SB 325 establishes North Carolina's Department of Housing and Community Development as a unified cabinet-level department, replacing fragmented housing and community development functions across state agencies. The department includes four divisions: Community Development (focusing on revitalization and broadband access), Housing (managing affordable housing, homelessness, and disaster resilience), Operations, and a Policy and Legislative Office. It directly affects low- to moderate-income residents through housing programs and community development initiatives, with $30 million in recurring funding allocated for the 2025-2026 fiscal year. The bill formalizes the department’s structure, mission, and governance, including a nine-member board appointed by the Governor and legislative leaders.
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 473 creates the Capital for Communities Special Fund, a dedicated state fund that will receive 3.5% of certain investment earnings (when quarterly returns exceed 7%) from state funds managed by the Treasurer. The fund will provide grants for economic development projects in North Carolina, specifically targeting affordable housing, childcare centers, healthcare facilities addressing shortages, medical research, workforce development, living-wage jobs, and nonprofit education facilities. These grants must directly support community-based initiatives meeting the specified criteria. The bill establishes clear eligibility rules for fund usage but does not detail application processes or allocation priorities.
SB 499, "Allow Housing Near Jobs," requires North Carolina local governments to automatically permit residential development - including converting existing commercial buildings - anywhere areas are currently zoned for commercial, office, or retail use. It eliminates the need for special permits or zoning amendments in these zones, directly affecting developers and local planning departments. The bill does not override building or fire codes but takes effect October 1, 2025, aiming to increase housing options near job centers.
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 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.
