The results of this year’s elections could have a significant impact on affordable housing funds and policies at the state and federal levels, and the NC Housing Coalition is coordinating with our federal, state, and local partners to prepare for 2025 and beyond. Below is a summary of our Post-Election Housing Policy Update held on December 4, 2024, featuring Kim Johnson of the National Low-Income Housing Coalition. You can view the full webinar below.
Federal Updates
Closing out 2024
Continuing Resolution/FY2025 Budget: The federal government has been operating on a Continuing Resolution (CR) since October, meaning there has been no funding increase for the Department of Housing and Urban Development (HUD) or any federal housing programs. Congress is expected to extend the CR until late February or mid-March, at which point the new Congress will have until April 30, 2025 to finalize a Fiscal Year 2025 (FY2025) bill. The new Republican majority will therefore have two opportunities to cut funding to HUD and other housing programs over the next two years as they will also pass the Fiscal Year 2026 (FY2026) spending bill later in 2025.
Disaster Relief Bill: Disaster relief funding will likely be included in the next CR, though the possible amount has ranged from $30-115 billion based on the amount requested from the White House ($115b) and the figure estimated by Senator John Neely Kennedy (R-LA) as lawmakers craft the bill ($30-40b). Despite previous expectations, there is also uncertainty about whether the disaster relief bill will pass before the end of the year.
Advocacy Opportunity: Senator Thom Tillis (R-NC) holds a key position of power within the Senate related to disaster recovery. Now is a great time to contact Sen. Tillis’ office to advocate for a substantial disaster relief bill as soon as possible.
Election Results
Republican Trifecta: Former President Trump (R) won both the Electoral College and the popular vote in November. Republicans picked up four seats in the Senate, giving them control of the chamber, and maintained their narrow majority in the House of Representatives. Republicans are viewing these election results as a mandate by the American people to enact their policy priorities.
Due to this Republican trifecta, advocates and policymakers will be limited in the advances that we can make in federal funding for affordable housing and homelessness assistance programs as we combat cuts or unnecessary restrictions to HUD programs.
New Congressional Leadership: Sen. John Thune (R-SD) will be the new Senate Majority Leader, replacing Sen. Mitch McConnell (R-Kentucky). Sen. Tim Scot (R-SC) will be the new Senate Banking Committee Chair, and Sen. Elizabeth Warren (D-MA) is expected to be the new Senate Banking Committee Ranking Member, as Sherrod Brown (D-OH) will not be returning to Congress. The new House Financial Services Committee Chair has yet to be decided. This is a powerful committee in the House that makes decisions related to the Federal Housing Finance Agency (FHFA) , Government Sponsored Enterprise (GSE) reform, HUD programs, and other matters related to financial services. Rep. Andy Barr (R-KY) is the most likely candidate. He has historically rejected evidence-based Housing First homelessness assistance programs in favor of treatment first programs and religiously based institutions.
Agenda for 2025
119th Congress and Housing: The 119th Congress will be focused first and foremost on a tax bill in 2025. This presents housing advocates with a limited opportunity to expand affordable housing investments through Low Income Housing Tax Credit (LIHTC) reforms and expansions that would make it easier to build extremely low-income (ELI) units. Republicans on the House Ways and Means Committee have created tax teams to craft proposals for what would be major tax actions in 2025 now that previous tax codes are expiring. This is still an area of possibility for momentum around LIHTC reform. However, the 2025 tax bill will likely renew many of the expiring provisions in the 2017 Tax Cuts and Jobs Act (TCJA), which weakened demand for LIHTC due to corporate tax breaks.
In addition to finalizing the FY25 spending bill, negotiations around lifting the debt ceiling and/or spending cuts could lead to the enactment of another Budget Control Act-like bill. The Budget Control Act was enacted in 2011, and put caps on federal spending for non-defense programs for about 10 years. HUD programs have still not recovered from those 2011 funding caps.
Federal Disaster Recovery funds are still urgently needed in Western NC. With the Small Business Administration out of funding, it is critical for Congress to pass a Disaster Recovery bill that can support the years-long recovery effort ahead. Sen. Tillis is currently leading the federal Disaster Recovery effort.
