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Step Up AVL Analysis · June 2026

Can They Charge the Shelter?

The camping bill carries a second law, and this one is aimed at the places that help. It can turn running a shelter into a felony. Here is exactly who it reaches, who it does not, and why the real danger is the threat, not the courtroom.

You hear it at every meeting about homelessness: the shelters and the day centers and the people handing out food are part of the problem. They draw people in. They draw the drugs in. North Carolina's House Bill 437 takes that complaint and answers it with a criminal law.

The short version first. The camping ban itself cannot touch a nonprofit; it lets neighbors sue city hall, not the shelter. But the same bill carries a second, quieter law that can reach a shelter directly, and in the worst case make a felony out of running one. It is narrower than it sounds. No one is known to have been charged under anything like it. That is not the same as harmless.

First, what it is not

The camping ban does not sue the shelter

Start by putting to rest a fear that does not hold. The camping ban's enforcement runs through a lawsuit, and the defendant in that lawsuit is the local government. A resident, a business owner, or the attorney general can sue the City of Asheville or Buncombe County for allowing a camp. They cannot use that provision to sue AHOPE, or Western Carolina Rescue Ministries, or the church basement that opens on a cold night.

If you only read the headlines about "letting people sue," this is the part to get straight. That suit lands on the county, not the charity. The risk for the nonprofits is somewhere else in the bill, and it works in a completely different way.

The second law

A felony at the shelter door

The risk to providers lives in a piece of the bill called the Drug-Free Homeless Service Zones Act. It draws a zone around a publicly funded shelter: the building, the grounds, and the area within 100 feet, but only if a sign is posted at the door. Sell or deliver drugs inside that zone and your offense jumps to a Class E felony. That part follows the same logic as the drug-free zones we already have around schools and parks.

Then comes the new part. North Carolina already punishes anyone who knowingly keeps a building used for selling drugs; done intentionally, that is a Class I felony. What this bill adds is narrower and sharper. It points that operator liability at a government-funded shelter, triggers on "intentionally allowing" someone else's sale inside a posted zone, and raises it to a Class H felony. The drug-free school-zone law it takes its shape from has never once charged the school. This one reaches the operator of the shelter.

100 ft
Posted "drug-free homeless service zone" around a funded shelter (NC, proposed)
Class H
Felony for an operator who "intentionally allows" a drug sale in the zone (NC, proposed)
Dec 2026
Effective date if the bill becomes law; not yet enacted (NC)
The fine print

Read it closely, because the limits are most of the story

Now the limits, because they are doing real work. The felony attaches to selling and delivering, not to a person using or carrying their own. It applies only to shelters that take government money; a privately funded one is outside it. It needs a posted sign to exist at all. And it turns entirely on the words "intentionally allows," which the bill never defines. There is no line drawn between running a low-barrier shelter for people who use drugs and "allowing" a sale, and no safe harbor for a shelter that calls the police or shows someone the door.

Two more gaps matter. The bill defines the "operator" as the organization, not a person, and never says who actually goes to court, the director or the overnight staffer. And it is written for shelters, which leaves a day center in a gray area and permanent supportive housing, where people have their own apartments, outside it. Serving a meal to someone who later uses drugs down the block is not a crime, however you read the law. But the boundary is undrawn, and an undrawn boundary is its own kind of warning.

One kind of shelter gets a different zone. A domestic-violence shelter, whose address has to stay secret, posts its sign inside, within a few feet of the door, and its zone is the interior of the building only, with no hundred-foot ring on the public sidewalk. A sign out front would give the location away, so the law keeps that one indoors.

How it got here

It started broader, and harder

The version above is not the version that was filed. The provider law got tougher in one direction and narrower in another as it moved, and both changes tell you something.

It got tougher first. As introduced, the zone was 300 feet and the operator faced only a misdemeanor. A House committee shrank the zone to 100 feet and turned that misdemeanor into a Class H felony. The threat to the people who run shelters was sharpened on purpose.

Then it got narrower, at the very end. As written for most of its life, the law did not stop at shelters. It reached "permanent supportive housing" and, in a catch-all clause, any funded group that "primarily provides treatment, preventive care, or other services to homeless persons." That language would have swept in clinics, day centers, soup kitchens, and harm-reduction programs. On the Senate floor, an amendment stripped the permanent housing and the catch-all back out, leaving the law aimed at funded emergency, temporary, and transitional shelters. The reach the drafters first wanted is the tell. The narrower text is the one that would become law.

Asheville

Who it would actually reach here

Map it onto Asheville and the picture sharpens. The shelters in range are the publicly funded ones: the Salvation Army's Center of Hope downtown, which has drawn federal emergency-shelter money, and ABCCM's veteran and family beds, which run on Veterans Affairs grants and a county contract. The seasonal Code Purple overflow sites belong here too. AHOPE muddies the line, in a way worth noticing: most of the year it is a day center, and its core funding pays for day services and coordinated entry, not shelter, which would leave it outside. But in winter it runs funded overnight Code Purple beds, and that pulls it back in.

