HOUSE BUDGET UPDATE
Today the North Carolina House of Representatives began publicly discussing some of their budget provisions in a few of the Appropriations Subcommittees for the fiscal years 2021-2022 and 2022-2023. More detailed updates on the House budget will be available next week. Here is what is important to know now. The House budget allocates:
- $200 million of ARP funds to the Workforce Housing Loan Program to offer gap funding to LIHTC developments facing significant budget shortfalls due to dramatic cost increases resulting from the COVID-19 pandemic;
- $7.66 million for the Housing Trust Fund;
- $3 million for the HOME match;
- $20 million to Habitat for Humanity of North Carolina; and
- $10 million and $40 million to Winston-Salem and Dare County respectively for affordable housing production.
However, the budget also
- Includes the harmful Senate provisions relating to the NCHFA’s budgeting and accounting procedures; and
- Revises provisions relating to NCHFA’s administration of the $273 million Homeowner Assistance Fund (HAF) from the American Rescue Plan.
The biggest highlight from what we have seen thus far is the much needed gap funding for existing affordable housing projects that have been impacted by rapidly rising construction costs. There is work to do to keep this funding in the budget once they begin negotiations with the Senate. There is also work to do to remove the harmful provisions that impact NCHFA accounting and budgeting procedures.
The Coalition will continue to monitor these proposals as they move through the House, and update you as more of the House’s budget proposal is unveiled.