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May 31, 2026
Are legislative gaps responsible for rapid growth issues?
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Editorial
As state leaders push for more housing, questions remain over whether North Carolina’s development review process adequately considers school capacity, developer oversight and long-term infrastructure impacts.
In May 2026, North Carolina Governor Stein signed an executive order aimed at expanding affordable housing and a second order focused on increasing construction apprenticeships.
Under North Carolina General Statute 160D-803, local governments are required to establish standards for reviewing subdivision plats. The law directs municipalities and counties to seek input from transportation and public health officials regarding roads, drainage, water, and sewer systems.
School capacity is not listed as a required review standard.
Moore, Lee and Harnett each have school representatives act as advisors to the planning board to keep them updated on school capacity. Planners know. Developers know. But the law does not mandate school capacity as a consideration for approval.
Under North Carolina law, subdivision approval authority may be assigned to elected boards, planning boards, review committees, or staff, depending on local ordinances. Once subdivision regulations are in place, no plat may be recorded unless it has been reviewed, approved, and signed to ensure compliance with development standards.
North Carolina law does not require local governments to conduct developer background checks before approving subdivisions. In addition, municipalities and counties are granted broad immunity from many lawsuits related to planning and development approval decisions.
Lee County School Board Chairperson, Sherry Womack, introduced the resolution calling for collaboration between the county, city, and school district to address capacity standards. The school board adopted the resolution; however, the county and city have not yet adopted the proposed resolution. Review the resolution here.
Citizens may want to contact their representatives to request legislation for school capacity and development, such as House Bill 1119.
As a result, questions remain regarding whether school capacity will be formally integrated into subdivision approval processes before major residential developments are approved.
Housing Development Oversight and Industry Reporting
In May 2026, The Wall Street Journal reported on homeowner complaints involving major residential development companies. The report included allegations from homeowners regarding construction practices during periods of rapid expansion. The report noted D.R. Horton had established financial reserves related to homeowner complaints.
According to a June 2018 WECT report, homeowners filed complaints with the North Carolina Attorney General’s Office regarding D.R. Horton homes.
More recently, in 2023, homeowners in the Rose Hill subdivision in South Carolina filed a lawsuit against D.R. Horton alleging construction defects, including water intrusion, foundation cracking, leaking windows, masonry issues, slab problems, and workmanship concerns, according to reporting by Dallas News. The case was later settled for $16.1 million.
Sanford Development Review
At its May 19 meeting, the Sanford City Council tabled the Oakton subdivision proposal, a planned 473-home development by applicant Mark Lyczkowski. The request for delay was made to provide time for a realistic, detailed renderings of how the completed development would appear to traffic entering the “Gateway to the City.”
The Oakton project was originally approved in 2021 and has since been revised, including a reduction in the overall number of townhome units, the introduction of two townhome widths, and the addition of 42-foot single-family detached lots.
The proposal was originally scheduled for a public hearing in the third week of June, but it is now set for a vote at the June 2 City Council meeting at 5 p.m.
Residents may register to speak during public comments prior to the start of the meeting.
At this time, no allegations of construction defects have been made regarding the Oakton development, which has not yet been built.
May 31, 2026
Stephanie M. Sellers
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Sandhills News is plain-English local government reporting that explains how decisions affect your land, taxes, schools and rights.
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