Looking for affordable housing in rural NC? One lawmaker has an idea that could help.

The fight for affordable housing isn’t just in big cities—rural NC counties are pushing for smart solutions, too.

People in North Carolina’s rural counties like Martin, Robeson, Halifax, and more could soon have better access to affordable housing. That’s because state lawmakers are mulling over a new bill that would give developers tax incentives to build affordable housing in areas of the state that are usually ignored. If they pass it, it would go into effect in October of this year.

House Bill 245, introduced by Rep. Shelly Willingham (D-Bertie, Edgecombe, Martin), would change how the state government distributes tax credits for low-income housing projects. 

The bill prioritizes rural developments by changing how distances to essential services—such as grocery stores and pharmacies—are measured, making it easier for small towns to qualify for funding. Currently, the state’s funding formula relies on driving distance, which often disqualifies rural developments along longer road routes.

This bill would change that by measuring distance in a straight-line radius instead, allowing more rural communities to meet the criteria for affordable housing projects.

Why this matters for you

For many North Carolinians in rural areas, finding an affordable place to live is a growing challenge. Many small towns lack new housing developments, and current funding formulas often prioritize urban areas with better access to amenities.

By shifting how the state evaluates rural housing projects, HB 245 could help more small communities attract investment and provide much-needed homes.  

What you can do about it

The bill was just introduced, so there is still time to find out how it develops. In the meantime, if you want to make your voice heard, reach out to your representatives to let them know how you feel about it. Find out who they are here.

What the bill says and what it means

According to HB 245, the North Carolina Federal Tax Reform Allocation Committee must make sure that the state’s Qualified Allocation Plan (QAP)—the set of rules that determines how tax credits for affordable housing are distributed—“incentivizes the development and availability of affordable housing in rural communities and counties with higher poverty levels.”

This means that state tax credits will be more focused on supporting housing projects in areas that traditionally struggle to attract developers.

Additionally, HB 245 gives priority to smaller communities. It states that “when a proposed site is located in a municipality with a population of less than 10,000 people, favorable consideration shall be awarded to proposed sites that are located 10 miles and less from the amenities identified in the Plan.” This provision will make it easier for housing projects in rural towns to secure tax credits, so developments aren’t limited to larger urban areas.  

What’s next?

House Bill 245 is set to take effect on October 1, 2025, if passed. For rural residents struggling to find housing, this could be a step toward long-term solutions.