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HB 603NORTH CAROLINASession 2025State Billin committee

High Impact

North Carolina creates $40 million revolving loan fund for workforce housing preconstruction costs

Original title: Workforce Housing Loans-Preconstruction Costs.

Last action · April 1, 2025: Ref to the Com on Appropriations, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the House (House action)Sponsors: Robert Reives and 30 others

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What This Bill Would Do

North Carolina establishes the Workforce Housing Preconstruction Revolving Loan Program, administered by the North Carolina Housing Finance Agency, to provide short-term financing up to $1 million per project for starting July 1, 2025.

Why it matters

Developers building housing for households earning between 60% and 120% of the gain access to short-term state-backed capital before securing permanent private financing, with 80% of funds reserved for economically distressed tier one and tier two counties.

Background

The North Carolina Housing Finance Agency is a self-supporting public agency that finances affordable housing opportunities across the state. context
The Economic Development Project Reserve was established in Section 2.2 of Session Law 2021-180 as a funding source for state economic initiatives. context

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

Housing developers

Developers of workforce housing gain access to short-term revolving loans of up to $1 million to cover preconstruction costs before securing permanent private financing.

Directly affected

Middle-income households

Households earning between 60% and 120% of the area or state median income are the target beneficiaries for the resulting workforce housing units.

Directly affected

North Carolina Housing Finance Agency

The Agency is required to establish, administer, set guidelines for, and report annually on the new revolving loan program.

Key Facts

The State Controller shall transfer $40,000,000 in nonrecurring funds for the 2025-2026 fiscal year from the Economic Development Project Reserve to the North Carolina Housing Trust Fund.
Individual loans issued through the program shall not exceed $1,000,000.
Eighty percent of loans are reserved for projects in counties designated as development tier one and tier two areas.
Twenty percent of loans are reserved for projects in counties designated as a development tier three area.

Show all 9 facts

Workforce housing is defined as housing affordable to households earning between 60% and 120% of the county area median income or the State area median income, whichever is higher.
Preconstruction costs eligible for financing include land surveys, environmental due diligence, soil testing, utility connections, planning and permit fees, and site clearing and grading.
Applicants must meet project equity requirements established by the Agency between 20% and 35% based on local market conditions.
The North Carolina Housing Finance Agency must report annually before February 15 to the Joint Legislative Oversight Committee on General Government and the Fiscal Research Division.
The act becomes effective July 1, 2025.

Frequently Asked Questions

What expenses can the revolving loan fund cover?

The loans cover including land surveys, environmental due diligence, soil testing, utility connections, planning and permit fees, and site clearing and grading.

Who qualifies for housing built under this program?

The program supports workforce housing that is affordable to households earning between 60% and 120% of the county or the State area median income, whichever is higher.

How are loan funds distributed across different county types?

Eighty percent of loans are reserved for projects in development tier one and tier two counties, while 20% are reserved for development tier three counties.

What else do you want to know?

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Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

3 actions

Apr 1, 2025House
Ref to the Com on Appropriations, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the House
Apr 1, 2025House
Passed 1st Reading
Mar 31, 2025HouseIntroduced
Filed

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

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