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Inclusionary Zoning/Workforce Housing Funds

IntroducedSenate
Kandie SmithDemocrat

Re-ref Com On Appropriations/Base Budget2026-05-05

No floor votes recorded.

This bill authorizes North Carolina local governments to use inclusionary zoning policies to increase affordable housing availability and appropriates $10 million annually to the state Housing Finance Agency's Workforce Housing Loan Program starting in fiscal year 2026-2027. Inclusionary zoning allows municipalities to require or encourage affordable units in new residential developments.

  • Supporters argue this bill addresses North Carolina's affordable housing shortage by giving local governments a tool to ensure new developments include units for lower-income workers and families.
  • They point out that the $10 million annual funding provides concrete support for workforce housing loans, helping people in essential occupations like teachers and healthcare workers afford homes in their communities.
  • Proponents contend inclusionary zoning encourages mixed-income neighborhoods and reduces segregation by economic status.
  • Opponents worry that inclusionary zoning requirements may increase housing construction costs, potentially reducing overall housing supply or making market-rate units more expensive for buyers and renters.
  • They argue the policy could discourage developers from building in certain areas, and question whether $10 million annually is sufficient to meaningfully address statewide housing needs.
  • Some also raise concerns about whether local governments will use this power consistently or whether it represents appropriate regulation of private development decisions.

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