North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S736 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	S 1
4		-	SENATE BILL 736
	3	+	S D
	4	+	SENATE BILL DRS45326-MCxf-177
	5	+
5	6
6	7
7	8		Short Title: Foundation Act: Building NC's Housing Future. (Public)
8	9		Sponsors: Senators Garrett, Grafstein, and Bradley (Primary Sponsors).
9		-	Referred to: ~~Rules and Operations of the Senate~~
10		-	~~March 26, 2025~~
11		-	~~S736 -v-1~~
	10	+	Referred to:
	11	+
	12	+	DRS45326 -MCxf-177
12	13		A BILL TO BE ENTITLED 1
13	14		AN ACT TO COMPREHENSIVELY ADDRESS HOUSING AFFORDABILITY AND 2
14	15		ACCESSIBILITY ISSUES AND NEEDS IN THE STATE . 3
15	16		The General Assembly of North Carolina enacts: 4
16	17		5
17	18		PART I. HOUSING FINANCE AGENCY ENHANCEMENT 6
18	19		SECTION 1.1.(a) G.S. 122A-8 reads as rewritten: 7
19	20		"§ 122A-8. Bonds and notes. 8
20	21		The Agency is hereby authorized to provide for the issuance, at one time or from time to time, 9
21	22		of bonds and notes of the Agency to carry out and effectuate its corporate purposes. The Agency 10
22	23		also is hereby authorized to provide for the issuance, at one time or from time to time of (i) bond 11
23	24		anticipation notes in anticipation of the issuance of such bonds and (ii) construction loan notes 12
24	25		to finance the making or purchase of mortgage loans to sponsors of residential housing for the 13
25	26		construction, rehabilitation or improvement of residential housing. The total amount of bonds, 14
26	27		bond anticipation notes, and construction loan notes outstanding at any one time shall not exceed 15
27	28		twelve billion dollars ($12,000,000,000) eighteen billion dollars ($18,000,000,000) excluding 16
28	29		therefrom any bond anticipation notes for the payment of which bonds have been issued. The 17
29	30		principal of and the interest on such bonds or notes shall be payable solely from the funds herein 18
30	31		provided for such payment. Any such notes may be made payable from the proceeds of bonds or 19
31	32		renewal notes or, in the event bond or renewal note proceeds are not available, such notes may 20
32	33		be paid from any available revenues or assets of the Agency. The bonds or notes of each issue 21
33	34		shall be dated and may be made redeemable before maturity at the option of the Agency at such 22
34	35		price or prices and under such terms and conditions as may be determined by the Agency. Any 23
35	36		such bonds or notes shall bear interest at such rate or rates as may be determined by the Local 24
36	37		Government Commission of North Carolina with the approval of the Agency. Notes shall mature 25
37	38		at such time or times not exceeding 10 years from their date or dates and bonds shall mature at 26
38	39		such time or times not exceeding 43 years from their date or dates, as may be determined by the 27
39	40		Agency. The Agency shall determine the form and manner of execution of the bonds or notes, 28
40	41		including any interest coupons to be attached thereto, and shall fix the denomination or 29
41	42		denominations and the place or places of payment of principal and interest, which may be any 30
42	43		bank or trust company within or without the State. In case any officer whose signature or a 31
43	44		facsimile of whose signature shall appear on any bonds or notes or coupons attached thereto shall 32
44	45		cease to be such officer before the delivery thereof, such signature or such facsimile shall 33
45	46		nevertheless be valid and sufficient for all purposes the same as if he had remained in office until 34
46	47		such delivery. The Agency may also provide for the authentication of the bonds or notes by a 35
47		-	trustee or fiscal agent. The bonds or notes may be issued in coupon or in registered form, or both, 36 General Assembly Of North Carolina Session 2025
48		-	Page 2 Senate Bill 736-First Edition
	48	+	trustee or fiscal agent. The bonds or notes may be issued in coupon or in registered form, or both, 36
	49	+	FILED SENATE
	50	+	Mar 25, 2025
	51	+	S.B. 736
	52	+	PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	53	+	Page 2 DRS45326-MCxf-177
49	54		as the Agency may determine, and provision may be made for the registration of any coupon 1
50	55		bonds or notes as to principal alone and also as to both principal and interest, and for the 2
51	56		reconversion into coupon bonds or notes of any bonds or notes registered as to both principal and 3
52	57		interest, and for the interchange of registered and coupon bonds or notes. Upon the filing with 4
53	58		the Local Government Commission of North Carolina of a resolution of the Agency requesting 5
54	59		that its bonds and notes be sold, such bonds or notes may be sold in such manner, either at public 6
55	60		or private sale, and for such price as the Commission shall determine to be for the best interest 7
56	61		of the Agency and best effectuate the purposes of this Chapter, as long as the sale is approved by 8
57	62		the Agency. 9
58	63		The proceeds of any bonds or notes shall be used solely for the purposes for which issued 10
59	64		and shall be disbursed in such manner and under such restrictions, if any, as the Agency may 11
60	65		provide in the resolution authorizing the issuance of such bonds or notes or in the trust agreement 12
61	66		hereinafter mentioned securing the same. 13
62	67		Prior to the preparation of definitive bonds, the Agency may, under like restrictions, issue 14
63	68		interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds 15
64	69		when such bonds shall have been executed and are available for delivery. The Agency may also 16
65	70		provide for the replacement of any bonds or notes which shall become mutilated or shall be 17
66	71		destroyed or lost. 18
67	72		Bonds or notes may be issued under the provisions of this Chapter without obtaining, except 19
68	73		as otherwise expressly provided in this Chapter, the consent of any department, division, 20
69	74		commission, board, body, bureau or agency of the State, and without any other proceedings or 21
70	75		the happening of any conditions or things other than those proceedings, conditions or things 22
71	76		which are specifically required by this Chapter and the provisions of the resolution authorizing 23
72	77		the issuance of such bonds or notes or the trust agreement securing the same." 24
73	78		SECTION 1.1.(b) G.S. 105-228.30 reads as rewritten: 25
74	79		"§ 105-228.30. Imposition of excise tax; distribution of proceeds. 26
75	80		(a) An excise tax is levied on each instrument by which any interest in real property is 27
76	81		conveyed to another person. The tax rate is (i) one dollar ($1.00) on each five hundred dollars 28
77	82		($500.00) or fractional part thereof of the consideration or value of the interest conveyed up to 29
78	83		five hundred thousand dollars ($500,000) and (ii) one dollar ($1.00) on each four hundred dollars 30
79	84		($400.00) or fractional part thereof of any remaining consideration or value of the interest 31
80	85		conveyed. The transferor must pay the tax to the register of deeds of the county in which the real 32
81	86		estate is located before recording the instrument of conveyance. If the instrument transfers a 33
82	87		parcel of real estate lying in two or more counties, however, the tax must be paid to the register 34
83	88		of deeds of the county in which the greater part of the real estate with respect to value lies. 35
