Charlotte gets North Carolina green light for $400 million of muni debt

North Carolina’s biggest city is poised to sell $400 million of municipal bonds after a recent population surge underscored the need for more infrastructure. 

Charlotte received approval to sell the debt Tuesday from the Local Government Commission, an arm of the Department of State Treasurer.

Proceeds of the upcoming sale will finance transportation improvements and affordable housing projects, among other initiatives. The bonds were greenlit by voters in November’s election and are backed by a 25-cent tax increase per $100 of assessed property value. 

Known as the Queen City, Charlotte is riding the wave of a broader migration to the South, with residents drawn to the region for more affordable housing and warmer climates. It is one of the fastest-growing cities in the country, adding roughly 15,600 people between 2022 and 2023, according to Census Bureau data. That surge had pushed Charlotte’s population to more than 900,000, making it one of the largest in the U.S., the data show.

The city’s $400 million of bond plans are comprised of $238 million for transportation, including sidewalks, congestion mitigation and traffic safety; $100 million to support affordable housing projects including rental construction and shelter capacity; and $61.7 million for neighborhood improvements, described as economic development initiatives in under-invested areas. 

The city’s finance team includes financial advisor DEC Associates Inc. and bond counsel Parker Poe Adams & Bernstein, LLP, according to the LGC staff report.

The Local Government Commission, led by State Treasurer Bradford Briner, signs off on most local bond deals prior to issuance.

In addition to the Charlotte debt, the officials also approved $142 million for infrastructure needs in Wake County, including libraries and schools, as well as $44 million of debt for projects in Chapel Hill.