Trump-Vance Administration and Housing
Department of Housing and Urban Development: During his previous term, the Trump administration proposed deep cuts to HUD funding, and his new administration will likely propose similar cuts. Previously proposed cuts ranged from 15-18.3% of HUD’s budget, eliminating Housing Choice Vouchers for between 160,000-250,000 households and zeroing out funding for construction through Public Housing repairs and the Housing Trust Fund. Another proposed policy that could have an impact on the administration of HUD programs is the threat to reclassify federal career staff to be “at-will,” which would make it easier to fire career staff within HUD.
President-Elect Trump has nominated Scott Turner as the next HUD Secretary. Turner is the former administrator of Trump’s Opportunity Zones programs, which are likely to be a big focus of the incoming administration. He is a former NFL football player and previously served two terms in the Texas State House of Representatives.
US Interagency Council on Homelessness: The previous Trump administration also proposed eliminating the US Interagency Council on Homelessness (USICH), which helps coordinate the federal response to homelessness across the nine departments in the administration. These proposals were previously rejected by Congress during Trump’s last term, but led to a historic 35-day government shutdown.
Housing First: The Trump-Vance administration has also signaled that it will move away from Housing First ideology. The previous Trump administration worked to undermine Housing First programs and principles, replacing the USICH head with Robert Marbut, a proponent of creating homelessness camps where unhoused people would have to “earn the right” to access indoor shelter by doing menial tasks around the encampment. The administration also proposed to shift HUD funding away from Housing First principles in homelessness programs and to allow shelters to discriminate against transgender unhoused people by rolling back protections in the Equal Access Rule, which the Biden administration later reinstated.
Immigration and Housing: The incoming administration has promised to deport undocumented immigrants “on day one.” Among other reasons, the Trump campaign argued that deporting immigrants will bring housing costs down. Federal housing policies and resources will be impacted by the ways in which the incoming administration frames the root causes of the housing crisis. Housing advocates need to push back with clear framing for the true causes of the housing crisis and effective policy solutions that would benefit people at all income levels, and we should take special consideration in the way we talk about the most vulnerable members of our communities.
Housing Discrimination: The new administration will also consider reversing Biden administration policies related to Diversity, Equity, and Inclusion (DEI); LGBTQ civil rights; fair housing; and anything related to the environment or climate change.
National Low Income Housing Coalition Advocacy Priorities
The National Low-Income Housing Coalition (NLIHC) has set federal housing advocacy priorities for protecting the nation’s housing programs and policy infrastructure in the coming years.
Defend against cuts to affordable housing and homelessness assistance programs in FY25 and FY26. This includes potential spending caps that may result from debt ceiling negotiations similar to the Budget Control Act of 2011. Advocates will also focus on maintaining and, where possible, expanding funding for Housing Choice Vouchers, Public Housing Capital and Operating accounts, Housing Assistance Grants, Native housing, and the Eviction Protection Grant Program
Ensure any final tax bill includes reforms to the LIHTC program. An ELI basis-boost will make building deeply affordable units more economically feasible for developers so that more ELI individuals and families can move into LIHTC units without becoming cost-burdened. Designating rural and tribal areas, which have some of the most urgent affordable housing needs in the country, as Difficult to Develop Areas (DDA), would make them qualified for additional funding in order to build more affordable housing.
Ensure that Housing First programs and principles are not rolled back. Housing First is an evidence-based, solution-oriented approach to eliminating homelessness. Existing Housing First policies should be protected in federal funds and programming.
Defend access to housing and shelter. This includes the Equal Access Rule for transgender people experiencing homelessness to access shelter based on their gender identity and opposing any Mixed-Status Immigrant Household Rule, in which households with mixed immigrant status currently receiving HUD funding would have to remove undocumented individuals from the home or lose their rental assistance. This rule would put housing at risk for tens of thousands of households, including 55,000 children.
Advocates will also push back against any increased barriers to housing assistance. The previous Trump administration proposed to increase rent on HUD households, triple minimum rent for “working households,” and increase minimum rent for elderly and disabled families. The administration also proposed allowing HUD to change rent policies without protections for renters and to allow work requirements in HUD housing. Though federal agencies have some authority to take certain actions, many of these previously proposed policy changes require Congressional action and a 60 vote majority in the Senate. This gives advocates power to defend against these policies.
State Updates
Election Results
In North Carolina, the balance of power essentially remains the same. However, there are some key leadership changes that will impact housing advocacy over the next long legislative session.
