North Carolina 2025-2026 Regular Session

North Carolina House Bill H245 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 1
4		-	HOUSE BILL 245
	3	+	H D
	4	+	HOUSE BILL DRH10099-NO-27A
	5	+
5	6
6	7
7	8		Short Title: Affordable Housing in Rural Areas. (Public)
8	9		Sponsors: Representative Willingham.
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: Housing and Development, if favorable, Judiciary 1, if favorable, Rules, Calendar,
11		-	and Operations of the House
12		-	March 3, 2025
13		-	H245 -v-1
	10	+	Referred to:
	11	+
	12	+	DRH10099 -NO-27A
14	13		A BILL TO BE ENTITLED 1
15	14		AN ACT TO INCENTIVIZE THE DEVELOPMENT OF AFFORDABLE HOUSING IN 2
16	15		RURAL COMMUNITIES AND COUNTIES WITH HIGHER POVERTY LEVELS. 3
17	16		The General Assembly of North Carolina enacts: 4
18	17		SECTION 1. G.S. 143-433.9 reads as rewritten: 5
19	18		"§ 143-433.9. Allocation. 6
20	19		(a) To provide for the orderly and prompt issuance of bonds the allocation of which is 7
21	20		managed under this Article, the Committee must follow formulas for allocating the following: 8
22	21		(i) the unified volume limitation, (ii) the state housing credit ceiling, (iii) the annual aggregate 9
23	22		limitation on the face amount of qualified public educational facility bonds, (iv) the limitation on 10
24	23		issuance of recovery zone facility bonds, (v) the limitation on issuance of recovery zone 11
25	24		economic development bonds, and (vi) the limitation on issuance of qualified energy 12
26	25		conservation bonds. The unified volume limitation for all issues of private activity bonds, other 13
27	26		than qualified public educational facility bonds and recovery zone facility bonds, in North 14
28	27		Carolina shall be considered as a single resource to be allocated under this Article. The annual 15
29	28		aggregate limitation on the face amount of qualified public educational facility bonds for all 16
30	29		issues in North Carolina shall be considered as a single resource to be allocated under this Article. 17
31	30		The Committee shall issue the following: (i) allocations of the unified volume limitation, (ii) 18
32	31		allocations of the state housing credit ceiling, (iii) allocations and reallocations of the aggregate 19
33	32		limitation on the face amount of qualified public educational facility bonds, (iv) allocation and 20
34	33		reallocation of the authority for issuance of recovery zone facility bonds allocated to the State, 21
35	34		(v) allocation and reallocation of the authority for issuance of recovery zone economic 22
36	35		development bonds allocated to the State, (vi) allocation and reallocation of authority for issuance 23
37	36		of qualified energy conservation bonds allocated to the State, and (vii) allocation of other 24
38	37		limitations on authority to issue bonds as may be directed by the Governor. The Committee shall 25
39	38		set forth procedures for making such allocations and in the making of such allocations shall take 26
40	39		into consideration the best interest of the State of North Carolina with regard to the economic 27
41	40		development, school facility needs, energy conservation, green initiatives, and general prosperity 28
42	41		of the people of North Carolina. In making the initial allocations for recovery zone facility bonds 29
43	42		and recovery zone economic development bonds, the Committee shall follow the formula 30
44	43		provided in section 1400U-1(a)(3) of ARRTA. In making the initial allocation for qualified 31
45	44		energy conservation bonds, the Committee shall follow the guidelines provided in section 54D 32
46	45		of the Internal Revenue Code of 1986. The Committee shall make all elective carryforwards of 33
47		-	the unused unified volume limitation, the annual aggregate limitation on the face amount of 34 General Assembly Of North Carolina Session 2025
48		-	Page 2 House Bill 245-First Edition
49		-	qualified public educational facility bonds, recovery zone facility bonds, qualified energy 1
50		-	conservation bonds, and any other bonds or tax credits over which it has allocation authority on 2
51		-	behalf of the State. The Committee shall monitor the issuance of qualified energy conservation 3
52		-	bonds to ensure that not more than thirty percent (30%) of such bonds are used for purposes that 4
53		-	would be treated as private activity bonds under the Internal Revenue Code of 1986, as amended. 5
54		-	The Committee is authorized to establish a procedure to monitor whether the initial allocations 6
55		-	of recovery zone facility bonds or recovery zone economic development bonds to counties and 7
