GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2025

H                                                                                                                                                    1

HOUSE BILL 1224

Short Title:      Local Gov. Assisting Affordable Housing.		(Local)
Sponsors:	Representatives K. Brown and Baker (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

May 6, 2026

A BILL TO BE ENTITLED

AN ACT granting additional authority to local governments to assist or incentivize developers of affordable housing.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 162A‑203 reads as rewritten:

"§ 162A‑203.  Authorization of system development fee.

(a)        A local governmental unit may adopt a system development fee for water or sewer service only in accordance with the conditions and limitations of this Article.

(b)        A system development fee adopted by a local governmental unit under any lawful authority other than this Article and in effect on October 1, 2017, shall be conformed to the requirements of this Article not later than July 1, 2018.

(c) A local government unit or a joint agency created pursuant to G.S. 160A‑461 may exempt affordable housing developments from or reduce the cost of a system development fee imposed pursuant to this Article. The unit or joint agency shall adopt criteria for determining whether a development qualifies for the exemption or reduction."

SECTION 2.  This act only applies to the City of Winston‑Salem.

SECTION 3.  This act is effective when it becomes law.