What is different is new leadership around Josh Stein and a new team forming around the governor. There is a lot of education to be done among the new governor and his team. We’re going to be doing a lot of basic education around housing policy and building new relationships with elected officials.
Governor: Former NC Attorney General Josh Stein (D), who is committed to addressing housing affordability across the state, will become NC Governor in 2025. Building relationships and providing basic housing policy education will be key for Governor-elect Stein’s new administration as well as for the new leadership at the General Assembly. Stay tuned as we learn more about his administration’s plans for housing affordability, community development, and homelessness.
NC General Assembly: One seat in the NC House flipped, breaking the Republican veto-proof supermajority. Vetoes made by the governor will have a greater chance of being upheld. The breaking of the supermajority creates an opportunity for advocates to engage in more discussion, conversation, and resource sharing with elected officials, although only one Democrat needs to vote with Republicans in order for Republicans to restore the Republican majority in the House.
There will also be several significant Republican leadership changes for the 2025-2026 legislative session:
- Speaker of the House: Rep. Destin Hall, Caldwell County
- Speaker Pro Tempore: Rep. Mitchel Setzer, Catawba County
- Majority Leader: Rep. Brenden Jones, Columbus County
- Majority Whip: Karl Gillespie, Cherokee County
- Conference Chair(s):
- Rep. Matthew Winslow, Franklin County
- Rep. Jeff Zenger, Forsyth County
- Joint Caucus Leader: Rep. Henry Warren, Rowan County
- Freshman Leader: Rep. Heather Rhyne, Lincoln County
- Freshman Whip: Blair Eddins, Wilkes County
There is also a new Senate Minority Leader who is a strong housing ally. Senator Sydney Batch of Wake County has previously introduced and supported several bills related to housing, including bills to increase funding for the Housing Trust Fund, establish a Department of Housing and Community Development, create a new Homebuyer Assistance Program, and provide property tax relief to Veterans. Sen. Batch was the featured speaker at this year’s NC Housing Coalition dinner in September.
Advocacy Opportunity: These leaders will be critical for housing advocates to build good working relationships with. If you live or work in one of the counties represented by any of the new leaders listed above, contact the NC Housing Coalition to connect on housing advocacy opportunities, and make sure to join us in Raleigh for our Housing Advocacy Day on April 9.
Local Housing Bonds: For the first time in state history, a housing bond did not pass in a local NC election. By a narrow margin (51.5% against, 48.5% in favor) the Town of Cary did not pass a $30 million housing bond, which was part of a larger $560 bond proposal that primarily included funding for the town’s parks. Three other NC communities–Asheville, Chapel Hill, and Charlotte–passed their housing bonds in November. As Federal and State housing funds become increasingly inadequate, more local governments are looking to housing bonds to fund critically needed affordable housing, increasing the local tax burden on residents. It remains to be seen if the failure of Cary’s housing bond was an anomaly or an early indicator of local housing bond fatigue.
NC Housing Coalition 2025-2026 Policy Agenda
Platform
The NC Housing Coalition’s updated Policy Agenda is founded on a platform of four key priorities:
- Advocate for reliable, dedicated, and coordinated public resources that meet the scale of the housing need.
- Support housing policies and resources that keep families in their homes and allow communities to thrive.
- Promote equitable access to housing and opportunity that reckons with our long history of racist housing policies and practices.
- Ensure that local policies facilitate an adequate supply of quality housing accessible across a community’s income spectrum.
Issues
Over the last two years, several growing issues have impacted housing advocacy work across the state:
- Hurricane Helene and the yearslong Disaster Recovery & Resiliency effort in WNC
- Unprecedented rise in attention to land use during the 2023-2024 session
- Dwindling resources available for housing at every level
- Increasing costs of development, preservation, and support for housing mean existing resources are no longer as impactful
- Growing displacement in communities across the state, especially as big businesses move in
- Growing concern for homeowner and renter protections
- Increased interest in local government land use policies and creative, effective solutions for housing
Policy Priorities
Based on our core priorities and the housing issues we are facing as we head into next year, the Coalition has established several state and federal priorities for the 2025-2026 legislative season.
