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Dedicated Revenue Source for the NC Housing Trust Fund

  • HB 574 and SB 462 provide a dedicated revenue source for the NC Housing Trust Fund.
  • These bills modify the distribution of the proceeds of the Excise Tax to include funding for the NC Housing Trust Fund, providing a dedicated revenue stream for affordable housing in North Carolina.
  • The bills will not affect the funds to county governments – they will continue to receive 50% of total funds from the Excise Tax.
  • The remaining DOR funds will be shared between the Housing Trust Fund (50%), the Parks and Recreation Trust Fund (37%), and the Natural Heritage Trust Fund (13%).


Why should the NC Housing Trust Fund be a recipient of this tax revenue?

  • This legislation provides a stable source of revenue for the NC Housing Trust Fund that will continue to provide resources on an ongoing basis without the need for annual appropriations.
  • It would logically re-direct some of the revenue generated by real estate sales to bridge the existing housing affordability gap.  The Housing Trust Fund finances quality, efficient and affordable housing that the market would not otherwise build.
  • This permanent funding source would provide a boost in funding for the Housing Trust Fund and this funding will grow as the economy rebounds.
  • Equal Consideration

    Since 1995 the Parks and Rec. Trust Fund and Natural Heritage Trust Fund have received over $620 million in funding from the excise tax.

    During that same time, the Housing Trust Fund received $122 million.  Since its creation in 1988, the Housing Trust fund has only received $151 million.


The NC Housing Trust Fund is a vital investment for NC’s economy.

  • It is North Carolina's only state-funded and state-designed resource for financing affordable housing.The NC Housing Trust Fund creates and sustains needed jobs and promotes public/private partnerships.
  • In 2010, the NC Housing Trust Fund leveraged $6.70 for every $1 of state investment.
  • Cumulative Production (since created in 1988)

    23,000 units created, rehabilitated, or financed.

    $819 million in housing value created.

    14,000+ jobs generated.

    $49 million in state tax revenues generated.

    $60 million in local tax revenues generated.

The NC Housing Trust Fund is needed!

The Great Recession has made the Housing Trust Fund necessary now more than ever. The private market cannot meet the demand for homes and apartments that are affordable at 30% or 50% of the local median income, or less.

  •  North Carolina has a shortage of 328,000 rental homes and apartments for people with incomes below 50% of local median income.
  • Fair Market Rent in North Carolina has increased 31% since 2000.
  • 544,000 families in North Carolina pay more than they can afford for their rent, a 13% increase from 2000. 
  •  The number of vacant apartments renting for $600 or less decreased 18% from 2004 to 2009, while the number of vacant apartments renting for $1000 or more has increased 76.5% during the same period.
  • 12,160 North Carolinians are homeless. 
  • North Carolina’s poverty rate has increased from 12.3% to 16.3% since 2000.
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