Federal Oversight Ended for North Carolina Housing Program
A federal judge has officially removed oversight from a state program providing community housing for residents with mental illnesses.
Updated on Sept. 22, 2026 in Special Needs
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Judge James C. Dever III granted a joint motion ending federal supervision of North Carolina's Transitions to Community Living program on Sept. 14. The initiative was established following a 2012 settlement to provide community-based housing options for residents with serious mental illnesses.
Why it matters
The removal of federal oversight marks a transition for the state to manage the program independently after years of missing deadlines. The program originated from efforts to meet standards set by the Supreme Court in the 1999 Olmstead v. L.C. decision.
As of June 2025, the state has provided nearly 4,000 housing slots through the program. Despite this, significant waitlists remain, including a 17-year wait for the Innovations Waiver in Orange County and a 10-year wait in Davidson County.
The players
James C. Dever III
He is the federal judge who presided over the case and granted the motion to end federal oversight.
Allen Buansi
He is a state representative who plans to introduce legislation in 2027 to codify elements of the settlement.
U.S. Department of Justice
This federal agency was a party to the joint motion filed alongside the State of North Carolina.
The details
The state moved approximately 1,000 people from adult care homes to community housing since the program began, though it required six extensions after missing its original 2020 deadline. While the federal judge removed oversight, state officials have committed to continuing the program and exploring legislative efforts to codify its elements in 2027.
Timeline
1999: The U.S. Supreme Court decided Olmstead v. L.C.
2012: The settlement created the Transitions to Community Living program.
2020: The program missed its original deadline for settlement requirements.
June 2025: The state reached the milestone of 4,000 housing slots provided.
September 14, 2026: Judge James C. Dever III removed federal oversight of the program.
Roadmap
This program aligns with the integration mandates established by the 1999 Olmstead v. L.C. Supreme Court decision. The state is now moving toward self-managed compliance following years of federal supervision.
Residents currently utilizing or awaiting housing slots through this program will transition to state-managed oversight. Families should monitor future legislative sessions, as upcoming 2027 proposals could change how the program is codified and funded locally.
The takeaway
North Carolina now faces the challenge of maintaining the program's success without federal mandates. Residents and advocates are encouraged to track state legislative updates as long-standing waitlists for supportive waivers persist across the region.
What happens next
Rep. Allen Buansi is expected to introduce legislation during the 2027 session aimed at codifying elements of the settlement into state law.
Further reading
For additional context on programs for residents with disabilities, visit the Special Needs section.
Source note: This article includes information reported by Daily Tar Heel.
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