North CarolinaHB 472025-2026 SessionHouseWALLET

AN ACT TO ENACT THE DISASTER RECOVERY ACT OF 2025 – PART I.

Sponsored By: IV John R. Bell (Republican), Dudley Greene (Republican)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

18 provisions identified: 14 benefits, 1 costs, 3 mixed.

Homeowners get rebuild help and deadlines

The law funds a $120 million Home Reconstruction and Repair Program for storm‑damaged homes. It also sends $217 million to finish homeowner recovery work from Hurricanes Matthew and Florence. NCORR must hit Notice‑to‑Proceed targets: 88.5% by May 1, 2025; 90% by June 1; 91.5% by July 1, with unawarded projects capped at 100, 70, and 40 on those dates. NCORR must give quick written updates after each deadline and weekly, and send monthly reports starting August 1, 2025. Program setup plans are due to lawmakers by March 31, 2025 before applications open.

Big funding shifts for recovery

The state moves $299 million from the disaster reserve into the Helene Fund to pay for recovery programs. It also moves any leftover Hurricane Florence Disaster Recovery Fund money back to the Savings Reserve when the law takes effect.

Easier rebuilding of nonconforming homes

Homeowners in the affected area can repair or rebuild nonconforming homes even if local rules would normally block it. The home cannot be larger than the old footprint and must keep a similar residential use. Work must meet floodplain rules and follow local rules as much as possible. This option is in effect now and ends June 30, 2030.

Fixes for private roads and bridges

The state funds a $100 million program to repair or replace private roads and bridges damaged by the storm. Projects that are the only way in or out for homes get priority. If an HOA owns the road or bridge, the state pays no more than 50%, and the HOA share cannot be state money. NC Emergency Management can use up to 2% for admin, must seek federal aid first, and ownership does not shift to the state. Annual reports run through June 30, 2029.

Short-term rent help for Helene renters

Beginning October 25, 2024, county social services provide rental help in Helene‑affected counties that qualify for FEMA aid. Households at or below 200% of the federal poverty level can get up to two one‑time payments. Each payment cannot be more than the local HUD two‑bedroom fair market rent. Counties may use up to 5% of their funds for administration.

Winter storm flexibility for schools and staff

Public school units in listed counties can make up missed days from December 2024 through February 2025 or count up to 10 missed days as completed. Staff and contractors are treated as having worked on days counted as complete and must be paid. The Department of Public Instruction must report to the legislature by May 1, 2025 on missed days, days deemed complete, makeup days, and pay provided.

Farmers get crop loss payments

The law funds $200 million for verified Hurricane Helene farm losses and $100 million for other verified 2024 farm disasters. To qualify, farms must be in affected counties and file Form 578 or a Department form within 45 days; nurseries and specialty crops can request one 45‑day extension. Payments are taxable. Awards may be audited, and ineligible awards must be repaid with interest. The program ends 30 months after it starts; up to 1% may cover admin costs.

Help for small business infrastructure

The state provides $55 million to local governments to fix damaged infrastructure that serves small businesses (150 or fewer employees). No county can get more than 10% of the fund; grants go first‑come, first‑served. The Department may use up to 1.5% for admin and reports starting December 15, 2025. Another $4 million funds a tourism campaign to bring visitors back, coordinated with DOT and highlighting open Blue Ridge Parkway segments.

Emergency and relaxed rules extended

The statewide emergency stays in effect through June 30, 2025. Earlier disaster flexibilities for permits, water and wastewater, temporary housing hookups, handgun permit timing, and manufactured homes remain in force until the emergency ends. These extensions apply retroactively to March 1, 2025.

More support for debris cleanup

The law gives $20 million to agencies and local governments to remove debris and sediment where other funds fall short. Small and volunteer fire departments in affected counties can get grants up to $500,000 from a $10 million fund. Nonprofits active in disaster recovery get $10 million in grants. VOADs and local governments can borrow surplus heavy equipment for five years with no fees and then own it, and VOADs may buy under state contract. Inmates may be used to clear disaster debris on public roads, with streamlined coordination.

Road repairs add broadband, seek reimbursements

When road repairs are a quarter mile or longer in affected counties, crews must work with internet providers to install permanent broadband. Temporary backbone lines should be made permanent if it is cost‑effective. DOT and local governments must allow underground broadband in rights‑of‑way for these projects. DOT must also hire a manager to chase FEMA and federal highway reimbursements and report monthly with itemized details.

