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.
HB 1056 aims to increase housing supply in North Carolina by allowing residential construction in commercial zones and banning minimum parking requirements for new developments. The bill also creates a state program to reimburse local governments for costs associated with speeding up housing permit reviews and provides additional funding to the state housing finance agency. These measures are designed to reduce regulatory barriers that currently limit the number of homes being built and help address rising housing costs.
This bill directs state funding to several nonprofit organizations and entities in Mecklenburg County for specific projects during the 2026-2027 fiscal year. It allocates money to construct a new main library, complete a community health center, plan a highway interchange, support affordable housing, fund operational costs for a community center, and improve facilities at a nature museum. The funds are drawn from various state accounts, including the General Fund and the Highway Fund, and the legislation takes effect on July 1, 2026.
This bill directs $34.88 million in state funds to three North Carolina entities for the 2026-2027 fiscal year to support emergency services, public safety, and affordable housing. The Town of Davidson receives $20.44 million to build a fire station, buy an emergency vehicle, and purchase police and breathing apparatus equipment. The Town of Cornelius is allocated $10 million for land acquisition for a future public safety facility, replacing a fire engine, improving pedestrian safety, and constructing a recreation center. Additionally, the Lake Norman Community Development Corporation gets $4 million to develop affordable housing in Cornelius, including specific funding for the Smithville community. These nonrecurring funds are scheduled to take effect on July 1, 2026.
This bill establishes the Affordable Housing Efficiency Grant Program in North Carolina to provide funding for energy efficiency and electric upgrades in affordable multifamily housing buildings. The program targets residential complexes with at least 50% of units reserved for low-income households that have been in service for at least 15 years, with a focus on projects located in underserved communities. Eligible buildings can receive grants of up to $0.75 per square foot to cover costs for measures such as heat pumps, electric water heaters, insulation, and related planning or health improvements, provided they maintain their affordability status. The Department of Environmental Quality will manage the program using $5 million in recurring state funds starting in the 2026-2027 fiscal year, while recipients must report annually on energy savings and other outcomes.
This bill creates a new loan program in North Carolina to help nonprofit organizations prepare land for affordable housing by offering below-market interest rate loans. The funds, totaling $50 million for the 2026-2027 fiscal year, can only be used for site-related expenses like land acquisition, utility installation, and environmental testing, but not for building the actual homes. To qualify, borrowers must be experienced nonprofits that provide zero-interest mortgages to buyers and ensure at least 40% of units in mixed-income projects are reserved for low- and moderate-income families. The program is designed to support the development of housing for households earning up to 80% of the local area median income.
This bill allows local governments in North Carolina to create inclusionary zoning rules, which can require developers to include affordable housing units in new projects. It also directs the state to provide $10 million annually starting in fiscal year 2026-2027 to the Housing Finance Agency for a workforce housing loan program. The legislation directly affects local planning authorities and developers by expanding their zoning options, while also increasing funding available for loans aimed at helping workers afford housing.
The Carolina Housing Promise Act aims to improve housing affordability and accessibility across North Carolina by empowering the state's Housing Finance Agency to issue up to $18 billion in bonds for residential projects. A key provision increases an existing excise tax on real estate transfers, directing half of the new revenue to fund a new Housing Innovation Office within the agency. This office will utilize the funds to support the construction and maintenance of affordable homes, develop innovative funding models, and provide technical assistance for housing solutions. The bill also updates the legal authority for the agency to issue various types of debt instruments to finance these housing initiatives.
This bill directs $1 million in state funds to Forsyth County to help build affordable housing in Forsyth County and the City of Winston-Salem. The money will be given as a grant to Habitat for Humanity of Forsyth County, Inc., which will use it specifically for construction projects. The funding is designated as nonrecurring and is scheduled to become available starting July 1, 2026.
This bill allocates $4 million from the state's General Fund to the Lake Norman Community Development Corporation for the 2026-2027 fiscal year. The funding is divided equally, with $2 million designated for the Smithville Revitalization Plan to acquire property and build affordable homes, and another $2 million for additional affordable housing projects determined by the Corporation. Up to 15% of the total appropriation may be used for administrative expenses, and the funds become available starting July 1, 2026.
