NC SB349 and the Fragmentation of Progress

BEHIND THE MIC SERIES #3 | Townbuilder's Podcast Reflections

In this series, I’ll be reflecting on some of my favorite conversations from Seasons 1 and 2 of The Townbuilder’s Podcast, which I had the pleasure of hosting. Throughout these seasons, I engaged in in-depth conversations with nearly two dozen new town developers and designers. With the podcast set to relaunch in 2025 under the new host Levi Wintz, I wanted to revisit these meaningful episodes, sharing my favorite discussions along with some fresh thoughts.

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I will be breaking down Episode 111 of Townbuilders into two blog posts, just because The Minute pre-roll monologue and the actual talk with John Marsh were so unrelated. I really liked them both, and each is worthy of their own post.

My favorite aspect of this episode was my monologue in the pre-roll, a series our production team dubbed “The Minute.” This particular one was about SB349, an ambitious state preemption bill proposed in the North Carolina Senate (at the time of recording in 2021).

The bill features were best unpacked in this Twitter thread by Salim Furth. In short, it featured:

1. Statewide ADU re-legalization

2. Statewide fourplex legalization on all lots currently served by utilities

3. A ban on downzoning without cause

4. A recasting of the 1-2 family residential code as the 1-4 family residential code

5. An ending of owner-occupancy requirements

6. and more

The two most relevant things you should know about SB349 are:

1) SB349 failed. It actually never actually came up for a vote. And,

2) Most of SB349 has now passed through fragmentation bills.

• HB409 now prohibits local governments from mandating owner-occupancy requirements.

• SB382 implements a blanket (if not confusing) ban on downzoning and

• HB488 is in effect this week (1/1/25), requiring North Carolina’s Residential Code to govern 1-4 family structures (the first state to do so).

Parts of SB382 are alive… and well. Thanks for the gif, Nolan Gray.

Additionally, ADU re-legislation has been floating around Raleigh for multiple sessions (and passed overwhelmingly in the House), and it is certain to be seen again.

Statewide housing reforms seem to not be slowing down and have bipartisan support. And I have personally heard rumblings of a Democrat-led effort to ban parking requirements in the state.

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So this is happening. The more cities stick their heels in the ground resisting the great re-establishment of their citizen property rights, the more the state seems intent on swinging its whip.

The Minute monologue, recorded in 2021 and dictated below, forecasted hope for this process. While it presents now as slightly dated, if not archival, I can humbly report appreciation for those reforms now passed and hope for further progress in the future.

I won't dig too into the main podcast, which was with the prodigious and eccentric John Marsh. John is the host of the Redemptification Podcast, Founder of Marsh Collective, and serial entrepreneur with a love for building things that are beautiful and meaningful. More on that next month.

Until then, please listen to or read The Minute. I appreciate your subscription and sharing.

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THE MINUTE

Today on the Minute. Statewide Zoning Pre-emption Bills.

As we wrap the inaugural season of the Townbuilder’s Podcast, let us consider the relevance of a series of state preemptive zoning bills sweeping the country and their likely effect on townbuilding.

In the past year, Oregon, Washington, California, Montana, Wisconsin, and now North Carolina Legislatures have all put forth statewide zoning bills that restrict their cities’ abilities to ban standard forms of urban housing.

Fundamentally, These bills seek to re-legalize Missing Middle Housing.

With carveouts to exempt covenanted neighborhoods, which are typically suburban, these bills are fundamentally urban. They unlock the potential of our cities by distributing the power to build the city back to its citizens.

In North Carolina, the Legislature is proposing allowing 1-4 units, by-right, on every residential lot in the state served by utilities. They are proposing a statewide ADU mandate, where cities would be stripped of their rights to ban granny flats.

For buildings with up to 4 homes, the Legislature is instructing its agencies to use the Residential Code—not the Commercial Code—critical for the production of affordable housing.

Each of these reforms makes small-scale urbanism possible, citizen-driven development doable, and townbuilding better.

The bill’s bipartisan sponsorship indicates that one of the few principles today that cross party lines is that housing is the bedrock of our society, and the multitude of rules that prevent housing deserve to be struck down.

Leadership matters here, and President Biden’s administration is likely the first ever to talk negatively about zoning, and promise to underwrite changes.

So, there is hope for major reforms in the coming years. And that would be a great thing for building and rebuilding our towns.

And that’s The Minute.