The North Carolina Local Government Commission recently approved over $1 billion in financing requests from state agencies and local governments. One of the largest requests came from the North Carolina Housing Finance Agency, which received approval to issue $750 million of revenue bonds aimed at increasing the state’s supply of affordable housing. The agency plans to utilize the proceeds from the bond sale to purchase mortgage loans or other mortgage-related obligations of low- and moderate-income homeowners.
Chaired by state Treasurer Dale Folwell, the commission plays a crucial role in overseeing most local bond sales in the state. It thoroughly reviews the amount that municipalities or authorities wish to borrow and assesses the feasibility of the proposed projects as well as the ability of the borrowers to repay the debt. This critical evaluation ensures that the financial decisions made are in the best interest of the communities involved.
In addition to the housing finance agency, other notable projects received approval from the commission. The North Carolina Turnpike Authority was given the green light to refund Build America Bonds used for the construction of the Monroe Connector toll road in the Charlotte area. This decision will allow the authority to exit the BABs structure, potentially avoiding future federal subsidy cuts and lowering debt service payments.
The decisions made by the commission have a direct impact on various communities across North Carolina. For instance, Wake County received approval to sell $321 million in bonds to refinance existing debt related to school construction and public improvement projects. This refinancing will result in significant savings for the county and enable it to allocate resources more efficiently towards vital community infrastructure.
Several local governments were granted approval to issue bonds for infrastructure development and renovation projects. The city of Charlotte received permission to sell certificates of participation totaling $137 million, which will be used to enhance government buildings, acquire essential equipment, and refinance prior debt obligations. Similarly, the city of Wilmington was approved to issue $32 million in bonds for various capital projects, including street improvements and the construction of a sports complex.
The financial approvals also extend to organizations focused on providing essential services to the public. Inlivian Housing was authorized to sell conduit revenue bonds totaling $30 million, with proceeds directed towards acquiring a multifamily residential rental facility for lower-income residents. Cleveland County Water received approval to issue $12 million in bonds for improving weirs to prevent erosion and enhance water management practices.
In response to operational challenges faced by certain entities, the commission approved a $45 million unsecured line of credit for CarolinaEast Health System. The health system is experiencing cash flow issues due to a cyberattack against one of its service providers, highlighting the importance of financial flexibility in times of crisis.
As part of its mandate, the commission monitors the financial reporting obligations of municipalities and counties in North Carolina. With more than 100 municipalities at risk of missing deadlines for audit submissions, the commission is taking proactive measures to ensure compliance with reporting requirements. Failure to meet these obligations could result in inclusion on a Unit Assistance List maintained by the LGC, emphasizing the importance of transparency and accountability in financial matters.
The decisions made by the North Carolina Local Government Commission regarding financial approvals have far-reaching implications for communities, infrastructure development, and public services. Through careful review and analysis, the commission plays a vital role in safeguarding the financial health and well-being of the state and its residents.