Federal Updates
House Releases Amended 21st Century ROAD to House Act; Senate Voices Disapproval
Last week the House released final text for their amended version of the 21st Century ROAD to Housing Act. Main changes in the House version include:
- Pulling back some of the Senate’s restrictions on investors buying up single family homes, including the “Disposal Requirement” that would force investors to sell built-to-rent homes to families after seven years;
- Excluding the bipartisan Reforming Disaster Recovery Act (RDRA),which would permanently authorize HUD’s Community Development Block Grant – Disaster Recovery (CDBG-DR) program. RDRA would also make critical reforms that promote more efficient and equitable disaster recovery;
- Excluding provisions related to the Moving to Work (MTW) program and Rental Assistance Demonstration (RAD).
The House version is expected to go for a floor vote this week. If the bill passes in the House, it’s not clear if it would have a path forward in the Senate. A number of Democrat and Republican senators have expressed disapproval with the amended bill.
HUD Secretary Scott Turner Testifies on the Trump Administration’s FY27 Budget Request
HUD Secretary Scott Turner testified before the House and Senate Appropriations Committees last week on the Trump Administration’s FY 2027 budget request. He spoke against the evidence-based Housing First mode and called for harmful work requirements and time-limits for HUD program participants. Both committees expressed strong bipartisan concern about proposed discretionary cuts of at least $3.8 billion to housing and community development programs and noted the importance of stable housing to the economy and workforce. Groups across the housing ecosystem, including the National Association of REALTORS ®, have called on the Appropriations committee to provide full funding to HUD programs, including Housing Counseling, CDBG, HOME, Housing Vouchers and Fair Housing. The House and Senate are expected to release their FY 27 spending bills for housing and community development programs in the coming weeks and they go through the markup process.
State Updates
Legislative Updates
Governor Stein Signs Executive Order to Increase Housing Opportunities & Affordability
This morning our Executive Director Samuel Gunter and our Director of Housing Policy Stephanie Watkins-Cruz attended a special event at the Executive Mansion where Governor Josh Stein announced and signed Executive Order No.36 – Increasing Housing Opportunities for All North Carolinians.
This executive order:
- Creates a new Senior Advisor for Housing Policy role in the Governor’s Office;
- Directs state agencies to work with partners and leverage their data, platforms, and research to enhance support for local governments and builders; .and
- Further integrate housing initiatives at the Department of Commerce.
House and Senate Reach Budget Deal Including Property Tax Levy Limit (HB 1089)
Last week Speaker Hall and Senate President Pro Tempore Berger reached a deal that brings us closer to a state budget. Here are a few elements of the deal:
- Bring the personal income tax rate will eventually be brought down to 2.49 percent
- Commit to passing a Constitutional amendment that would lock in the state income tax rate at 3.5 percent if approved by voters;
- Commit to passing a Constitutional amendment proposal HB1089, which proposes a constitutional amendment to require statewide levy limits on property taxes.
The NC Housing Coalition wants to be very clear and emphasize that proposals like HB1089, will not provide the relief that proponents of the bill claim it will. Our analysis shows that on average, a levy limit will save homeowners less than $100 per year while counties will lose up to 20% of their revenue for schools, infrastructure, and public safety. In addition to the significant revenue loss to counties, homeowners experience little property tax relief under a levy limit.
For example, in Tyrrell County, the average homeowner pays around $1,200 in property taxes. The strictest levy limit after last year’s revaluation would have saved this homeowner about $120 this year, or just $10 per month, while taking nearly 11% from Tyrrell’s limited property tax revenue.
Check out our blog post from last week for more on this topic.
Bills in Committee This Week:
H369: Parking Lot Reform and Modernization Act.
The bill would prohibit local governments from requiring a minimum number of off-street parking spaces and amend the current restriction on the regulation of parking space dimensions to apply to off-street parking spaces. It would also authorize local governments to implement additional stormwater control measures for redeveloped property. .
Status: Committee Substitute adopted, Re-ref Com On Agriculture, Energy, and Environment.
H1042: Affordable Housing Exemption Mods.
This bill is a recommendation of the House Select Committee on Property Tax Reduction and Reform. It would:
- Update and preserve the low- and moderate-income housing property tax exemption for 100% nonprofit owners or joint ventures where a government agency has contributed financial support and long-term affordability requirements can be enforced.
- Prohibit joint ventures that do not finance affordable housing with government support from obtaining the property tax exemption.
- Reduce the period of tax deferral for future sites of affordable housing from 10 years to 5 years.
Affordable rental properties that are currently exempt under existing law would be required to reapply and establish that they meet the requirements.. Owners will be required to annually submit an application to verify continued compliance.
Status: Passed unanimously in the House on 5/19/26.
H1089: Const. Amend. Property Tax Levy Limit.
