Foundation Act: Building NC's Housing Future.
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SB 736 — Foundation Act: Building NC's Housing Future.
Last action — Passed 1st Reading
No card. One bill, free forever — alerts when it moves.
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✓Introduced
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2In Committee
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3Passed Senate
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4Passed House
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5To Executive
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6Enacted
This bill is in committee in the Senate. Introduced March 25, 2025. It must pass committee before a floor vote.
Next likely step: a committee vote, then a floor vote in the Senate.
Prognosis
Where this bill stands today.
Odds of enactment
LowHow often bills like it became law.
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In Committee
Current position in the legislative process.
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7 sponsors
2 primary, 5 co-sponsors signed on.
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Single-party support
Sponsorship is currently within one party (7 D).
Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.
Bill Text
What changed in the latest version
61 added · 62 removedPlain-language change summary
In the latest version of Senate Bill 736, some changes were made to clarify the application process for funding and assistance programs. The bill now specifies that the application must conform to a form prescribed by the Secretary, ensuring a more standardized approach. This matters because it could make it easier for individuals and entities seeking funding to navigate the application process and improve transparency and efficiency in how assistance is provided. Additionally, there is a clearer definition of eligibility requirements for tax credits related to contributions, which can help taxpayers better understand their rights and obligations.
FILED SENATE GENERAL ASSEMBLY OF NORTH CAROLINA MarSESSION 25, 2025 S.B.S 1 SENATE BILL 736 Short Title:
736 SESSION 2025 PRINCIPAL CLERK S D SENATE BILL DRS45326-MCxf-177 Short Title:
Rules and Operations of the Senate March 26, 2025 A BILL TO BE ENTITLED AN ACT TO COMPREHENSIVELY ADDRESS HOUSING AFFORDABILITY AND ACCESSIBILITY ISSUES AND NEEDS IN THE STATE.
TheAgencyTheAgencyis isherebyauthorizedto hereby authorizedto provide forthe issuance, at onetimeor fromtimeto time, of bonds and notes of the Agency to carry out and effectuate its corporate purposes.
The total amount of bonds, bond anticipation notes, and construction loan notes outstanding at anyanyone one time shall not exceed twelve billion dollars ($12,000,000,000) eighteen billion dollars ($18,000,000,000) excluding therefrom any bond anticipation notes for the payment of which bonds have been issued.
In case any officer whose signature or a facsimile of whose signature shall appear on anyanybonds bonds or notes or coupons attached thereto shall cease to be such officer before the delivery thereof, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery.
The bonds or notes maymaybe be issued in coupon or in registered form, or both, *DRS45326-MCxf-177**S736-v-1* General Assembly Of North Carolina Session 2025 as the Agency may determine, and provision may be made for the registration of any coupon bonds or notes as to principal alone and also as to both principal and interest, and for the reconversion into coupon bonds or notes of anyanybonds bonds or notes registered as to both principal and interest, and for the interchange of registered and coupon bonds or notes.
The Department of Revenue shall credit the funds remitted to the Department of Revenue under this subsection to the General Fund." SECTION 1.1.(c) Offset by the increase of the excise tax, as provided in subsection (b) of this section, there is appropriated from the General Fund to the Housing Finance Agency the recurring sum of five million dollars ($5,000,000) for each fiscal year of the 2025-2027 fiscal Page 2 DRS45326-MCxf-177Senate Bill 736-First Edition General Assembly Of North Carolina Session 2025 biennium to be allocated to a Housing Innovation Office established by the Housing Finance Agency.
122E-3 the recurring sum of fifty million dollars ($50,000,000) for each fiscal year of the 2025-2027 fiscal biennium to be used (i) for the purposes set forth in that statute and (ii) in the discretion of the Housing Finance Authority, for a program, using a competitive application process, to provide funds to local housing authorities, local housing trust funds,orotherentities that havetheprimarypurpose,and agreeto usethefundsfor, loans,loans,grants, grants, or both for construction and maintenance of affordable housing units in the State.
The Office shall develop an application process anddetailedguidelinesapplicabletoanddetailed guidelinesapplicableto assistancederivedfrom thefundingprovided in, and to accomplish thepurposes ofoftheprogram. theprogram.
