Inclusionary Zoning/Workforce Housing Funds.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 1069

Short Title: Inclusionary Zoning/Workforce Housing Funds. (Public)
Sponsors: Senator Smith (Primary Sponsor).
Referred to: Rules and Operations of the Senate
May 4, 2026
*S1069-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO SUPPLEMENT THE AVAILABILITY OF AFFORDABLE HOUSING BY 2
ALLOWING LOCAL GOVERNMENTS TO PROVIDE FOR INCLUSIONARY ZONING 3
AND TO APPROPRIATE F UNDS TO THE NORTH CA ROLINA HOUSING FINANCE 4
AGENCY FOR THE WORKFORCE HOUSING LOAN PROGRAM. 5
The General Assembly of North Carolina enacts: 6
SECTION 1. G.S. 160D-702 reads as rewritten: 7
"§ 160D-702. Grant of power. 8
(a) A local government may adopt zoning regulations. Except as provided in subsections 9
(b) and (c) of this section, a zoning regulation may regulate and restrict the height, number of 10
stories, and size of buildings and other structures; the percentage of lots that may be occupied; 11
the size of yards, courts, and other open spaces; the density of population; the location and use 12
of buildings, structures, and land. A local government may regulate development, including 13
floating homes, over estuarine waters and over lands covered by navigable waters owned by the 14
State pursuant to G.S. 146-12. A zoning regulation shall provide densit y credits or severable 15
development rights for dedicated rights -of-way pursuant to G.S. 136-66.10 or G.S. 136-66.11. 16
To supplement the availability of affordable housing, t he regulation may also provide for 17
inclusionary zoning. Where appropriate, a zoning regulation may include requirements that street 18
and utility rights-of-way be dedicated to the public, that provision be made of recreational space 19
and facilities, and that performance guarantees be provided, all to the same extent and with the 20
same limitations as provided for in G.S. 160D-804 and G.S. 160D-804.1. 21
…." 22
SECTION 2. Notwithstanding G.S. 143C-5-2, there is appropriated from the 23
General Fund to the Housing Finance Agency the sum of ten million dollars ($10,000,000) in 24
recurring funds beginning in the 2026-2027 fiscal year to be used for the Workforce Housing 25
Loan Program, established under G.S. 122A-5.15. 26
SECTION 3. This act becomes effective July 1, 2026. 27