Three places sit outside, for three different reasons, and together they show the funding line doing real work. Homeward Bound's Compass Point is permanent supportive housing, real apartments, which the final bill carved out. The Steady Collective, the area's syringe program, is privately funded and is not a shelter. And Western Carolina Rescue Ministries, a downtown shelter doing the same work as the others, says it has taken no government money in more than forty years, which by its own account would leave it outside a law that reaches only the publicly funded. Same beds, same block, different answer, decided entirely by where the money comes from.

Here is the catch that makes 100 feet matter more than it sounds. Downtown, these buildings front the sidewalk, and a city street is not 100 feet wide. So a posted zone would not just cover a shelter's lot. It would blanket the public sidewalks around it and reach toward Pritchard Park and the library, the blocks where people already gather and already get arrested. Where two funded sites sit close, the zones would overlap. The map of the zones is, more or less, the map of the problem the bill says it is solving.

IN

Funded emergency, temporary, and transitional shelters

If they take local, state, or federal money and post the sign, the zone applies.

IN

The shelter's operator

The funded organization itself, for "intentionally allowing" a drug sale in its zone.

OUT

Permanent supportive housing

Apartments like Compass Point were carved out by the final amendment.

OUT

Privately funded shelters

No government money, no zone. A shelter like Western Carolina Rescue Ministries would sit outside, doing the same work.

The record

Has any of this ever actually happened?

No. Not here, not anywhere we could find. In the two years since the Supreme Court opened the door to camping bans, the charges, the citations, and the lawsuits have all landed on the people sleeping outside and the cities that let them. No service provider in the country is known to have been convicted, fined, or held liable for "contributing to" camping. The operator felony in this bill would be the first of its kind, and it is not law yet. The closest anyone has come is Fremont, California, which briefly made it a local offense to "aid" an encampment, then walked the language back. California has since barred cities from penalizing groups that hand out food, water, or medical care.

Where shelters and harm-reduction programs have actually ended up in court, they have mostly won. After a Montana city pulled a warming shelter's permit, the shelter won the permit back, an apology, and about $140,000 in legal fees in a settlement. A Washington church that ran a needle exchange beat the county that tried to shut it down, and the county paid roughly $500,000 in fees. The history of going after the helpers is not a history of the helpers losing. It is a history of the helpers being dragged through the process.

One myth is worth killing while we are here. Tennessee did not create "charity liability" for letting people camp. The Tennessee law people point to is about long-term housing for undocumented immigrants, it specifically exempts shelters, and it has never been used against a charity. It is not this, and it is not a preview of this.

0
Providers charged or sued anywhere for "contributing to" camping
$140K
Fees a Montana city paid a warming shelter to settle a permit fight
$500K
Fees a Washington county paid a church over its needle exchange
The real risk

The threat does the work

So where is the real exposure? It is not the prison cell, and saying otherwise would be the same scare the bill itself runs on. A shelter operator is very unlikely to be charged under this law, and even less likely to be convicted, because a prosecutor would have to prove the shelter meant to let the sale happen. The honest risk is quieter and more certain.

A felony you almost never charge still changes everything the day it goes up on the door. A low-barrier shelter exists to take the person no one else will, including the person who is using. A needle exchange exists to meet that person where they are. Hang a felony over that work, aimed at the organization, defined by a word as loose as "allows," and the safe move becomes to serve fewer people, screen harder, and drop the services that draw scrutiny. When Pueblo, Colorado restricted its syringe program, researchers found signs that access to other harm-reduction services suffered in the months that followed. The charge does not have to be filed to do its work.

That is the cost the providers named themselves. More than 140 local leaders and providers signed a letter against the bill, and the worry was not that their directors would be marched to jail. It was that the law quietly moves the cost and the legal risk of the shortage onto the organizations holding the door open. Even the state's needle-exchange law, which shields a participant for carrying their own used syringe, offers the shelter that hosts the program no protection at all.

And set that certain cost against an unproven benefit. The drug-free zone this bill copies, the kind drawn around schools, has been studied for decades, and the research does not show it reduces drug activity. What it reliably does is widen who gets charged and where, with the heaviest weight falling on dense, poor, and minority blocks. There is little reason to expect a shelter version to deter the dealing it names, and good reason to expect it to do what its model already does.

A felony you rarely charge still changes how a shelter runs the day it is posted on the door. The threat is the policy.

