By Jeff Moore
Carolina Journal
The North Carolina General Assembly voted Wednesday to override Gov. Roy Cooper’s veto of Senate Bill 166 , legislation implementing regulatory reforms to building codes in the state.
Housing has been a top issue of concern for residents and policymakers as inflation, regulation, and supply crunches have driven home and rental prices into painful or out of reach territory for many Americans. That issue is front and center in 2024 Building Code Regulatory Reform, SB166. Along with reorganizing the Building Code Council, the law also makes reforms to developer regulations, state building codes, contractor regulations, and environmental regulations.
Originally passed in late June, Cooper vetoed the bill on July 5, asserting the bill limited options for energy efficiency and electric vehicles.
“[T]his legislation prevents North Carolina’s building code from adopting innovations in construction and mobility that save consumers money,” write Cooper in his veto message. “This bill also removes subject matter experts from the building code council, including architects, active fire service, a coastal expert, local government officials, and public at large membership, and limits the knowledge and practical experience of the body tasked with ensuring all buildings are safely designed.”
This week lawmakers took up several veto override votes, SB166 being one of them. Over two days, each chamber voted in requisite numbers to overcome the governor’s objections and enact the bill into law.
The limits on electric vehicles Cooper mentions refers to a previously mandated rule that all new homes be equipped with electric vehicle service, regardless of a homebuyer’s preference. Provisions within SB166 rescind the mandate, leaving such EV service optional for homebuilders and buyers.
Critics of the legislation echoed Cooper’s comments this week in opposition to the legislature’s successful override vote.
“Legislators have traded safety and resilience for substandard construction,” said Drew Ball, Southeastern Campaigns Director at Natural Resources Defense Council, an environmental nonprofit focused on confronting the so-called climate crisis. “North Carolina families deserve affordable housing that is safe, energy efficient, and sustainable.”
Opponents also joined Cooper in criticizing changes to the makeup of the Building Code Council, asserting subject-matter experts are vital in ensuring housing design safety and identifying environmental considerations.
Home builders, however, say if North Carolinians care about housing affordability and supply, these reforms help relieve the pressure. They say removing burdensome regulatory pressures means higher efficiency and lower costs for builders and buyers, alike.
“S166 does nothing to limit energy efficiency, structural integrity, or fire prevention measures within new homes built in our state,” said Chris Millis, director of regulatory affairs for the North Carolina Home Builders Association (NCHBA) to Carolina Journal in an email. “Instead, the bill is focused on targeted and specific instances of unreasonable or unnecessary regulatory schemes preventing timely and cost-effective homes from being built for the benefit of future homebuyers.”
Millis pointed out that some regulations become so tedious, with no obvious benefit, that they merely add costs and time to construction schedules for which consumers end up paying.
“Another example includes the ability to build 3 and 4-family units according to the residential building code (similar to townhome construction), instead of according to the commercial code as currently required, which provides additional housing options at more affordable prices for families who may prefer that product while not sacrificing any life or safety protections,” he continued.
Millis said the reforms within SB166 aim to reduce lengthy permit review times and ease superfluous regulations so builders can increase housing inventory and deliver homes quicker to future homebuyers, speaking directly to the issue of supply and demand.
Kelly Lester, a research analyst at the Center for Food, Power, and Life at the John Locke Foundation, thinks these regulatory reforms are positive steps in the right direction.
While emphasizing that this isn’t a be-all, end-all solution to the housing crisis, she said the changes stand to open up opportunities for more housing supply in some of the highest demand regions of our state which are themselves removing local regulatory burdens.
“This change will benefit cities like Durham and Raleigh, which have both recently deregulated a lot of zoning and building requirements,” Lester told Carolina Journal in an email. “Housing has gone up the past five years and it’s imperative that counties and the state focus on deregulation. This will incentivize more optimal use of land through more multifamily units being built. Supply will increase, which means prices should decrease. However, I want to stress that this change alone will not overhaul the entire housing market; it’s this change, along with deregulations in zoning and building requirements that will make the biggest difference.”
While the statewide regulatory sphere is certainly a factor in housing, local development regulations and zoning rules weigh heavily on the supply and demand dynamics underpinning the current challenges around housing supply.
Notably, SB166 sported a bipartisan group of Republican and Democrat primary sponsors, and enjoyed bipartisan support through initial votes on its way to the governor’s desk. However, none of the originally supportive Senate Democrats voted to override Cooper’s veto of the legislation, including primary sponsor Sen. Paul Lowe, D-Forsyth.
In the NC House, six Democrats joined Republicans in voting to override Cooper’s veto. The legislation is now enacted as Session Law 2024-49.
Jeff Moore is Carolina Journal’s deputy editor. Moore has worked extensively in conservative politics, policy, and media in North Carolina, including most recently as the North Carolina Republican Party’s communications director.
