North Carolina HB 404: Fair and Affordable Housing Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 404

Short Title: Fair & Affordable Housing Act. (Public)
Sponsors: Representatives Lopez, G. Brown, Ager, and Buansi (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Rules, Calendar, and Operations of the House
March 17, 2025
*H404-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO DIRECT THE LEGISLATIVE RESEARCH COMMISSION TO STUDY 2
AFFORDABLE HOUSING IN THE STATE, TO MAKE HOUSING DISCRIMINATION 3
ON THE BASIS OF "SOURCE OF INCOME" A VIOLATION OF THE STATE FAIR 4
HOUSING ACT, TO EXPAND WORKFORCE HOUSING BY PROVIDING CURRENT 5
AND ONGOING FUNDING FOR THE HOUSING TRUST FUND, TO PROHIBIT 6
CREDIT REPORTING AGENCIES FROM REPORTING LAWSUITS FOR EJECTMENT 7
THAT DO NOT RESULT IN A JUDGMENT FOR THE LANDLORD, AND TO 8
ESTABLISH THE OPTIONAL CREDIT REPORTING FOR TENANTS OF SUBSIDIZED 9
HOUSING PROGRAM. 10
The General Assembly of North Carolina enacts: 11
SECTION 1.(a) The Legislative Research Commission (LRC) shall study the 12
availability of affordable housing in this State. 13
As part of its study, the LRC shall do all of the following: 14
(1) Examine the current availability of affordable housing in metropolitan and 15
rural areas of the State. 16
(2) Assess the availability of publicly owned land that could be developed into 17
affordable residential housing. 18
(3) Identify existing federal, State, and local subsidies, grants, and other 19
incentives and programs available to increase the availability of affordable 20
housing, the extent to which the subsidies, grants, and other incentives and 21
programs are utilized, and the successfulness of their usage in increasing the 22
availability of affordable housing. 23
(4) Examine the challenges facing those in need of affordable housing, including 24
financial, social, and logistical challenges. 25
(5) Assess the ability of local governments to leverage existing laws and 26
resources, including partnering with nonprofit and for-profit entities, to 27
increase the availability of affordable housing. 28
(6) Examine the best practices of other states in increasing the availability of 29
affordable housing. 30
(7) Examine any unique challenges faced by local governments across the State 31
resulting from differences in economic prosperity and considering the 32
differences between the metropolitan and rural areas of the State. 33
(8) Evaluate the potential benefits, cost-savings, and improved affordability from 34
utilizing energy efficiency standards in housing. 35

General Assembly Of North Carolina Session 2025
Page 2 House Bill 404-First Edition
(9) Assess the feasibility and cost-savings from partnerships between public 1
utilities, private businesses, and local governments in replacing aging housing 2
in existing programs with newer modular and mobile home units. 3
(10) Examine any costs that may be associated with government rules, regulations, 4
and ordinances. 5
(11) Any other matters the LRC deems relevant to its efforts. 6
SECTION 1.(b) The LRC shall report its findings, together with any proposed 7
legislation, to the 2026 Regular Session of the 2025 General Assembly upon its convening. 8
SECTION 2. Chapter 41A of the General Statutes reads as rewritten: 9
"Chapter 41A. 10
"State Fair Housing Act. 11
"§ 41A-1. Title. 12
This Chapter shall be known and may be cited as the State Fair Housing Act. 13
... 14
"§ 41A-3. Definitions. 15
For the purposes of this Chapter, the following definitions apply: 16
... 17
(9) "Source of income" means any lawful source of money paid directly, 18
indirectly, or on behalf of a renter or buyer of real property, including the 19
following: 20
a. Income derived from any lawful profession or occupation. 21
b. Income or rental payments derived from a grant, loan program, the 22
State or federal government or any local governmental unit, including 23
the HOPE program or a Section 8 voucher, or financial assistance from 24
a private source, including a nonprofit or other nongovernmental 25
entity. 26
"§ 41A-4. Unlawful discriminatory housing practices. 27
(a) It is an unlawful discriminatory housing practice for any person in a real estate 28
transaction, because of race, color, religion, sex, national origin, handicapping condition, source 29
of income, or familial status to: 30
... 31
(b1) It is an unlawful discriminatory housing practice for any person or other entity whose 32
business includes engaging in residential real estate related transactions to discriminate against 33
any person in making available such a transaction, or in the terms and conditions of such a 34
transaction, because of race, color, religion, sex, national origin, handicapping condition, source 35
of income, or familial status. As used in this subsection, "residential real estate related 36
transaction" means: 37
... 38
(c) It is an unlawful discriminatory housing practice for a person to induce or attempt to 39
induce another to e