84	89		The excise tax on instruments imposed by this Article applies to timber deeds and contracts 36
85	90		for the sale of standing timber to the same extent as if these deeds and contracts conveyed an 37
86	91		interest in real property. 38
87	92		(b) The register of deeds of each county must remit the proceeds of the tax levied by this 39
88	93		section to the county finance officer. The finance officer of each county must credit one-half of 40
89	94		the proceeds of the tax levied at a rate of two-tenths of one percent (0.2%) to the county's general 41
90	95		fund and remit the remaining one-half of the proceeds, less taxes refunded and the county's 42
91	96		allowance for administrative expenses, to the Department of Revenue on a monthly basis. A 43
92	97		county may retain two percent (2%) of the amount of tax proceeds of the tax levied at a rate of 44
93	98		two-tenths of one percent (0.2%) allocated for remittance to the Department of Revenue as 45
94	99		compensation for the county's cost in collecting and remitting the State's share of the tax. The 46
95	100		Department of Revenue shall credit the funds remitted to the Department of Revenue under this 47
96	101		subsection to the General Fund." 48
97	102		SECTION 1.1.(c) Offset by the increase of the excise tax, as provided in subsection 49
98	103		(b) of this section, there is appropriated from the General Fund to the Housing Finance Agency 50
99	104		the recurring sum of five million dollars ($5,000,000) for each fiscal year of the 2025-2027 fiscal 51 General Assembly Of North Carolina Session 2025
100		-	~~Senate Bill 736-First Edition~~ Page 3
	105	+	DRS45326-MCxf-177 Page 3
101	106		biennium to be allocated to a Housing Innovation Office established by the Housing Finance 1
102	107		Agency. The Housing Innovation Office shall use funds appropriated in this section for (i) 2
103	108		administrative and operational costs and (ii) research and implementation of housing solutions, 3
104	109		including technical assistance, grants, loans, and other measures designed to address the housing 4
105	110		crisis by supporting the construction and maintenance of affordable, supportive, and sustainable 5
106	111		homes and developing innovative funding models and building techniques. 6
107	112		SECTION 1.1.(d) Subsection (b) of this section becomes effective July 1, 2025, and 7
108	113		applies to conveyances made on or after that date. Subsection (c) of this section becomes 8
109	114		effective July 1, 2025. The remainder of this section is effective when it becomes law. 9
110	115		SECTION 1.2.(a) There is appropriated from the General Fund to the Housing Trust 10
111	116		Fund established under G.S. 122E-3 the recurring sum of fifty million dollars ($50,000,000) for 11
112	117		each fiscal year of the 2025-2027 fiscal biennium to be used (i) for the purposes set forth in that 12
113	118		statute and (ii) in the discretion of the Housing Finance Authority, for a program, using a 13
114	119		competitive application process, to provide funds to local housing authorities, local housing trust 14
115	120		funds, or other entities that have the primary purpose, and agree to use the funds for, loans, grants, 15
116	121		or both for construction and maintenance of affordable housing units in the State. The Office 16
117	122		shall develop an application process and detailed guidelines applicable to assistance derived from 17
118	123		the funding provided in, and to accomplish the purposes of the program. Funding for the program 18
119	124		is reserved for properties meeting all of the following requirements: 19
120	125		(1) Financial assistance to an area served by a local housing trust fund does not 20
121	126		exceed two million dollars ($2,000,000). 21
122	127		(2) The local housing trust fund contributes one dollar ($1.00) of private funds 22
123	128		for every dollar of assistance received from the Office. 23
124	129		SECTION 1.2.(b) Part 2 of Article 4 of Chapter 105 of the General Statutes is 24
125	130		amended by adding a new section to read: 25
126	131		"§ 105-153.12. Credit for housing trust fund donations. 26
127	132		(a) Credit. – A taxpayer who makes a qualified contribution is allowed a credit against 27
128	133		the tax imposed by this Part in an amount equal to thirty percent (30%) of the donation. For 28
129	134		purposes of this section, a qualified contribution is a monetary donation (i) to the Housing Trust 29
130	135		Fund established pursuant to G.S. 122E-3 in the Housing Finance Agency and (ii) for the 30
131	136		construction, maintenance, or both of affordable housing. 31
132	137		(b) Reserved. 32
133	138		(c) Application. – To claim the credit provided in this section, an individual must file an 33
134	139		application with the Secretary for the credit. The application must be filed on or before April 15 34
135	140		of the year following the calendar year in which the qualified contribution was made. An 35
136	141		application is effective for the year in which it is timely filed. The Secretary may not accept late 36
137	142		applications under this subsection. The application must be on a form prescribed by the Secretary 37
138	143		and include any information required by the Secretary demonstrating that the qualified 38
139	144		contribution has met the conditions for the credit 39
140	145		(d) Substantiation. – An individual claiming a credit under this section must maintain and 40
141	146		make available for inspection by the Secretary any records the Secretary considers necessary to 41
142	147		determine and verify the amount of the credit to which the individual is entitled. The burden of 42
143	148		proving eligibility for the credit and the amount of the credit rests upon the individual, and no 43
144	149		credit may be allowed to an individual that fails to maintain adequate records or to make them 44
145	150		available for inspection. 45
146	151		(e) Ceiling; Use Allocation. – The total aggregate amount of all credits allowed to 46
147	152		taxpayers under this section for qualified contributions made in a taxable year may not exceed 47
148	153		twenty million dollars ($20,000,000). The Secretary shall, first, fully fund any prorated credits 48
149	154		in accordance with subsection (f) of this section and, second, if funds remain after fully funding 49
150	155		prorated credits, reopen the application period for credits under this section for which funds have 50
151	156		become available. If the Secretary reopens the application period and notwithstanding the 51 General Assembly Of North Carolina Session 2025
152		-	Page 4 ~~Senate Bill 736-First Edition~~
	157	+	Page 4 DRS45326-MCxf-177
153	158		application deadline in subsection (c) of this section, the additional applications must be filed 1
154	159		with the Secretary on or before October 15 of the year following the calendar year in which the 2
155	160		qualified contribution was made. The Secretary may not accept late additional applications 3
156	161		permitted under this subsection. The Secretary's determinations based on additional applications 4
157	162		timely filed in accordance with this subsection are final. 5
158	163		(f) Reduction. – The Secretary shall calculate the total amount of credits claimed from 6
159	164		applications timely filed under subsection (c) of this section. If the total amount of credits claimed 7
160	165		for qualified contributions made in a calendar year exceeds this maximum amount, the Secretary 8
