Amends GS Chapter 122A by adding new GS 122A-5.16, which does the following:

(1) Requires the NC Housing Finance Agency (Agency) to establish and administer the Affordable Housing Infrastructure Development Loan Program (Program) to make revolving below-market interest rate loans to eligible borrowers to develop and improve sites to be used for affordable housing. Requires Agency to develop and administer the Affordable Housing Infrastructure Development Loan Fund (Fund) to operate as a revolving fund as well as a competitive application process for eligible borrowers to apply for loans from the Fund, and to make loans to eligible borrowers from the Fund secured by liens on real property located in NC.

(2) Defines affordable housing, area median income, below-market interest rate (interest rate below market value at time of establishment, established and published annually, fixed at closing), eligible borrower (a tax-exempt nonprofit 501(c)(3) that meets all five listed requirements), infrastructure costs, persons of low and moderate income, and predevelopment costs.  

(3) Permits using loans for land acquisition, predevelopment costs, and infrastructure costs incurred to provide affordable housing.

(4) Prohibits using loans for vertical construction of housing units or rehabilitation of existing units.

(5) Requires loan funds to be directly administered to the benefit of persons of low and moderate income in a project. Prohibits placing funds in general accounts of the borrower. Requires any land improved by a loan provided by the Fund that is sold or conferred by eligible borrower to a market rate developer, be sold for at least fair market value or appraised value (whichever is less), as improved, and sale proceeds must be applied directly to the project that will directly benefit persons of low and moderate income.

(6) Exempts Agency from requirements of GS Chapter 150B, Article 2A related to rule adoption with respect to adopting program procedures and details procedure required for adopting these program procedures.

(7) Details Agency reporting requirements related to the program.

Appropriates $50 million for 2026-27 from the General Fund to the Agency to be used for the Program and Fund.

Effective July 1, 2026.