North Carolina Housing Trust Fund

North Carolina Housing Trust Fund is sponsored by North Carolina Housing Finance Agency. The North Carolina Housing Trust Fund provides flexible financing for a variety of affordable housing solutions across the state, including homeownership, rental, supportive housing, new construction, rehabilitation, and emergency repairs.

It is a primary source of financing for supportive housing and emergency repairs or accessibility modifications, benefiting low-income families, seniors, military veterans, and people with disabilities.

Our Financing | North Carolina Housing Finance Agency The Agency will be mailing annual privacy notices between July 20 and August 17. This is a required notice and no action is necessary or required.

A self-supporting agency, the North Carolina Housing Finance Agency sells bonds, administers tax credit programs and uses state and federal funds to produce affordable housing in partnership with local governments, nonprofit housing producers and for-profit developers.

The financing is used to build rental apartments and homes , to finance affordable home mortgages , to rehabilitate rental and owner-occupied housing , to provide rent subsidies and to assist home buyers. Use the links below to navigate to the federal and state resources that finance affordable housing in North Carolina.

Mortgage-Backed Securities Mortgage Revenue Bond Program Low-Income Housing Tax Credits Workforce Housing Loan Program North Carolina Housing Trust Fund Mortgage-Backed Securities The NC Housing Finance Agency finances mortgages and down payment assistance for first-time and move-up buyers by selling government-insured or Fannie Mae/Freddie Mac-incurred mortgage-backed securities.

Mortgage Revenue Bond Program The Agency sells tax-exempt and taxable Mortgage Revenue Bonds and uses the proceeds to finance mortgages and down payment assistance for first-time home buyers and military veterans with low and moderate incomes. The Agency administers the federal HOME Investment Partnerships Program for the state.

Congress created this block grant program in 1990 to provide states and localities with a flexible funding source to meet their diverse housing needs. States receive 40 percent of total HOME funding, and localities receive 60% directly from the US Department of Housing and Urban Development (HUD) based on a formula determining need.

The Agency uses HOME funds to finance housing for low-income people, including down payment assistance, construction of homes and apartments, rehabilitation of owner-occupied homes and rental assistance. The Agency uses HOME funds for Community Partners Loan Pool Program , Essential Single-Family Rehabilitation Loan Pool and Rental Production Program .

Low-Income Housing Tax Credits Authorized by Congress in 1987, federal Low-Income Housing Tax Credits (Housing Credits) now finance virtually all the new affordable rental housing being built in the United States. Housing Credit rental properties are privately owned and privately managed.

In exchange for the financing provided through the tax credit, owners agree to keep rents affordable for a period of 15 to 30 years for families and individuals with incomes at or below 60% of the local median income. The Agency operates the state's Housing Credit Program as staff to the Tax Reform Allocation Committee, which consists of the Secretary of Commerce, State Treasurer and State Budget Officer.

The Agency prepares an annual plan for allocating the credits (the Qualified Allocation Plan or QAP ), evaluates applications for the tax credits and makes recommendations to the Committee. The Committee awards the credits. The Agency monitors the rental properties for the compliance period to ensure that they meet federal program requirements, as required by the Internal Revenue Service.

The owners are eligible to take a tax credit equal to 9% of the “Qualified Cost” of building or rehabilitating the property (excluding land). The tax credit is available each year for 10 years, as long as the property continues to operate in compliance with program regulations.

Generally, the privilege of using the credit is sold to an investor or group of investors (syndicated) and the proceeds are used to provide equity in the new rental development. Equity from the sale of tax credits reduces the amount of debt financing that the property owner incurs.

This reduces the monthly debt service for the property, lowers the operating costs, and makes it economically feasible to operate the property at below-market rents. Residents are responsible for their own rent payments, unless rent subsidies are available from other programs. North Carolina's Housing Credit Program is highly competitive.

The NC Housing Finance Agency receives three or four applications for every one that is awarded credits. Workforce Housing Loan Program The Workforce Housing Loan Program (WHLP) is a non-recurring appropriation created by the North Carolina General Assembly in 2014 to encourage the development of Housing Credit apartments with deeper income targeting. WHLP is administered by the Agency in combination with federal Housing Credits.

Developers who are awarded WHLP funds receive the funds as a 30-year deferred payment loan at 0% interest for a percentage of the rental property’s development cost. The maximum loan amounts set by statute are based on the county income designations. No separate application is needed for WHLP.

A development becomes eligible for WHLP funds once the Agency has approved an application for federal Housing Credits. If a development does not receive federal credits, it cannot receive WHLP funds. See the Qualified Allocation Plan for loan criteria and other program information.

North Carolina Housing Trust Fund The Agency administers the Housing Trust Fund. The Trust Fund was created by the General Assembly in 1987 using $19. 8 million from a legal settlement the state received due to oil company overcharges.

It is funded through annual appropriations. The North Carolina Housing Partnership provides oversight, sets policy and allocates funds for the Trust Fund. The Trust Fund is the state’s most flexible housing resource—able to finance home ownership and rental apartments, new construction, rehab and emergency repairs.

It provides the state’s largest source of funds to finance supportive housing and emergency repairs/accessibility modifications. The Trust Fund has won three national awards for its innovative programs. Automatic translation disclaimer This website provides automatic translation using Google Translate.

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