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HB 876NORTH CAROLINASession 2025State Billin committee

High Impact

Local Governments Must Complete Development Reviews in Two Days or Face Third-Party Review and Fee Waivers

Original title: Development Application Review Time Lines.

Last action · April 10, 2025: Ref to the Com on Housing and Development, if favorable, State and Local Government, if favorable, Rules, Calendar, and Operations of the House (House action)Sponsors: Karl Gillespie and 3 others

Bill progressHistory & official text ↓

Introduced

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What This Bill Would Do

Official description

Development Application Review Time Lines.

Why it matters

Municipal inspection departments face strict turnaround windows and potential revenue forfeitures starting December 1, 2025.

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

local governments

Local governments must complete administrative reviews and building inspections within two business days or face mandatory third-party reviews, permit issuance, and fee refunds.

Directly affected

property developers and permit applicants

Developers and applicants receive strict review timelines and the right to hire third-party certifiers to bypass delayed municipal permitting while securing fee waivers.

Directly affected

licensed professional engineers and architects

Design professionals holding valid certificates may contract with permit applicants or local governments to perform independent third-party plan reviews.

Key Facts

Local governments must complete administrative reviews of development approval applications within two business days of receipt.
If an application is deficient, the local government must provide the developer with a written deficiency list citing the specific law or policy and corrective actions.
Developers can correct applications, submit written explanations for review within two business days, or appeal administrative decisions.
If a local government fails to complete application reviews within prescribed time frames, the applicant may contract with the Department of Insurance marketplace pool or a licensed engineer or architect for third-party review.

Show all 9 facts

Upon acceptance of a completed third-party plan review certification, the local government must issue permits within two business days and refund or waive all review and permit fees.
Third-party plan reviewers must avoid conflicts of interest, such as having financial interests in labor or materials for the project.
Initial reviews for residential building plans under the North Carolina Residential Code must be performed within two business days, shortened from 15 days.
Inspections must be completed in a timely manner not to exceed two business days from the first request, with required notification if the deadline is missed.
This act becomes effective December 1, 2025, and applies to applications submitted on or after that date.

Frequently Asked Questions

What happens if the local government misses the two-day review deadline?

The permit applicant may elect to utilize and contract with the Department of Insurance of qualified Code-enforcement officials or a licensed professional engineer or architect to perform independent s.

Do applicants have to pay plan review and permit fees if they use a third-party reviewer?

No. Upon acceptance of a completed with certification, the local government must issue applicable permits within two business days and refund or waive all applicable plan review and permit fees for the project.

Can third-party plan reviewers work on projects where they have a financial interest in construction materials?

No. ers must avoid conflicts of interest, including having any financial interest in or being employed by a business furnishing labor, materials, or appliances for the project.

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Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

3 actions

Apr 10, 2025House
Ref to the Com on Housing and Development, if favorable, State and Local Government, if favorable, Rules, Calendar, and Operations of the House
Apr 10, 2025House
Passed 1st Reading
Apr 9, 2025HouseIntroduced
Filed

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

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