161	166		shall allow a portion of the credits claimed by allocating the maximum amount in credits in 9
162	167		proportion to the size of the credit claimed by each taxpayer. If a credit claimed under this section 10
163	168		is reduced as provided in this subsection, the Secretary shall notify the taxpayer of the amount of 11
164	169		the reduction of the credit on or before December 31 of the year following the calendar year in 12
165	170		which the qualified contribution was made. The Secretary's allocations based on applications 13
166	171		filed under subsection (c) of this section are final and shall not be adjusted to account for credits 14
167	172		applied for but not claimed. 15
168	173		(g) Limitation. – The credit allowed under this section may not exceed the amount of tax 16
169	174		imposed by this Part for the taxable year reduced by the sum of all credits allowable, except tax 17
170	175		payments made by or on behalf of the taxpayer. 18
171	176		(h) No double benefit. – A taxpayer who claims a credit under this section must add back 19
172	177		to taxable income any amount deducted under the Code for the qualified contribution. A taxpayer 20
173	178		who claims the credit allowed in this section may not, for the same qualified contribution, claim 21
174	179		another credit allowed in this Part." 22
175	180		SECTION 1.2.(c) Subsection (a) of this section is effective July 1, 2025. Subsection 23
176	181		(b) of this section is effective for taxable years beginning on or after January 1, 2025, and applies 24
177	182		to qualified contributions made on or after that date. The remainder of this section is effective 25
178	183		when it becomes law. 26
179	184		27
180	185		PART II. HOUSING PRODUCTION AND AFFORDABILITY 28
181	186		SECTION 2.1.(a) Article 9 of Chapter 160D of the General Statutes is amended by 29
182	187		adding a new Part to read: 30
183	188		"Part 1A. Housing Production and Affordability. 31
184	189		"§ 160D-917. By right development for affordable housing. 32
185	190		A local government shall allow by right, and without requiring a conditional use or special 33
186	191		use permit, the following: 34
187	192		(1) The development of at least one attached and one detached accessory dwelling 35
188	193		unit which conforms to the North Carolina Residential Code for One- and 36
189	194		Two-Family Dwellings, including applicable provisions from fire prevention 37
190	195		codes, for each single-family detached dwelling in areas zoned for residential 38
191	196		use that allow for development of single-family detached dwellings. An 39
192	197		accessory dwelling unit may be built or sited concurrently or after the primary 40
193	198		single-family detached dwelling has been constructed or sited. Nothing in this 41
194	199		subdivision shall prohibit a local government from permitting accessory 42
195	200		dwelling units in any area not otherwise required under this subdivision. 43
196	201		(2) A development in an area zoned for residential use with at least 20 units per 44
197	202		acre that is located with one-half (1/2) mile of a transit stop or that is within a 45
198	203		transit-oriented development district or similar designation. 46
199	204		"§ 160D-917.1. Administrative review of applications for development approvals for 47
200	205		affordable housing developments. 48
201	206		(a) Notwithstanding any provision of this Chapter to the contrary, (i) within 30 days of a 49
202	207		local government's receipt of an application for development approval for a qualifying affordable 50
203	208		development or within 60 days of a local government's receipt of an application for development 51 General Assembly Of North Carolina Session 2025
204		-	~~Senate Bill 736-First Edition~~ Page 5
	209	+	DRS45326-MCxf-177 Page 5
205	210		approval of a residential project with less than 100 units, the local government shall complete an 1
206	211		administrative review of the application and any supporting documents and make an 2
207	212		administrative decision that does one of the following: 3
208	213		(1) Notifies the developer in writing that the application is complete and no 4
209	214		further information is required for the local government to make a 5
210	215		development approval determination. 6
211	216		(2) Notifies the developer in writing that the application is deficient and provides 7
212	217		the developer with a deficiency list, in writing, that identifies all of the 8
213	218		following: 9
214	219		a. Each deficiency. 10
215	220		b. The specific law, ordinance, policy, or procedure used as the basis for 11
216	221		each deficiency. 12
217	222		c. A description of the action the local government would deem 13
218	223		corrective for each deficiency identified. 14
219	224		For purposes of this section, a "qualifying affordable development" is a residential or 15
220	225		mixed-use development that (i) reserves at least twenty percent (20%) of total units for 16
221	226		households earning eighty percent (80%) or less of the area median income (AMI), or reserves 17
222	227		at least ten percent (10%) of total units for households earning sixty percent (60%) or less of 18
223	228		AMI; (ii) maintains affordability restrictions through deed covenants for a minimum period of 19
224	229		30 years; (iii) contains at least eight residential units; (iv) includes a binding commitment to 20
225	230		accept housing choice vouchers; and (v) meets the minimum standards of habitability, safety, 21
226	231		and quality of life for all established housing. 22
227	232		(b) The notice under subdivision (2) of subsection (a) of this section may include local 23
228	233		government recommendations pertaining to the development project but any recommendations 24
229	234		must be clearly designated as recommended or advisory only and shall not be required as a 25
230	235		condition for a development approval determination. 26
231	236		(c) Upon a developer's receipt of a notice of a deficient application and a deficiency list 27
232	237		under subdivision (2) of subsection (a) of this section, the developer may do any of the following: 28
233	238		(1) Correct the deficient application and resubmit a corrected application to the 29
234	239		local government. 30
235	240		(2) Submit a written explanation for each deficiency and request another 31
236	241		administrative review under this section that shall be completed by the local 32
237	242		government within 10 business days and takes into consideration the written 33
238	243		explanation. 34
239	244		(3) Appeal the administrative decision as provided in G.S. 160D-405. 35
240	245		(d) Within 10 business days of a local government's receipt of a corrected application 36
241	246		under subdivision (1) of subsection (c) of this section, the local government shall notify the 37
242	247		developer in writing whether the application (i) is complete and no further information is required 38
243	248		for the local government to make a development approval determination or (ii) does not correct 39
244	249		all the deficiencies identified in accordance with subdivision (2) of subsection (a) of this section. 40
245	250		If the developer amended or altered the application with respect to matters that are unrelated to 41
246	251		the deficiencies identified in accordance with subdivision (2) of subsection (a) of this section, the 42
