News Six North Carolina Development Law Changes Affecting Private Projects

During its 2026 legislative session, the North Carolina General Assembly enacted several development-law changes that affect how private development sites are evaluated, designed, permitted, and challenged. For developers, the most relevant provisions can change project feasibility, entitlement strategy, cost assumptions, and schedules.

This update focuses on three enacted measures:

• Session Law 2026-39, House Bill 162, Parking Lot Reform/Stormwater Control, approved July 6, 2026
• Session Law 2026-41, Senate Bill 257, 2026 Appropriations Act, generally effective July 1, 2026, and approved July 7, 2026
• Session Law 2026-59, Senate Bill 445, Regulatory Reform Act of 2026, approved August 11, 2026

This article provides a general planning and development summary. It is not legal advice and does not evaluate how any law applies to a specific property, project, or jurisdiction.

1. Redevelopment Stormwater Rules Change Built-Upon Area Calculations

Effective July 6, 2026, Section 2 of Session Law 2026-39 changed how existing built-upon area is treated under certain stormwater rules and programs.

When development or redevelopment occurs on a site with existing built-upon area, the existing area generally is excluded from density calculations for additional stormwater controls. It also is not subject to additional stormwater controls under the amended section, regardless of whether it remains in place or is demolished, relocated, or replaced. Existing built-upon area is applied on a square-foot-for-square-foot basis to reduce the area for which stormwater control measures are required.

The law does not override federal requirements. State rules, water-supply watershed requirements, utility constraints, and site-specific engineering conditions also remain part of project review.

Local governments that administer stormwater programs must update their ordinances to comply by July 6, 2027. Ordinance provisions that remain inconsistent with the amended law become void and unenforceable on and after that date.

For developers evaluating previously developed sites, the change warrants a new review of stormwater design assumptions, usable area, redevelopment yield, and earlier concept plans.

2. Parking Minimums Will Be Limited Beginning January 1, 2027

Beginning January 1, 2027, Section 1 of Session Law 2026-39 generally prohibits local development regulations from requiring an off-street parking lot to contain a minimum number of spaces per development or structure, regardless of occupancy or use.

Local governments in North Carolina’s statutory coastal area are generally exempt from this limitation. However, the prohibition still applies to specified historic districts, landmarks, and study-list properties within the coastal area.

The change allows project teams to determine parking quantities based on market demand, tenant needs, financing requirements, shared-parking opportunities, and site constraints. Other applicable requirements, including accessible parking, fire access, and dimensional standards, remain in place.

Because the parking limitation does not take effect until January 1, 2027, development teams should confirm how the applicable jurisdiction will handle applications and approvals that cross the effective date.

3. Permit Choice and Appeals Rules Changed July 1, 2026

Section 39.5 of the 2026 Appropriations Act made several procedural changes effective July 1, 2026.

The law:

• Extends permit choice protections to rezoning applications, including conditional rezoning applications.
• Allows certain challenges to administrative decisions to proceed without first appealing to the local board of adjustment.
• Expands standing to qualifying associations, organizations, societies, and other entities.
• Extends the limitation period for certain development-regulation claims from one year to three years.
• Expands mandatory awards of attorneys’ fees and costs in specified successful challenges.

The 60-day limitation period for challenging the adoption or amendment of a zoning map remains unchanged.

These provisions are legal and procedural and should be reviewed with counsel when applied to a specific project. From a planning and entitlement perspective, they affect application strategy, timing, and the options available when regulations or interpretations change during review.

Local-government organizations have also identified the provisions as increasing litigation and financial exposure for municipalities. That context is relevant when anticipating how jurisdictions may document decisions, issue interpretations, and manage development reviews.

4. Certain Redevelopment Properties Gain Residential Use by Right

Effective August 11, 2026, Section 43 of the Regulatory Reform Act of 2026 established a residential use-by-right provision for certain redevelopment properties.

The provision applies only to cities with populations of at least 80,000 that are located in counties with populations of at least 1 million, based on the most recent federal decennial census.

Within qualifying jurisdictions, local zoning regulations must allow the following uses by right on property undergoing redevelopment in nonagricultural commercial, business, or light-industrial districts:

• Buildings and structures subject to the North Carolina Residential Code
• Multifamily housing structures containing more than four residential units
• Buildings containing both residential and nonresidential uses, although only the residential component is a use by right

For covered properties, zoning regulations also may not establish a maximum building height of less than 60 feet.

