Raleigh, NC — On Monday, July 6, Governor Josh Stein signed House Bill 162 (formerly H369), Parking Lot Reform/Stormwater Control, into law. The bill passed the North Carolina Senate 44-1 on June 23rd before the House voted 111-2 to concur on June 30th. 

H162 began as H369, sponsored by Representatives Donnie Loftis (R-Gaston), Mark Brody (R-Anson, Union), Howard Penny Jr. (R-Harnett, Johnston), and Allison Dahle (D-Wake) and championed in the Senate by Senator Ted Alexander (R-Cleveland, Lincoln, Gaston). This bill aims to reduce flooding and water pollution, lower housing and development costs, and revitalize main streets by eliminating outdated parking regulations and empowering local governments to better manage runoff during redevelopment. 

Piedmont Promise, an alliance of conservation-minded organizations in North Carolina’s Piedmont region, helped spearhead this effort and applauds the bill’s passage as a step forward for the well-being of all North Carolina’s waterways and communities. 

“Parking reform might not sound like a conservation issue, but impervious surfaces, like parking lots, are the leading cause of water pollution in North Carolina. Just one inch of rain on a single acre of pavement generates 27,000 gallons of runoff, washing pollutants directly into our waterways and intensifying downstream flooding. This is a meaningful win for conservation groups, housing advocates, small businesses, local governments, farmers, and, of course, everyone who loves and relies on North Carolina’s lakes, rivers, and streams,” said Ryan Carter, Piedmont Promise Director. 

The bill first eliminates off-street parking minimums, regulations requiring developers to build a fixed number of parking spaces regardless of market demand. With each space costing $5,000 to $50,000 to construct, these mandates increase development costs that are often passed on to consumers through higher prices. Excess pavement created by these mandates also contributes to flooding, water pollution, higher air and water temperatures, and urban sprawl. A growing number of North Carolina communities have repealed these requirements and seen new business activity and housing options as a result. 

The bill also gives local governments explicit statutory authority to incentivize runoff capture on properties being redeveloped. While local governments have sought to exercise this authority on older sites built before modern runoff standards, ambiguity in state law has left some municipalities hesitant to act. H162 removes that uncertainty, giving communities a legal basis to protect waterways and reduce flood risk. 

Support from conservation, housing, business, farming, and other community groups reflects the broad impact of this reform. With Governor Stein’s signature, North Carolina moves toward growth that works for our waterways and communities.