NC H474

Defines "small housing" as detached single-family dwelling units no greater than 800 square feet, built to North Carolina Residential Code standards, including tiny houses, cottage homes, and accessory dwelling units.

Requires local governments to allow small housing in areas zoned for residential or mixed-use residential development that permits detached single-family dwellings.

Exempts private covenants and contractual agreements among property owners from the requirement, allowing homeowners associations to maintain existing dwelling type restrictions.

Prohibits local historic districts and properties on the National Register of Historic Places from being required to allow small housing unless approved by the local historic preservation authority.

Prevents local governments from requiring additional fees, meters, or approvals for connection to existing water and sewer systems; permits requirement of new or upgraded septic systems only if existing system cannot handle additional capacity.