The recent expansion of the North Carolina Residential Code to encompass up to four-unit dwellings marks a significant shift in the state’s approach to residential construction. This change, effective January 1, 2025, under House Bill 488 (HB488), reclassifies triplexes and quadplexes under the less restrictive International Residential Code (IRC), moving them away from the more stringent International Building Code (IBC).
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Implications for Property Management and Landlords
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Streamlined Compliance:
By aligning triplexes and quadplexes with the IRC, property managers and landlords can navigate a more straightforward regulatory environment. The IRC’s less stringent requirements compared to the IBC reduce administrative burdens, allowing for more efficient property management operations.
Cost-Effective Construction and Renovation:
The elimination of mandatory sprinkler systems and the reduction of fire resistance ratings to a maximum of two hours for separation assemblies can lead to significant cost savings in both new constructions and renovations. These savings can be redirected towards enhancing property features that attract and retain residents.
Expansion Opportunities in the “Missing Middle” Housing Market:
The code revision encourages the development of small-scale multifamily units, often referred to as “missing middle” housing. This opens avenues for property managers and landlords to diversify their portfolios and meet the growing demand for affordable, multi-unit residential options.
Enhanced Marketability:
With clearer and more consistent construction standards, properties can become more attractive to potential residents. The simplified code can also facilitate smoother transactions, as buyers and investors gain confidence in the standardized quality and safety measures.
Considerations Moving Forward
While the code expansion offers numerous benefits, property managers and landlords should remain cognizant of local zoning laws that may still impose restrictions on multifamily housing developments. Additionally, staying informed about financing rules and potential resistance from local authorities, such as fire marshals, is crucial. Proactive engagement with these stakeholders can help in navigating any challenges that arise.
Conclusion
In conclusion, the expansion of the North Carolina Residential Code to include up to four-unit dwellings presents a valuable opportunity for property management professionals and landlords. By leveraging the streamlined regulations and cost savings, stakeholders can effectively contribute to addressing housing shortages and meet the evolving needs of the rental market.
