AANC Government Affairs Update | April 23, 2026

Session Update

The short session kicked off this week on April 21, and the legislature immediately got to work. Lawmakers released two conference reports containing bills passed during the 2025 long session that required final agreement between the House and Senate. These include HB 696: Medicaid & HHS Adjust./Other Critical Needs, addressing the state’s impending Medicaid shortfall and other priorities, and SB 214: Various Local Boundaries, focused on local government annexation and deannexation.
 
During short session years, there are limits on new bill filings, so much of our legislative work will move through existing legislation left over from last year’s long session.
 
Notably, legislation stemming from interim committees can be introduced during the short session. During the interim months, the House Select Committee on Property Tax Reduction and Reform was established to evaluate policy options that provide tax relief to property owners while balancing impacts on local government revenues. The committee’s full report and recommendations are available here.
 
Among the concepts discussed was a proposal that lawmakers said would close a loophole in the property tax exemption for low- and moderate-income housing. Legislation advancing this concept was filed this morning as HB 1042: Affordable Housing Exemption Mods.
 
Importantly, this proposal will not just impact low income housing tax credit (LIHTC) or traditional “big A” affordable housing properties. This will have an impact on all properties who claim this tax exemption for low- to moderate-income housing, specifically those without government support or are 100% owned and operated by a nonprofit who meets certain specifications.
 
We ask for your input on this legislation as we evaluate our association’s position and determine next steps. Please contact Sarah DuBose at GAD@aanconline.org if this legislation will have an impact on your company or have other relevant information we should be aware of.
 
As committee activity ramps up across the issues we are tracking, including regulatory reform, property tax policy, and a range of our other priorities, we will continue to provide updates.

Lobby Day is May 13

If you are attending the AANC CONNECTed Conference, don’t forget that on May 13 you’ll have the opportunity to visit the legislature and advocate for our priorities. With this year's session having just begun this week, and following last year’s success advancing many of our priorities, talking points will be finalized in the coming weeks. Overall, our advocacy efforts will focus on housing affordability and the key drivers behind the cost of housing.
 
If you have registered to attend Lobby Day, you will be hearing from your local affiliate closer to May 13 with your group assignments and meeting schedule. The point of contact for each local affiliate is as follows:

• AAWNC – Daria Maznytska, Bryan Holladay
• GAPMA – Daria Maznytska, Bryan Holladay
• GCAA – Keith Kelly
• GFAA – Daria Maznytska, Bryan Holladay
• PTAA – Ben Brockschmidt
• TAA – Graham Whitaker
• WAA – Christy Rexroad

Reminder: Developers Day at AANC CONNECTed

As part of this year's CONNECTed Conference, AANC is piloting a Rental Housing Developers Day, happening the afternoon of May 13, 2026, in Raleigh. This is a targeted experience for those involved in the planning, building, and delivery of rental housing. This pilot program offers the opportunity to participate in Lobby Day in the morning and attend sessions with state building code officials and Duke Energy after lunch. Registration and more information: Rental Housing Developers Day

Seeking Input on the January 2026 Freeze

Did your property experience damage during the January 2026 winter storms/extreme weather? Help us collect data for future conversations with the state and stakeholder organizations on fire watch: Survey on damages resulting from the January 2026 freeze. All information you provide is confidential.

AANC Participates in NAA’s Recent Calls to Action

In recent weeks, AANC submitted public comments and engaged in member-driven advocacy on several proposed rules impacting the rental housing industry, including:

• FTC Advance Notice of Proposed Rulemaking: Rent/Fee Transparency
• HUD Proposed Rule: Citizenship Verification Status in Subsidized Housing
• HUD Proposed Rule: Revocation of 30-day Rule for PBRA and PHAs
• HUD Proposed Rule: Work Requirements, Term Limits Opt-In

We appreciate the partnership with NAA and the opportunity to submit comments to ensure our industry’s perspective is represented during the rulemaking process.