GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 325
Short Title: Create Dept. of Housing and Comm. Development. (Public)
Sponsors: Senators Smith and Grafstein (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 19, 2025
*S325 -v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ESTABLISH THE NORTH CAROLINA D EPARTMENT OF HOUSING AND 2
COMMUNITY DEVELOPMEN T. 3
The General Assembly of North Carolina enacts: 4
SECTION 1.(a) The Department of Housing and Community Development is 5
established in this act as a single, unified cabinet-level department. The following divisions and 6
offices are hereby established within the Department of Housing and Community Development: 7
(1) Division of Operations. 8
(2) Division of Community Development. 9
(3) Division of Housing. 10
(4) Policy and Legislative Office. 11
SECTION 1.(b) G.S. 143B-2 reads as rewritten: 12
"§ 143B-2. Interim applicability of the Executive Organization Act of 1973. 13
The Executive Organization Act of 1973 shall be applicable only to the following named 14
departments: 15
… 16
(15) Department of Housing and Community Development." 17
SECTION 1.(c) G.S. 143B-6 reads as rewritten: 18
"§ 143B-6. Principal departments. 19
In addition to the principal departments enumerated in the Executive Organization Act of 20
1971, all executive and administrative powers, duties, and functions not including those of the 21
General Assembly and its agencies, the General Court of Justice and the administrative agencies 22
created pursuant to Article IV of the Constitution of North Carolina, and higher education 23
previously vested by law in the several State agencies, are vested in the following principal 24
departments: 25
… 26
(17) Department of Housing and Community Development." 27
SECTION 1.(d) G.S. 126-5(d)(1) reads as rewritten: 28
"(d) (1) Exempt Positions in Cabinet Department. – Subject to the provisions of this 29
Chapter, which is known as the North Carolina Human Resources Act, the 30
Governor may designate a total of 425 exempt positions throughout the 31
following departments and offices: 32
… 33
p. Department of Housing and Community Development." 34
SECTION 2. Chapter 143B of the General Statutes is amended by adding a new 35
Article to read: 36 General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 325-First Edition
"Article 18. 1
"Department of Housing and Community Development. 2
"§ 143B-1820. Organization; mission. 3
(a) There is established the Department of Housing and Community Development. The 4
Department shall perform all functions of the executive branch of the State in relation to housing 5
and community development. The Department shall have the following internal structure: 6
(1) Division of Operations. – Provides operations and fiscal services for the 7
Department. 8
(2) Division of Community Development. – Develops and implements plans for 9
community revitalization and for expansion of broadband access. 10
(3) Division of Housing. – Develops and implements plans for housing 11
production and preservation, homeless and special needs housing, housing 12
policy, and natural disaster resilience. 13
(4) Policy and Legislative Office. – Serves as the interagency liaison between the 14
Department and the General Assembly as well as other federal, State, and 15
local entities. 16
(b) The Department's mission consists of the following: 17
(1) Partner with communities in this State to develop economic potential of 18
communities and residents. 19
(2) Provide training and certification for building officials. 20
(3) Invest in housing and community development projects in this State to assist 21
low- to moderate-income residents. 22
"§ 143B-1821. Powers and duties of the Secretary. 23
The head of the Department is the Secretary of the Department of Housing and Community 24
Development. The Secretary shall have the powers and duties as are conferred on the Secretary 25
by this Article, delegated to the Secretary by the Governor, and conferred on the Secretary by the 26
Constitution and laws of this State. The Secretary is authorized to adopt rules and procedures for 27
the implementation of this Article. 28
"§ 143B-1822. Board of Housing and Community Development; terms. 29
(a) There is established the North Carolina Board of Housing and Community 30
Development to advise the Secretary and to assist in the mission of the Department. The Board 31
shall consist of the Secretary, who shall be an ex officio member and shall serve as chair, and 32
nine other members appointed as follows: 33
(1) Five members appointed by the Governor. 34
(2) Two members appointed by the President Pro Tempore of the Senate. 35
(3) Two members appointed by the Speaker of the House of Representatives. 36
(b) The term of office for members of the Board shall be two years and until a member's 37
successor has been duly appointed. Vacancies in the Board shall be filled by the appropriate 38
appointing authority. Legislative appointments shall be made in accordance with G.S. 120-121. 39
A vacancy in a legislative appointment shall be filled in accordance with G.S. 120-122." 40
SECTION 3.(a) There is appropriated from the General Fund to the Department of 41
Housing and Community Development, established in this act, the sum of thirty million dollars 42
($30,000,000) in recurring funds for the 2025-2026 fiscal year. 43
SECTION 3.(b) This section becomes effective July 1, 2025. 44
SECTION 4. Except as otherwise provided, this act is effective when it becomes 45
law. 46