Adds new Part 37, Affordable Housing Efficiency Grant Program, to Article 7 of GS Chapter 143B. Defines six terms including affordable multifamily housing as multifamily residential buildings of five or more dwelling units where at least 50% of the units are reserved for or occupied by households with incomes below 80% of the area median income adjusted for household size or as otherwise defined by the Department of Environmental Quality (DEQ).

Establishes the titular grant program within DEQ to provide flexible incentive grants to affordable multifamily housing for energy efficiency upgrades (measures that reduce energy consumption) and electric building upgrades (improvements that replace fossil fuel systems with high-efficiency electric alternatives). Sets out program priorities as projects that reduce energy costs for low-income residents, improve building performance, enhance indoor environmental quality, and support clean energy goals. Directs DEQ to implement rules implementing the Part, including addressing specified criteria. Provides that grants may be used for energy efficiency upgrades, electric building upgrades, related health and safety improvements, and project costs. Directs DEQ to perform all duties required to facilitate the program and authorizes DEQ to partner with local government units, utilities, or nonprofits. Limits eligibility to affordable multifamily housing buildings that have been in service as such for at least 15 years and are located in potentially underserved communities (as per criteria to be established by DEQ). Sets out incentive amounts for early adoption based on specified criteria. Requires grant recipients to comply with applicable building codes, energy standards, and federal requirements and to maintain affordability commitments for a length of time to be specified by DEQ.

Requires grant recipients to report annually on project outcomes, including specified criteria, to DEQ. Directs DEQ to submit an annual report regarding the program to the specified NCGA Committee.

Appropriates $5 million in recurring funds for 2026-27 from the General Fund to DEQ to staff and operate the program. Allows up to 6% of funds to be used for administrative costs.

Effective July 1, 2026.