56		-	large municipalities pursuant to ARRTA will be utilized, for an allocation that will not be utilized 8
57		-	to be waived by notice to the Committee, and for the reallocation of the waived allocation to 9
58		-	other projects that qualify pursuant to ARRTA. 10
59		-	(b) In administering the low-income housing credit program, the Committee shall adopt 11
60		-	a Qualified Allocation Plan (the Plan) as required by 26 U.S.C. § 42(m) annually. Solely with 12
61		-	respect to the adoption of the Plan, the Committee is exempt from the requirements of Article 2A 13
62		-	of Chapter 150B of the General Statutes. The Committee, and any agency designated by the 14
63		-	Committee to administer the Plan, shall only adopt and administer the Plan if it incentivizes the 15
64		-	development and availability of affordable housing in rural communities and counties with 16
65		-	higher poverty levels. Prior to adoption or amendment of the Plan, the Committee shall: 17
66		-	(1) Publish the proposed Plan in the North Carolina Register at least 30 days prior 18
67		-	to the adoption of the final Plan; 19
68		-	(2) Notify any person who has applied for the low-income housing credit in the 20
69		-	previous year and any other interested parties of its intent to adopt the Plan; 21
70		-	(3) Accept oral and written comments on the proposed Plan; and 22
71		-	(4) Hold at least one public hearing on the proposed Plan. 23
72		-	(b1) When administering the low-income housing credit program and adopting a Qualified 24
73		-	Allocation Plan (the Plan) as required by 26 U.S.C. § 42(m) annually, the Committee, and any 25
74		-	agency designated by the Committee to the extent necessary to administer the Plan, shall, in the 26
75		-	interest of incentivizing the development of affordable housing in rural and impoverished 27
76		-	communities, use at least all of the following guidelines and criteria when determining how to 28
77		-	allocate tax credits under the Plan: 29
78		-	(1) The distance between a proposed site and surrounding amenities, including 30
79		-	grocery stores, shopping centers, and pharmacies, shall be calculated using a 31
80		-	radius and not by using actual road driving distance. 32
81		-	(2) When a proposed site is located in a municipality with a population of less 33
82		-	than 10,000 people, favorable consideration shall be awarded to proposed sites 34
83		-	that are located 10 miles and less from the amenities identified in the Plan. 35
84		-	(3) When identifying amenities, the Plan shall define grocery amenities as stores 36
85		-	that have grocery sections. 37
86		-	(4) When two proposed sites are "tied" under the scoring criteria of the Plan, the 38
87		-	proposed site located in the area with the highest poverty level shall be 39
88		-	awarded the tax credits under the Plan. 40
89		-	(c) In administering the allocation and reallocation of authority for issuance of qualified 41
90		-	energy conservation bonds allocated to the State and reallocated to any "large local government" 42
91		-	as defined in 26 U.S.C. § 54D(e), the Committee shall establish procedures (i) to monitor whether 43
92		-	the initial sub-allocations of qualified energy conservation bonds to large local governments will 44
93		-	be utilized by October 1, 2017; (ii) for the waiver and return to the Committee of sub-allocations 45
94		-	that will not meet the deadline imposed by this subsection; and (iii) for the reallocation of 46
95		-	returned sub-allocations for other projects or purposes that qualify under 26 U.S.C. § 54D(f) for 47
96		-	financing with qualified energy conservation bonds. The Committee shall also develop programs 48
97		-	described by 26 U.S.C. § 54D(f)(1)(A)(iii) and shall consider those programs along with other 49
98		-	eligible uses for qualified energy conservation bonds in determining the reallocation of unused 50
99		-	and returned qualified energy conservation bond allocation." 51 General Assembly Of North Carolina Session 2025
100		-	House Bill 245-First Edition Page 3
	46	+	the unused unified volume limitation, the annual aggregate limitation on the face amount of 34
	47	+	qualified public educational facility bonds, recovery zone facility bonds, qualified energy 35
	48	+	conservation bonds, and any other bonds or tax credits over which it has allocation authority on 36
	49	+	H.B. 245
	50	+	Feb 27, 2025
	51	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	52	+	Page 2 DRH10099-NO-27A
	53	+	behalf of the State. The Committee shall monitor the issuance of qualified energy conservation 1
	54	+	bonds to ensure that not more than thirty percent (30%) of such bonds are used for purposes that 2