247	252		local government shall consider the corrected application a new application to be processed in 43
248	253		accordance with subsection (a) of this section. 44
249	254		(e) This section does not apply to permits submitted pursuant to G.S. 160D-1110.1. 45
250	255		"§ 160D-917.2. Lot size and density for affordable housing. 46
251	256		(a) Notwithstanding any provision of this Chapter to the contrary, a local government 47
252	257		with a population greater than 10,000 may not establish a minimum lot size that is less than 48
253	258		one-quarter (1/4) acre and may not establish a density requirement of less than eight units per 49
254	259		acre for development approvals in areas zoned for residential use. 50 General Assembly Of North Carolina Session 2025
255		-	Page 6 ~~Senate Bill 736-First Edition~~
	260	+	Page 6 DRS45326-MCxf-177
256	261		(b) A local government shall allow at least a thirty-five percent (35%) increase in density 1
257	262		for projects where at least fifteen percent (15%) of the units are reserved for low-income 2
258	263		residents. For the purposes of this subsection, "low-income residents" are those residents with a 3
259	264		family income that is sixty percent (60%) or less of the area median family income." 4
260	265		SECTION 2.1.(b) This Part becomes effective July 1, 2025. 5
261	266		6
262	267		PART III. HOME OWNERSHIP AND ACCESSIBILITY 7
263	268		SECTION 3.1.(a) G.S. 105-153.5(b) and (c) reads as rewritten: 8
264	269		"(b) Other Deductions. – In calculating North Carolina taxable income, a taxpayer may 9
265	270		deduct from the taxpayer's adjusted gross income any of the following items that are included in 10
266	271		the taxpayer's adjusted gross income: 11
267	272		… 12
268	273		(12a) The amount deposited during the taxable year, not to exceed fifteen thousand 13
269	274		dollars ($15,000), to a first-time home buyer savings account to be used for 14
270	275		eligible expenses by a qualified beneficiary. For purposes of this subdivision, 15
271	276		the following definitions apply: 16
272	277		a. Eligible expenses. – A downpayment and any closing costs included 17
273	278		on a real estate settlement statement, including appraisal fees, 18
274	279		mortgage origination fees, and inspection fees. 19
275	280		b. First-time home buyer savings account. – An account with a qualified 20
276	281		financial institution that has less than one hundred fifty thousand 21
277	282		dollars ($150,000). 22
278	283		c. Qualified beneficiary. – A first-time home buyer designated by an 23
279	284		account holder for whom the money in a first-time home buyer savings 24
280	285		account is or will be used for eligible expenses for the purchase of the 25
281	286		qualified beneficiary's first primary residence, which is located in this 26
282	287		State. 27
283	288		d. Qualified financial institution. – A commercial bank in North Carolina 28
284	289		with a charter, either from the Commissioner of Banks, for a State 29
285	290		Charter, or from the Office of the Comptroller of the Currency, for a 30
286	291		National Charter. 31
287	292		… 32
288	293		(c) Additions. – In calculating North Carolina taxable income, a taxpayer must add to the 33
289	294		taxpayer's adjusted gross income any of the following items that are not included in the taxpayer's 34
290	295		adjusted gross income: 35
291	296		… 36
292	297		(7a) The amount deducted in a prior taxable year to the extent this amount was 37
293	298		withdrawn from a first-time home buyer savings account and not used to pay 38
294	299		for eligible expenses of a qualified beneficiary in conformity with this section, 39
295	300		unless the withdrawal was rolled over to another newly created first-time 40
296	301		home buyer savings account. 41
297	302		…." 42
298	303		SECTION 3.1.(b) This section is effective for taxable years beginning on or after 43
299	304		January 1, 2025. 44
300	305		SECTION 3.2.(a) There is appropriated from the General Fund to the Housing 45
301	306		Finance Agency the recurring sum of three million dollars ($3,000,000) for each fiscal year of 46
302	307		the 2025-2027 fiscal biennium to be allocated to the NC 1st Home Advantage Down Payment 47
303	308		Program administered by the Agency for uses consistent with that program. 48
304	309		SECTION 3.2.(b) This section becomes effective July 1, 2025. 49
305	310		SECTION 3.3.(a) There is appropriated from the General Fund to the Housing 50
306	311		Finance Agency the recurring sum of ten million dollars ($10,000,000) for each fiscal year of the 51 General Assembly Of North Carolina Session 2025
307		-	~~Senate Bill 736-First Edition~~ Page 7
	312	+	DRS45326-MCxf-177 Page 7
308	313		2025-2027 fiscal biennium to be used for a program to establish new, and expand existing, 1
309	314		community land trusts with the primary purpose of facilitating affordable homeownership by 2
310	315		retaining ownership of the land and leasing it to homeowners who purchase the house on that 3
311	316		land at below-market pricing. The Agency shall develop an application process and detailed 4
312	317		guidelines applicable to the program to accomplish the purposes of, this section. Required 5
313	318		guidelines for the program include, but are not limited to, the following: 6
314	319		(1) Interest on the financing of the purchase of the house is provided at a low, 7
315	320		fixed rate. 8
316	321		(2) No private mortgage insurance is required. 9
317	322		(3) Recipients are first-time home buyers. 10
318	323		(4) Recipients provide at least three percent (3%) of the purchase price as a 11
319	324		downpayment. 12
320	325		(5) Recipients meet income and credit score limits, as established by the Agency. 13
321	326		(6) Recipients have less than one hundred thousand dollars ($100,000) in total 14
322	327		household assets, including checking accounts, savings accounts, stocks, and 15
323	328		bonds, but not including retirement and college savings accounts. 16
324	329		(7) Recipients agree to live in the property as the primary residence. 17
325	330		SECTION 3.3.(b) This section becomes effective July 1, 2025. 18
326	331		SECTION 3.4.(a) There is appropriated from the General Fund to the Department 19
327	332		of Commerce the recurring sum of fifteen million dollars ($15,000,000) for each fiscal year of 20
328	333		the 2025-2027 fiscal biennium to be used for the Rural Water Extension Program. The 21
329	334		Department shall develop an application process and detailed guidelines applicable to the 22
330	335		program. The program shall be open to rural communities with populations of 10,000 or less 23
331	336		that apply to obtain technical assistance and necessary financing necessary for the purpose of 24
332	337		developing drinking water and waste disposal systems to ensure safe drinking water and sanitary 25
333	338		waste disposal systems for public health and economic vitality of rural communities of the State. 26
334	339		SECTION 3.4.(b) This section becomes effective July 1, 2025. 27
335	340		SECTION 3.5.(a) Article 4 of Chapter 105 of the General Statutes is amended by 28
336	341		adding a new section to read: 29
337	342		"§ 105-153.13. Credit for rural affordable rental housing. 30
338	343		(a) Credit. – A taxpayer that is allowed for the taxable year a federal income tax credit 31
339	344		for low-income housing under section 42 of the Code with respect to a qualified North Carolina 32