State Policy Priority Areas
- Resources for Housing
- Disaster Recovery
- Statewide Coordination
- Land Use and Development
Federal Policy Priority Areas
- Strengthen the Housing Credit
- Disaster Recovery & Resiliency
- Permanently Authorize CDBG-DR
- Protect Vital Housing and Community Development Programs
Key Strategies
In order to achieve our 2025-2026 policy priorities, below is an outline of key strategies (not a comprehensive list) the Coalition will be working from.
Priority: Resources for Housing
Strategies:
- Increase the state Housing Trust Fund and Workforce Housing Loan Program (WHLP) allocations.
- Establish a dedicated revenue source for the state Housing Trust Fund.
- Make the WHLP a recurring allocation in the state budget.
- Increase and improve investment in housing at the state level.
Priority: Disaster Recovery
Strategies:
- Advocate for intentional and comprehensive investment in the needs of communities recovering from disaster.
- Emphasize the importance of investment in increasing local capacity of communities for future disasters.
Priority: Statewide Coordination
Strategies:
- Improve coordination at the state level amongst housing resources and organizations.
- Invest in supporting and further developing a strong infrastructure for housing and community development.
- Advocate for the need for technical assistance for communities across the state.
Priority: Protecting Homeowners and Renters
Strategies:
- Support policies that protect tenants, homeowners, and improve access to housing.
- Support investment and the creation of tools that prevent evictions and homelessness.
- Support anti-displacement policies and efforts to improve stability and access to housing across communities.
Priority: Land Use and Development
Strategies:
- Ensure that local policies facilitate an adequate supply of housing accessible across a community’s income spectrum.
- Inform and support land use reform and creative models that improve access to and the creation of quality affordable housing.
2025 is going to be a big year for housing policy. There will be a long legislative session in NC, and advocates are facing political headwinds at the state and federal levels. Collaboration with partners and allies will be essential to protect and, when possible, expand housing resources for North Carolinians. Check out events and resources below, and make sure you stay connected with the NC Housing Coalition throughout the year for regular housing news updates and advocacy opportunities.
Upcoming Events with the Coalition
Housing Advocacy Day | April 8-9, 2025
The new legislative session that begins in January 2025 is an opportunity to capitalize on the momentum around affordable housing conversations happening throughout our state and to push for true impactful change. We hope you join us on Wednesday April 9, 2025 at the NC General Assembly for our Housing Day. Plan to engage from 8:30am-3:30pm. Please also tentatively reserve the late afternoon of April 8, 2025 for an opportunity to connect with advocates, allies, and practitioners across the state and prepare together for the legislative day of action on April 9th. To be on the list to be notified directly about our 2025 Housing Day at the NC General Assembly, please fill out this brief form by clicking here.
Bringing It Home: Ending Homelessness in NC Conference | May 15-16
Bringing It Home: Ending Homelessness in NC is a statewide annual conference dedicated to ensuring that homelessness in North Carolina is rare, brief, and one time only. The two-day conference includes more than a dozen presentations, panels, and workshops covering a broad range of topics related to homelessness. There are also opportunities to network and share insights with fellow professionals and advocates. The Call for Presentation Proposals is now open. Learn more and submit a proposal here.
NC Affordable Housing Conference | September 30-October 1
The North Carolina Affordable Housing Conference is presented by the North Carolina Housing Finance Agency, the North Carolina Housing Coalition, and Centrant Community Capital. Each year, the NC Affordable Housing Conference features informative and timely breakout sessions including an inspiring opening session. A broad range of breakout sessions include topics for all affordable housing professionals including tax credits, home ownership, housing counseling, nonprofits and more. The NC Housing Coalition’s Annual Breakfast celebrates the achievements of housing advocates across the state and gives attendees the opportunity to collaborate with the Coalition’s upcoming policy and advocacy initiatives. Join the conference mailing list here.
View Full Webinar:
Federal Resources:
The Gap
Out of Reach
Picture of Preservation
Improving Low Income Housing Tax Credit Data for Preservation
Affordable Housing Credit Improvement Act Reforms
Housing First
National HoUSed Campaign Calls | Next Call 12/9 at 2:30pm
State Resources:
NC County Profiles
Housing Matters 2 NC
NC Housing Coalition Blog
Key Housing Appropriations in NC
Housing Matters Newsletter
Disaster Recovery Legislation So Far
