The North Carolina Senate on Wednesday approved two bills on homelessness and property taxes.
Senators voted 26-16, along party lines, to pass House Bill 437, which would bar local governments from allowing unauthorized homeless encampments in public spaces and would designate homeless shelters as drug-free zones. The bill now returns to the House for a final vote with an amendment from Sen. Brad Overcash, R-Gaston, clarifying which facilities are covered and how residents or business owners can file complaints.
Overcash said the bill responds to a “public safety crisis” tied to a “proliferation of homeless encampments.” He said it would restore “safe parks and public spaces once again” and increase penalties for drug sales in homeless shelters.
Democrats criticized the measure. Sen. Mujtaba A. Mohammed, D-Mecklenburg, said, “The message of this legislation seems to be, if we can move homeless people somewhere else, then the problem is gone.” Sen. Julie Mayfield, D-Buncombe, said the bill lacked funding for housing, mental health, addiction treatment, and other services.
The bill would require municipalities to designate a site on municipal property for homeless camps for less than a year, and only when indoor shelters lack space. Local governments would have to provide restrooms, water, and public safety personnel. The bill does not provide funding for those requirements.
Critics, including the N.C. Coalition to End Homelessness and the N.C. Housing Coalition, said the measure would create legal and financial burdens for local governments and push people out of public spaces. The bill does not make homelessness itself a crime, but it would expose local governments to civil liability if they do not remove camps outside shelters or approved sites.
The Senate also approved Senate Bill 992, known as “Truth in Taxation.” It would require local governments undergoing a property tax revaluation to pass a resolution or ordinance if they want to set a tax rate above the revenue-neutral rate, publish notice, and hold a public hearing.
Sen. Carl Ford, R-Rowan, said the bill is meant to make tax changes clearer to property owners. Local governments that do not comply would have to refund property taxes collected above the revenue-neutral rate. The bill heads to the House.