A bipartisan group of North Carolina lawmakers held a press conference to promote a proposal to create a $50 million revolving loan fund to help nonprofit developers cover upfront infrastructure costs for affordable housing projects.
House Bill 1072, titled the Affordable Housing Infrastructure Development Act, was introduced by state Reps. John Bell, R-Wayne; Robert Reives, D-Chatham; Chris Humphrey, R-Lenoir; and Carla Cunningham, I-Mecklenburg.
“We can all agree; housing is one of the most pressing challenges that families face across our state,” said Bell.
The legislation would direct the North Carolina Housing Finance Agency to establish and administer a below-market-rate loan program for qualifying nonprofit organizations developing affordable housing.
Under the bill, loans could be used for early-stage development expenses, including land acquisition, site preparation, utility connections, water and sewer infrastructure, permitting, and related preconstruction costs.
Supporters say the measure addresses a financing gap that often delays or prevents affordable housing developments from moving forward. Nonprofit developers frequently struggle to secure funding for infrastructure and site work before construction begins.
“For nonprofit affordable housing builders, especially those working with limited margins and mission-driven models, those upfront costs can stop a good project before it ever gets off the ground, causing it to be stuck in limbo,” Reives said during last week’s press conference.
The bill would appropriate $50 million from the state General Fund during the 2026-27 fiscal year to capitalize the revolving loan fund. Loan repayments would return to the fund for future projects.
Because of this, Bell described the proposal as a long-term investment rather than a recurring state expenditure.
“Importantly, this is a one-time investment of a self-sustaining fund,” Bell said. “It’s not just about addressing today’s shortage, it’s about creating long-term solutions that can continue to work for years to come.”
Bell and Reives were joined at the press conference by Paul Reeves, executive director of Habitat for Humanity of North Carolina; and Matt Whittle, executive director of Habitat for Humanity of Goldsboro-Wayne.
Reeves, whose organization represents 56 Habitat affiliates across North Carolina, said access to reliable financing for land acquisition and infrastructure development remains a significant challenge, particularly as more affiliates move toward subdivision-style projects instead of single-home construction.
“Across our state right now, the cost is roughly $50,000 per lot to put in infrastructure, which means if we’ve got an affiliate that’s doing a 10-house subdivision, they’re going to get a bid at $500,000 or north for infrastructure on that,” Reeves said.
Reeves added that the revolving loan program could help create approximately 1,000 housing units during its first five years.
The proposal was filed on April 28 and received its first reading in the House before being referred to the House Housing and Development Committee. If approved there, it would next move to the appropriations and rules committees.