340	345		low-income building located in a qualifying rural area, is allowed a credit under this section for 33
341	346		each affordable rental unit for the taxable year within which the construction of the affordable 34
342	347		rental unit is completed. The amount of the credit is equal to the lesser of twenty-five thousand 35
343	348		dollars ($25,000) or thirty percent (30%) of the construction costs incurred. 36
344	349		(b) Definitions. – The following definitions apply in this section: 37
345	350		(1) Affordable rental unit. – A rental unit used as a permanent residence by an 38
346	351		eligible renter and subject to permanent affordability restrictions. 39
347	352		(2) Eligible renter. – An individual who occupies the affordable rental unit as a 40
348	353		primary residence and is a person of lower income, as defined by G.S. 157-3 41
349	354		(3) Permanent affordability restrictions. – Restrictions that have been 42
350	355		permanently imposed by the Housing Finance Agency on an affordable rental 43
351	356		units owned, operated, or managed by an appropriate nonprofit organization 44
352	357		Permanent affordability restrictions imposed or required by the Agency 45
353	358		pursuant to this subdivision may require a regulatory agreement with the 46
354	359		Agency or other affordability restrictions in recorded documents, provided the 47
355	360		Agency determines that such restrictions are enforceable and likely to be 48
356	361		enforced. 49
357	362		(4) Qualified North Carolina low-income building. – A building with between 50
358	363		five and 18 affordable rental units. 51 General Assembly Of North Carolina Session 2025
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360	365		(5) Qualifying rural area. – An area of the State with a population density of 50 1
361	366		or fewer people per square mile in the taxable year in which the credit is 2
362	367		claimed. 3
363	368		(c) Limitation. – The credit allowed by this section may not exceed the amount of tax 4
364	369		imposed by this Part for the taxable year reduced by the sum of all credits allowable, except 5
365	370		payments of tax by or on behalf of the taxpayer. 6
366	371		(d) No double benefit. – The credit allowed by this section does not apply to costs paid 7
367	372		with funds provided to the taxpayer by a State or federal agency or program. A taxpayer who 8
368	373		claims the credit allowed in this section may not, for the same activity, claim another credit 9
369	374		allowed in this Part." 10
370	375		SECTION 3.5.(b) This section is effective for taxable years beginning on or after 11
371	376		January 1, 2025. 12
372	377		SECTION 3.6.(a) There is appropriated from the General Fund to the Housing 13
373	378		Finance Authority the recurring sum of ten million dollars ($10,000,000) for each fiscal year of 14
374	379		the 2025-2027 fiscal biennium to be used for a manufactured home supply program. The 15
375	380		program, using a competitive application process for units of local government, shall provide 16
376	381		funding for loans, grants, or both for replacement and repair of manufactured homes. The Office 17
377	382		shall develop an application process and detailed guidelines applicable to the program to 18
378	383		maximize the beneficial impact of, and number of homes and families assisted with, funding 19
379	384		provided. The process shall reserve funding for manufactured home assistance used as a primary 20
380	385		residence by persons of lower income, as defined by G.S. 157-3 and shall prioritize funding for 21
381	386		projects that maximize the number of families served. Financial assistance to a single 22
382	387		manufactured home shall not exceed twenty-five thousand dollars ($25,000). 23
383	388		SECTION 3.6.(b) This section becomes effective July 1, 2025. 24
384	389		25
385	390		PART IV. HURRICANE RECOVERY AND RESILIENCE 26
386	391		SECTION 4.1.(a) There is appropriated from the General Fund to the Department 27
387	392		of Public Safety, Office of Recovery and Resiliency (NCORR) the nonrecurring sum of one 28
388	393		hundred fifty million dollars ($150,000,000) for the 2025-2026 fiscal year to be allocated and 29
389	394		used as follows: 30
390	395		(1) One hundred million dollars ($100,000,000) to establish an emergency 31
391	396		housing response fund available to NCORR to respond to housing needs after, 32
392	397		and due to the event on which is based, a major disaster declaration by the 33
393	398		President of the United States under the Stafford Act (P.L. 93-288). The State 34
394	399		Building Code Council shall adopt rules establishing an expedited permitting 35
395	400		process and code flexibility for like-for-like disaster rebuilding. 36
396	401		(2) Fifty million dollars ($50,000,000) to establish a voluntary buyout fund. 37
397	402		Moneys in the fund shall be used to purchase homes undergoing, and located 38
398	403		in areas subjected to, repeated flooding due to natural disasters. NCORR may 39
399	404		purchase a qualifying home for up to one hundred ten percent (110%) of the 40
400	405		pre-disaster fair market value of the home. 41
401	406		SECTION 4.1.(b) This section becomes effective July 1, 2025. 42
402	407		SECTION 4.2.(a) The Department of Insurance shall study the feasibility, and the 43
403	408		best method of implementing, a low-interest loan program to provide loans to homeowners for 44
404	409		costs associated with strengthening residential structures to withstand hurricanes. As part of its 45
405	410		study, the Department shall investigate and recommend optimal loan terms, the administrative 46
406	411		structure for the program, and limitations on loan amounts and on uses of loaned funds necessary 47
407	412		to maximize safety and economic benefits and target funding support where need is greatest. The 48
408	413		Department, as a further part of the study, shall include whether, and to what extent, to use loans 49
409	414		to do one or more of the following: (i) supplement a quality wind-mitigation inspection by a 50
410	415		licensed home inspector, (ii) create a report for the homeowner resulting from the inspection that 51 General Assembly Of North Carolina Session 2025
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412	417		provides information to contractors and insurance companies of recommended improvements 1
413	418		that will best improve and contribute to storm readiness and resilience, and (iii) offset the costs 2
414	419		to homeowners of best practices for home improvements for storm resilience by licensed 3
415	420		contractors, including, but not limited to, strengthening roof-to-deck attachments, reinforcing 4
416	421		roof-to-wall connections, installation of secondary water resistance for roofs, window upgrades, 5
417	422		and exterior door upgrades. In addition, the Department shall determine and make 6
418	423		recommendations on appropriate levels of discounting insurance rates to further effectively 7
419	424		incentivize homeowners to undertake implementation of identified enhanced resilience 8
420	425		improvements for homes. The Department shall submit its report, including funding needs and 9
421	426		any legislative proposals, to the General Assembly and the Fiscal Research Division no later than 10
422	427		January 1, 2026. 11
423	428		SECTION 4.2.(b) This section is effective when it becomes law. 12
424	429		13
425	430		PART V. HOUSING AFFORDABILITY AND FINANCING MECHANISMS 14