The provision does not apply to vacant parcels that have never been developed. It also excludes properties on or adjacent to sites with known contamination that has not been remediated. The law does not make the nonresidential portion of a mixed-use project a use by right or eliminate other applicable development approvals.

The provision is relevant when assessing previously developed shopping centers, office sites, light-industrial properties, and other parcels where residential or mixed-use redevelopment is under consideration.

5. Development Fee Disclosure Requirements Are in Effect

Section 49 of the Regulatory Reform Act of 2026 established new development-fee disclosure and administration requirements effective August 11, 2026.

The requirements cover certain fees associated with Chapter 160D, water and sewer system development fees under Article 8 of Chapter 162A, and impact, facility, and other fees authorized by local acts.

Among other requirements, cities and counties must:

• Publish covered fee schedules on their official websites.
• Include information about the data and methodologies used to calculate fee rates.
• Update published information within 30 days after adopting changes.
• Report fee schedules, collections, and compliance information annually to the Local Government Commission.
• Provide applicants with a current fee schedule and project-specific fee estimate within 10 business days after receiving a completed application.
• Provide a final, binding fee statement when issuing the development approval.

The law does not create new fee authority or determine whether a particular fee is authorized or calculated correctly. As the UNC School of Government explained on September 8, 2026, interpretive questions remain about which charges are covered and how the requirements apply to projects involving multiple approvals or governmental entities.

For development teams, the new process provides earlier visibility into covered costs and creates a clearer record of fees associated with an approval.

6. At-Risk Foundation Permits Now Cover Related Trade Permits

Effective August 11, 2026, Section 48 of the Regulatory Reform Act of 2026 amended the at-risk building permit process for eligible commercial and multifamily projects.

The process applies to projects with complete construction plans and specifications sealed by a licensed professional engineer or architect, as applicable. An eligible applicant must also request and attend a pre-submittal meeting.

An applicant may request an at-risk building foundation permit and associated trade permits needed to support the authorized foundation work. The local government must issue the permits when it determines that the applicant has submitted the necessary plans and information and has received the approvals required for that scope of work. An approved erosion and sedimentation control plan is required for land-disturbing activity at the foundation site.

The applicant assumes the risks and liabilities associated with proceeding under an at-risk permit. The permit also does not serve as the initial development permit for statutory vesting purposes or eliminate other required local, State, or federal approvals.

What This Means for Development Teams

Several longstanding project assumptions now require another review. Previously developed sites have different stormwater considerations. Parking minimums will become more flexible in most jurisdictions on January 1, 2027. Permit choice and appeals procedures have changed. Certain commercial redevelopment properties now qualify for residential use by right. Covered development fees must be disclosed earlier, and eligible commercial and multifamily projects have an expanded at-risk foundation permit option.

These changes do not replace project-specific due diligence. Zoning, utilities, stormwater, access, environmental conditions, transportation review, building code requirements, financing, and local procedures continue to shape project outcomes.

WithersRavenel can help development teams reassess project assumptions, evaluate site constraints, and coordinate with qualified legal counsel when statutory interpretation is required.

Sources and Additional Background

• Session Law 2026-39, Parking Lot Reform/Stormwater Control, approved July 6, 2026
• Session Law 2026-41, 2026 Appropriations Act, approved July 7, 2026
• Session Law 2026-59, Regulatory Reform Act of 2026, approved August 11, 2026
• North Carolina Association of County Commissioners, Weekly Update Legislative Brief: July 2, 2026
• North Carolina League of Municipalities, Short Session Recap, September 1, 2026
• North Carolina League of Municipalities, 2026 End of Session Bulletin, September 2, 2026
• UNC School of Government, New Disclosure Requirements for Development-Related Fees, September 8, 2026
• Parker Poe, Key Changes to North Carolina’s Land Use and Development Laws, July 15, 2026
• Poyner Spruill, North Carolina’s 2026 Budget Bill Makes Sweeping Changes to Land Use and Zoning Law, July 23, 2026

This article is intended to provide general information about recently enacted North Carolina legislation. It is not legal advice. Developers, property owners, and project teams should consult qualified legal counsel regarding the interpretation or application of State law to a specific property, jurisdiction, or project.