Rural and Downtown Community Eco. Dev. Grants.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 604

Short Title: Rural and Downtown Community Eco. Dev. Grants. (Public)
Sponsors: Representatives Reives, A. Jones, Willingham, and Carney (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Appropriations, if favorable, Finance, if favorable, Rules, Calendar, and
Operations of the House
April 1, 2025
*H604-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO CREATE THE RURAL COMMUNITY DEVELOPMENT GRANT PROGRAM 2
AND THE DOWNTOWN REV ITALIZATION GRANT PR OGRAM AND TO 3
APPROPRIATE MONEY FOR PURPOSES CONSISTENT WITH THOSE PROGRAMS. 4
The General Assembly of North Carolina enacts: 5
SECTION 1. The General Assembly finds that: 6
(1) Downtown areas are critical to the economic, cultural, and social well -being 7
of North Carolina's communities. They serve as vital hubs for commerce, 8
public engagement, and community identity. Yet many downtowns, in urban 9
and rural areas alike, have faced challenges, including declining activity, 10
vacant storefronts, and reduced investment. 11
(2) Rural communities across North Carolina also face broad, significant 12
challenges, including economic stagnation, depopulation, and limited access 13
to growth opportunities. These challenges prevent the vitality of local 14
economies from being realized, reduce residents' well-being, and diminish the 15
long-term sustainability of these regions. 16
(3) By providing targeted investments, the State can empower downtown areas 17
and rural communities to advance their economic development, enhance their 18
government services provision, and support the growth of local businesses. 19
These investments are essential for creating self -sustaining growth, fostering 20
local workforce development, and positioning these areas as desirable places 21
to live, work, and do business. 22
SECTION 2.(a) Appropriation. – There is appropriated from the General Fund to 23
the Department of Commerce (the Department) the sum of forty million dollars ($40,000,000) in 24
nonrecurring funds for the 2025 -2026 fiscal year to be allocated to the Rural Economic 25
Development Division (REDD) and used for purposes consistent with subsection (b) of this 26
section. Notwithstanding G.S. 143C-1-2(b), funds allocated in this section shall not revert but 27
shall remain available for purposes consistent with this section until June 30, 2027. The 28
Department may use up to five percent (5%) of the funds appropriated in this section for 29
administration of the Community Grant Program created in subsection (b) of this section. 30
SECTION 2.(b) Rural Community Development Grant Program. – The funds 31
allocated to REDD by subsection (a) of this section shall be used to create the Rural Community 32
Development Grant Program (the Community Grant Program). The Community Grant Program 33
shall provide grants to local governments in the State to attract business investment and to 34
General Assembly Of North Carolina Session 2025
Page 2 House Bill 604-First Edition
promote population and revenue growth within those communities for the purposes of (i) 1
reversing the trend of rural depopulation and (ii) transitioning those communities to "commuter 2
towns" or "bedroom communities" that promote and sustain the growth of larger adjacent 3
communities. All county and municipal governments within the State are eligible to apply for 4
grant funding under the Community Grant Program. REDD shall establish guidelines for 5
providing for administration of the Community Grant Program. Those guidelines shall include 6
the following provisions, which shall apply to each grant under the Community Grant Program: 7
(1) Funds shall only be used for purposes that REDD determines are likely to 8
improve a community's economic and living conditions such that the 9
community is better able to sustain consistent economic and population 10
growth and is better able to balance (i) the livability of the community, (ii) the 11
provision of government services, (iii) full employment and full housing, and 12
(iv) maintaining public order. 13
(2) Grants may only be awarded to local governments that REDD determines 14
have satisfactorily demonstrated that a lack of community amenities within 15
their locale has previously prevented them from attracting business 16
investment and promoting the population and revenue growth necessary to 17
stimulate job and revenue growth within their community. Exa mples of 18
relevant community amenities include restaurants, hotels, child care centers, 19
grocery stores, pools, parks, and hiking trails. 20
