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Read. Follow. Verify.North Carolina bill bans source-of-income housing discrimination, appropriates $45 million for Housing Trust Fund, and restricts credit reporting of ejectment lawsuits
Last action · March 17, 2025: Ref To Com On Rules, Calendar, and Operations of the House (House action)Sponsors: Jordan Lopez and 26 others
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What This Bill Would Do
North Carolina HB 404 prohibits housing discrimination based on , directs the Legislative Research Commission to study affordable housing, appropriates $45 million to the Housing Trust Fund, and limits credit reporting agencies from reporting ejectment lawsuits that do not result in landlord judgments. The measure also establishes an optional rent reporting program for tenants starting October 1, 2025.
Low-income renters, landlords, and housing authorities face new legal standards regarding source-of-income discrimination, while $46 million in total state funds are directed toward housing trust and grant programs funded partly through reallocated deed stamp and real estate excise tax distributions.
- The State Fair Housing Act governs housing discrimination laws across North Carolina, establishing protected classes and enforcement mechanisms. context
- The North Carolina Housing Trust Fund provides financing for the development and rehabilitation of affordable housing units for low- and moderate-income residents. 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.
Renters and Home Buyers
Renters and buyers gain protection against source-of-income housing discrimination and acquire the option to report rent payments to credit agencies while being shielded from unadjudicated eviction lawsuits on credit reports.
Landlords and Property Owners
Private and participating landlords must comply with new source-of-income nondiscrimination rules, offer annual rent reporting options for subsidized units, and adhere to restrictions on charging fees for credit reporting.
Credit Reporting Agencies
Credit reporting agencies are barred from storing or reporting ejectment lawsuits that do not result in a landlord judgment.
North Carolina Housing Trust Fund
The fund receives a $45 million nonrecurring appropriation and dedicated ongoing revenue streams from deed fees and real estate excise taxes.
Key Facts
- The Legislative Research Commission is directed to study affordable housing availability in metropolitan and rural areas and report its findings to the 2026 Regular Session.
- The State Fair Housing Act is amended to make housing discrimination on the basis of source of income an unlawful discriminatory practice.
- The sum of $45,000,000 is appropriated from the General Fund to the North Carolina Housing Trust Fund in nonrecurring funds for the 2025-2026 fiscal year.
- Deed registration fee remittances are altered so that 1.5% goes to the North Carolina Housing Trust Fund, 55% to the Floodplain Mapping Fund, 18.5% to the General Fund, and 25% to the Department of Natural and Cultural Resources.
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- Real estate excise tax distributions are modified so that the Department of Revenue credits 33% of its remitted share to the North Carolina Housing Trust Fund.
- Credit reporting agencies are prohibited from collecting or reporting lawsuits filed against a consumer for ejectment unless a judgment has been entered in favor of the landlord.
- An Optional Credit Reporting for Tenants of Subsidized Housing Program is established, requiring participating landlords to offer tenants the option to report rent payments to credit agencies.
- Participating landlords may charge a fee for rent reporting not to exceed the lesser of actual cost or $10.00 per month.
- The sum of $1,000,000 is appropriated from the General Fund to the North Carolina Housing Finance Agency for the 2025-2026 fiscal year to provide grants to private landlords participating in the subsidized housing credit reporting program.
- Section 2 of the act takes effect October 1, 2025; Sections 3, 4, and 5 take effect July 1, 2025; and Sections 6 and 7 take effect October 1, 2025.
Frequently Asked Questions
Does this bill make it illegal for landlords to reject a renter based on their voucher or income source?
Can an unadjudicated eviction filing or ejectment lawsuit appear on my credit report?
How does the optional rent reporting program work for subsidized housing tenants?
Where does the funding for the North Carolina Housing Trust Fund come from under this bill?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Currently in committee. The next step in the legislative lifecycle is Floor Vote.
Procedural history
3 actions- Mar 17, 2025HouseRef To Com On Rules, Calendar, and Operations of the House
- Mar 17, 2025HousePassed 1st Reading
- Mar 13, 2025HouseIntroducedFiled
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Show 22 more sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Diversification of Housing Trust Fund Revenue
The bill combines a direct multimillion-dollar General Fund appropriation with dedicated ongoing percentage cuts from register of deeds fees and real estate excise taxes to continuously fund the North Carolina Housing Trust Fund.
Connected Entities
Sources
www.ncleg.gov
Analysis Score
0–100- Significance85How much this matters to a regular citizen
- Controversy70Intensity of disagreement among stakeholders
- Entertainment10Compellingness for a non-policy-wonk reader
- Buzz60Current news / social attention level
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