AANC Legislative Session Update (July 2024)

Association News, Legislative Update,

EXECUTIVE SUMMARY

Session overview

Lawmakers adjourned the short session on June 27 without reaching a budget deal. The decision to adjourn was influenced by the campaign season and fundraising restrictions. Lawmakers plan to reconvene monthly through the end of the year. Except for November's session, only specific items are eligible for consideration. The November session will allow all short session bills.

Quick summary of AANC proactive legislative initiatives

  • HB 551/SB 553: Landlord-Tenant and HOA Changes (filed in 2023)

    • HB 551 passed the House in 2023 but was incorporated into HB 556 due to strategic timing decisions. HB 556 passed both chambers but was vetoed by Governor Roy Cooper on July 3, 2024.

  • HB 1070: Property Rights and Protections (filed in 2024)

    • Due to strategic timing decisions, HB 1070’s contents were included in SB 445. SB 445 passed both chambers unanimously but was vetoed by the Governor on July 8, 2024.

Next Steps

AANC plans to challenge the vetoes of HB 556 and SB 445 by working with legislative leaders and potentially working with the local affiliates to launch a grassroots campaign to keep these bills prioritized among lawmakers.

IN DEPTH

Session overview

On June 27, just over two months after convening in late April, lawmakers voted to adjourn the short session – for now. This decision came after lawmakers struggled to reach a budget deal, a conflict that played out publicly during recent weeks. With campaign season in full swing and with campaign finance laws barring General Assembly candidates from fundraising PAC dollars during session, the decision was made to adjourn and reconvene once a month through the end of the year. As always, the adjournment resolution is subject to change, but for now the resolution will bring lawmakers back to Raleigh on the following dates:

  • July 10 (no vote session)

  • July 29-August 1

  • September 9-11

  • October 9

  • November 19-22 (all short session bills eligible)

  • December 11-13

 

Except for November’s session, the only items eligible for these sessions include veto overrides, adoption of conference reports, bills related to appointments/confirmations, bills related to election law, bills responding to litigation of legislative enactments, and certain resolutions. The November session will be treated like a resumption of the short session – so any bill that made the crossover deadline or was otherwise eligible for the short session remains eligible during November’s session.

AANC’s 2023-2024 proactive legislative initiatives

In 2023, AANC worked with lawmakers to introduce HB 551/SB 553: Landlord-Tenant and HOA Changes. This bill encapsulated a majority of our 2023-2024 legislative agenda items, including:

  1. Enacts a statewide prohibition on local governments passing ordinances that make source of income a protected characteristic under state fair housing laws.

  2. Establishes much-needed protections to reduce fraudulent requests for emotional support and service animal accommodations.

  3. Clarifies existing law that late fees are chargeable once a rental payment is late by five calendar days or more.

  4. Seeks to address deliberate abuses of the judicial appeals process for summary ejectment cases through allowing reasonable attorneys’ fees if the eviction is based on a default other than nonpayment of rent.

HB 551 successfully met the crucial crossover deadline (the date by which most legislation must pass one chamber to be eligible for the rest of the 2023-2024 biennium), passing the House with a bipartisan vote of 87-26.

The nature of a quick short session sometimes requires creative strategies to pass bill language, including using an already-progressing bill as a vehicle. AANC’s lobbying team collaborated with our bill sponsors and Sen. Warren Daniel, a Judiciary Committee chair, to incorporate the majority of the contents of HB 551 into HB 556: Tenancy in Com./E-Notary/Small Claims Changes. PLEASE NOTE: Due to the need to compromise with Senate leadership to move the legislation, this version unfortunately did not include the emotional support and service animal provisions. AANC will be providing more in-depth summaries of each bill in the coming months and will go into more detail at that time. If any questions pop up prior to then about the ESA provisions, contact Sarah DuBose.

HB 556 passed the Senate with a bipartisan vote of 36-6 on June 20, 2024, and subsequently by the House on June 26, 2024, with a vote of 74-39. Regrettably, on July 3, 2024, Governor Roy Cooper vetoed the bill, stating: “this bill would make it harder for low-income families, the elderly and people with disabilities to find affordable rental housing by preventing local governments from protecting against rent discrimination based on lawful income. It also creates legal ambiguity regarding when eviction orders become effective and the potential for increased legal expenses for renters in disputes with landlords.