This act would put a state constitutional amendment on the November 2026 ballot that would require the legislature to enact a property tax levy limit. Note, the legislature already has authority to do this.
Status: Passed in the House 73-46 on 5/20/26.
H1072: Affordable Housing Infrastructure Development.
This act proposes the creation of an affordable housing infrastructure development loan program to provide below-market interest rate loans for the purpose of developing and improving sites to be used for affordable housing. It proposes a $50M allocation for the program.
Status: Referred to Housing & Community Development Committee.
Upcoming Committee Meetings
Upcoming committee meetings are posted and updated often here.
See the bills we’re following this short session by clicking here.
Disaster Recovery Housing Updates
City of Asheville announces public comment period for CDBG-DR Action Plan Amendment
Under the proposed amendment (referred to as “Substantial Amendment 2”), the City of Asheville would move $9.2 million previously designated for the Affordable Multi-Family Housing Construction Program to the State’s Renew NC Single-Family Housing Program. An additional $10 million would also be redirected from the City’s CDBG-DR Infrastructure allocation, bringing the total allocation for the Renew NC Single-Family Housing Program to $22.2 million, enough to fix an estimated 55 to 65 homes.
The 30-day public comment period will run from May 15 through June 14. A public hearing on the proposed amendment will be held during the Asheville City Council meeting on Tuesday, June 9. Information about the meeting will be available on the City of Asheville website. Community members who are unable to attend the public hearing are encouraged to submit written comments and questions by Sunday, June 14 via email to cdbg-dr@ashevillenc.gov.
$6 million headed to Home Repair Readiness Program for western North Carolina | WLOS
Local Headlines
Ashe residents urge housing code reforms as affordable housing efforts take shape | ashepostandtimes.com
Charlotte fund helping thousands of people by preserving affordable housing | Spectrum
Durham’s Villages of Hayti redevelopment to honor the past with affordable housing | NC Newsline
Habitat for Humanity of Wake County expands into Franklin County, changes name | CBS 17
‘It’s not going to happen overnight’ | The Outer Banks Voice
Reports, Events, and Resources
NC Community Development Association (NCCDA) & Professional Housing Rehabilitation Association of NC (PHRANC) Annual Spring Conference | May 20-22 in New Bern. View the agenda and register here. Registration cost varies.
Our Executive Director, Samuel Gunter, and Vicki Nelson, President of the National Community Development Association, will be there discussing state and national community development policy updates.
[webinar] The Bipartisan Policy Center is hosting a webinar, “Homelessness, Housing Markets, and Federal Policy” on Thursday, May 21 from 10:30-11:30 a.m. Learn more and register here.
[webinar] Workforce Development in the Construction Trades | UNC School of Government’s Carolina Across 100, Tuesday, May 26 at 12:30pm. Register here.
One of many factors contributing to NC’s current housing challenges is a shortage of skilled workers in the building trades. Training the construction workforce is one strategy to not only meet North Carolina’s housing supply needs but to expand access to good jobs and unlock economic opportunity.
Join Carolina Across 100 for a conversation with leaders who are working in creative ways to develop NC’s construction workforce and learn about strategies, resources, and partnerships to grow the next generation of tradespeople. Featured speakers include:
- Carolina Brigmon, Carolinas AGC
- Nora Spencer, Hope Renovations
- Maurey Verzier, Pitt Community College
Hendersonville Housing Summit | Wednesday, May 27, 5:30 – 7:00 p.m. at Hendersonville High School. Learn more here.
- The event will feature an unveiling of the City of Hendersonville’s community-driven Strategic Housing Plan, an overview of new housing initiatives, and an opportunity to provide input to strengthen collaboration around housing affordability challenges.
- The summit is free and open to non-profit service providers, business representatives, government leaders, developers, lenders, affordable housing advocates, community members, and anyone committed to expanding and improving housing in Henderson County and across Western North Carolina.
2026 CAHEC Partners Conference | June 9 – 10 at the Raleigh Convention Center. Registration ends May 22. Learn more and register here
The National Fair Housing Alliance is hosting their 2026 Conference, “Building the Future We Deserve: Solutions for America’s Fair and Affordable Housing Crisis” from June 27-30 at the Capital Hilton in D.C. Virtual and in person registration options available (registration cost varies). Learn more and register here.
The National Alliance to End Homelessness is hosting their 2026 conference and Capitol Hill Day from July 8-10 in D.C. Standard rate: $985. Learn more and register here.
Save the Date! The 2026 NC Affordable Housing Conference will be held October 22–23 at the Raleigh Convention Center. Early bird registration will open on July 27. More information to come. The Conference is presented by the North Carolina Housing Finance Agency, the North Carolina Housing Coalition and Centrant Community Capital.
