Politics

Rep. Johnson says zoning bill now exempts smaller counties

Rep. Jake Johnson makes a point during a meeting of a meeting of a committee he chairs.

By NC Tribune and Lightning Reports, Published: May 10, 2025

Drives in the state Legislature to reduce local control over higher density residential development and allow "granny flats" in all residential zones are running into some roadblocks. It remains to be seen if they’re temporary.

Rep. Mark Brody, R-Union, conceded Wednesday that House Bill 765, the omnibus measure that would set residential-zone density minimums across the state, wouldn’t make it through the chamber before crossover.

“It’s on a hold,” Brody said. “We’ve got to do some analyzing of it [to see] what are the things in particular that people didn’t like in the bill. If there are some good things that we want to preserve, there are other vehicles we can use.”

Brody’s comments came after it became evident that the bill had stalled in House Rules and wouldn’t reach the floor for a vote on Wednesday, although House leaders also acknowledge that the bill is not subject to the May 7 crossover deadline.

House Bill 765, the omnibus measure that would force local government bodies to allow higher density residential development by right, impose strict deadlines on site plan reviews and restrict local boards' ability to impose conditions on rezonings, faces widespread pushback across the state.

“If this goes through, we essentially lose control,” Flat Rock Vice Mayor Matt Toner said during a Village Council meeting on April 21 to adopt a resolution opposing the bill. “It’s pretty far reaching and wrests control from local representatives.” Later the same day, the Henderson County Board of Commissioners, too, adopted a resolution against the measure.

In response to the local government pushback, state Rep. Jake Johnson, a Polk County Republican, announced on Wednesday that he and other bill sponsors had negotiated agreements with stakeholders on the so-called Save the American Dream Act.

"This bill was a result of years in which certain counties and municipalities across the state weaponized the zoning and permitting process against private landowners and builders," he said in a news release, calling some zoning decisions "egregious government overreach" by "bad actors." However, he acknowledged the original draft of the bill went too far in punishing "good actors" and did not narrowly target those who the bill sought to rein in.
“I voiced to local officials across the district that I would be advocating for their ability to continue handling land-use regulations," he said. "Today, I am happy to announce that in the latest agreement that was reached, many of the concerning provisions for local governments have been removed from the bill."

The bill now would apply to counties with populations over 275,000 people in the 2020 census. That means the new law would exempt Polk, Henderson and even Buncombe County, which had a population of 269,452 in the last census.

"I believe that if density requirements were altered to the extent originally proposed, it could have negative impacts on the rural characteristics of our small towns and counties, which is certainly not the intent of the bill," said Johnson, one of 17 sponsors of the bill in the House. "So, I am grateful to the stakeholders who came to the table and helped us make these welcome changes. I was born and raised in Polk County, and my priority is to maintain the rural aspects of our towns and counties, while respecting the legal private property rights of all citizens.”

HB 765 wasn’t the only housing-related bill to run into headwinds on Wednesday. House Speaker Destin Hall at least temporarily halted a floor debate on House Bill 627, which would allow the construction of so-called “granny flats” by right in areas zoned for single-family homes.

He intervened after Reps. Jay Adams, R-Catawba, and Pricey Harrison, D-Guilford, denounced the bill as an intrusion on local prerogatives.

It remained to be seen early Wednesday evening whether HB 627 would return to the calendar before the House finished its pre-crossover work.

Hall said he stepped in to give “members a chance to talk” through their differences and that it was possible the House would end up acting on the granny-flat bill later in the evening.

Despite that, Hall voiced optimism about its prospects of getting a vote later in some form, despite missing the crossover deadline.

“That bill’s not dead. Far from it,” Hall said. “They’re going to continue to work on that thing along with members on both sides of the aisle. ... In fact, I would say it’s closer to completion than it is to dying.”

On the other side of the building, Senate leader Phil Berger likewise said missing crossover likely isn’t the end of the matter for this session.

“There is an interest in the Senate in dealing with what folks would consider to be impediments to the supply of housing,” Berger said. “I think there will be an opportunity in other bills to try to piece together some things.”