Tighter oversight and guardrails on funds

OSBM must report on recovery funds quarterly starting May 15, 2025 and monthly whenever it spends recovery money. The Governor must report past Helene relief payments within 15 business days and then report weekly after each payment. The State Auditor runs audits and keeps a public dashboard of appropriations vs. spending. Unused Part II funds go back to the Savings Reserve after June 30, 2030. Anyone who gets state funds must seek insurance, federal aid, or donations and pay back up to the state amount if they later get other money. The law also creates a Recovery and Resiliency Office on October 1, 2026 to manage long‑term recovery and help local governments.

Utility claims paused and code delayed

Utilities still must get easements for pole and transformer work, but landowners cannot file inverse condemnation or trespass claims for that work during the emergency and for one year after. The filing window is extended, and if a claim later wins, prejudgment interest is allowed from the repair date. The 2024 Building Code takes effect 12 months after the State Fire Marshal certifies publication and setup of the Residential Code Council and notifies lawmakers.

Easier volunteer health care in affected areas

Boards for doctors and nurses cannot enforce some annual review and quality‑plan rules for physician assistants and nurse practitioners who live or work in the affected area. The law also waives applications and fees for people volunteering health care within their license. It does not apply to providers with surrendered or suspended approvals. These waivers end one year after the statewide emergency ends.

Extra in-person learning for students

After the 2024–25 year, schools in listed counties may offer a voluntary, in‑person program for grades 4–8. It must provide at least 72 hours of instruction with meals, transportation, and reading and math focus. Students who are not proficient get priority. The state provides $9 million, with $20,000 per participating school unit and up to $200,000 statewide for assessments; leftover funds revert on October 15, 2025.

Retired public workers can return sooner

If an agency certifies a need tied to the Hurricane Helene emergency, eligible retirees can return to work after one month instead of six. The agency must certify the need to the Retirement Systems Division. Transitional rules cover certain work periods, and this authority ends when the statewide emergency ends.

More time for damaged funeral homes

Funeral homes damaged by fire, weather, or disaster can suspend preparation‑room rules for up to two years. A court may extend that up to three years from the loss date (or one year from the court order) for good cause. The business must still follow other laws. The licensing board may set rules to run these extensions.

Disaster SNAP funds cut by $4M

The law reduces Disaster SNAP funding by $4 million. The State Controller moves that money to the Department of Commerce’s media campaign. This lowers the pool of disaster food assistance funds.

Sponsors & Cosponsors

Cosponsors

Jonathan L. Almond
Republican • House
Dana Jones
Republican • Senate
Jennifer Balkcom
Republican • House
Brian Biggs
Republican • House
Hugh Blackwell
Republican • House
Jerry "Alan" Branson
Republican • House
Deb Butler
Democratic • House
Celeste C. Cairns
Republican • House
MD Grant L. Campbell
Republican • House
Carson Smith
Republican • House
Allen Chesser
Republican • House
Mike Clampitt
Republican • House
Bryan Cohn
Democratic • House
Tricia Ann Cotham
Republican • House
Blair Eddins
Republican • House
Karl E. Gillespie
Republican • House
Pricey Harrison
Democratic • House
Chris Humphrey
Republican • House
Cody Huneycutt
Republican • House
Frank Iler
Republican • House
Todd Johnson
Republican • Senate
Kyle Hall
Republican • House
Keith Kidwell
Republican • House
Ya Liu
Democratic • House
Donnie Loftis
Republican • House
Carolyn G. Logan
Democratic • House
Jeffrey C. McNeely
Republican • House
Charles W. Miller
Republican • House
Marcia Morey
Democratic • House
Jr. Ben T. Moss
Republican • House
Jr. Howard Penny
Republican • House
Ray Pickett
Republican • House
Larry W. Potts
Republican • House
Jr. A. Reece Pyrtle
Republican • House
MD Timothy Reeder
Republican • House
Dennis Riddell
Republican • House
Stephen M. Ross
Republican • House
Paul Scott
Republican • House
Mitchell S. Setzer
Republican • House
Larry C. Strickland
Republican • House
Brian Turner
Democratic • House
Steve Tyson
Republican • House
Bill Ward
Republican • House
Harry Warren
Republican • House
Diane Wheatley
Republican • House
Donna McDowell White
Republican • House
David Willis
Republican • House
Matthew Winslow
Republican • House