House panel to consider $50 million affordable housing infrastructure loan program
RALEIGH, N.C. — A House committee is scheduled to consider a bill next week that would create a $50 million loan program for infrastructure tied to affordable housing development.
House Bill 1072, titled “Affordable Housing Infrastructure Development,” is scheduled for the House Housing and Development Committee at 3 p.m. Wednesday, May 20, in room 421 of the Legislative Office Building.
The bill is sponsored by Reps. John Bell, Robert Reives, Chris Humphrey and Carla Cunningham. It was referred to the House Housing and Development Committee, then to Appropriations if favorable, then to Rules, Calendar and Operations of the House.
H1072 would direct the North Carolina Housing Finance Agency to create and administer the Affordable Housing Infrastructure Development Loan Program. The program would provide revolving, below-market interest rate loans for developing and improving sites to be used for affordable housing for low- and moderate-income families.
Under the bill, eligible borrowers would be tax-exempt nonprofit organizations that meet specific requirements, including at least one year of experience providing homes for sale to low- and moderate-income households in their service area. The bill also requires eligible borrowers to provide first or second mortgage financing to eligible home buyers at 0%.
The loans could be used for land acquisition, predevelopment costs and infrastructure costs. Infrastructure costs would include water, sewer, utility, stormwater and road infrastructure, along with site clearing and grading. The bill would not allow the money to be used for vertical construction of housing units or rehabilitation of existing housing units.
The proposal would appropriate $50 million in nonrecurring funds from the General Fund to the North Carolina Housing Finance Agency for the 2026-27 fiscal year. The bill would become effective July 1, 2026, if enacted.
Affordable housing has become a growing issue for local governments, developers and employers across North Carolina, particularly in areas where infrastructure costs can make projects harder to finance. The bill would target the early-stage costs that often determine whether an affordable housing project can move forward.
The House committee hearing may show whether the proposal has enough bipartisan support to move during the short session and whether lawmakers are willing to include housing infrastructure money in broader budget negotiations.
Editor’s note: This article was drafted with the assistance of artificial intelligence and was reviewed and fact-checked by a member of the NC Political News editorial team before publication.
