Supporters say House Bill 437 reflects a need for new strategies as homelessness rises; critics argue the measure lacks housing and treatment investments
RUTHERFORDTON, N.C. — After years of increasing homelessness despite extensive involvement by nonprofit organizations, local governments and federally funded service providers, North Carolina lawmakers have approved legislation that supporters say represents a fundamental shift in how the state addresses homelessness and public safety.
The North Carolina House voted 73-40 this week to give final approval to House Bill 437, which would prohibit unauthorized public camping on government property while creating enhanced criminal penalties for drug trafficking near homeless shelters and transitional housing facilities. The measure now awaits action by Gov. Josh Stein, a Democrat.
The legislation comes as North Carolina recorded a 33% increase in homelessness, the largest percentage increase among all states, according to the 2025 Annual Homelessness Assessment Report to Congress.
Supporters of the legislation argued during floor debate that traditional approaches centered on emergency shelters, nonprofit outreach programs, and voluntary services have failed to reverse the trend.
Rep. Brian Biggs, R-Randolph, who sponsored the public camping provisions added by the Senate, described House Bill 437 as “a statewide framework for addressing unauthorized public camping on government property while preserving local flexibility and encouraging connections to health, housing and behavioral services.”
The bill would prohibit cities and counties from allowing regular camping or sleeping on public property, including parks, sidewalks, government buildings and public rights-of-way. However, local governments could designate camping areas if they determine that there are insufficient shelter beds to serve the local homeless population.
Those designated sites would require certification by the North Carolina Department of Labor and would have to provide sanitation services, running water, restroom facilities, security measures and coordination with mental health and substance abuse treatment providers.
“This bill does designate special homeless sites if the county (or) municipality deemed to do so,” Biggs told lawmakers. “But it makes sure these sites are sanitary. These sites have running water, toiletry, gives people back their dignity.”
During the debate, Biggs argued that lawmakers should reconsider existing approaches to homelessness and recounted an experience he said illustrated the growing challenges facing communities across North Carolina.
“I was in a restaurant Saturday night in one of our biggest cities in the state,” Biggs said. “A man comes in with a tourniquet with a needle hanging out of his arm.”
Biggs said that approximately 15 minutes later, another individual who appeared to be suffering from substance abuse entered the restaurant.
“And I’m sitting there and all of a sudden I’m just like wow, I’ve never seen anything like that,” Biggs said. “Then another man comes in and he’s strung out on drugs, and I’m sitting there in disbelief.”
After asking the restaurant manager whether such incidents were unusual, Biggs said he was told they occur “12 to 15 times a night.”
“Not everybody that’s homeless is doing drugs, but that is some of the situation we’re dealing with,” Biggs said. “We have an issue. We have to address it.”
Biggs also argued that changes in federal policy could create opportunities for communities willing to adopt more structured approaches to homelessness.
He told lawmakers that federal grants from the U.S. Department of Housing and Urban Development (HUD) are available and could support efforts.
“We need to opt into those grants, start changing our thinking and try to do something different to try to help these people get the mental health they need, get job placement, get off drugs, whatever situations going on, we need to try to address it,” Biggs said.
The legislation also establishes “drug-free homeless service zones” around publicly funded emergency shelters and transitional housing facilities. Under the proposal, certain drug trafficking offenses committed within those zones would be elevated to Class E felonies. Facility operators who intentionally permit such criminal activity could face Class H felony charges.
Rep. Heather Rhyne, R-Lincoln, said the enhanced penalties are intended to protect vulnerable populations from criminal activity.
“Our homeless population is under regular threat of crime from those seeking to sell them controlled substances,” Rhyne said. “This will increase the penalty just like we did in school zones for another extremely vulnerable population.”
Opponents argued that the legislation focuses on restricting where homeless individuals can stay rather than expanding housing and treatment resources.
Rep. Marcia Morey, D-Durham, criticized the proposal during floor debate, saying, “It doesn’t help the homeless. It relocates them to out of sight.”
“This bill doesn’t give you one new housing unit for a homeless family,” Morey said. “It doesn’t give you any treatment for someone with addiction problems. It doesn’t give you mental health counselors. It doesn’t help anyone pay rent.”
While the Stein administration has continued existing housing, behavioral health, and disaster recovery programs, it has not proposed a comprehensive statewide homelessness strategy similar to the framework, outside of a recent executive order.
If signed by Stein, the drug-free homeless service zone provisions would take effect Dec. 1, 2026, while the public camping restrictions would become effective June 30, 2027.
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