This bill aims to expand affordable housing in North Carolina by providing both immediate funding and a new revenue stream for the state's Housing Trust Fund. It allocates $30 million in one-time funds for the 2026-2027 fiscal year and establishes a permanent fee on real estate transfer documents, directing a portion of those proceeds to the fund. The legislation directly affects North Carolina residents by increasing resources available to create and preserve safe, affordable housing options, while also impacting real estate transactions through a new tax mechanism. By addressing a significant shortage of affordable units, the bill seeks to support families and stabilize the local economy through improved housing access.
This bill grants the City of Winston-Salem the authority to exempt or reduce system development fees for affordable housing projects. Under the new rules, the city must establish its own specific criteria to determine which developments qualify for these financial incentives. The legislation applies only to Winston-Salem and allows the local government to lower costs for water or sewer services for qualifying affordable housing builders.
This bill directs the State Education Assistance Authority to transfer $50 million in unused funds to support affordable housing initiatives in North Carolina. Specifically, $10 million will be given to the Housing Finance Agency to help developers secure low-cost financing for new housing units, while $40 million will go to the Department of Health and Human Services to fund transitional housing programs. The legislation also allows each agency to use up to 3% of their allocated funds for administrative costs. These financial resources are intended to become available for use starting July 1, 2026.
This bill appropriates $35 million in recurring state funds to the North Carolina Housing Finance Agency for the Workforce Housing Loan Program. The funding is designated to support the program's operations and loans for eligible workforce members seeking affordable housing. These funds will become available starting with the 2026-2027 fiscal year. The legislation takes effect on July 1, 2026.
HB 209 authorizes Durham Public Schools and Durham County to create affordable rental housing for teachers, police officers, first responders, and other Durham County employees. The bill allows these entities to partner using their existing land to build housing, with at least 75% of units reserved specifically for Durham Public Schools teachers. Rent will be set at reasonable, below-market rates, and all housing must comply with standard building and safety codes. The bill is currently pending in committee and does not change existing zoning or safety regulations for the housing units.
SB 134 allows North Carolina local governments to require new residential developments to include affordable housing units through inclusionary zoning policies. It directly affects local zoning authorities, developers building new housing, and low-to-moderate income residents who would benefit from increased affordable housing options. The bill also appropriates $10 million in recurring funds to the North Carolina Housing Finance Agency for its Workforce Housing Loan Program starting in 2025. These provisions aim to supplement affordable housing availability by giving local governments tools to mandate inclusionary requirements and providing dedicated funding for housing loans. The bill takes effect on July 1, 2025.
This bill revises Winston-Salem and Forsyth County zoning laws to clarify the joint City-County Planning Board's authority over zoning changes and promote affordable housing. It allows the city to offer density bonuses - permitting more housing units than normally allowed - to developers who build or donate land for low/moderate-income housing. The bill also establishes two zoning district types: "general use" districts (permitting multiple land uses without specifying the intended use) and "special use" districts (requiring developers to specify a single use, like a park or apartment building, with conditions set by the City Council). These changes directly affect property owners, developers, and residents in Winston-Salem and the three-mile area surrounding the city, where zoning regulations now extend.
SB 184 allows North Carolina local governments to exempt properties being developed for affordable housing from system development fees (such as those for water and sewer infrastructure). It requires local units to establish their own criteria for determining which housing projects qualify as "affordable" for the exemption. The bill does not change existing fee structures but gives localities flexibility to support affordable housing development. This directly affects developers building affordable housing projects and local governments that set these fees.
HB 245 modifies North Carolina's low-income housing tax credit program to prioritize affordable housing development in rural communities and counties with higher poverty rates. It requires the state housing committee to adopt allocation rules that favor projects within 10 miles of amenities (like grocery stores) in towns under 10,000 people, measure distances by straight-line radius (not driving routes), and use poverty levels as a tiebreaker when projects score equally. The bill directs the committee to publish proposed rules for public comment and hold hearings before finalizing annual allocation plans. This policy change redirects existing housing tax credits toward qualifying rural and high-poverty areas without creating new funding. The bill takes effect October 1, 2025, for future allocation plans.
HB 404, the Fair and Affordable Housing Act, requires the Legislative Research Commission to study affordable housing availability across North Carolina - including rural and urban areas - and report findings to the 2026 General Assembly. The bill prohibits housing discrimination based on "source of income" (such as government housing vouchers, disability benefits, or rental assistance), making it illegal for landlords to refuse tenants using these payments. It also appropriates $45 million from the General Fund to the Housing Trust Fund for affordable housing development and bans credit reporting agencies from listing eviction lawsuits that don’t result in a landlord judgment. These changes directly affect renters (especially those using government assistance), landlords, housing providers, and credit agencies in North Carolina.