FundingFundingfortheprogram fortheprogram is reserved for properties meeting all of the following requirements:
The application must be on a form prescribed bybythe the Secretary and include any information required by the Secretary demonstrating that the qualified contribution has met the conditions for the credit (d) Substantiation.
– An individual claimingclaiminga a credit under this section must maintain and make available for inspection by the Secretary any records the Secretary considers necessary to determine and verify the amount of the credit to which the individual is entitled.
If the Secretary reopens the application period and notwithstanding the DRS45326-MCxf-177Senate Bill 736-First Edition Page 3 General Assembly Of North Carolina Session 2025 application deadline in subsection (c) of this section, the additional applications must be filed with the Secretary on or before October 15 of the year following the calendar year in which the qualified contribution was made.
– The Secretary shall calculate the total amount of credits claimed from applicationstimelyfiled undersubsection(c)ofthissection.undersubsection(c)ofthissection.Ifthetotalamountofcreditsclaimed for qualified contributions made in a calendar year exceeds this maximum amount, the Secretary shall allow a portion of the credits claimed by allocating the maximum amount in credits in proportion to the size of the credit claimed byeach taxpayer.
Ifthetotalamountofcreditsclaimed for qualified contributions made in a calendar year exceeds this maximum amount, the Secretary shall allow a portion of the credits claimed by allocating the maximum amount in credits in proportion to the size of the credit claimed by each taxpayer.
– A taxpayer who claims a credit under this section must add back to taxable income anyanyamount amount deducted under the Code for the qualified contribution.
A taxpayer who claims the credit allowed in this section may not, for the same qualified contribution, claim another credit allowed in this Part." SECTION 1.2.(c) Subsection (a) of this section is effective JulyJuly1, 1, 2025.
(1) Thedevelopment ofat least oneoneattached attached andone detached accessorydwelling unit which conforms to the North Carolina Residential Code for One- and Two-Family Dwellings, including applicable provisions from fire prevention codes, for each single-family detached dwelling in areas zoned for residential use that allow for development of single-family detached dwellings.
An accessoryaccessorydwelling dwelling unit maymaybe be built or sited concurrentlyconcurrentlyor or after the primary single-familysingle-familydetached detached dwelling has been constructed or sited.
(a) Notwithstanding any provision of this Chapter to the contrary, (i) within 30 days of a local government's receipt of an application for development approval for a qualifying affordable development or within 60 days of a local government's receipt of an application for development Page 4 DRS45326-MCxf-177Senate Bill 736-First Edition General Assembly Of North Carolina Session 2025 approval of a residential project with less than 100 units, the local government shall complete an administrative review of the application and any supporting documents and make an administrative decision that does one of the following:
(c) Upon a developer's receipt of a notice of a deficient application and a deficiency list undersubdivision (2) of subsection (a)of this section,thedeveloper maydo anyanyof of thefollowing:
(d) Within 10 business days of a local government's receipt of a corrected application under subdivision (1) of subsection (c) of this section, the local government shall notify the developerin writingwritingwhethertheapplication(i)is whethertheapplication(i)is completeandnofurtherinformation is required for the local government to make a development approval determination or (ii) does not correct all the deficiencies identified in accordance with subdivision (2) of subsection (a) of this section.
DRS45326-MCxf-177Senate Bill 736-First Edition Page 5 General Assembly Of North Carolina Session 2025 (b) A local government shall allow at least a thirty-five percent (35%) increase in density for projects where at least fifteen percent (15%) of the units are reserved for low-income residents.
– A first-time home buyer designated by an account holderforwhom themoneyin afirst-timehomebuyersavingsafirst-time homebuyersavings account is or will be used for eligible expenses for the purchase of the qualified beneficiary's first primary residence, which is located in this State.
– In calculating North Carolina taxable income, a taxpayer must add to the taxpayer's adjusted gross incomeanyofthefollowingitems thatarenot includedincludedin in thetaxpayer's adjusted gross income:
… (7a) The amount deducted in a prior taxable year to the extent this amount was withdrawn from a first-time home buyer savings account and not used to pay for eligible expenses of a qualified beneficiarybeneficiaryin inconformitywith conformity with this section, unless the withdrawal was rolled over to another newly created first-time home buyer savings account.
