(Simple) Majority Rules

Majority still rules in North Carolina but no longer is a supermajority required to rezone property for development.

On July 23, 2015, Governor Pat McCrory signed HB 201, repealing the so-called “protest petition” from North Carolina zoning law. With the passage of HB 201, rezoning applicants need only obtain a simple majority of affirmative votes. The law became effective for any rezoning petitions filed August 1, 2015 or later.

The new law prevents neighboring property owners from holding a development project hostage. Under previous state law, as few as 5 percent of property owners within 100 feet of a proposed development project could file a petition that would force the rezoning applicant to obtain a supermajority (75 percent) of city/town council votes for rezoning approval. In other words, the rezoning applicant had to convince 3/4ths of elected officials to vote in their favor. No other action taken by North Carolina local governments – even tax increases or budget approval – requires a supermajority vote.  

In many cases, petitioners would use their disproportionate leverage to obtain concessions from the rezoning applicant. Concessions would range from reasonable, subtle site plan changes to outright extortion. Rezoning applicants were often faced with capitulating to the protesters or abandoning the project entirely. Communities across North Carolina often missed out on the benefit of a new development because of the unreasonableness of just a handful of neighbors.

Though it eliminates the protest petition, HB 201 still allows neighbors to protest property rezoning. Neighbors may still object to the rezoning application by encouraging their elected officials to vote against the change. Many local governments already require rezoning applicants to meet with and obtain feedback from community leaders. Savvy real estate developers are mindful of the community even when a project is in its infancy.

Passage of this legislation will hopefully result in the approval of more development projects in North Carolina. And more projects means an expanded tax base, job creation, a stronger economy, and happier communities.

The author is a North Carolina-licensed broker and attorney with expertise in real estate as well as public policy.