HB 404 — Fair and Affordable Housing Act.

GENERAL ASSEMBLY OF NORTH CAROLINA H.B.SESSION 2025 H 1 HOUSE BILL 404 Short Title:

404 Mar 13, 2025 SESSION 2025 HOUSE PRINCIPAL CLERK H D HOUSE BILL DRH30189-NOza-22D Short Title:

RepresentativeRepresentatives Lopez.Lopez, G.

Brown, Ager, and Buansi (Primary Sponsors).

For a complete list of sponsors, refer to the North Carolina General Assembly web site.

Rules, Calendar, and Operations of the House March 17, 2025 A BILL TO BE ENTITLED AN ACT TO DIRECT THE LEGISLATIVE RESEARCH COMMISSION TO STUDY AFFORDABLE HOUSING IN THE STATE, TO MAKE HOUSING DISCRIMINATION ON THE BASIS OF "SOURCE OF INCOME" A VIOLATION OF THE STATE FAIR HOUSING ACT, TO EXPAND WORKFORCE HOUSING BY PROVIDING CURRENT AND ONGOING FUNDING FOR THE HOUSING TRUST FUND, TO PROHIBIT CREDIT REPORTING AGENCIES FROM REPORTING LAWSUITS FOR EJECTMENT THAT DO NOT RESULT IN A JUDGMENT FOR THE LANDLORD, AND TO ESTABLISH THE OPTIONALOPTIONALCREDIT CREDIT REPORTING FOR TENANTS OF SUBSIDIZED HOUSING PROGRAM.

*DRH30189-NOza-22D**H404-v-1* General Assembly Of North Carolina Session 2025 (9) Assess the feasibility and cost-savings from partnerships between public utilities, private businesses, and local governments in replacing aging housing in existing programs with newer modular and mobile home units.

(10) Examine anyanycosts costs that maymaybe be associated with government rules, regulations, and ordinances.

… (b1) It is an unlawful discriminatory housing practice for anyanyperson person or other entity whose business includes engaging in residential real estate related transactions to discriminate against any person in making available such a transaction, or in the terms and conditions of such a transaction, because of race, color, religion, sex, national origin, handicapping condition, source of income, or familial status.

… (d) It is an unlawful discriminatorydiscriminatoryhousing housing practice to deny anyanyperson person who is otherwise qualified by State law access to or membership or participation in any real estate brokers' organization, multiple listing service, or other service, organization, or facility relating to the business of engaging in real estate transactions, or to discriminate in the terms or conditions of Page 2 DRH30189-NOza-22DHouse Bill 404-First Edition General Assembly Of North Carolina Session 2025 such access, membership, or participation because of race, color, religion, sex, national origin, handicapping condition, source of income, or familial status.

… (g) It is an unlawful discriminatorydiscriminatoryhousingpractice housing practice to discriminate in land-use decisions or in the permitting of development based on race, color, religion, sex, national origin, handicapping condition, source of income, familial status, or, except as otherwise provided by law, the fact that a development or proposed development contains affordable housing units for families or individuals with incomes below eighty percent (80%) of area median income.

41A-4,against a personof aparticularrace, color,religion,sex,nationalorigin,handicappingcolor,religion,sex,nationalorigin,handicappingcondition, condition, sourceofincome, or familial status.

DRH30189-NOza-22DHouse Bill 404-First Edition Page 3 General Assembly Of North Carolina Session 2025 (3) Twenty-five percent (25%) to the Department of Natural and Cultural Resources to be used as provided in G.S.

The transferor must paypaythe the tax to the register of deeds of the countycountyin in which the real estate is located before recording the instrument of conveyance.

If the instrument transfers a parcel of real estate lyinglyingin in two or more counties, however, the tax must be paid to the register of deeds of the county in which the greater part of the real estate with respect to value lies.

The finance officer of each county must credit one-half of the proceeds to the county's general fund and remit the remaining one-half of the proceeds, less taxes refunded and the county's allowance for administrative expenses, to the Department of Revenueon amonthlyamonthlybasis. basis.

AcountyAcountymayretaintwopercent mayretaintwopercent (2%)oftheamount oftaxproceedsoftax proceeds allocated for remittance to the Department of Revenue as compensation for the county's cost in collecting and remitting the State's share of the tax.

Chapter 75 of the General Statutes is amended bybyadding adding a new Article to read:

Page 4 DRH30189-NOza-22DHouse Bill 404-First Edition General Assembly Of North Carolina Session 2025 (4) Person.

AnyAnyhousingauthorityengaged housing authority engaged in the practice of directlydirectlyleasing leasing residential accommodations to tenants shall automatically be considered a participating landlord for the purposes of this Article.

– Real propertypropertyused used for residential purposes by an individual or family.

(b) For leases entered into on or after October 1, 2025, the offer to report rent payment information shall be made at the time of the lease agreement and at least once annuallyannuallythereafter. thereafter.

DRH30189-NOza-22DHouse Bill 404-First Edition Page 5 General Assembly Of North Carolina Session 2025 (3) A statement that all of the tenant's rental payments will be reported, regardless of whether the payments are timely, late, or missed.

(9) A signature block that thetenantthe tenant shall date and sign in order to accept the offer of rent reporting.

(2) The landlord shall not deduct the unpaid fee from the tenant's securitysecuritydeposit. deposit.

The grants funded by this section shall be awarded on the express condition that the funds be used by the receiving landlord to make improvements to the subsidized housing provided by the Page 6 DRH30189-NOza-22DHouse Bill 404-First Edition General Assembly Of North Carolina Session 2025 landlord.

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