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.
HB 467 reenacts North Carolina's low-income housing tax credit program, allowing developers to claim tax credits for constructing or rehabilitating affordable housing. It specifies credit percentages (30%, 20%, or 10%) based on the income level of households (50% or less of area median income for 30% credit, 40% for 10% in high-income areas) and the location's income designation (low, moderate, or high-income county/city). Developers can receive credits either as a direct tax refund or a loan from the Housing Finance Agency, with affordability requirements applying for the full credit compliance period. This directly affects developers building qualifying low-income housing projects across North Carolina.
SB 446 increases funding for North Carolina's Housing Trust Fund to address the state's affordable housing shortage. It allocates $30 million in one-time funding for the 2025-2026 fiscal year and establishes recurring revenue streams: 1.5% of property transfer fees and 33% of real estate excise tax proceeds will now flow directly to the fund. This funding supports affordable housing solutions like rentals, home ownership, and repairs for North Carolinians struggling with housing costs - over 815,000 residents currently lack access to affordable housing. The bill aims to rebuild the fund's capacity after a 68% funding decline over the past decade.
SB 632 ("Homes for Heroes") creates a homebuyers' assistance program for North Carolina public servants (including teachers, firefighters, law enforcement, and emergency medical personnel) who are first-time homebuyers. It provides up to $25,000 or 10% of a home's purchase price - covering down payments, mortgage insurance, and closing costs - using $200 million in state funds, with mortgage assistance limited to 60 months. Separately, it establishes a tax credit for volunteer firefighters and rescue workers who incur unreimbursed work expenses, capping the credit at $5,000 or the taxpayer's annual income tax liability, requiring 36 hours of annual training. The program begins July 1, 2025, and the tax credit applies to taxable years starting January 1, 2025.
SB 750, "Restore the American Dream," aims to address North Carolina's affordable housing shortage by funding the Housing Trust Fund. The bill provides a one-time $30 million allocation for the 2025-2026 fiscal year and establishes recurring revenue streams: 1.5% of property deed fees and 33% of real estate transfer tax proceeds will be directed to the fund. These funds will support affordable housing solutions - including home ownership, rentals, and supportive housing - for over 815,000 North Carolinians lacking access to affordable housing and 930,000 cost-burdened households. The bill seeks to reverse a 68% funding decline in the Housing Trust Fund over the past decade, ensuring sustainable resources for housing development.
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 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 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.
HB 690, "The Citizens Support Act," directs several state and local agencies to ensure that state-funded benefits are provided only to U.S. citizens and noncitizens legally authorized to reside in the United States. The Department of Health and Human Services, Department of Commerce, Housing Finance Agency, and local housing authorities must develop plans to review eligibility criteria and verify the immigration status of applicants for various benefits, including housing, welfare, and medical assistance. State-funded institutions of higher education are required to adopt policies to verify applicants' legal residency for tuition and educational benefits. Additionally, the Division of Employment Security must implement a policy to verify legal residency for unemployment benefit applicants. These agencies are also mandated to report on their implementation progress and any federal laws that prevent them from denying benefits.