(3) Grants shall be awarded on a competitive basis based upon, at a minimum, the 21
following factors: (i) the amount of no n-State investment in the project, (ii) 22
the projected wage and job growth from the project, and (iii) the existence of 23
demonstrated community support for the project. REDD shall determine the 24
relative weight due and priority of the factors listed in (i) th rough (iii) of this 25
subdivision, and any other factors it may choose to include, and shall publicize 26
that information on its website. 27
(4) Grants awarded shall require a match in the amount of one dollar ($1.00) of 28
non-State funds for every one dollar ($1.00) of State funds. 29
(5) Individual grant awards may not exceed two million dollars ($2,000,000). 30
(6) All county and municipal governments seeking grant funding under this 31
section shall submit an application for funding, on a form and in a manner 32
approved by the Department, as a necessary precondition to receiving funding. 33
(7) The application required by subdivision (6) of this subsection shall include, at 34
a minimum, a requirement that the applicant will use any grant funding it 35
receives for projects that are part of a comprehensive local government plan 36
intended to promote (i) downtown revitalization or (ii) community 37
development, or both. 38
SECTION 3.(a) Appropriation. – There is appropriated from the General Fund to 39
the Department of Commerce the sum of fort y million dollars ($40,000,000) in nonrecurring 40
funds for the 2025-2026 fiscal year to be used for the purposes consistent with subsection (b) of 41
this section. Notwithstanding G.S. 143C-1-2(b), funds allocated in this section shall not revert 42
but shall rem ain available for purposes consistent with this section until June 30, 2027. The 43
Department may use up to five percent (5%) of the funds appropriated in this section for 44
administration of the Revitalization Program created in subsection (b) of this section. 45
SECTION 3.(b) Downtown Revitalization Grant Program. – The funds allocated to 46
the Department by subsection (a) of this section shall be used to create the Downtown 47
Revitalization Grant Program (the Revitalization Program). The Revitalization Program sha ll 48
provide grants to local governments and municipal service district administrator entities for 49
purposes consistent with this section. All county and municipal governments and municipal 50
service district administrator entities within the State are eligible to apply for funding under the 51
General Assembly Of North Carolina Session 2025
House Bill 604-First Edition Page 3
Revitalization Program. The Department shall establish guidelines for providing for 1
administration of the Revitalization Program. Those guidelines shall include the following 2
provisions, which shall apply to each grant from the Revitalization Program: 3
(1) Grants may only be awarded for the purpose of amenitizing the downtown 4
areas of eligible recipients in a manner that the Department determines is 5
likely to enhance the overall appeal, functionality, or livability of a downtown 6
area by attracting the people, businesses, or investment necessary to revitalize 7
a downtown area and create a vibrant, desirable place to live, work, and visit. 8
(2) Individual grant awards may not exceed two million dollars ($2,000,000). 9
(3) All county and municipal governments and municipal service district 10
administrator entities seeking grant funding under this section shall submit an 11
application for funding, on a form and in a manner approved by the 12
Department, as a necessary precondition to receiving funding. 13
(4) The application required by subdivision (3) of this subsection shall include, at 14
a minimum, a requirement that the applicant will use any grant funding it 15
receives for projects that are part of a comprehensive local government plan 16
intended t o promote (i) downtown revitalization or (ii) community 17
development, or both. 18
SECTION 4. No later than September 15 of each year, the Department shall submit 19
a report on the activities conducted with the funds appropriated in this act to the Joint Legislative 20
Oversight Committee on Agriculture and Natural and Economic Resources and the Fiscal 21
Research Division. The information provided in the report shall include, at a minimum, the 22
number of grants awarded and the name and location of all local governments and municipal 23
service district administrator entities receiving grants. Funds allocated under this act are not 24
subject to the provisions of G.S. 143C-6-23. 25
SECTION 5. This act becomes effective July 1, 2025. 26