A BILL TO BE ENTITLED
AN ACT appropriating funds for affordable housing, making housing discrimination on the basis of source of income a violation of the state's fair housing laws, and establishing revenue for the NC Housing Trust Fund.
Whereas, as North Carolina prospers economically and attracts families and businesses from across the nation, housing supply continues to lag behind the housing demand across the State causing rents and housing prices to soar; and
Whereas, housing is not only an integral part of a family's budget, but also the State's economy. Ensuring that all North Carolinians have access to safe, decent, and affordable housing is a sound financial investment in the State's future. According to the Urban Institute, "no county has enough affordable housing to meet the needs of its residents with the lowest incomes, leading to strained household budgets and elevated rental market risks"; and
Whereas, local governments can no longer tackle the growing housing crisis alone and need greater partnership and investment from the State; and
Whereas, the State has existing tools to combat the housing crisis, including the North Carolina Housing Trust Fund. The Housing Trust Fund was created by the General Assembly in 1987 and is the State's most flexible resource for the State's growing need for affordable housing because it leverages private funding to create a variety of housing solutions, including homeownership, rental units, supportive housing, new construction, rehabilitation, and emergency repairs; and
Whereas, an annual investment of $100,000,000 in the Housing Trust Fund will help over 10,800 families, generate over $516,900,000 in real estate value, support over 11,000 jobs, and generate over $45,500,000 in local and State revenue; and
Whereas, the State also needs greater investment in new and existing programs to protect working families that face either sudden income loss due to life emergencies or spikes in rental prices that cause housing instability due to affordability; and
Whereas, additional State funding for affordable housing is necessary to tackle the State's housing crisis and to put the State in a position to provide leadership and to collaborate with the public, private, and nonprofit sectors to address these issues; Now, therefore,
The General Assembly of North Carolina enacts:
SECTION 1.  There is appropriated from the General Fund to the North Carolina Housing Trust Fund the sum of one hundred million dollars ($100,000,000) in recurring funds for the 2022‑2023 fiscal year to increase funding for affordable housing programs in the State.
SECTION 2.  The Manufactured Home Park Acquisition Fund is hereby established as a nonreverting special fund in the North Carolina Housing Finance Agency. There is appropriated from the General Fund to the Manufactured Home Park Acquisition Fund the sum of twenty‑five million dollars ($25,000,000) in nonrecurring funds for the 2022‑2023 fiscal year to be used by the North Carolina Housing Finance Agency to provide grants to nonprofits, public housing authorities, and manufactured dwelling park nonprofit cooperatives to purchase manufactured home parks for the purpose of providing affordable housing.
SECTION 3.  Chapter 41A of the General Statutes reads as rewritten:
"Chapter 41A.
"State Fair Housing Act.
"§ 41A‑1.  Title.
This Chapter shall be known and may be cited as the State Fair Housing Act.
…
"§ 41A‑3.  Definitions.
For the purposes of this Chapter, the following definitions apply:
…
(9)	"Source of income" means any lawful source of money paid directly, indirectly, or on behalf of a renter or buyer of real property, including the following:
a.	Income derived from any lawful profession or occupation.
b.	Income or rental payments derived from a grant, loan program, the State or federal government or any local governmental unit, including the HOPE program or a Section 8 voucher, or financial assistance from a private source, including a nonprofit or other nongovernmental entity.
"§ 41A‑4.  Unlawful discriminatory housing practices.
(a)	It is an unlawful discriminatory housing practice for any person in a real estate transaction, because of race, color, religion, sex, national origin, handicapping condition, source of income, or familial status to:
…
(b1)	It is an unlawful discriminatory housing practice for any 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. As used in this subsection, "residential real estate related transaction" means:
…
(c)	It is an unlawful discriminatory housing practice for a person to induce or attempt to induce another to enter into a real estate transaction from which such person may profit:
(1)	By representing that a change has occurred, or may or will occur in the composition of the residents of the block, neighborhood, or area in which the real property is located with respect to race, color, religion, sex, national origin, handicapping condition, source of income, or familial status of the owners or occupants;
…
(d)	It is an unlawful discriminatory housing practice to deny any 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 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 discriminatory 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. It is not a violation of this Chapter if land‑use decisions or permitting of development is based on considerations of limiting high concentrations of affordable housing.
"§ 41A‑5.  Proof of violation.
(a)	It is a violation of this Chapter if:
(1)	A person by his act or failure to act intends to discriminate against a person. A person intends to discriminate if, in committing an unlawful discriminatory housing practice described in G.S. 41A‑4 he was motivated in full, or in any part at all, by race, color, religion, sex, national origin, handicapping condition, source of income, or familial status. An intent to discriminate may be established by direct or circumstantial evidence.
(2)	A person's act or failure to act has the effect, regardless of intent, of discriminating, as set forth in G.S. 41A‑4, against a person of a particular race, color, religion, sex, national origin, handicapping condition, source of income, or familial status. However, it is not a violation of this Chapter if a person whose action or inaction has an unintended discriminatory effect, proves that his action or inaction was motivated and justified by business necessity.
…
"§ 41A‑6.  Exemptions.
(a)	The provisions of G.S. 41A‑4, except for subdivision (a)(6), do not apply to the following:
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(3)	Religious institutions or organizations or charitable or educational organizations operated, supervised, or controlled by religious institutions or organizations which give preference to members of the same religion in a real estate transaction, as long as membership in such religion is not restricted by race, color, sex, national origin, handicapping condition, source of income, or familial status;
…."
SECTION 4.  G.S. 105‑228.30 reads as rewritten:
"§ 105‑228.30.  Imposition of excise tax; distribution of proceeds.
(a)	An excise tax is levied on each instrument by which any interest in real property is conveyed to another person. The tax rate is (i) one dollar and fifty cents ($1.50) on each five hundred dollars ($500.00) or fractional part thereof of the consideration or value of the interest for qualified investment conveyances and (ii) one dollar ($1.00) on each five hundred dollars ($500.00) or fractional part thereof of the consideration or value of the interest for any other conveyance. A "qualified investment conveyance" is a conveyance of an interest in real property to a business entity that will use the property primarily for rental as a residence by one or more individuals. The transferee must pay one‑third of the tax on a qualified investment conveyance levied pursuant to this section to, and the transferor must pay the remainder of the tax levied pursuant to this section to, the register of deeds of the county in which the real estate is located before recording the instrument of conveyance. If the instrument transfers a parcel of real estate lying 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 excise tax on instruments imposed by this Article applies to timber deeds and contracts for the sale of standing timber to the same extent as if these deeds and contracts conveyed an interest in real property.
(b)	The register of deeds of each county must remit the proceeds of the tax levied by this section to the county finance officer. 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 Revenue on a monthly basis. A county may retain two percent (2%) of the amount of tax 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. The Department of Revenue shall credit the funds remitted to the Department of Revenue under this subsection as follows:
(1)	Two-thirds of the excise tax on qualified investment conveyances to the Office of State Budget and Management for deposit into the North Carolina Housing Trust Fund established in G.S. 122E‑3.
(2)	The remainder to the General Fund."
SECTION 5.  Sections 1 and 2 of this act become effective July 1, 2022. Sections 3 and 4 of this act become effective October 1, 2022. The remainder of this act is effective when it becomes law.