Republicans Allow Housing DiscriminatION

In a poll conducted in May 2021, 59% of North Carolinians, across major groups, agreed that the lack of affordable housing is a major problem in their community. Housing prices are so high, generally, that the people we need to support our daily lives, police officers, firefighters, teachers, home health providers, cleaners, retail employees, for example, find it difficult to impossible to live in the communities they serve.

While some subsidies are available for people with lower incomes, the supply does not meet the need. Waiting times can be long, and landlords can refuse to rent to people who rely on housing subsidies for their rent payments.

Communities use zoning to restrict the sorts of housing that can be built, often preferring lower density, single family housing on large lots to duplexes and higher-density development.

Developers incur substantial costs securing approval through complex review processes. Large investors, usually not local, find housing to be a profitable investment and can buy up enough existing housing stock to have a significant effect on the market, driving up prices and rents. Renters are seeing increases in their monthly housing budgets that far exceed inflation. 

Democrats have worked as ardent champions of affordable housing, whereas Republicans have remained indifferent if not hostile opponents. In 2023, Democrats in the North Carolina General Assembly introduced 16 bills aimed at improving housing affordability and fairness:

  • Working Families Act (HB-569 & SB-555) has two provisions that make it easier to buy or own a home. It raises the maximum income under which some property tax relief is offered and sets up a homebuyers assistance program through the North Carolina Housing Finance Agency to help with financial assistance teachers, firefighters, law enforcement officers, active duty or veteran service members, who are first time home buyers.

  • Homes for Heroes (SB-422) would set up a fund to help first time homebuyers who are teachers and other public servants with down payments, mortgage insurance premiums, and closing costs.

  • Homebuyer Fairness & Protection Act (SB-420) would limit the amount of due diligence funds a seller could require and would appropriate funds to support homebuyer education.

  • Source of Income Nondiscrimination Act (SB-167) makes it unlawful to discriminate in housing based on the source of income, including payments from grants, loan programs, state or federal government (e.g., HOPE program or Section 8 voucher). Currently landlords may turn down applicants with Section 8 vouchers.

  • Allow Durham Co/Provide Employee Housing (SB-279) would permit Durham County and the Durham Public Schools to provide affordable rental housing to its teachers, firefighters, law enforcement officers, and other first responders. Generally, without such a waiver, it is unlawful for government units to engage directly in the sale of goods or services in competition with private enterprise.

  • Eviction Record Expunction Act (HB-789) calls for some records of evictions to be kept confidential and makes it unlawful to deny an applicant on a rental agreement based on such records.

  • Restore the American Dream (SB-424) would expand funding for the North Carolina Housing Trust Fund, which exists to increase the supply of affordable housing for a wide range of income levels.

  • Workforce Development and Housing Act (HB-842). The relevant portion of this bill expands the ability for developers to get loans from the Workforce Housing Loan Program for low-income housing as an incentive for more low-income housing.

  • Low-Income Housing Tax Credits (HB-208) would reinstate the low-income housing tax credit which was repealed effective 2015. This tax credit made it less expensive to build low-income housing, so rents could be lower than the standard market rate.

  • Inclusionary Zoning/Workforce Housing Funds (HB-645) adds inclusionary zoning to the zoning statute. Inclusionary zoning is a zoning process in which a local government uses its zoning power to encourage private developers to construct housing for lower income residents (see here for a summary of why this bill is necessary). The bill also adds funding to the Workforce Housing Loan Program (see above under HB-842).

  • Act to Permit Local Government to Enact Rent Control (SB-225) repeals the law that prohibits counties or cities from enacting rent control ordinances.

  • Local Governments/System Development Fees (HB-266 & SB-163) would allow local governments to exempt affordable housing parcels from fees related to water or sewer service.

  • Home Ownership Market Manipulation (HB-114) would restrict the degree to which individual entities could buy large blocks of single-family housing for rental purposes.

  • Housing Extension (SB-244) would require landlords to provide current tenants with sixty days’ written notice before terminating a tenancy or before increasing the rent.

  • Create Dept. of Housing and Comm. Development (SB-568) would establish a new cabinet-level department focused on community economic development, investing in housing and development projects to assist low-to moderate-income residents, and train and certify building officials.

  • Housing Studies-Barriers and Homelessness (SB-583) would require the Legislative Research Commission to study the difficulties people with criminal records have with housing due to discrimination and other barriers, and the general issue of homelessness in North Carolina.

North Carolina Democrats have been busy this session, addressing multiple approaches to making affordable housing more available. Six bills were introduced with both Democratic and Republican primary sponsors, advancing remedies like the ones in the Democratic bills. Only one of these (HB-409) came to a floor vote. It passed in the House with overwhelming support from both parties, was sent to the Senate in April, 2023, and never advanced out of the committee to which it was referred. In contrast, North Carolina Republicans introduced about three bills relevant to affordable housing, one of which (HB-551) would require local governments to allow landlords to discriminate against potential tenants based on their lawful source of income.

Thus, Republicans, who control the General Assembly, have refused to allow all but two bills addressing affordable housing to come to the floor of even a single chamber for a vote, and one of those two bills would worsen the situation for affordable housing! Instead, they direct their legislative energy to further restrict the rights of women, to make it harder for North Carolinians to vote, and to give the hard-earned money of their tax-paying constituents to those who send their children to private schools rather than improving public education. For anyone concerned about affordable housing, the solution seems clear. Vote them out of office.

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