SECTION 3.3.(a) There is appropriated from the General Fund to the Housing Finance AgencyAgencythe the recurring sum of ten million dollars ($10,000,000) for each fiscal year of the Page 6 DRS45326-MCxf-177Senate Bill 736-First Edition General Assembly Of North Carolina Session 2025 2025-2027 fiscal biennium to be used for a program to establish new, and expand existing, community land trusts with the primary purpose of facilitating affordable homeownership by retaining ownership of the land and leasing it to homeowners who purchase the house on that land at below-market pricing.
– Restrictions that have been permanently imposed by the Housing Finance Agency on an affordable rental units owned, operated, or managed by an appropriate nonprofit organization Permanent affordability restrictions imposed or required by the Agency pursuant to this subdivision may require a regulatory agreement with the AgencyAgencyorother orother affordabilityrestrictions in recordeddocuments, providedthe Agency determines that such restrictions are enforceable and likely to be enforced.
DRS45326-MCxf-177Senate Bill 736-First Edition Page 7 General Assembly Of North Carolina Session 2025 (5) Qualifying rural area.
The process shall reserve fundingfundingfor for manufactured home assistance used as a primary residence by persons of lower income, as defined by G.S.
(1) One hundred million dollars ($100,000,000) to establish an emergency housing response fund available to NCORR to respond to housinghousingneeds needs after, and due to the event on which is based, a major disaster declaration by the President of the United States under the Stafford Act (P.L.
As part of its study, the Department shall investigate and recommend optimal loan terms, the administrative structure for the program, and limitations on loan amounts and on uses of loaned funds necessary to maximize safetysafetyand and economic benefits and target funding support where need is greatest.
(i) supplement a quality wind-mitigation inspection by a licensed home inspector, (ii) create a report for the homeowner resulting from the inspection that Page 8 DRS45326-MCxf-177Senate Bill 736-First Edition General Assembly Of North Carolina Session 2025 provides information to contractors and insurance companies of recommended improvements that will best improve and contribute to storm readiness and resilience, and (iii) offset the costs to homeowners of best practices for home improvements for storm resilience by licensed contractors, including, but not limited to, strengthening roof-to-deck attachments, reinforcing roof-to-wall connections, installation of secondary water resistance for roofs, window upgrades, and exterior door upgrades.
The Department shall submit its report, including funding needs and anyanylegislative legislative proposals, to the General AssemblyAssemblyand and the Fiscal Research Division no later than January 1, 2026.
The Office shall submit its report, including funding needs and anyanylegislative legislative proposals, to the General Assembly and the Fiscal Research Division no later than January 1, 2026.
– Restrictions that have been permanently imposed by the Housing Finance Agency on an affordable rental units owned, operated, or managed by an appropriate nonprofit organization Permanent affordability restrictions imposed or required by the Agency pursuant to this subdivision may require a regulatory agreement with the AgencyAgencyorother orother affordabilityrestrictions in recordeddocuments, providedthe DRS45326-MCxf-177Senate Bill 736-First Edition Page 9 General Assembly Of North Carolina Session 2025 Agency determines that such restrictions are enforceable and likely to be enforced.
105-153.14, as enacted bybysubsection subsection (a) of this section, and (ii) where the existing building footprint is maintained.
SECTION 6.1.(c) Subsection (a) of this section is effective for taxable years beginning on or after JanuaryJanuary1, 1, 2025.
Costs which may be offset with funding appropriated in this subsection includes architectural and financial feasibilityfeasibilityassessment assessment assistance.
Show all 52 changed lines (12 more)
The AgencyAgencyshall shall develop an application process and detailed guidelines applicable to the program to maximize the number of affordable rental units resulting from the funding provided in this section.
Page 10 DRS45326-MCxf-177Senate Bill 736-First Edition General Assembly Of North Carolina Session 2025 SECTION 7.3.(a) Article 6 of Chapter 42 of the General Statutes is amended by adding a new section to read:
The Housing Finance Agency shall work with local housinghousingauthorities authorities to use the funds appropriated in this section to provide combined housinghousingand and wraparound services to persons and families experiencing homelessness.
