Local Governments Assisting Affordable Housing.

2025-2026 Session Introduced by Amber Baker and 1 co-sponsor

Winston-Salem can exempt or reduce water/sewer system development fees for qualifying affordable housing and set criteria to determine eligibility.

Passed 1st Reading

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Overview

Bill Type: Local bill restricting to Winston-Salem

Short Title: Local Gov. Assisting Affordable Housing

Sponsor: Rep. K. Brown (with DoC/Co-sponsor Kanika Brown)

Purpose: Grant additional authority to local governments to assist or incentivize developers of affordable housing, with a specific focus on system development fees (SDFs) for water and sewer services.

Key Provisions

Section 1: Authorization of System Development Fees and Exemptions

Rewrites or clarifies existing provisions of G.S. 162A-203 regarding system development fees (SDFs) for water and sewer service.

Authority to adopt SDFs: Local governmental units may adopt SDFs for water or sewer in accordance with the Article’s conditions and limitations.

Conformance for pre-existing SDFs: Any SDF adopted under authorities other than this Article and in effect on Oct. 1, 2017, must conform to the Article’s requirements no later than July 1, 2018.

Affordable housing exemptions/reductions: Local governments or joint agencies (under G.S. 160A-461) may exempt affordable housing developments from SDFs or reduce their costs. The unit or joint agency must adopt criteria to determine eligibility for exemption or reduction.

Section 2: Local Applicability

Geographic scope: This act applies only to the City of Winston-Salem.

Section 3: Effective Date

Effective date: The act becomes law upon enactment (immediate applicability, subject to passage).

What Changes or Additional Authority This Bill Grants

Provides explicit statutory basis for Winston-Salem to use or adjust SDFs to facilitate affordable housing development, including exemptions or reductions for affordable projects.

Creates a mechanism for determining which affordable housing developments qualify for SDF exemptions or reductions, via adopted criteria.

Aligns local practice with the broader SDF framework and ensures older SDFs are brought into conformance.

Who/What Is Affected

Affordability Developers: Potential benefit from reduced or exempted SDFs for affordable housing projects within Winston-Salem.

City of Winston-Salem: Gaining explicit authority to exempt or reduce SDF charges for qualifying affordable housing developments.

Water/Sewer Agencies: Involved insofar as SDFs apply to utility infrastructure; exemptions/reductions alter fee revenue for eligible projects.

Residents/Stakeholders: Indirectly affected through potential increased affordable housing supply and changes to development costs.

Procedural and Timeline Considerations

Conformance Timing (Section 1): Any pre-existing SDFs under other authorities must conform to this Article by July 1, 2018.

Authorization Scope (Section 1): Action is contingent on the local government adopting criteria for exemptions/reductions; thus, implementation requires local policymaking and administrative updates.

Effective Date (Section 3): Immediate applicability once the bill becomes law.

Summary Takeaway

HB 1224 is a targeted local measure granting Winston-Salem greater control to incentivize affordable housing by allowing SDF exemptions or reductions for qualifying projects and by establishing criteria to determine eligibility. It enshrines affordability-related relief within the SDF framework and clarifies conformance timelines for existing SDFs. The bill is narrowly scoped to Winston-Salem and would become law upon enactment.

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