Ahead of the 2024 short session, in late 2022 and early 2023, the AANC government affairs team worked with the Government Affairs Committee to identify any new issues that had popped up since the initial creation of the 2023-2024 legislative agenda, that should be addressed through legislative solutions. As a result, from member input, AANC added the following items to the legislative agenda:

  1. To combat courts delays caused by e-courts, begin the small claims appeal period when a judgment is rendered, instead of when it is entered by a magistrate.

  2. Establish a process for claiming indigency status by requiring written findings of indigency in small claims appeals.

  3. Require the clerk to disburse ongoing rental payments made during appeal or if resolved, any remaining undisbursed funds, within five days of request. Currently there is no timeline for disbursing funds.

The AANC lobbying team took these legislative agenda additions to Rep. John Bradford and several other lawmakers, who in turn filed HB 1070: Property Rights and Protections on May 9, 2024. HB 1070 included the above-discussed items and two additional provisions, supported by AANC:

  • Increases the punishment for willful and wanton damage of at least $1,000 to the residential real property of another from a Class 1 misdemeanor to a Class I felony.

  • Prohibits the fraudulent rental, lease or advertisement for sale or lease of residential real property, making it a felony.

HB 1070 passed the House Judiciary 2 Committee on June 26, 2024. However, facing the short session time constraints, on that same day, the contents of HB 1070 were placed into the already-moving SB 445: Recording of Court-Filed Documents in the House Rules Committee. Subsequently that day, the House passed the bill unanimously, 115-0, and the Senate followed suit the next day, passing the bill unanimously 44-0.

Unfortunately, on July 8, the Governor made the decision to veto SB 445, stating: “this bill creates legal ambiguity regarding when eviction orders become effective and may harm low-income individuals by making it harder for them to appeal as indigent in small claims court.”

In addition to these bills, AANC also worked within a coalition to introduce legislation to help combat the squatter issues popping up across the state and country. This legislation is still up for consideration.

Next steps

AANC strongly disagrees with Governor Cooper’s reasonings behind vetoing HB 556 and SB 445. The AANC lobbying team is working with legislative leadership in both chambers to have both bills included on the veto override list whenever the chambers schedule a veto override session this fall. We also anticipate working with our local affiliates to run a grassroots campaign to keep these bills at the top of mind for all 170 lawmakers over the following months.

Stakeholder engagement

Throughout the biennium, AANC has collaborated with numerous stakeholders to work through disagreements to find compromise, when possible, and to unite efforts in lobbying for or against various bills. A sample of these stakeholder groups include:

  • Local governments and local government associations

  • NC Chamber of Commerce

  • NC Homebuilders Association

  • NC Justice Center

  • NC REALTORS

  • NC Sheriffs’ Association

All tracked bills

2023-2024 Session Laws

Bill

Bill Title

Category

Position

Status

H40

Prevent Rioting and Civil Disorder

Property Management
Public Safety

Monitor

Ch. SL 2023-6

H130

Energy Choice/Solar Decommissioning Rqmts

Energy & Utilities
Local Ordinances

Monitor

Ch. SL 2023-58

H193

AOC Ct Changes/Amd Expunction

Courts

Monitor

Ch. SL 2023-103

H228

Rev. Laws Tech., Clarifying, & Admin. Chngs.

(Sec. 8 – HFA debt limit)

State Government

Monitor

Ch. SL 2024-28

H422

Unfair Real Estate Agreements Act

Real Estate
Single Family

Monitor

Ch. SL 2023-117

H488

Code Council Reorg. and Var. Code Amend

Building Code

Monitor

Ch. SL 2023-108

H600

Regulatory Reform Act of 2023

Development
Energy & Utilities

Monitor

Ch. SL 2023-137

H608

Safety Requirements for Elevators

Single Family

Monitor

Ch. SL 2023-68

H627

On-Site Wastewater Rules Implementation

Energy & Utilities

Monitor

Ch. SL 2023-77

H628

Amend On-Site Wastewater/Environment Statutes

Building Code
Development

Monitor

Ch. SL 2023-90

H971

Human Trafficking Changes

(Original draft inc. all rental, negotiations w/sponsor)

Property Management - Vacation Rentals

Monitor

Ch. SL 2024-26

S246

Property Owners Protection Act

Property Management
Public Safety

Monitor

Ch. SL 2023-85

S53

Hotel Safety Issues

Landlord-Tenant (Ch. 42)

Monitor

Ch. SL 2023-5

S673

Wastewater Regulatory Relief Act

Energy & Utilities

Monitor

Ch. SL 2023-55

S802

C-PACE Program

Energy & Utilities
Financial Services

Monitor

Ch. SL 2024-44

S915

General Assembly Appointments

(Secs. 1.47-1.49 = BCC)

