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.
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 aims to expand affordable housing in North Carolina by providing both immediate funding and a new revenue stream for the state's Housing Trust Fund. It allocates $30 million in one-time funds for the 2026-2027 fiscal year and establishes a permanent fee on real estate transfer documents, directing a portion of those proceeds to the fund. The legislation directly affects North Carolina residents by increasing resources available to create and preserve safe, affordable housing options, while also impacting real estate transactions through a new tax mechanism. By addressing a significant shortage of affordable units, the bill seeks to support families and stabilize the local economy through improved housing access.
This bill directs the State Education Assistance Authority to transfer $50 million in unused funds to support affordable housing initiatives in North Carolina. Specifically, $10 million will be given to the Housing Finance Agency to help developers secure low-cost financing for new housing units, while $40 million will go to the Department of Health and Human Services to fund transitional housing programs. The legislation also allows each agency to use up to 3% of their allocated funds for administrative costs. These financial resources are intended to become available for use starting July 1, 2026.
This bill appropriates $35 million in recurring state funds to the North Carolina Housing Finance Agency for the Workforce Housing Loan Program. The funding is designated to support the program's operations and loans for eligible workforce members seeking affordable housing. These funds will become available starting with the 2026-2027 fiscal year. The legislation takes effect on July 1, 2026.
SB 134 allows North Carolina local governments to require new residential developments to include affordable housing units through inclusionary zoning policies. It directly affects local zoning authorities, developers building new housing, and low-to-moderate income residents who would benefit from increased affordable housing options. The bill also appropriates $10 million in recurring funds to the North Carolina Housing Finance Agency for its Workforce Housing Loan Program starting in 2025. These provisions aim to supplement affordable housing availability by giving local governments tools to mandate inclusionary requirements and providing dedicated funding for housing loans. The bill takes effect on July 1, 2025.
SB 200 allocates $150 million in one-time state funds to the North Carolina Housing Trust Fund specifically for housing relief in counties affected by Hurricane Helene. This funding will support housing assistance for residents displaced or damaged by the hurricane in areas designated under a federal major disaster declaration. The bill directs the funds to be administered through existing housing program rules (Chapter 122E of state law) for the 2025-2026 fiscal year. It directly benefits hurricane-impacted homeowners, renters, and communities in designated counties. The bill becomes effective July 1, 2025.
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.
