Affordable Housing Infrastructure Development.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 1072

Short Title: Affordable Housing Infrastructure Development. (Public)
Sponsors: Representatives Bell, Reives, Humphrey, and Cunningham (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Housing and Development, if favorable, Appropriations, if favorable, Rules,
Calendar, and Operations of the House
April 29, 2026
*H1072-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO CREATE THE AFFORDABLE HOUSING INFRASTRUCTURE 2
DEVELOPMENT LOAN PRO GRAM TO PROVIDE BELO W-MARKET INTEREST 3
RATE LOANS FOR THE P URPOSE OF DEVELOPING AND IMPROVING SITES TO 4
BE USED FOR AFFORDABLE HOUSING. 5
The General Assembly of North Carolina enacts: 6
SECTION 1. Chapter 122A of the General Statutes is amended by adding a new 7
section to read: 8
"§ 122A-5.16. Affordable Housing Infrastructure Development Loan Program. 9
(a) The North Carolina Housing Finance Agency (the "Agency") shall establish and 10
administer the Affordable Housing Infrastructure Development Loan Program for the purpose of 11
making revolving below -market interest rate loans to eligible borrowers for the purpose of 12
developing and improving sites to be used for affordable housing for persons and families of low 13
and moderate income. The Agency shall do all of the following: 14
(1) Develop and administer the Affordable Housing Infrastructure Development 15
Loan Fund (Fund). The Fund shall operate as a revolving fund. 16
(2) Develop and administer a competitive application process by which eligible 17
borrowers may apply for assistance in the form of loans from the Fund. 18
(3) Make loans from the Fund secured by liens on real property located in North 19
Carolina to eligible borrowers. 20
(b) The following definitions apply in this section: 21
(1) Affordable housing. – Residential housing that is deemed by the Agency to be 22
affordable to persons and families of low and moderate income. 23
(2) Area median income. – The annual median household i ncome of an area 24
determined by the U.S. Department of Housing and Urban Development. 25
(3) Below-market interest rate. – Interest rate that is below the market value at the 26
time of establishment and is established and published annually, fixed at 27
closing. 28
(4) Eligible borrower. – A tax-exempt nonprofit 501(c)(3) organization that the 29
Agency determines to meet all of the following requirements: 30
a. Borrower develops affordable housing using sweat equity of the home 31
buyer(s), volunteer labor, and donated materials, services, and funds. 32
b. Borrower must have at least one year of experience providing homes 33
for sale to low- and moderate-income households in their service area. 34
General Assembly Of North Carolina Session 2025
Page 2 House Bill 1072-First Edition
c. Borrower must not have any unresolved audit or monitoring findings 1
or legal proceedings. 2
d. Borrower must provide first or second mortgage financing to eligible 3
home buyers at zero percent (0%). 4
e. If a borrower is using the requested funds to develop a mixed-income 5
development, the development must have at least forty percent (40%) 6
of the units reserved exclusively for persons of low and moderate 7
income. 8
(5) Infrastructure costs. – Costs for the development or improvement of sites , 9
including installation of water, sewer, utility, stormwater, or road 10
infrastructure, and site clearing and grading. 11
(6) Persons of low and moderate income. – Persons in households the annual 12
income of which, adjusted for family size, is not more than eighty percent 13
(80%) of the local area median family income as defined by the most recent 14
figures published by the U. S. Department of Housing and Urban 15
Development. 16
(7) Predevelopment costs. – Costs for development or improvement of sites that 17
include, but are not limited to, permit fees, land surveys, environmental due 18
diligence and soil testing, and engineering and site planning. 19
(c) Permitted Uses. – Funds loaned to eligible borrowers under this section shall be used 20
only for the following costs incurred for the provision of affordable housing: 21
(1) Acquisition of land. 22
(2) Predevelopment costs. 23
(3) Infrastructure costs. 24
(d) Prohibited Uses. – Funds loaned to eligible borrowers under this section shall not be 25
used for the vertical construction of housin g units or for the rehabilitation of existing housing 26
units. 27
(e) Distribution of Funds. – Funds loaned to eligible borrowers m ust be directly 28
administered to the benefit of the persons of low and moderate income in a project and cannot be 29
placed in the general accounts of the borrower. If the eligible borrower sells or confers land 30
improved with a loan provided by the Fund to a market rate developer, the land must be sold for 31
no less than its fair market value or appraised value , whichever is less, as improved, and the 32
proceeds received from the sale must be applied directly to the project which will directly benefit 33
persons of low and moderate income. 34
(f) Rulemaking. – Solely with respect to the adoption of procedures for the program by 35
which eligible borrowers may apply for assistance, the Agency is exempt from the requirements 36
of Article 2A of Chapter 150B of the General Statutes. Prior to adoption or ame ndment of 37
procedures, the Agency shall: 38
(1) Publish the proposed procedures in the North Carolina Register at least 30 39
days prior to the adoption of the final procedures. 40
(2) Accept oral and written comments on the proposed procedures. 41
(3) Hold at least one public hearing on the proposed procedures. 42
(g) As part of the report required under G.S. 122A-16, the Agency shall report on the 43
number of loans made under this section, the amount of each loan, and whether the development 44
or improvement of real property for affordable housing under this section is located in a low -, 45
moderate-, or high-income county, as designated by the Agency." 46
SECTION 2. There is appropriated from the General Fund to the North Carolina 47
Housing Finance Agency the sum of fifty million dollars ($50,000,000) in nonrecurring funds 48
for the 2026-2027 fiscal year to be used for the Affordable Housing Infrastructure Development 49
Loan Program and Fund as established in Section 1 of this act. 50
SECTION 3. This act becomes effective July 1, 2026. 51