426	431		SECTION 5.1. The Housing Innovation Office established by the Housing Finance 15
427	432		Agency pursuant to Section 1.1 of this act shall study methods of incentivizing the construction 16
428	433		of, and increasing the affordability of, housing options for rent or sale. As part of its study, the 17
429	434		Office shall examine tax incentives to developers of, and renters and purchasers of, low-income 18
430	435		housing; tax increment financing options; local and State bonding initiatives; public private 19
431	436		partnerships to engage and maximize State or local dollars with private philanthropy; and any 20
432	437		other financial, regulatory, or compliance measures the Office determines can reasonably be 21
433	438		expected to increase the availability and affordability of low-income housing. The Office shall 22
434	439		submit its report, including funding needs and any legislative proposals, to the General Assembly 23
435	440		and the Fiscal Research Division no later than January 1, 2026. 24
436	441		SECTION 5.2. Beginning January 1, 2025, and at least once every biennium 25
437	442		thereafter, the State Auditor shall audit all housing programs administered a State agency having 26
438	443		an annual budget of ten million dollars ($10,000,000) or more. 27
439	444		SECTION 5.3. This Part is effective when it becomes law. 28
440	445		29
441	446		PART VI. ADAPTIVE REUSE AND CONVERSION 30
442	447		SECTION 6.1.(a) Article 4 of Chapter 105 of the General Statutes is amended by 31
443	448		adding a new section to read: 32
444	449		"§ 105-153.14. Credit for short-term rental conversion to affordable housing. 33
445	450		(a) Credit. – An owner of a hotel or motel providing lodging accommodations for pay 34
446	451		located in this State with at least 30 rooms for short-term rental is allowed a credit against the tax 35
447	452		imposed by this Part for each affordable rental unit created from the conversion of one or more 36
448	453		rooms. The amount of the credit is equal to the lesser of (i) thirty percent (30%) of the cost of 37
449	454		conversion or (ii) forty thousand dollars ($40,000). The credit is allowed for the taxable year 38
450	455		within which the conversion is completed. 39
451	456		(b) Definitions. – The following definitions apply in this section: 40
452	457		(1) Affordable rental unit. – A rental unit used as a permanent residence by an 41
453	458		eligible renter and subject to permanent affordability restrictions. 42
454	459		(2) Eligible renter. – An individual who occupies the affordable rental unit as a 43
455	460		primary residence and is a person of lower income, as defined by G.S. 157-3 44
456	461		(3) Permanent affordability restrictions. – Restrictions that have been 45
457	462		permanently imposed by the Housing Finance Agency on an affordable rental 46
458	463		units owned, operated, or managed by an appropriate nonprofit organization 47
459	464		Permanent affordability restrictions imposed or required by the Agency 48
460	465		pursuant to this subdivision may require a regulatory agreement with the 49
461	466		Agency or other affordability restrictions in recorded documents, provided the 50 General Assembly Of North Carolina Session 2025
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463	468		Agency determines that such restrictions are enforceable and likely to be 1
464	469		enforced. 2
465	470		(c) Limitation. – The credit allowed by this section may not exceed the amount of tax 3
466	471		imposed by this Part for the taxable year reduced by the sum of all credits allowable, except 4
467	472		payments of tax by or on behalf of the taxpayer. 5
468	473		(d) No double benefit. – The credit allowed by this section does not apply to costs paid 6
469	474		with funds provided to the taxpayer by a State or federal agency or program. A taxpayer who 7
470	475		claims the credit allowed in this section may not, for the same activity, claim another credit 8
471	476		allowed in this Part." 9
472	477		SECTION 6.1.(b) The State Building Code Council shall adopt rules establishing 10
473	478		an expedited permitting process of no more than 45 days and code flexibility for the conversion 11
474	479		of hotel and motel rooms into affordable rental units (i) for which a tax credit is allowed under 12
475	480		G.S. 105-153.14, as enacted by subsection (a) of this section, and (ii) where the existing building 13
476	481		footprint is maintained. The flexibility allowed in this section shall not amend any provisions 14
477	482		required to maintain safety measures necessary but shall make allowances for any existing 15
478	483		structural or other constraints applicable to motels and hotels but not applicable to residential 16
479	484		structures. 17
480	485		SECTION 6.1.(c) Subsection (a) of this section is effective for taxable years 18
481	486		beginning on or after January 1, 2025. Subsection (b) of this section is effective when it becomes 19
482	487		law. 20
483	488		SECTION 6.2.(a) There is appropriated from the General Fund to the Housing 21
484	489		Finance Agency the nonrecurring sum of two million dollars ($2,000,000) for the 2025-2026 22
485	490		fiscal year to be used for an accommodation conversion program. The program, using 23
486	491		competitive application process for developers, shall provide funding to offset certain costs 24
487	492		involved in converting hotels and motels into affordable rental units for permanent housing. 25
488	493		Costs which may be offset with funding appropriated in this subsection includes architectural 26
489	494		and financial feasibility assessment assistance. The Agency shall develop an application process 27
490	495		and detailed guidelines applicable to the program to maximize the number of affordable rental 28
491	496		units resulting from the funding provided in this section. 29
492	497		SECTION 6.2.(b) This section becomes effective July 1, 2025. 30
493	498		31
494	499		PART VII. TENANT PROTECTIONS AND RENTAL AFFORDABILITY 32
495	500		SECTION 7.1(a) There is appropriated from the General Fund to the Housing 33
496	501		Finance Agency the recurring sum of thirty million dollars ($30,000,000) for each fiscal year of 34
497	502		the 2025-2027 fiscal biennium to be allocated to an Emergency Rental Assistance Fund 35
498	503		established by the Housing Finance Agency. Funds in the Emergency Rental Assistance Fund 36
499	504		shall be used to provide temporary rental and housing assistance to persons of low income, as 37
500	505		defined in G.S. 157-3, and to persons experiencing homelessness. The temporary rental and 38
501	506		housing assistance provided in this section shall be limited in duration and shall not exceed six 39
502	507		consecutive months of provided assistance for any one person or family. 40
503	508		SECTION 7.1.(b) This section becomes effective July 1, 2025. 41
504	509		SECTION 7.2.(a) G.S. 7A-451 reads as rewritten: 42
505	510		"§ 7A-451. Scope of entitlement. 43
506	511		(a) An indigent person is entitled to services of counsel in the following actions and 44
507	512		proceedings: 45
508	513		… 46
509	514		(20) Proceedings for summary ejectment actions brought under Articles 3 and 7 of 47
510	515		Chapter 42 of the General Statutes." 48
511	516		SECTION 7.2.(b) This section becomes effective October 1, 2025, and applies to 49
512	517		actions for summary ejectment brought on or after that date. 50 General Assembly Of North Carolina Session 2025