Building Code Council

Monitor

Ch. SL 2024-12

 

 

 

 

 

Bills still up for consideration through 2024

Bill

Bill Title

Category

Position

Status

H385

Various Energy/Env. Changes

Energy & Utilities
Local Ordinances
Planning & Zoning

Monitor

Passed Senate, awaiting House concurrence vote

H426

Various Environmental Amendments

Energy & Utilities
Local Ordinances

Monitor

Conference Committee appointed

H556

Tenancy in Com./E-Notary/SmallClaims Changes

Landlord-Tenant (Ch. 42)
Courts
Local Ordinances

Actively Support

Vetoed 07/03/2024

H984

Removal of Squatters from Private Property

Courts
Property Management

Actively Support

Passed House, for consideration in Senate

S166

2024 Bldg. Code Regulatory Reform

Building Code
Development
Planning & Zoning

Support

Vetoed 07/05/2024

S445

Recording of Court-Filed Documents

Courts
Landlord-Tenant (Ch. 42)

Actively Support

Vetoed 07/08/2024

Defeated / no longer active bills

Bill

Bill Title

Category

Position

Last Action

H29

Support Private Property Rights

Real Estate

Monitor

Passe House in 2023, no Senate action

H54

Make North Carolina Home Act of 2023

Building Code
State Government

Monitor

Filed in 2023, no action

H55

Fire Investigation Law Revisions

Insurance

Monitor

Passe House in 2023, no Senate action

H114

Home Ownership Market Manipulation

Real Estate
Single Family

Oppose

Filed in 2023, no action

H127

DOI Omnibus Bill.-AB

Insurance

Monitor

Filed in 2023, no action

H132

Govt. Agencies/Delivery of Permits

Permitting

Monitor

Passe House in 2023, no Senate action

H208

Low-Income Housing Tax Credits

Financial Services

Monitor

Filed in 2023, no action

H252

Multijurisdictional Property

Planning & Zoning

Monitor

Passed House in 2023, no Senate action

H255

Regulate EV Charging Stations

Energy & Utilities
Local Ordinances

Monitor

Filed in 2023, no action

H266 / S163

Local Governments/System Development Fees

Local Ordinances
Real Estate

Monitor

Filed in 2023, no action

H294

NC Housing Choice Incentive

Financial Services
Planning & Zoning

Monitor

Filed in 2023, no action

H332 / S275

Streamline Comm./Multifam. Bldg. Plan Review

Planning & Zoning

Actively Engaged

Passed House in 2023, no Senate action

H379

Fair Use of Consumer Reports

Courts
Landlord-Tenant (Ch. 42)

Oppose

Filed in 2023, no action

H409 / S374

Regulation of Accessory Dwelling Units

Local Ordinances
Planning & Zoning

Monitor

Passed House in 2023, no Senate action

H424

Private Parking Immobilization

Property Management

Monitor

Filed in 2023, no action

H466

Allow Temporary Dwellings During Construction

Planning & Zoning
Single Family

Monitor

Passed House in 2023, no Senate action

H474

Facilitate Small Housing

Planning & Zoning
Single Family

Monitor

Filed in 2023, no action

H537

Workforce Housing Act

Planning & Zoning
Real Estate

Actively Engaged

Filed in 2023, no action

H551 / S553

Landlord-Tenant and HOA Changes

Courts
Landlord-Tenant (Ch. 42)
Local Ordinances
Property Management

Actively Support

Majority of contents included in H556

H562

Addressing the Workforce Housing Crisis

Local Ordinances
Planning & Zoning

Monitor

Filed in 2023, no action

H584 / S633

Mobile Home Park Act

Landlord-Tenant (Ch. 42)
Property Management

Monitor

Filed in 2023, no action

H595

Rental Inspections

Local Ordinances

Oppose

Committee hearing in 2023, AANC testified in opposition

H642

Marketable Title Act-Restrictive Covenants

Real Estate

Monitor

Filed in 2023, no action

H645

Inclusionary Zoning/Workforce Housing Funds

Local Ordinances
Planning & Zoning

Oppose

Filed in 2023, no action

H714

NC Junk Fee Prevention Act

Consumer Protection

Monitor

Filed in 2023, no action

H785

Prohibit Fire Sprinkler System Requirement

Building Code

Monitor

Filed in 2023, no action

H789

Eviction Record Expunction Act

Courts
Landlord-Tenant (Ch. 42)