SECTION 8.1.(b) There is appropriated from the General Fund to the Housing Finance Agency the sum of twenty million dollars ($20,000,000) in nonrecurring fund to be allocated to a Rapid Rehousing Program established bybythe the Housing Finance Agency.
The coordinated entry systems shall be designed to evaluate whether a person or family is qualified for the rental or housing assistance funded by this Part and shall ensure that individuals DRS45326-MCxf-177Senate Bill 736-First Edition Page 11 General Assembly Of North Carolina Session 2025 and families are offered the most appropriate rental or housing assistance based on their needs.
The Department shall (i) develop guidelines for an application process for qualifying employers for the allocation of funds granted pursuant to this section and (ii) prioritize awarding Page 12 DRS45326-MCxf-177Senate Bill 736-First Edition General Assembly Of North Carolina Session 2025 fundsbased on the degree to which the employerhasemployer has shown, in the application or otherwise, the following:
– In conjunction with The UniversityUniversityof of North Carolina and the Community Colleges System Office, the Department shall develop a grant program for institutions of higher education in this State to offset costs of researching and developing (i) building methods that show potential to reduce construction time and costs, (ii) more affordable or sustainable materials, or (iii) pioneeringpioneeringconstruction construction techniques that save resources while maintaining or improving quality.
The Department shall develop guidelines foranapplicationprocessforinstitutionsofhigherforan applicationprocessforinstitutionsofhigher educationfortheallocation of funds granted pursuant to this section." SECTION 9.1.(b) There is appropriated from the General Fund to the Department of Commerce the recurring sum of fifty million dollars ($50,000,000) for each fiscal year of the 2025-2027 fiscal biennium for the Housing Construction Development Program established in G.S.
For purposes of this subsection, a historically underinvested neighborhood is one that faces persistent challenges due to discriminatorydiscriminatorypolicies policies and practices resulting in limited access to resources and opportunities.
DRS45326-MCxf-177Senate Bill 736-First Edition Page 13 General Assembly Of North Carolina Session 2025 … (b) Comprehensive Plan Contents.
(4) Acceptable levels of public services and infrastructure to support development, including water, waste disposal, utilities, emergency services, transportation, education, recreation, community facilities, and other public services, includingincludingplans plans and policies for provision of and financing for public infrastructure.
Page 14 DRS45326-MCxf-177Senate Bill 736-First Edition
Show all 52 changed rows (12 more)
Action History
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Passed 1st Reading
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Ref To Com On Rules and Operations of the Senate
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Filed
Sponsors
- Joyce Waddell · Cosponsor
- Gladys A. Robinson · Cosponsor
- Mujtaba A. Mohammed · Cosponsor
- Woodson Bradley · Cosponsor
- Lisa Grafstein · Primary
- Michael Garrett · Primary
- Kandie D. Smith · Cosponsor
Sponsorship breakdown
Export CSV (upgrade) →2 sponsors · 5 co-sponsors · 172 not signed on
Sponsors (2)
- Lisa Grafstein Democratic
- Michael Garrett Democratic
Co-sponsors (5)
- Joyce Waddell Democratic
- Gladys A. Robinson Democratic
- Mujtaba A. Mohammed Democratic
- Woodson Bradley Democratic
- Kandie D. Smith Democratic
Not signed on (172)
172 members have not signed on to this bill.
Show all 172 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- Who sponsors SB 736?
- SB 736 is sponsored by Joyce Waddell (Democratic), Gladys A. Robinson (Democratic), Mujtaba A. Mohammed (Democratic), Woodson Bradley (Democratic), Lisa Grafstein (Democratic), Michael Garrett (Democratic), and Kandie D. Smith (Democratic).
- What is the current status of SB 736?
- This bill is in committee in the Senate. Introduced March 25, 2025. It must pass committee before a floor vote.
- Where can I track SB 736?
- Track SB 736 free on One Click Politics — get push/email alerts when it moves.
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