In a little publicized bipartisan act, North Carolina recently removed a regulatory barrier for developers regarding parking lot construction. This change that could usher in new housing and reduce costs to developers was supported by an unlikely bipartisan coalition.
It all came to reality when on July 7, Governor Josh Stein signed HB 162– the Parking Lot and Stormwater Control Act – into law. Because of this, starting in 2027, the new law gives the jurisdiction of parking lot construction back to local communities and eliminates off-street parking minimums.
Why is this seemingly low-level law important?
Former limits to housing growth
MountainTrue, a local non-profit which advocates to protect forests, safeguard clean water, and build healthier communities, conducted a series of meetings around Western North Carolina to advocate for passage of the bill earlier this spring.
On the surface, giving developers more leeway to build may seem at odds with their mission, but the ultimate goal was not: to give communities greater avenues in finding affordable housing solutions.
On April 1, Susan Bean, housing and transportation director, and Callie Moore, Southwestern regional director of MountainTrue, spoke with Town of Franklin Mayor Stacy Guffey, Town Manager Amie Owens, and Council Member Travis Higdon at a public event on the potential benefits the bill could bring to downtown revitalization efforts.
“The cost to build parking is very high,” explained Bean. “The average cost of a parking lot space is now $18,000 per space.” The costs climb to $25,000 to $30,000 for parking decks.
She told the town that North Carolina law required parking spaces to be built based on planned square footage of adjacent new buildings. The formulas for spaces-to-building-size requirements were created before on-street and off-street parking proliferated around the state. While the number of underutilized parking lots grew, the regulations were never adjusted.
“If you want to build a small house on a small site, the parking requirement can make it difficult to get square footage added into building design rather than to the dedicated parking spaces,” said Bean. While developers could seek exemptions from this regulation, the process was cumbersome.
Bean emphasized the new law would only remove statewide minimum requirements. Localities could still determine parking needs, and developers could, “build as much as they want. They will still be incentivized by market demands.”
Americans with Disabilities Act accommodations would also remain in effect to ensure handicapped parking spaces are available.
“My concern is that the general public may misunderstand the intent of the bill and think, ‘You’re taking away our parking’,” said Bean. “Our goal is less regulation.”
Moore added that a side benefit of the new law would be to help reduce unnecessary impervious surface lots. In other words, smaller lots allow for more water to seep into the ground. Following heavy rains, runoff from paved lots can cause flooding, erosion, and pollution in local waterways. Water turbidity and damage to downstream properties could be reduced by giving towns like Franklin the ability to control runoff that best fits the topography of the area rather than dedicating limited space to parking lots.
New downtown redevelopment options
Mayor Guffey noted in April that Franklin has, “a lot of potential for infill.” Without the parking lot regulations, he suggested, “we could invest in a parking garage and open up land” that could attract downtown business and housing development.
Guffey pointed out that parking usually leads the top of priority lists in any downtown development plan. For example, over 44% of respondents recommended parking as a downtown priority in the 2020 Comprehensive Land Use Plan. At that time, less than 0.5 percent of current land in the Town of Franklin was used for parking and utilities.
Owens said the town is considering building a parking deck with two options currently in play where more than 100 new spaces could be offered. The size of the deck would have to meet fire and safety codes as well as fit in with downtown aesthetics.
Mayor Guffey chimed in, “There’s a perception of not having parking. We’re doing the downtown transformation project right now. Let’s build a downtown worth walking to,” while addressing needed parking reforms.
Act passed with widespread support
Ryan Carter, policy director at Catawba Riverkeeper, said the group was “very proud” of getting this regulatory reform across the finish line.
“It was not a partisan issue. It was always just about parking lots,” said Carter, who said the group hopes this rollback will offer wider opportunities for developers to think creatively on housing options across the state.
According to Carter, some North Carolina communities like the Town of Cramerton had already been pulling back on minimum parking space requirements to increase development opportunities and rehabilitate older, unused properties. That “proof of concept” helped demonstrate what a statewide loosening of regulations could offer.
Carter pointed out that Franklin now had various options to address parking, such as pursuing the parking deck option, as it continues its revitalization study. What it does not have is unnecessary requirements imposed by the state.
Carter noted that as part of the compromise language, the bill’s authors made changes to the stormwater provisions to address costs to developers. Once that was added in, the bill sailed through the Senate (44-1) and the House (111-2).
“Building more housing is essential, and making that housing affordable is an even greater challenge,” stated Stephanie Watkins-Cruz, director of housing policy at the NC Housing Coalition at the signing ceremony July 7. And sometimes, noted Watkins-Cruz, “You can get actually get developers, conservationists, housing nerds, and advocates in the same room to agree.”
