Quick Answer
Senate Bill 1051 (2025 Session), "Don't Zone Out Child Care," would void any HOA or condominium governing-document provision that prohibits, restricts, conditions or penalizes a licensed family child care home, bar related fees and fines, and add G.S. 47F-3-123. It would also restrict landlords and local zoning. This bill has not become law. As shown on the North Carolina General Assembly bill page when we checked on November 13, 2026, it has not passed either chamber; check the bill page for any later action.
The one thing a board most needs to know: as filed, the bill would void conflicting provisions in existing governing documents as of its effective date, while still letting an association enforce generally applicable rules on parking, noise, exterior modifications and common areas.
At a Glance
| Item | Detail |
|---|---|
| Bill | Senate Bill 1051, "Don't Zone Out Child Care" (2025-2026 Session) |
| Primary sponsors | Senators Chaudhuri and Burgin |
| Sections | New Article 7A of Chapter 110 (G.S. 110-107.25 to 110-107.30) and new G.S. 47F-3-123 |
| Effective date if enacted | Effective when it becomes law; Section 5 voids contrary provisions in existing governing documents and leases as of the effective date |
| Status when checked | Filed April 30, 2026; first reading and referral to Rules May 4, 2026; on May 5, 2026 withdrawn and re-referred to Appropriations/Base Budget |
| Remedy or penalty | Operator may sue for declaratory and injunctive relief, damages and attorney's fees if prevailing; Attorney General may enforce |
What the Bill Would Do
HOA provisions
- G.S. 110-107.26(a): any provision of an HOA governing document that "prohibits, restricts, conditions, or penalizes" operation of a licensed family child care home by a member or resident holding a valid license under G.S. 110-88 "is void and unenforceable as contrary to the public policy of this State."
- G.S. 110-107.26(b): a homeowners or condominium association may not deny, suspend, revoke or condition membership rights or privileges solely because of the operation, impose fees, assessments, fines or penalties solely on that account, or require association approval or consent as a condition.
- G.S. 110-107.26(c): the association may still enforce "rules of general applicability relating to parking, noise, exterior modifications, or use of common areas" if they are not more burdensome on licensed family child care homes than on other residential uses.
- G.S. 47F-3-123 (Section 2): a homeowners association "shall not prohibit, restrict, or penalize" a licensed family child care home by a lot owner or tenant with a valid license; contrary provisions are void and unenforceable.
- G.S. 110-107.30: the Article applies to governing documents, leases and ordinances adopted before, on or after the effective date.
Other parts of the bill
Landlords could not prohibit or penalize licensed child care homes in leases, though they could require notice, a copy of the license and liability insurance. Local governments would have to treat licensed family child care homes as residential uses permitted as of right where residential uses are allowed, with limits on special-use permits and commercial standards. Section 4 appropriates $75,000 to the Department of Health and Human Services and $100,000 to the Department of Justice for guidance, training and a complaint intake process.
What This Means in Practice
How it compares to current law
Current law we read protects some uses against HOA covenants (for example solar under G.S. 22B-20 and flags under G.S. 47F-3-121), but we did not read any provision of current law on family child care homes. Session Law 2026-51 leaves HOA restrictions on no-impact home-based businesses in place; see our S.L. 2026-51 page. S 1051 would go the other way for licensed family child care homes.
For boards
No change is needed because the bill is not law. A board can prepare by identifying any covenant or rule that restricts business or child care use, and by making sure its parking, noise, exterior and common-area rules are written generally and enforced evenly, since subsection (c) would preserve those.
For owners
Do not rely on the bill yet. A license issued under G.S. 110-88 is the condition for its protections.
What the bill does not say
- It does not define "family child care home" itself; it cross-references G.S. 110-86(3)b. and G.S. 110-88, which we did not read for this page.
- It does not address insurance requirements for HOA-based operators, although it does for tenants.
- Whether a retroactive voiding of existing covenants raises constitutional questions is outside our review. Ask counsel if it advances.
- The wording of new G.S. 47F-3-123 refers to a "subsection" in a section that has no subsections, which looks like a drafting point that may be tidied in later editions.
Timeline
| Date | Event |
|---|---|
| April 30, 2026 | Filed |
| May 4, 2026 | Passed first reading; referred to Rules and Operations of the Senate |
| May 5, 2026 | Withdrawn from committee; re-referred to Appropriations/Base Budget |
| November 13, 2026 | Date we checked the bill page: no later action shown |
Related North Carolina Law
- S.L. 2026-51: home-based businesses
- G.S. 47F-3-102: association powers
- G.S. 47F-3-121: flags and political signs
- G.S. 22B-20: solar collectors
- H 1212 (2026): HOA accessory limitation ban
- North Carolina HOA laws complete guide
Board Checklist
- Check the bill page for committee action.
- List any covenant or rule that touches child care or home business use.
- Confirm your parking, noise, exterior and common-area rules are written generally.
- Apply those rules evenly to all residents.
- Do not issue new fines or denials based on child care use without counsel review.
- Ask counsel how Section 5 would affect existing documents if the bill is enacted.
Frequently Asked Questions
Is Senate Bill 1051 law?
No. It was filed April 30, 2026 and was re-referred to the Senate Appropriations/Base Budget committee on May 5, 2026.
What would it do to HOA rules?
It would void governing-document provisions that prohibit, restrict, condition or penalize a licensed family child care home, and bar related fees, fines and approval requirements.
Could an HOA still enforce parking or noise rules?
The bill says yes, if the rules are of general applicability and not more burdensome on child care homes than other residential uses.
Would it affect existing covenants?
As filed, Section 5 says contrary provisions in existing governing documents are void and unenforceable as of the effective date.
Does it cover condominiums?
The G.S. 110-107.26 provisions refer to homeowners and condominium associations. New G.S. 47F-3-123 refers to homeowners associations.
How is this different from the home-based business law?
S.L. 2026-51 limits city rules and leaves HOA restrictions in place. S 1051 would limit HOA rules for licensed family child care homes.
Where We Stand
Our position: we support this bill, with a caveat. Child care access is a real community need and the bill keeps general parking, noise and common-area rules in place. The caveat is that it would void existing covenants, so associations would need time and counsel to review their documents. Tip: audit your rules for anything that singles out in-home child care and keep neighborhood-wide rules neutral in wording and enforcement. This is Association Property Managers' operating view as a management company, separate from the legal summary above, and it is not legal advice.
Where This Comes From
This page is based on the Senate Bill 1051 status page and Edition 1 bill text read on the North Carolina General Assembly site (Senate Bill 1051 on ncleg.gov), and on our existing S.L. 2026-51 page. We did not read the bill digest, fiscal note or the Chapter 110 definitions.
How APM Helps
Association Property Managers provides remote HOA and condo management for associations in North Carolina, starting at a flat $99/month per community with no per-door fees or long-term contracts. See remote management in North Carolina, browse every North Carolina state-law guide, or request a free proposal, delivered within three business days. Laws and licensing rules differ by state, and we confirm the requirements for North Carolina when we build your proposal.
Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed North Carolina attorney before acting.
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