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514	519		SECTION 7.3.(a) Article 6 of Chapter 42 of the General Statutes is amended by 1
515	520		adding a new section to read: 2
516	521		"§ 42-57. Alternative Security Deposit Payment Options. 3
517	522		(a) Definitions. – For the purposes of this section the following definitions apply: 4
518	523		(1) Security deposit insurance. – A policy or bond issued by an insurer licensed 5
519	524		to do business in this State, which guarantees payment to the landlord for 6
520	525		damages or unpaid rent up to an amount equivalent to the security deposit 7
521	526		otherwise required under G.S. 42-50 and this Article. 8
522	527		(2) Installment payment plan. – An agreement between the landlord and tenant 9
523	528		allowing the tenant to pay the security deposit in periodic payments over a 10
524	529		specified term. 11
525	530		(b) Tenant Options. – Instead of paying the full amount for a security deposit authorized 12
526	531		by G.S. 42-50 at the commencement of the lease, a tenant may elect one of the following 13
527	532		alternatives: 14
528	533		(1) Installment payment plan. – The tenant may pay the security deposit in 15
529	534		installments pursuant to a written installment payment plan agreed upon by 16
530	535		the landlord and tenant. The plan shall include all of the following: 17
531	536		a. The total amount of the security deposit, not to exceed the amount 18
532	537		established by G.S. 42-51(b). 19
533	538		b. A payment schedule not to exceed the lease term or six months from 20
534	539		the commencement of the lease term, whichever is lesser. 21
535	540		c. Signatures of both the landlord and the tenant. 22
536	541		(2) Security deposit insurance. – The tenant may provide security deposit 23
537	542		insurance as a substitute for a cash security deposit. The insurance policy or 24
538	543		bond shall do all of the following: 25
539	544		a. Name the landlord as the beneficiary or insured party. 26
540	545		b. Remain in effect for the duration of the lease term, including any 27
541	546		renewals or extensions, unless otherwise agreed by the landlord." 28
542	547		SECTION 7.3.(b) This section is effective when it becomes law. 29
543	548		30
544	549		PART VIII. HOMELESSNESS PREVENTION AND SOLUTIONS 31
545	550		SECTION 8.1(a) There is appropriated from the General Fund to the Housing 32
546	551		Finance Agency the recurring sum of thirty-five million dollars ($35,000,000) for each fiscal 33
547	552		year of the 2025-2027 fiscal biennium. The Housing Finance Agency shall work with local 34
548	553		housing authorities to use the funds appropriated in this section to provide combined housing and 35
549	554		wraparound services to persons and families experiencing homelessness. For purposes of this 36
550	555		subsection, wraparound services means the collective components of comprehensive and 37
551	556		individualized support for persons with serious mental health or behavioral challenges. 38
552	557		SECTION 8.1.(b) There is appropriated from the General Fund to the Housing 39
553	558		Finance Agency the sum of twenty million dollars ($20,000,000) in nonrecurring fund to be 40
554	559		allocated to a Rapid Rehousing Program established by the Housing Finance Agency. The Rapid 41
555	560		Rehousing Program shall work with the local housing authorities to use the funds appropriated 42
556	561		in this section to provide temporary, short-term rental and housing assistance and case 43
557	562		management services to persons experiencing homelessness. 44
558	563		SECTION 8.1.(c) Notwithstanding any other provision in this section, funds 45
559	564		appropriated in this Part may also be allocated by the Housing Finance Agency to any local 46
560	565		housing authorities established under Chapter 157 of the General Statutes that request funds to 47
561	566		establish coordinated entry systems designed to ensure that all people experiencing a housing 48
562	567		crisis have fair and equal access to the rental and housing assistance provided for in this Part. 49
563	568		The coordinated entry systems shall be designed to evaluate whether a person or family is 50
564	569		qualified for the rental or housing assistance funded by this Part and shall ensure that individuals 51 General Assembly Of North Carolina Session 2025
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566	571		and families are offered the most appropriate rental or housing assistance based on their needs. 1
567	572		The Housing Finance Agency shall establish guidelines and a process for applying for the funds 2
568	573		appropriated in this Part and may allocate the funds according to its discretion. 3
569	574		SECTION 8.1.(d) This section becomes effective July 1, 2025. 4
570	575		5
571	576		PART IX. CONSTRUCTION WORKFORCE DEVELOPMENT 6
572	577		SECTION 9.1.(a) Article 10 of Chapter 143B of the General Statutes is amended by 7
573	578		adding a new Part to read: 8
574	579		"Part 21A. Housing Advancement. 9
575	580		"§ 143B-472.124. Housing innovation and affordability advancement. 10
576	581		(a) Title. – This Part shall be known and may be cited as "The Housing Innovation and 11
577	582		Affordability Advancement Act". 12
578	583		(b) Definitions. – The following definitions apply in this Part. 13
579	584		(1) Department. – The Department of Commerce. 14
580	585		(2) Construction skilled trade. – Specialized careers requiring hands-on skills and 15
581	586		training to build and maintain structures but not requiring a four-year degree. 16
582	587		The term includes electricians, plumbers, carpenters, roofers, HVAC 17
583	588		technicians, and other similar skills applicable to and used in the construction 18
584	589		of residential structures. 19
585	590		(3) Institution of higher education. – Any public university, community college, 20
586	591		or technical training school in North Carolina offering programs in 21
587	592		construction skilled trades. 22
588	593		(c) Housing Construction Development Program. – There is established in the 23
589	594		Department of Commerce the Housing Construction Development Program (Program). The 24
590	595		Program shall be comprised of the following elements: 25
591	596		(1) Workforce development. – In conjunction with The University of North 26
592	597		Carolina and the Community Colleges System Office, the Department shall 27
593	598		develop a grant program for institutions of higher education in this State to 28
594	599		expedite and facilitate the expansion of home construction skilled trade 29
595	600		training programs. The Department shall (i) develop guidelines for an 30
596	601		application process for institutions of higher education for the allocation of 31
597	602		funds granted pursuant to this section and (ii) prioritize awarding funds based 32
598	603		on the degree to which the institution has shown in the application the 33
599	604		following: 34
600	605		a. A viable plan to partner and create learning synergies with industry 35
601	606		leaders and employers to align training and real-world home 36
602	607		construction needs. 37
603	608		b. The funding will be used for home construction workforce needs, 38
604	609		including construction skilled trades. 39
605	610		(2) Apprenticeship development. – In conjunction with The University of North 40
606	611		Carolina and the Community Colleges System Office, the Department shall 41
