AN ACT to make housing discrimination on the basis of source of income a violation of the state fair housing act.

The General Assembly of North Carolina enacts:

SECTION 1.  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.

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§ 41A‑3.  Definitions.

For the purposes of this Chapter, the following definitions apply:

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(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:

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(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:

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(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;

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(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.

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(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.

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§ 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;

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SECTION 2.  This act becomes effective October 1, 2023.