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The North Carolina General Assembly recently made headlines by overriding Governor Roy Cooper’s veto of Senate Bill 166 (SB166), introducing significant changes to the state's building codes and regulatory framework. As housing affordability continues to be a pressing issue across the state, these reforms aim to streamline the construction process and ease regulatory burdens. However, the bill has garnered support and criticism from various stakeholders, including building officials, developers, environmental groups, and fire safety organizations.
Additionally, the bill rescinds a mandate requiring all new homes to be built with electric vehicle (EV) charging infrastructure. Instead, this provision is now optional, allowing homebuyers and builders to decide whether or not to include this feature.
Proponents of the bill, including the North Carolina Home Builders Association (NCHBA), argue that such reforms are necessary to reduce construction costs and allow for faster permit processing. Chris Millis, the NCHBA's director of regulatory affairs, highlighted that SB166 targets "unreasonable or unnecessary regulatory schemes," which have added costs to home construction without tangible benefits.
Tim Bradley, president of the North Carolina State Fire Association, expressed concern over the reduced influence of fire officials in the General Assembly, emphasizing the importance of fire safety regulations in residential construction. These concerns are exacerbated by the removal of fire safety experts from the Building Code Council, which critics argue diminishes the council's ability to ensure robust safety standards.
On the other hand, proponents of the bill argue that reducing regulatory barriers will lead to increased housing supply, which will help stabilize or lower housing prices. Kelly Lester, a research analyst at the John Locke Foundation, noted that while SB166 is not a panacea for the housing crisis, it represents a step in the right direction by allowing for more multifamily housing construction under residential codes, reducing costs for developers and homebuyers.
One key area of focus will be how local governments enforce fire safety regulations, given that SB166 limits their ability to impose stricter fire prevention codes. The bill places more authority in the hands of the Building Code Council, which now lacks some of the fire safety expertise it previously had. This could lead to challenges in assessing the fire risk of new residential developments, particularly in multi-family housing projects that are now subject to residential rather than commercial codes.
Additionally, the optional provision for electric vehicle charging infrastructure means that building officials may need to provide guidance to homeowners and developers on how best to implement these systems if desired, without it being a mandatory part of the code.
The ongoing debate between developers, fire safety professionals, and environmentalists will likely shape future discussions on building code reform, not only in North Carolina but across the nation. Building officials will play a critical role in ensuring that this balance is maintained as they enforce these new regulations and continue to advocate for safe, affordable, and sustainable housing.
The Core of SB166
SB166 is designed to reduce regulatory hurdles for developers in response to the housing crisis, which has exacerbated inflation, material shortages, and stringent regulations. One of the most significant aspects of the bill is its restructuring of the North Carolina Building Code Council. The council overseeing code enforcement and development saw its membership reduced from 17 to 13, with a notable decrease in representation from architects, fire service professionals, and coastal experts.Additionally, the bill rescinds a mandate requiring all new homes to be built with electric vehicle (EV) charging infrastructure. Instead, this provision is now optional, allowing homebuyers and builders to decide whether or not to include this feature.
Proponents of the bill, including the North Carolina Home Builders Association (NCHBA), argue that such reforms are necessary to reduce construction costs and allow for faster permit processing. Chris Millis, the NCHBA's director of regulatory affairs, highlighted that SB166 targets "unreasonable or unnecessary regulatory schemes," which have added costs to home construction without tangible benefits.
Concerns from the Fire Safety and Environmental Sectors
While homebuilders and developers have lauded the bill as a way to ease regulatory pressure and increase housing supply, concerns from fire safety professionals and environmentalists paint a different picture. The North Carolina Fire Marshals' Association and the North Carolina State Fire Association have voiced strong opposition, arguing that the bill compromises fire safety. Specifically, they cite the removal of local authority to enact stricter fire prevention ordinances as a potential risk to homeowners, particularly in dense residential areas.Tim Bradley, president of the North Carolina State Fire Association, expressed concern over the reduced influence of fire officials in the General Assembly, emphasizing the importance of fire safety regulations in residential construction. These concerns are exacerbated by the removal of fire safety experts from the Building Code Council, which critics argue diminishes the council's ability to ensure robust safety standards.
Housing Affordability vs. Safety and Sustainability
At the heart of the debate is the balance between housing affordability and the need for safe, energy-efficient, and sustainable homes. Governor Cooper vetoed the bill in July 2024, stating that it "prevents North Carolina’s building code from adopting innovations in construction and mobility that save consumers money," such as energy-efficient construction practices. Environmental groups like the Natural Resources Defense Council also criticized the bill for rolling back sustainability efforts, emphasizing the importance of energy-efficient housing in addressing long-term affordability.On the other hand, proponents of the bill argue that reducing regulatory barriers will lead to increased housing supply, which will help stabilize or lower housing prices. Kelly Lester, a research analyst at the John Locke Foundation, noted that while SB166 is not a panacea for the housing crisis, it represents a step in the right direction by allowing for more multifamily housing construction under residential codes, reducing costs for developers and homebuyers.
What This Means for Building Officials
For building officials, the implementation of SB166 means adapting to a new regulatory landscape that seeks to streamline housing development but may pose challenges in ensuring safety and sustainability. Building officials will need to navigate these changes carefully, balancing the needs of developers for faster permit reviews with the critical role of ensuring that construction standards are not compromised.One key area of focus will be how local governments enforce fire safety regulations, given that SB166 limits their ability to impose stricter fire prevention codes. The bill places more authority in the hands of the Building Code Council, which now lacks some of the fire safety expertise it previously had. This could lead to challenges in assessing the fire risk of new residential developments, particularly in multi-family housing projects that are now subject to residential rather than commercial codes.
Additionally, the optional provision for electric vehicle charging infrastructure means that building officials may need to provide guidance to homeowners and developers on how best to implement these systems if desired, without it being a mandatory part of the code.
TBCF Summary
North Carolina’s enactment of SB166 represents a significant shift in the state’s approach to building regulations, with implications for housing affordability, safety, and sustainability. As building officials adapt to these changes, the challenge will be to maintain high standards of safety and efficiency while facilitating the faster development of housing stock to meet growing demand.The ongoing debate between developers, fire safety professionals, and environmentalists will likely shape future discussions on building code reform, not only in North Carolina but across the nation. Building officials will play a critical role in ensuring that this balance is maintained as they enforce these new regulations and continue to advocate for safe, affordable, and sustainable housing.
