Housing Call: October 7, 2025 – North Carolina Housing Coalition

Organizational Update

Thank You for Attending the 2025 NC Affordable Housing Conference!

The 2025 NC Affordable Housing Conference saw record-breaking attendance, with more than 1,500 housing professionals coming together to make it the premier affordable housing event in the state. We appreciate each and every one of you for sharing in our commitment to furthering affordable housing in North Carolina and hope to see you again next year on Oct 22–Oct 23. 2026! Please take our survey to help us continue to make this conference great.

NC Housing Coalition Network Survey

Please also consider taking our NC Housing Coalition network survey so that we can continue to improve our resources.

Federal Updates

Housing Impacts of the Federal Shutdown

Last week, the Federal government entered a shutdown after lawmakers failed to pass a stopgap spending bill. Democrats want a clean extension of ACA tax credits to be included in the Continuing Resolution and Republicans, who need bipartisan support to pass a budget, are refusing to compromise. Learn more about what essential services will continue at HUD by checking out their Contingency Plan or this summary from the National Association of Affordable Housing Lenders. Sarah Brundage was our Industry update speaker last week at the conference.

Things to Know:

HUD will operate in a limited capacity with 71% of their staff furloughed. Households that receive HUD assistance will continue to receive payments through November. FHA multifamily insured projects with scheduled closings can continue but no new commitments will be made. Fannie Mae and Freddie Mac do not rely on government funding and will continue normal operations. HUD CDBG-DR funding for Western North Carolina will be further delayed.
Most of FEMA’s work will continue because it is deemed essential, but around 20% of staff are furloughed. The National Flood Insurance Program is unable to renew or sell new policies during the shutdown.
The Trump administration has threatened to eliminate furloughed nonessential positions, which would ultimately lead to staff capacity issues and major delays for federal programs.
The Census Bureau website is offline. If the shutdown lasts more than a couple of weeks, it could impact future data reports and delay releases of datasets used for our County Profiles.

Additional Federal Shutdown Resources

HUD Tenants’ Rights during the Government Shutdown | National Housing Law Project
What the Federal Shutdown Means for States and Localities | Governing Magazine
Government Shutdown: What Should Nonprofits Do? | National Council of Nonprofits

2026 DDAs and QCTs Published

Last week, HUD published guidelines for 2026 Qualified Census Tracts (QCTs) and Difficult to Develop Areas (DDAs). Low Income Housing Tax Credit (LIHTC) properties in these areas are eligible to receive a higher tax credit allocation.

Treasury, IRS provide guidance for Opportunity Zone investments in rural areas under the One, Big, Beautiful Bill

Last week the Treasury and the IRS issued guidance on rural Opportunity Zones:

1) Rural areas will be defined as areas with 50,000 people or less.

2) The substantial improvement threshold for required additions to the basis for property located in rural Opportunity Zones was reduced from 100% to 50%.

Congressman Edwards Introduces the Bipartisan Faith in Housing Act

Recently, Western North Carolina Congressman Chuck Edwards (NC-11) introduced the bipartisan Faith in Housing Act alongside Congressman Scott Peters of California. The bill would cut red tape around zoning and allow nonprofit religious organizations across the country to develop affordable housing on their land.

Trump’s new tariffs will slam America’s already brutal housing crisis | VOX

Last week, new tariffs were put in place by the Trump administration. There will now be a 25% tariff on imported kitchen cabinets and bathroom vanities, which will increase to 50% on January 1, 2026. While the Trump administration claims to be lowering housing costs, they seem to be doing the exact opposite. Resulting increased construction costs will ultimately be passed along to the homeowner or renter.

Trump admin looks at deep cuts to homeless housing program | Politico

Anonymous sources at HUD say they expect half of HUD homeless programs funding for Permanent Housing to be cut and moved to Transitional Housing Assistance with work requirements. Unpublished documents also suggest HUD plans to penalize organizations applying for funding if they previously used racial preferences or recognized transgender people. Funding cuts are estimated to put upwards of 170,000 people at risk of experiencing homelessness.

