Housing Call: June 3, 2025 – North Carolina Housing Coalition

Federal Updates

The White House has released its FY26 Budget Request, posing dangerous cuts to key housing and community development programs. Meanwhile, the Low Income Housing Tax Credit (LIHTC) could see its biggest expansion in over 20 years as the House passed the FY25 Budget Reconciliation Bill. The federal budget process is in full swing. Consistent pressure and engagement is needed!

FY26 Budget Request Poses Dangerous Cuts to Housing and Community Development

On May 30, the Trump Administration and HUD Secretary Scott Turner released their full fiscal year (FY) 2026 budget request. The dangerous proposals in this request would result in a historic 44% cut to HUD’s vital affordable housing, homelessness, and community development programs. The National Low Income Housing Coalition has a FY25 and proposed FY26 budget comparison as well as a detailed budget overview and Federal Budget Advocacy Toolkit.

FY25 Budget Reconciliation Bill Includes Big Expansion for LIHTC

On May 22, the House passed a budget reconciliation bill that includes the biggest Low Income Housing Tax Credit (LIHTC) expansion in a quarter century. Novogradace estimates that the bill could result in the development of 527,000 additional affordable rental homes over the next ten years. The bill now heads to the Senate.

State Updates

State Budgets Exclude Affordable Housing Investments

Both the NC House and Senate have passed their proposed FY2025-2027 budgets, and the proposed investments in housing and community development are either disappointingly low or non-existent. After a brief informal recess, the NCGA is back again this week with a handful of bills on the docket and trying to move forward with the budget so that they can establish the conference committees and begin negotiations.

CALL TO ACTION: Contact Your Representatives about WHLP

As the House and Senate reconcile their budgets, we must ensure that members understand the importance of restoring the Workforce Housing Loan Program (WHLP), which is a critical affordable housing finance tool that makes housing possible across our entire state. This year alone, the projected award winners for 2025 for LIHTC in North Carolina will need an estimated $30M (new construction only), which would result in nearly 1200 units.

If any of your representatives or senators at the state general assembly are on the appropriations committee in either chamber, please reach out to them and emphasize the importance of this resource. We will post the conference committee members list once that part of the process begins.

WHLP Advocacy Actions and Talking Points

The Senate budget includes $0 funding for WHLP, and the House budget includes $5M only for the first year of the biennium.
The WHLP needs to be restored at $35M
It needs to be a recurring allocation to protect future development across our state, especially in rural areas and areas that require the most gap financing. Many of these developments are in the Hurricane-impacted areas throughout Western and Eastern NC.
If you are living in, have developed, manage, or partner with a property that has been funded with WHLP, invite members to the property! Show them how meaningful and important these homes are to communities across our state and in their districts.
House Appropriations Committee
Senate Appropriations Committee
In the news: Advocates alarmed over proposed cuts to workforce housing loan program

Housing and Community Development Bills Survive Crossover

Of the more than 1,700 bills filed so far this session, 30 bills related to our housing and community development policy priorities survived the crossover deadline on May 8. Although there has been substantial conversation around housing, bills that would streamline housing and help bring down the cost of development–such as H765, or any of the several bills that would expand property tax relief, or revisions that corral HOA powers like in S378–have not not passed in both chambers in order reach the governor’s desk. Additionally, dangerous policy proposals that criminalize people experiencing homelessness and increase barriers to access housing, such as H781, moved at an uncomfortably fast pace through at least one chamber.

Below is a list of the 30 bills that survived crossover and connect to our policy agenda priority areas. As we develop a full summary in the coming weeks, we will release more information about the potential benefits, consequences, and our stances on several of these pieces of legislation.

H15 – Support Private Property Rights
H48 – Increase UI Max Benefit/2025 UI Tax Credit
H94 – Dis. Veteran Homestead Exclu. Prequalification
H96=S71 – Expedited removal of Unauthorized persons
H173 – Wake County ETJ
H188 – Automatic Renewal of Contracts.
H223 – Town of Mooresville/Property Conveyance
H251 – Disaster Response Funding/Nondiscrimination
H376 – Various On-Site Wastewater & Well Provisions
H432 – Property Tax Relief Study
H437 – Establish Drug-Free Homeless Service Zones
H535 – Title Fraud Prevention Act
H690 – The Citizens Support Act
H762 – Modernize NC S.A.F.E. Act.
H768 – Clarify Emerg. Comm. Exemptions/Fire Code
H781 – Unauthorized Public Camping & Sleeping
H797 – Residential Property Wholesaling Protections
H859 – Local Govts/Guaranteed Income Programs
H913 – Liability/Unfair/Deceptive Development Actions
S29 – Onslow – Delegate Rezoning Authority
S164=S365 – Theft of Temporary Housing During Emergency
S203 – City of Wilmington/Property Conveyances
S257 – 2025 Appropriations Act
S266 – Historic Flood Event Bldg. Code Exemption
S378 – HOA Revisions
S423 – Title Fraud Prevention
S493 – Land Use Clarification and Changes
S587 – Clarify Nonconforming Uses
S675 – Second Mortgage Fee Alignment Act
S690 – Modify Licensing Real Est. Appraisers

To see a full list of the bills that made it through crossover click here.

Senate to Consider Combined Disaster Recovery Bill

Among the handful of bills on the Senate floor this week is HB251 SCS – Various Disaster Recovery Reforms, which has combined several pieces of other disaster recovery bills related to prohibiting discrimination in disaster relief assistance, federal funds, or FEMA, among other clauses, into one bill. HB251 was recently voted favorably in the Senate Regulatory Reform Committee on May 21.

WNC Disaster Recovery Hotline Available June 11

On Wednesday, June 11, the WNC Disaster Recovery Hotline will provide free legal advice from 12-6pm. Callers can speak with a lawyer about FEMA claims and appeals, landlord/tenant issues, insurance property disputes, and more. See below for full details and additional resources:

WNC Disaster Recovery Hotline
Wednesday, June 11, 2025
12 PM – 6 PM
Call: 828-418-6969

Speak with a lawyer for free about:

FEMA claims and appeals
Housing & landlord/tenant issues
Insurance and property disputes
Debt, bankruptcy, contractor problems
Mortgage or foreclosure concerns
Well contamination, permitting, and more

No appointment needed. Interpreters available.

If you can’t call during these hours and were affected by the hurricane, contact:
Pisgah Legal Services: 828-253-0406 | pisgahlegal.org
Legal Aid of North Carolina: 1-866-219-5262 | legalaidnc.org

More info: pisgahlegal.org/disaster-hotline