Home-based business bill becomes state law
The law limits how cities regulate no-impact home-based businesses and includes changes affecting homeowners associations and condominium associations.
RALEIGH — A bill limiting how North Carolina cities regulate certain home-based businesses is now state law.
House Bill 372, titled the “Home-Based Business Fairness Act,” became Session Law 2026-51 on July 8 after Gov. Josh Stein signed it July 7, according to the North Carolina General Assembly. The bill was ratified July 1 and presented to the governor July 2.
The law applies statewide and lists no counties specifically cited. The bill page lists Reps. Jeffrey Johnson, Mike Chesser, Donnie Rhyne and Brian Schietzelt as primary sponsors. Keywords on the bill page include commerce, housing, local government, municipalities, planning and zoning, real estate, small business and homeowners associations.
A nonpartisan legislative analysis says the measure limits city authority to regulate “no-impact home-based businesses,” allowing them to operate on property used for residential purposes. The bill does not override private land-use restrictions in deeds, bylaws or homeowners association documents.
Under the analysis, cities may not require a no-impact home-based business to obtain approval to operate, submit a rezoning petition for commercial use or install fire sprinklers in a building subject to the North Carolina Residential Code. Cities may still impose reasonable regulations narrowly tailored to protect public health and safety and ensure compatibility with residential use.
The final bill also includes provisions affecting condominium and homeowners associations. A Legislative Reporting Service summary says the bill changes rules involving association contracts, parking restrictions, lessons provided in a unit or lot, fines, lien claims, foreclosure timelines, access to association contracts and mediation in certain association disputes.
The House concurred in Senate changes June 30 by a 111-2 vote. The Senate approved the measure on second reading June 24 by a 42-0 vote.
Editor’s note: This article was drafted with the assistance of artificial intelligence and was reviewed and fact-checked by a member of the NC Political News editorial team before publication.
