legislation.

The Bigger Picture: Housing Policy Trends

This proposed North Carolina legislation reflects growing recognition nationwide that restrictive local regulations have contributed to housing shortages and affordability problems. California, Oregon, and other states have passed similar laws requiring local governments to allow ADUs.

The bipartisan sponsorship of this NC bill suggests that ADU-friendly policies have moved beyond partisan divides. Housing affordability affects North Carolinians across political spectrums, creating incentives for cooperative policy solutions.

If passed, North Carolina would join a growing number of states using state-level legislation to override local restrictions that limit housing supply. This trend reflects frustration with local governments that prioritize zoning restrictions over housing needs.

Questions This Bill Doesn't Answer

The legislation doesn't address whether manufactured or modular ADUs would be permitted under these new rules, though requiring conformance with the North Carolina Residential Code suggests traditional construction might be preferred.

Septic system capacity requirements for ADUs on properties without municipal sewer remain unclear. Rural eastern NC properties would need adequate septic capacity, and the bill doesn't clarify whether septic system upgrades would be required or how costs would be handled.

Short-term rental regulations aren't addressed, leaving it unclear whether ADUs could be used for vacation rentals or Airbnb in areas where the primary dwelling can be used this way.

At Plank Construction, We're Ready

Whether this legislation passes or not, we continue building ADUs throughout eastern NC under current regulations. If the bill becomes law, we'll be ready to help homeowners take advantage of expanded opportunities and more streamlined approval processes.

Our experience with current ADU regulations, understanding of construction requirements, and CAPS certification position us to help families navigate whatever regulatory environment exists.

Ready to explore ADU possibilities on your eastern NC property? Contact Plank Construction for a consultation about current regulations, what might change if this legislation passes, and how to plan your project for success regardless of future policy changes.

Plank Construction specializes in ADU construction throughout eastern North Carolina. Our experience with local regulations and commitment to staying informed about policy changes ensures successful projects. Contact us today to discuss your ADU plans.