607	612		develop a grant program for subsidizing the costs of qualifying employers for 42
608	613		paid apprenticeship positions for students in institutions of higher education 43
609	614		in the State in order to promote direct-to-hire pathways for participating 44
610	615		students to be prepared for and immediately fill home construction industry 45
611	616		workforce needs. A qualifying employer is an employer currently licensed as 46
612	617		a contractor or subcontractor to construct or perform construction skilled 47
613	618		trades in residential homes in the State. The Department shall (i) develop 48
614	619		guidelines for an application process for qualifying employers for the 49
615	620		allocation of funds granted pursuant to this section and (ii) prioritize awarding 50 General Assembly Of North Carolina Session 2025
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	621	+	DRS45326-MCxf-177 Page 13
617	622		funds based on the degree to which the employer has shown, in the application 1
618	623		or otherwise, the following: 2
619	624		a. A viable plan to partner and create learning synergies and pre- and 3
620	625		post-graduation employment opportunities for students attending 4
621	626		institutions of higher education in the State. 5
622	627		b. The funding will be used to subsidize the total cost of the paid 6
623	628		apprenticeship program created by the qualifying employer. 7
624	629		c. The funding will not exceed two thousand five hundred dollars 8
625	630		($2,500) per participating apprentice. 9
626	631		d. A history of hiring participating apprentices and students graduating 10
627	632		in relevant fields from institutions of higher education. 11
628	633		(3) Innovation assistance. – In conjunction with The University of North Carolina 12
629	634		and the Community Colleges System Office, the Department shall develop a 13
630	635		grant program for institutions of higher education in this State to offset costs 14
631	636		of researching and developing (i) building methods that show potential to 15
632	637		reduce construction time and costs, (ii) more affordable or sustainable 16
633	638		materials, or (iii) pioneering construction techniques that save resources while 17
634	639		maintaining or improving quality. The Department shall develop guidelines 18
635	640		for an application process for institutions of higher education for the allocation 19
636	641		of funds granted pursuant to this section." 20
637	642		SECTION 9.1.(b) There is appropriated from the General Fund to the Department 21
638	643		of Commerce the recurring sum of fifty million dollars ($50,000,000) for each fiscal year of the 22
639	644		2025-2027 fiscal biennium for the Housing Construction Development Program established in 23
640	645		G.S. 143B-472.124, as enacted by subsection (a) of this section, to be allocated as follows: 24
641	646		(1) Fifteen million dollars ($15,000,000) to be used for workforce development 25
642	647		purposes, as set forth in G.S. 143B-472.124(c)(1). 26
643	648		(2) Ten million dollars ($10,000,000) to be used for innovation assistance 27
644	649		purposes, as set forth in G.S. 143B-472.124(c)(3). 28
645	650		(3) The remainder to be used for apprenticeship development purposes, as set 29
646	651		forth in G.S. 143B-472.124(c)(2). 30
647	652		SECTION 9.1.(c) This section becomes effective July 1, 2025. 31
648	653		32
649	654		PART X. FAIR HOUSING AND EQUITY 33
650	655		SECTION 10.1.(a) There is appropriated from the General Fund to the North 34
651	656		Carolina Human Relations Commission the recurring sum of three million dollars ($3,000,000) 35
652	657		for each fiscal year of the 2025-2027 fiscal biennium. The funds appropriated in this section shall 36
653	658		be used by the Human Relations Commission to actively investigate, identify, and report to the 37
654	659		Attorney General discriminatory practices in the housing market that violate the State Fair 38
655	660		Housing Act. 39
656	661		SECTION 10.1.(b) There is appropriated from the General Fund to the Department 40
657	662		of Commerce the recurring sum of twenty-five million dollars ($25,000,000) for each fiscal year 41
658	663		of the 2025-2027 fiscal biennium to be allocated to a special account established by the 42
659	664		Department to be known as the Equitable Development Account. Funds appropriated to the 43
660	665		account shall be used to identify historically underinvested neighborhoods and provide funds to 44
661	666		the local government units in which identified neighborhoods are located to construct, improve, 45
662	667		and repair water, sewer, electrical, transportation, and other infrastructure. For purposes of this 46
663	668		subsection, a historically underinvested neighborhood is one that faces persistent challenges due 47
664	669		to discriminatory policies and practices resulting in limited access to resources and opportunities. 48
665	670		SECTION 10.1.(c) This section becomes effective July 1, 2025. 49
666	671		SECTION 10.2.(a) G.S. 160D-501 reads as rewritten: 50
667	672		"§ 160D-501. Plans. 51 General Assembly Of North Carolina Session 2025
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	673	+	Page 14 DRS45326-MCxf-177
669	674		… 1
670	675		(b) Comprehensive Plan Contents. – A comprehensive plan shall analyze, evaluate, and 2
671	676		require the implementation of equitable distribution of affordable housing and may, among other 3
672	677		topics, address any of the following as determined by the local government: 4
673	678		(1) Issues and opportunities facing the local government, including consideration 5
674	679		of trends, values expressed by citizens, community vision, and guiding 6
675	680		principles for growth and development. 7
676	681		(2) The pattern of desired growth and development and civic design, including 8
677	682		the location, distribution, and characteristics of future land uses, urban form, 9
678	683		utilities, and transportation networks. 10
679	684		(3) Employment opportunities, economic development, and community 11
680	685		development. 12
681	686		(4) Acceptable levels of public services and infrastructure to support 13
682	687		development, including water, waste disposal, utilities, emergency services, 14
683	688		transportation, education, recreation, community facilities, and other public 15
684	689		services, including plans and policies for provision of and financing for public 16
685	690		infrastructure. 17
686	691		(5) Housing with a range of types and affordability to accommodate persons and 18
687	692		households of all types and income levels. 19
688	693		(6) Recreation and open spaces. 20
689	694		(7) Mitigation of natural hazards such as flooding, winds, wildfires, and unstable 21
690	695		lands. 22
691	696		(8) Protection of the environment and natural resources, including agricultural 23
692	697		resources, mineral resources, and water and air quality. 24
693	698		(9) Protection of significant architectural, scenic, cultural, historical, or 25
694	699		archaeological resources. 26
695	700		(10) Analysis and evaluation of implementation measures, including regulations, 27
696	701		public investments, and educational programs. 28
697	702		…." 29
698	703		SECTION 10.2.(b) This section is effective when it becomes law. 30
699	704		31
700	705		PART XI. EFFECTIVE DATE 32
701	706		SECTION 11. Except as otherwise provided, this act is effective when it becomes 33
702	707		law. 34