Federal Oversight Ended for North Carolina Housing Program
The state has transitioned thousands into community housing after meeting settlement goals.
Updated on Sept. 22, 2026 in Special Needs
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A federal judge has removed oversight of North Carolina's Transitions to Community Living program, which helps residents with serious mental illness secure community-based housing. The state successfully provided nearly 4,000 housing slots by June 2025.
Why it matters
This shift marks a major milestone in North Carolina's efforts to comply with the 2012 settlement of Olmstead v. L.C., which sought to expand housing autonomy for people with serious mental illness. State officials have committed to continuing the program despite the end of federal monitoring.
By June 2025, the state had provided 4,000 housing slots and successfully relocated 1,000 people from adult care homes into community settings. However, significant local waitlists persist, with 17-year waits in Orange County and 10-year waits in Davidson County for the Innovations Waiver.
The players
James C. Dever III
The federal judge who granted the joint motion to remove oversight from the North Carolina program.
Allen Buansi
A state representative planning to introduce legislation in 2027 to codify elements of the housing settlement.
U.S. Department of Justice
The federal agency that worked alongside the State of North Carolina to file the joint motion for removing oversight.
The details
The program originated from the 2012 settlement of Olmstead v. L.C., an effort to ensure that individuals with serious mental illness have the right to choose their own living arrangements. While the state has met its required goals, it previously missed the original 2020 deadline and required six extensions to finish the transition. State officials now plan to manage the program independently while legislator Allen Buansi intends to propose new laws in 2027 to solidify these protections.
Timeline
1999: The U.S. Supreme Court decided the Olmstead v. L.C. case.
2012: The settlement created the Transitions to Community Living program.
2020: The state missed the original settlement deadline for program requirements.
June 2025: The state reached the milestone of 4,000 provided housing slots.
September 14, 2026: Judge James C. Dever III removed federal oversight of the program.
The Home Front
This transition marks the end of federal monitoring for a mandate that has shaped the regional housing landscape for over a decade. It reflects a broader shift toward state-led housing programs that prioritize community-based living arrangements over institutional care.
Families navigating support options should monitor regional Innovations Waiver waitlists, which remain significantly long in counties like Orange and Davidson. Contact your local department of social services to confirm the status of current applications and program availability.
The takeaway
While federal oversight has concluded, families should remain proactive in checking waitlist projections for long-term community support slots. Keep documentation regarding the Innovations Waiver ready and reach out to county administrators for the most current updates on local availability.
What happens next
State Representative Allen Buansi plans to introduce legislation in 2027 to codify the settlement elements into state law.
Further reading
Learn more about local support services in the Special Needs section.
Source note: This article includes information reported by Daily Tar Heel.
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