SB 423 — Housing Finance Agency/PED Study.

FILED SENATE GENERAL ASSEMBLY OF NORTH CAROLINA MarSESSION 31, 2021 S.B.S 1 SENATE BILL 423 Short Title:

423 SESSION 2021 PRINCIPAL CLERK S D SENATE BILL DRS45216-MQz-40B Short Title:

Rules and Operations of the Senate April 1, 2021 A BILL TO BE ENTITLED AN ACT TO MAKE VARIOUS CHANGES TO PROGRAMS AND PROCEDURES WITHIN THE NORTH CAROLINA HOUSING FINANCE AGENCY, AS RECOMMENDED BY THE JOINT LEGISLATIVE PROGRAM EVALUATION OVERSIGHT COMMITTEE.

PROGRAMMATIC MODIFICATIONS AND STRATEGIC PLANNING SECTION 1.1.(a) The North Carolina Housing Finance Agency (Agency) shall examineand implement modifications to theCommunityPartnersLoantheCommunityPartners Loan Pool, theSelf-Help Loan Pool, the Urgent Repair Program, and the Essential Single-Family Rehabilitation Loan Pool to ensure that all areas of the State have access to the programs.

… (d) The AgencyAgencyshall shall develop a strategic plan to be updated at least once every five years.

The performance management system shall include annual objectives for the Agency to meet, and the Agency shall establish performance measures, in the form of inputs, activities, and outcomes, which shall be used to assess attainment of the established objectives." *DRS45216-MQz-40B**S423-v-1* General Assembly Of North Carolina Session 2021 SECTION 1.2.(b) The Agency shall contract with an independent entity with expertise in state government strategic planning to assist in developing the initial strategic plan required by this section.

and (2) Second priority to projects that benefit persons and families whose incomes are fifty percent (50%) or less of the median family income for the local area, with adjustments for familyfamilysize, size, according to the latest figures available from the United States Department of Housing and Urban Development.

The Housing Finance Agency shall report to the Joint Legislative Commission on Governmental Operations by April 1 of each year each year concerning the status of the HOME Program and shall include in the report information on priorities met, types of activities funded, Page 2 DRS45216-MQz-40BSenate Bill 423-First Edition General Assembly Of North Carolina Session 2021 and types of activities not funded.funded as a part of the annual report required pursuant to G.S.

(4) Managementdiscussionandanalysis,includingadiscussionoftheprioryear'sManagementdiscussionandanalysis,includingadiscussionoftheprior year's performance.

The Agency shall on January 1 and July 1 of each year submit awrittenreportofits activitiestotheJointLegislativeCommissionactivitiestotheJoint LegislativeCommission on GovernmentalOperations.

The Agency and all funds established DRS45216-MQz-40BSenate Bill 423-First Edition Page 3 General Assembly Of North Carolina Session 2021 pursuant to this Chapter shall be subject to the provisions of the State Budget Act contained in Chapter 143C of the General Statutes except that no unexpended surplus of funds shall revert to the General Fund.

122A-16." SECTION 2.1.(b) TheBoard shall submit a copycopyof of the initial nonprofit contribution policy required under this section to the Joint Legislative Oversight Committee on General Government and the Fiscal Research Division no later than six months after the effective date of this act.

Page 4 DRS45216-MQz-40BSenate Bill 423-First Edition General Assembly Of North Carolina Session 2021 (b) The Partnership shall consist of 13 members as follows:

120-121, five members shall be appointed by the General AssemblyAssemblyupon upon the recommendation of the President Pro Tempore of the Senate, provided that one member shall be a representative of the homebuilding industry, one member shall be a low income housing advocate, and one member shall be a representative of the League of Municipalities;Municipalities.

Members shall not receive a salarysalaryfor for the performance of their duties as members.

(1) TopromulgateadvisetheAgencyonthepromulgationofrulesandregulationsTopromulgate advisetheAgencyonthepromulgationofrulesandregulations governing all policypolicymatters mattersrelatingto relating to the implementation of all programs for uses of the Fund and the Partnership's oversight of the Agency's administration of the Fund.

The Executive Director shall be empowered to employemploysuch such additional professional and clerical assistance as the Partnership may deem necessary to administer the provisions of this Chapter.

The Partnership and the Agency DRS45216-MQz-40BSenate Bill 423-First Edition Page 5 General Assembly Of North Carolina Session 2021 may enter into agreements for the use of Agency staff to assist the Partnership and the provision of administrative support for the Partnership by the Agency.

(i) Members of the Partnership maymaynot not receive anyanydirect direct benefit from, or participate in, the programs of the Fund.

Members of the Partnership may be employed by, or serve as a board member of, a nonprofit entity participating in a program of the Fund if the member discloses the employment or the membership in the minutes of the Partnership and does not vote on anyanymatter matter pertaining to the entity's participation.

… (21) To employ fiscal consultants, engineers, attorneys, real estate counselors, appraisers and such other consultants and employees as may be required in the judgment of the Agency and to fix and paypaytheir their compensation from funds available to the Agency therefor;

RENTAL DEVELOPMENT PROGRAM MODIFICATIONS SECTION 3.1.(a) The Agency shall study potential modifications to its administration of the Low-Income Housing Tax Credit program to develop a strategystrategyto to maintain the affordability of projects that exit the program.

As part of the study, the Agency shall also track incidence of Low-Income Housing Tax Credit units in theState that remain affordable after exiting the affordabilityaffordabilityperiod periodand andthosethose that are no longer affordable and shall incorporate that data into its affordability strategy.

The Agency shall submit the results of the study and its proposed affordability strategy to the Joint Legislative Oversight Committee on General Government, the North Carolina Federal Tax Reform Allocation Committee, establishedpursuant to Article51BArticle51BofChapter143 ofChapter143 oftheGeneral Page 6 DRS45216-MQz-40BSenate Bill 423-First Edition General Assembly Of North Carolina Session 2021 Statutes, and the Fiscal Research Division no later than one year from the effective date of this act.

DRS45216-MQz-40BSenate Bill 423-First Edition Page 7