AN ACT TO CREATE A REVOLVING LOAN FUND IN THE NORTH CAROLINA HOUSING FINANCE AGENCY TO provide short‑term financing to SUPPORT preconstruction costs OF workforce housing projects IN THE STATE.

The General Assembly of North Carolina enacts:

SECTION 1.  Chapter 122A of the General Statutes is amended by adding a new section to read:

§ 122A‑5.16.  Revolving loan fund to finance short‑term workforce housing preconstruction costs.

(a)        Definitions. – The following definitions apply in this section:

(1)        Preconstruction costs. – Land surveys, environmental due diligence and soil testing, utility connections, planning and permit fees, and site clearing and grading.

(2)        Workforce housing. – Housing that is affordable to households earning between sixty percent (60%) and one hundred twenty percent (120%) of the county area median income or the State area median income, whichever is higher.

(b)        Program. – The North Carolina Housing Finance Agency shall establish and administer the Workforce Housing Preconstruction Revolving Loan Program for the purpose of making revolving loans for preconstruction costs for workforce housing projects before developers obtain permanent, private financing. The Agency shall establish guidelines for project equity requirements for applicants between twenty percent (20%) and thirty‑five percent (35%) based on market conditions in the county where the project is located. Funds appropriated to the North Carolina Housing Trust Fund for the Workforce Housing Preconstruction Revolving Loan Program shall be used by the Agency only as provided in this section.

(c)        Requirements. – The following shall apply to loans issued pursuant to this section:

(1)        No loan shall exceed one million dollars ($1,000,000).

(2)        Eighty percent (80%) of loans shall be reserved for projects in counties designated as development tier one and tier two areas, as defined in G.S. 143B‑437.08.

(3)        Twenty percent (20%) of loans shall be reserved for projects in counties designated as a development tier three area, as defined in G.S. 143B‑437.08.

For the purposes of this subsection, the development tier designation that is in effect as of the beginning of a fiscal year shall be applied for all loans issued for that fiscal year.

(d)       Report. – Before February 15 of each year, the Agency shall report to the Joint Legislative Oversight Committee on General Government and the Fiscal Research Division on the number of loans made under this section in the previous calendar year, the amount of each loan, and the recipient of each loan.

SECTION 2.  There is appropriated from the General Fund to the North Carolina Housing Trust Fund the sum of forty million dollars ($40,000,000) in nonrecurring funds for the 2024‑2025 fiscal year to be used for the purposes outlined in this act.

SECTION 3.  This act becomes effective July 1, 2024.