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Bill Summary · SB 1069

Summary of North Carolina Senate Bill 1069 (Session 2025)

Title: Inclusionary Zoning/Workforce Housing Funds

Sponsor: Senator Smith (Primary)

Status: Filed April 30, 2026

Effective Date: July 1, 2026

Major Purpose
- To supplement the availability of affordable housing in North Carolina by:
- Allowing local governments to adopt inclusionary zoning as part of their zoning regulations.
- Appropriating funds to the Housing Finance Agency (HFA) to support a Workforce Housing Loan Program.

Key Provisions

1) Inclusionary Zoning Authority (G.S. 160D-702)
- Local governments may adopt zoning regulations that regulate building height, stories, size, lot occupancy, yards, open space, density, and location/use of buildings and land.
- The bill explicitly authorizes inclusionary zoning as part of the zoning toolkit. Inclusionary zoning typically requires a portion of new housing to be affordable to low- or moderate-income households, though the bill text does not specify the affordability thresholds or design of the program beyond allowing the tool.
- The regulation framework may also require:
- Dedication of street and utility rights-of-way to the public.
- Provision of recreational spaces and facilities.
- Performance guarantees.
- These inclusionary zoning provisions would operate with the same limitations and authorities as other zoning provisions under the statute (G.S. 160D-804 and 160D-804.1), where applicable.

2) Funding for Workforce Housing ( appropriations to HFA )
- Section 2 creates a recurring General Fund appropriation of $10,000,000 beginning in the 2026-2027 fiscal year.
- The funds are directed to the North Carolina Housing Finance Agency (HFA) to be used for the Workforce Housing Loan Program, established under G.S. 122A-5.15.
- This program is intended to finance workforce housing opportunities, presumably for households earning ineligible for traditional affordable housing subsidies or for projects designed to serve workers in the state.

3) Effective Date
- The act becomes effective on July 1, 2026.

Who/What Would Be Affected

  • Local governments: Given authority to enact inclusionary zoning provisions as part of their zoning regulations. This could influence density, land use, and development feasibility for new housing projects within their jurisdictions.
  • Developers and property owners: If localities adopt inclusionary zoning, developers may be required to allocate a portion of new housing units as affordable or provide in-lieu fees, along with potential design and performance requirements.
  • Households and communities: Potential increase in affordable/workforce housing supply as a result of inclusionary requirements and funded workforce housing loans.
  • North Carolina Housing Finance Agency: Receives a new recurring $10 million annual appropriation to administer the Workforce Housing Loan Program.

Procedural/Timeline Considerations

  • Funding: The $10 million annual appropriation starts in fiscal year 2026-2027, with recurring availability thereafter.
  • Implementation: The bill authorizes localities to adopt inclusionary zoning as part of their zoning regulations; specific rules, thresholds, and administration would likely be carried out by each jurisdiction in accordance with the amended statutory framework and any additional regulations or guidance adopted by DFI or the General Assembly.
  • Enactment: Becomes effective July 1, 2026, enabling subsequent municipal adoption of inclusionary zoning provisions and the HFA funding framework.

Notes and Observations

  • The bill explicitly codifies inclusionary zoning as a tool within zoning regulations, aligning with broader statewide efforts to increase affordable housing supply.
  • The $10 million annual funding to the HFA for the Workforce Housing Loan Program signals a targeted financing mechanism to support workforce housing development and affordability alongside zoning-based requirements.
  • Details such as income eligibility benchmarks, unit set-aside percentages, payment-in-lieu options, geographic focus, and application processes would be defined in implementing regulations, local ordinances, or guidance accompanying the act.

If you’d like, I can add a short comparison to existing NC housing statutes or draft a one-page briefing with potential fiscal and local government impacts.

Compiled from official sources — confirm details with the bill’s official record.

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