This bill creates two main programs to support public servants in North Carolina. First, it establishes a Homebuyers' Assistance Program for first-time homebuyers who work as teachers, firefighters, police officers, or medical personnel, providing up to $25,000 or 10% of the purchase price for down payments and mortgage insurance. Second, it allows unpaid volunteer firefighters and rescue squad members to claim a state income tax credit of up to $5,000 to cover unreimbursed business expenses related to their rescue work. The down payment assistance program is funded with $200 million in recurring state money and will begin on July 1, 2026, while the tax credit applies to taxable years starting on or after January 1, 2026.
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.
SB 199 prohibits business entities (like corporations or rental companies) from owning 100 or more single-family homes in qualifying North Carolina counties (population >150,000) for rental purposes. It targets large-scale investors whose buying practices may reduce home availability and increase prices for owner-occupants. Violators face daily fines up to $100 per home and potential civil lawsuits with damages, including up to $50,000 in penalties. The law specifically applies to rental properties, not owner-occupied homes, and excludes government entities.
HB 245 modifies North Carolina's low-income housing tax credit program to prioritize affordable housing development in rural communities and counties with higher poverty rates. It requires the state housing committee to adopt allocation rules that favor projects within 10 miles of amenities (like grocery stores) in towns under 10,000 people, measure distances by straight-line radius (not driving routes), and use poverty levels as a tiebreaker when projects score equally. The bill directs the committee to publish proposed rules for public comment and hold hearings before finalizing annual allocation plans. This policy change redirects existing housing tax credits toward qualifying rural and high-poverty areas without creating new funding. The bill takes effect October 1, 2025, for future allocation plans.
SB 432 prohibits large business entities from purchasing 100 or more single-family homes in qualifying counties (population over 150,000) for rental use. It directly affects real estate investment firms and corporations that buy homes solely as rentals, aiming to prevent artificial inflation of home prices by limiting excessive bulk acquisitions. The law defines "single-family home" as detached, semi-detached, or townhomes meeting specific separation criteria and imposes civil penalties of up to $100 per day per home for violations. Enforcement is handled by the Attorney General or individuals through civil lawsuits, with remedies including damages, attorney fees, and joint liability for affiliated entities. The bill applies to home purchases occurring on or after its effective date.
SB 453 limits nonrefundable "due diligence" fees in home sales to 1% of the purchase price, preventing sellers from requiring higher amounts as a condition of accepting offers. Any contract clause exceeding this amount is void, and sellers who enforce it may face legal costs and attorney fees. The bill also allocates $10 million to the North Carolina Housing Coalition to fund homebuyer education programs statewide. These provisions directly affect homebuyers and sellers in residential transactions, aiming to reduce upfront financial barriers and improve buyer preparedness. The law takes effect for new offers on or after October 1, 2025, with the funding provision beginning July 1, 2025.
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.
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 1010, titled "Home Ownership Market Manipulation," aims to limit the number of single-family homes that business entities can purchase for use as rental properties. The bill makes it unlawful for a business entity, including its affiliates, to buy a single-family home in a county with a population over 150,000 for rental purposes if they already own 100 or more such homes in qualifying counties. This measure seeks to address concerns about the impact of large-scale corporate home buying on housing supply and costs. Violations can lead to civil penalties, damages, and attorney fees, enforceable by the Attorney General, aggrieved individuals, or county commissioners.