Millions Could Lose Housing Aid Under Trump Plan | ProPublica

Two draft rules under consideration at the Office of Information and Regulatory Affairs (OIRA) could lead to millions of our most vulnerable citizens losing affordable housing. One rule would allow housing authorities and private landlords to implement time limits and work requirements for Section 8 housing. HUD estimates that 750 public housing authorities and 3,500 private landlords would implement such requirements. The other rule would make mixed-citizenship status households ineligible for HUD assistance. Currently, HUD pro-rates assistance to exclude ineligible household members.

State Updates

NC Legislative Update

HB 926 – The Regulatory Reform Act of 2025 became law on October 6 without the Governor’s signature. This legislation includes a number of wastewater provisions and mostly notably prohibits waiting periods for the refiling of development applications. It also limits parking space size requirements and pavement design standards, which will ultimately help increase housing supply and density.

Disaster Recovery Headlines

Governor Stein Announces $9 Million In Grants To 14 Nonprofit Volunteer Organizations Helping to Rebuild Western North Carolina | Office of the Governor

North Carolina funds repairs so Helene-hit homes can get energy upgrades | Canary Media

Bottlenecks preventing federal Helene relief dollars from reaching those with damaged homes | carolinacoastonline.com

Applications open for Blue Haven for Helene victims | The Carolina Journal

Report: WNC needs 34,000 new homes by 2028 to meet demand after Helene | WLOS

In Asheville, a Natural Disaster and a Housing Crisis Collide | The Assembly

[commentary] No more tax cuts: Western North Carolinians deserve a budget that prioritizes people | NC Newsline

2026 NCHFA Qualified Allocation Plan (QAP) First Draft Released, Comments Published

Local Headlines

Buncombe County halts further short-term rental restrictions to focus on Helene recovery efforts | Spectrum

City of Charlotte Launches New Accessory Dwelling Units Program | The City of Charlotte

Queen City ADU Program Seeking Affordable Housing Management Firm Partners | The City of Charlotte

Greensboro Shifts Course on Homeless Shelters | The Assembly

N.C. Utilities Commission rules against Chapel Hill developer in single-meter dispute | NC Newsline

‘An effort to be transparent’: Chapel Hill launches affordable housing tracker | The Daily Tar Heel

New Dashboard, Report Aim to Move Housing Policy Forward in Durham | INDY Week

‘So rare’: Council passes 100% workforce housing project on Market Street | Port City Daily

Beaufort Housing Authority seeks revised plan for new housing units | carolinacoastonline.com

Free Webinars

Tips and Tricks for Making the Most of the National Housing Preservation Database | National Low Income Housing Coalition (NLIHC) & Public and Affordable Housing Research Corporation (PAHRC), October 15, 2 p.m. Click here to learn more and register.

Corporate Ownership of Housing: Policy Innovation and Organizing | Urban Institute October 30, 1-2 p.m. Register here.

Events

American Planning Association – North Carolina Chapter (APA-NC) Fall Conference | October 15-17, 2025 in Charlotte. Cost: Varies Click here to learn more.

Affordable Housing Seminar: Tools, Strategies, and Case Studies for Local Government Leadership | UNC School of Government, October 16, 2025 in Chapel Hill. Course registration cost: $265. Click here to learn more.

10th National Biennial Conference on Housing Mobility | Poverty & Race Research Action Council. October 17-19, 2025 in Chicago. Registration closes 10/3. Cost: $200. Click here to learn more.

HOPE NC’s Annual Inclusive Housing Summit | November 17 at the Friday Center in Chapel Hill. Cost: $50 (individual), $100 (professional). Click here to learn more.

2025 Conference for North Carolina’s Nonprofits | NC Center for Nonprofits, November 19-20, 2025 in Research Triangle Park. Early bird registration cost (through October 22) is $265. Click here to learn more.