Rep. Cunningham files bill in North Carolina House to reform local development regulations

A new bill filed by State Rep. Cunningham seeks to reform local development regulations and zoning processes to improve housing and development oversight in North Carolina, according to the North Carolina State House.

The bill, filed as HB 765 on April 3 during the 2025 regular session, was formally listed with the short title: ‘Save the American Dream Act.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill seeks to reform local government development regulations in North Carolina with several substantial changes. It requires fiscal notes for any proposed law or ordinance that could impact housing costs, mandates administrative approvals for certain zoning and development decisions, extends the vesting period for site-specific development plans from two to five years, and strengthens conflict of interest rules for local governing board members. Furthermore, the bill limits local zoning regulation authorities, mandating that zoning districts be based on density rather than lot size. The bill also requires cities with a population over 125,000 to allow construction of tiny houses and accessory dwelling units in residential areas and demands expedited decisions on rezoning and site plan reviews within 90 days. Additional measures include authorizing package plant wastewater treatment systems, requiring water and sewer systems to reserve capacity for proposed developments, and establishing legal remedies against local government officials for certain development-related actions. The act contains a severability clause and becomes effective upon being signed into law, with some sections having specific effective dates.

Of the four sponsors of this bill, Cunningham proposed the most bills (35) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Cunningham graduated from Central Piedmont Community College in 1981 and again in 1996 from Gaston College with an AAS.

Cunningham, a Democrat, was elected to the North Carolina State House in 2013 to represent the state’s 106th House district, replacing previous state representative Martha B. Alexander.