Housing

HB 1042 updates North Carolina's property tax exemptions for nonprofit organizations that provide housing for low- or moderate-income individuals. The bill clarifies that land held by nonprofits for future affordable housing projects can remain tax-exempt for up to five years, with unpaid taxes deferred until the project is completed or the land is no longer used for this purpose. Additionally, the legislation establishes a new specific exemption for affordable rental housing, defining it as developments where more than half the units are rented to tenants earning at or below 80% of the area median income. These changes aim to provide clearer tax incentives for nonprofits developing and operating affordable rental properties.

This bill, officially titled "An Act to Establish Exemptions from Certain Floodplain Requirements for the Replacement or Reconstruction of Structures Damaged by Historic Flood Events," corrects the misstated title "Power Bill Reduction Act." It directly affects property owners seeking to rebuild or replace structures damaged by a "historic flood event" (defined as a flood meeting or exceeding a 200-year flood standard) within the base floodplain. The key provision allows rebuilding to the same or lesser size/volume as before the flood, without adhering to newer state or local flood regulations, but prohibits increases in size/volume unless hydrologic analysis proves it won’t raise flood elevations. This exemption applies to structures lawfully established before the flood event.

HB 94 allows disabled veterans and their unremarried surviving spouses to prequalify for the disabled veteran property tax homestead exclusion. This means individuals can apply to determine their eligibility for the tax benefit before they purchase a permanent residence. Applicants submit a prequalification form with their disability certification, and the county assessor must notify them of their eligibility within 30 days. The bill aims to help taxpayers and lenders account for this tax relief when making home purchase decisions. After prequalification, a separate application for the exclusion is still required once a permanent residence is acquired.

HB 223 authorizes the Town of Mooresville to transfer its owned land to developers or nonprofits for building housing specifically for low- and moderate-income residents, veterans, and emergency responders. The bill requires that any transferred property include deed restrictions ensuring it remains housing for these groups, with the land reverting to the town if misused before the agreed period. Conveyances must be approved via a public board resolution posted online 10 days in advance. This policy change directly enables the town to expand targeted housing options without requiring payment for the land.