Oppose

Filed in 2023, no action

H791

Eviction Post-Judgment Relief Agreements

Courts
Landlord-Tenant (Ch. 42)

Support Concept

Filed in 2023, no action

H842

Workforce Development & Housing Act

Financial Services

Monitor

Filed in 2023, no action

H850

Licensing Board/Contractors & Inspectors

Building Code
State Government

Monitor

Passed House in 2023, no Senate action

H884

Landlord-Tenant Assistance Pilot/Funds

Financial Services
Landlord-Tenant (Ch. 42)

Monitor

Filed in 2023, no action

H893

Private Commercial Building Inspection

Building Code

Monitor

Passed House in 2023, no Senate action

H925 / S813

Create Dept. of Housing and Comm. Development

State Government

Monitor

Filed in 2024, no action

H929

Highway Safety Omnibus/Addit'l Magistrates

Courts

Monitor

Filed in 2024, no action

H959

Various Changes to HOA Laws

Single Family

Monitor

Filed in 2024, no action

H966 / S886

Expedited Removal of Unauthorized Persons

Courts
Property Management

Actively Support

H984 passed House, this version no longer moving

H1002

Require Findings for Certain Indigent Appeals

Courts

Actively Support

Language included in S445

H1070

Property Rights and Protections

Courts
Property Management

Actively Support

Language included in S445

S30

Licensing Certain Fire Safety Equip. Work

State Government

Monitor

Filed in 2023, no action

S110

GSC Unif. Community Prop. Disp. at Death Act

Courts

Actively Engaged
(worked w/sponsor on clarifications)

Passed Senate in 2023, no House action

S167

Source of Income Nondiscrimination Act

Property Management

Oppose

Filed in 2023, no action

S214

Inspections/Immediate Threat to Occupants

Property Management
Public Safety

Monitor

Filed in 2023, no action

S217

Real Property-Tenancy in Common Changes

Property Management
Real Estate

Monitor

Filed in 2023, included in H556

S225

Act to Permit Local Gov to Enact Rent Control

Landlord-Tenant (Ch. 42)

Oppose

Filed in 2023, no action

S244

Housing Extension

Landlord-Tenant (Ch. 42)

Oppose

Filed in 2023, no action

S290

Short Term Rentals

Local Ordinances
Planning & Zoning

Monitor

Filed in 2023, no action

S312

Changes to Liens and Foreclosures by HOAs

Single Family

Monitor

Filed in 2023, no action

S317

Addressing the Workforce Housing Crisis

Planning & Zoning

Actively Engaged

Filed in 2023, no action

S360

Modify Victim and Sex Offense Registry Laws

Landlord-Tenant (Ch. 42)

Monitor

Passed Senate in 2023, no House action

S365

Development Regulations/Multijurisdiction

Planning & Zoning

Monitor

Filed in 2023, no action

S410

Expand Certain APA Standing Provisions

Association Management

Monitor

Filed in 2023, no action

S424

Restore the American Dream

Financial Services

Monitor

Filed in 2023, no action

S519

Property Tax Increase Limitation for Zoning

Planning & Zoning
Real Estate

Monitor

Filed in 2023, no action

S549

Development Moratoria/Transportation Projects

Development
Planning & Zoning

Monitor

Filed in 2023, no action

S568

Create Dept. of Housing and Comm. Development

State Government

Monitor

Filed in 2023, no action

S583

Housing Studies-Barriers and Homelessness

State Government

Monitor

Filed in 2023, no action

S667

Regulation of Short-Term Rentals

Local Ordinances
Single Family

Monitor

Filed in 2023, no action

S684

Stormwater Program Revisions

Energy & Utilities

Monitor

Filed in 2023, no action

S710

Community Solar Program Changes

Development
Energy & Utilities

Monitor

Filed in 2023, no action

S711

Fuel Gas Detector Act

Landlord-Tenant (Ch. 42)

Monitor

Filed in 2023, no action

S712 / H320

Create Bldg. Code Permit Tech. Cert

Building Code

Monitor

Filed in 2023, no action

S724

Hotel Safety Issues Related Matters

Landlord-Tenant (Ch. 42)

Monitor

Filed in 2023, no action

S744

Environmental Permitting Reforms

Energy & Utilities

Monitor

Filed in 2023, no action

S809

Expand Workforce Housing

Financial Services

Monitor

Filed in 2024, no action