	55	+	would be treated as private activity bonds under the Internal Revenue Code of 1986, as amended. 3
	56	+	The Committee is authorized to establish a procedure to monitor whether the initial allocations 4
	57	+	of recovery zone facility bonds or recovery zone economic development bonds to counties and 5
	58	+	large municipalities pursuant to ARRTA will be utilized, for an allocation that will not be utilized 6
	59	+	to be waived by notice to the Committee, and for the reallocation of the waived allocation to 7
	60	+	other projects that qualify pursuant to ARRTA. 8
	61	+	(b) In administering the low-income housing credit program, the Committee shall adopt 9
	62	+	a Qualified Allocation Plan (the Plan) as required by 26 U.S.C. § 42(m) annually. Solely with 10
	63	+	respect to the adoption of the Plan, the Committee is exempt from the requirements of Article 2A 11
	64	+	of Chapter 150B of the General Statutes. The Committee, and any agency designated by the 12
	65	+	Committee to administer the Plan, shall only adopt and administer the Plan if it incentivizes the 13
	66	+	development and availability of affordable housing in rural communities and counties with 14
	67	+	higher poverty levels. Prior to adoption or amendment of the Plan, the Committee shall: 15
	68	+	(1) Publish the proposed Plan in the North Carolina Register at least 30 days prior 16
	69	+	to the adoption of the final Plan; 17
	70	+	(2) Notify any person who has applied for the low-income housing credit in the 18
	71	+	previous year and any other interested parties of its intent to adopt the Plan; 19
	72	+	(3) Accept oral and written comments on the proposed Plan; and 20
	73	+	(4) Hold at least one public hearing on the proposed Plan. 21
	74	+	(b1) When administering the low-income housing credit program and adopting a Qualified 22
	75	+	Allocation Plan (the Plan) as required by 26 U.S.C. § 42(m) annually, the Committee, and any 23
	76	+	agency designated by the Committee to the extent necessary to administer the Plan, shall, in the 24
	77	+	interest of incentivizing the development of affordable housing in rural and impoverished 25
	78	+	communities, use at least all of the following guidelines and criteria when determining how to 26
	79	+	allocate tax credits under the Plan: 27
	80	+	(1) The distance between a proposed site and surrounding amenities, including 28
	81	+	grocery stores, shopping centers, and pharmacies, shall be calculated using a 29
	82	+	radius and not by using actual road driving distance. 30
	83	+	(2) When a proposed site is located in a municipality with a population of less 31
	84	+	than 10,000 people, favorable consideration shall be awarded to proposed sites 32
	85	+	that are located 10 miles and less from the amenities identified in the Plan. 33
	86	+	(3) When identifying amenities, the Plan shall define grocery amenities as stores 34
	87	+	that have grocery sections. 35
	88	+	(4) When two proposed sites are "tied" under the scoring criteria of the Plan, the 36
	89	+	proposed site located in the area with the highest poverty level shall be 37
	90	+	awarded the tax credits under the Plan. 38
	91	+	(c) In administering the allocation and reallocation of authority for issuance of qualified 39
	92	+	energy conservation bonds allocated to the State and reallocated to any "large local government" 40
	93	+	as defined in 26 U.S.C. § 54D(e), the Committee shall establish procedures (i) to monitor whether 41
	94	+	the initial sub-allocations of qualified energy conservation bonds to large local governments will 42
	95	+	be utilized by October 1, 2017; (ii) for the waiver and return to the Committee of sub-allocations 43
	96	+	that will not meet the deadline imposed by this subsection; and (iii) for the reallocation of 44
	97	+	returned sub-allocations for other projects or purposes that qualify under 26 U.S.C. § 54D(f) for 45
	98	+	financing with qualified energy conservation bonds. The Committee shall also develop programs 46
	99	+	described by 26 U.S.C. § 54D(f)(1)(A)(iii) and shall consider those programs along with other 47
	100	+	eligible uses for qualified energy conservation bonds in determining the reallocation of unused 48
	101	+	and returned qualified energy conservation bond allocation." 49 General Assembly Of North Carolina Session 2025
	102	+	DRH10099-NO-27A Page 3
101	103		SECTION 2. This act becomes effective October 1, 2025, and applies to Qualified 1
102	104		Allocation Plans adopted by the North Carolina Federal Tax Reform Allocation Committee, or 2
103	105		any agency designated by that Committee, after that date. 3