The alternative

What would actually make a shelter safer

If the real worry is dealers working the people who come through a shelter door, and that is a fair worry, there are ways to meet it that do not aim a felony at the shelter. Pay for the security and the on-site treatment the bill demands and then refuses to fund. Write a real safe harbor into the law, the one it leaves out, so an operator who reports a dealer or bars him is protected instead of exposed. Keep harm reduction legal and funded, because the program that knows the population is the one that spots the predator first. And build enough housing that a shelter is not the only roof on offer. Each of those makes a shelter safer. A felony the state almost never files does not.

The takeaway

So, can they charge the shelter? On paper, narrowly, yes, and only the funded ones, only for drugs sold in a posted zone, only if a prosecutor can prove the shelter meant to let it happen. In practice, almost certainly not, because no one ever has. But that was never really where the damage lives. The camping ban could not make a bed, and this law cannot make a single shelter safer. What it can do is make the places that help afraid to keep the door open as wide as the need. The tent does not disappear when the shelter flinches. It just loses the one place that was still letting people in.

For more information see: www.stepupavl.org

Sources. The bill, North Carolina: House Bill 437 (2025-2026), "The Drug-Free Homeless Service Zones Act," adding new G.S. 90-95(e)(8a); the Fifth Edition (engrossed June 24, 2026) and the bill's earlier editions; effective December 1, 2026 if enacted; passed its final House vote June 30, 2026 (73 to 40) and on the governor's desk as of July 1, 2026, signature or veto pending (N.C. General Assembly bill text and history; UNC School of Government Legislative Reporting Service). The drug-free-zone enhancement applies to offenses under G.S. 90-95(a)(1), which covers manufacture, sale, delivery, and possession with intent, not simple possession; the 100-foot zone requires a permanently posted sign; a domestic-violence shelter whose location must stay confidential instead has an interior-only zone, with an interior sign and no 100-foot exterior ring. The provision hardened from a 300-foot zone and a misdemeanor for the operator to a 100-foot zone and a Class H felony at the House committee stage; a Senate floor amendment removed permanent supportive housing and a broad "treatment, preventive care, or other services" catch-all from the definition of a covered "facility-based service" (N.C. General Assembly editions H437v1 through H437v5; NC Health News). Existing North Carolina drug-free zones (schools, child-care, parks; G.S. 90-95(e)) enhance only the offender's sentence and do not charge the institution; separately, G.S. 90-108 makes it a crime to knowingly keep a place used for selling drugs (a Class I felony when intentional), so the bill's novelty is aiming that operator liability at funded shelters at a higher class. North Carolina's syringe-services law (G.S. 90-113.27) grants limited immunity to program participants and staff for equipment and trace residue with written verification; it does not reach sale or delivery offenses and does not protect a shelter operator. The camping ban's civil enforcement (private right of action by residents, businesses, or the attorney general) runs against local governments, not service providers. National and comparative: in the two years since Grants Pass v. Johnson (U.S. Supreme Court, June 2024), no homeless-service provider has been convicted, fined, or held liable on a theory of "contributing to" camping; provider cases that have reached court have turned on permitting, nuisance, food-sharing, and harm-reduction rules, including a Montana warming shelter that settled a permit dispute for about $140,000 in attorney's fees after a federal injunction, and a Washington church whose needle-exchange fight with its county was resolved for about $500,000 in fees (settlements, not damages awards); signs of a chilling effect on harm-reduction access after syringe-program crackdowns (Pueblo, Colorado study); and research on existing drug-free zones (the school-zone model this provision copies) finding no demonstrated reduction in drug activity and pronounced geographic and racial disparities in who is charged (Prison Policy Initiative; Drug Policy Alliance; state sentencing-commission reviews of school-zone laws). Tennessee's 2025 "charity liability" law concerns long-term housing for undocumented immigrants, exempts overnight shelters, and is not a camping provision. Local: Asheville and Buncombe shelters that receive government funds for shelter (the Salvation Army's Center of Hope, which has received federal Emergency Solutions Grant shelter funding; ABCCM, via the federal Veterans Affairs Grant and Per Diem program for the Veterans Restoration Quarters, with additional Buncombe County funding for Steadfast House; the seasonal Code Purple overflow sites; and AHOPE, a Homeward Bound day center whose core funding is for day services and coordinated entry rather than shelter, but which runs funded overnight Code Purple beds in winter) versus permanent supportive housing (Homeward Bound's Compass Point, carved out by the final amendment), a privately funded syringe program (the Steady Collective), and at least one shelter that reports taking no government money (Western Carolina Rescue Ministries). Funding determinations are based on federal award records (USAspending.gov and the Federal Audit Clearinghouse), the Veterans Affairs Grant and Per Diem award list, and City of Asheville and Buncombe County budget and contract documents; some local line items remain partly reported. The more than 140 service providers who signed against the bill, and the cost-and-liability concerns raised by the ACLU of North Carolina and the North Carolina Housing Coalition. National figures are labeled national. This is a fast-moving bill and the criminal exposure described here is untested; figures are current as of June 2026.

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