WS Chronicle

Staff Report

The Winston-Salem Chronicle

Winston-Salem, NC — In the face of growing housing cost pressures across Winston-Salem and Forsyth County, city leaders have approved a 2026 legislative agenda that makes expanding affordable housing a top priority at the state level. The City Council’s legislative package includes a bill request aimed at reducing a key cost barrier for developers of affordable homes — a move advocates say could help nurture more affordable units across the community.

At its core, the city’s 2026 legislative priorities include support for an act that would give local governments the authority to exempt or reduce system development fees for affordable housing projects — fees charged on new development to pay for water and sewer infrastructure. Currently, local governments can impose these fees under state law, but they lack explicit statutory authority to provide exemptions tied to affordable housing development. The proposed bill, approved as part of the city’s state legislative agenda, would change that. 

“System development fees can add tens of thousands of dollars to the cost of constructing a new home,” said a municipal official during council deliberations. Cities would be able to waive or reduce those fees for units that meet affordable housing criteria, potentially reducing upfront costs for builders willing to prioritize deeply affordable homes.

Housing Costs Outpacing Local Income

Housing affordability has become a pressing issue in Winston-Salem. Nearly a quarter of Forsyth County households are considered cost-burdened — spending more than 30% of their income on housing — and the need for affordable units is especially acute for residents with low and extremely low incomes. Data analysis shows that for households at 30% of area median income, affordable rental homes are in short supply, creating a substantial gap between housing need and available units. 

Local leaders, nonprofit advocates, and developers have repeatedly pointed to the mismatch between rising rents and wages as a central challenge. Over the past decade, rents in the region have climbed faster than average incomes, squeezing families and pushing many into housing cost burden. 

Legislative Strategy, Local Impact

The city’s 2026 state agenda, formally adopted by resolution and forwarded to the Forsyth County legislative delegation, positions the system development fee fix as part of a broader package of local government priorities. Alongside that request, the agenda also contains items related to planning authority and zoning flexibility — issues that can influence where and how housing is built. 

City staff and council members say they hope giving local governments this authority will remove a structural cost barrier that often gets passed on to homebuyers and renters. System development fees, when applied across a large affordable housing project, can amount to significant expenses that developers must offset through higher rents or sales prices. Reducing or exempting those fees for projects serving low-income households is viewed as one tool in a broader strategy to stimulate more affordable production.

Residents Weigh In

At recent housing forums and council committee meetings, residents stressed that housing affordability is not just an economic issue but a quality-of-life concern. Community advocates noted that without policy changes, rising housing costs could exacerbate displacement and make it harder for working families to remain in stable neighborhoods.

“One of the biggest obstacles to affordable housing is cost,” said a local housing organizer. “If the city can work with the legislature to reduce upfront fees and barriers, that’s a step toward more homes that families can actually afford.”

What’s Next

The North Carolina General Assembly is slated to convene after the primary elections. City officials and housing advocates plan to work with state representatives and senators to push the system development fee exemption bill through the legislative process during the session. Council members say they are continuing to build local support and provide data to underscore the need.

On the local front, the city’s Community Development and Housing program continues efforts to fund and build affordable units through city initiatives and partnerships — work that dovetails with the legislative agenda’s broader goals.

As the legislative session approaches, housing advocates are watching closely. “This isn’t just a technical change,” said a neighborhood leader. “It’s about giving Winston-Salem the tools to make housing more affordable for everyone.”