SB 736 creates a new Housing Innovation Office within North Carolina's Housing Finance Agency, funded by a permanent increase in the real estate transfer tax. The bill raises the tax rate on property sales over $500,000 from $1 per $500 to $1 per $400, directing the additional revenue ($5 million annually for 2025-2027) to this office. The office will use these funds for research, technical assistance, grants, and loans to support affordable housing construction, maintenance, and innovative building solutions. This directly affects homebuyers/sellers (through the tax increase) and aims to address the state's housing affordability crisis by expanding funding for housing projects.
HB 538, "Equality for All," expands North Carolina's anti-discrimination laws to protect residents in housing and employment. The bill adds sexual orientation, gender identity, military/veteran status, and genetic information to the list of protected characteristics, prohibiting discrimination by landlords, real estate agents, and employers (with 15+ employees) based on these factors. Key provisions ban refusal to rent/sell property, discriminatory advertising, denial of housing services, and employment decisions based on protected status. It applies broadly to all housing transactions and employment opportunities across the state. The law aims to ensure equal access without requiring proof of discriminatory intent.
HB 603 creates a $40 million revolving loan fund within North Carolina's Housing Finance Agency to cover preconstruction costs (like land surveys, permits, and site work) for workforce housing projects. It directly affects developers building housing affordable to households earning 60%-120% of local median income, requiring them to contribute 20%-35% in project equity. The fund reserves 80% of loans for high-priority counties (tier 1-2) and 20% for other counties, with each loan capped at $1 million. The program requires annual reporting on loan details and becomes effective July 1, 2025.
HB 626, the Housing Choice Act, allows North Carolina municipalities to adopt specific zoning changes to encourage more housing options and qualify for priority water infrastructure funding. Smaller cities (under 100,000 residents) can permit multifamily housing by right in residential zones, waive fees for affordable housing construction, and allow accessory dwelling units. Larger cities (100,000+ residents) must implement minimum density standards, eliminate parking requirements, and permit duplexes/triplexes in single-family zones. Both sizes must preserve existing affordable housing through incentives or funds and adopt zoning that aligns with state housing goals. The bill directly affects local governments seeking to streamline housing development while meeting criteria for state water infrastructure grants.
HB 798 appropriates $1.72 million annually from the General Fund to create a Cold Weather Shelters Grant Program, administered by the Department of Health and Human Services, Division of Aging. The program provides grants to municipalities and nonprofits to establish or expand temporary emergency shelters for people experiencing homelessness during severe weather events. Grants are limited to $215,000 per recipient annually, with selection considering poverty rates in the service area and existing funding availability. Recipients must report annually on shelter usage, funds spent, and the number of people served, starting in 2027.
HB 879 requires landlords in North Carolina to provide and maintain operable air conditioning in residential rental units that supply AC. It directly affects landlords (who must ensure systems work at the start of each tenancy) and tenants (who gain a right to functional cooling during warm weather). The bill amends landlord obligations to explicitly mandate that air conditioning must cool premises to a reasonable indoor temperature, with repairs required upon written tenant notice (except emergencies). This applies to all new rental agreements and renewals entered into after the law takes effect. The legislation focuses on ensuring basic comfort and safety by making AC a standard maintenance requirement, not a discretionary amenity.
HB 856 clarifies that deed restrictions, covenants, or similar agreements cannot prohibit the installation of solar collectors (for water heating, space heating/cooling, or electricity) on residential properties. It specifically voids restrictions that prevent solar installations, while allowing reasonable rules about placement or screening if they reduce efficiency by 10% or less. This affects homeowners in single-family homes or similar residential properties (excluding certain condos in multi-story buildings) and their homeowners' associations. The law applies to agreements recorded after it takes effect, ensuring solar access without blocking reasonable maintenance or visibility rules.
HB 863 appropriates $582 million in state funds to address unmet recovery needs in Western North Carolina following Hurricane Helene. It directly affects residents and businesses in the impacted area by funding affordable housing repairs, disaster-related home improvements, business grants, park restoration, flood protection, and emergency services. Key provisions include $105 million for local housing grants (covering repairs, homelessness assistance, and mortgage help), $75 million for stream restoration and food banks, and a $75,000 business grant program for eligible companies with sales tax declines. The funds are distributed across state agencies like Housing Finance, Agriculture, and Public Safety to support physical recovery and economic stabilization.
SB 675 sets a 2% maximum fee limit for second or junior lien mortgages in North Carolina, aligning state rules with federal Qualified Mortgage standards. It allows up to 3% total fees across all lenders for such loans, referencing federal guidelines (12 C.F.R. §1026.43(e)(3)). The bill directly affects borrowers taking second mortgages and lenders who charge fees on these loans. It requires lenders to comply with these fee limits on loans secured by real property, effective upon enactment.
HB 914 allows colleges and religious institutions in qualifying North Carolina cities (population over 50,000 in urban areas) to develop affordable housing on their owned land without needing special zoning approvals or permits. The bill requires 80% of new housing units to be reserved for low-income residents (at or below 80% of median income), with limited exceptions for staff housing. It includes location restrictions, such as avoiding historic districts, heavy industrial areas, and sites where over one-third is currently light industrial. This policy change streamlines development by treating such housing as a "use by right" under existing zoning.
