Making a Bonding Difference
February 27, 2018
Using Bonds to Make a Difference
CHA has a long standing bond program that creates tax exempt bonds that furthers our mission of providing affordable housing throughout Charlotte. To date CHA has issued approximately $270 million in bond activity since its inception, creating and preserving over 3200 units of affordable housing in Charlotte.
How Do Bonds Work?
Bonds are issued by governments and corporations when they want to raise money. By buying a bond, the borrower is given a loan that they agree to pay back a specific date, and to pay the lender periodic interest payments along the way, usually twice a year. Bonds do not offer ownership rights, but do provide a stream of income for the lender. Those who buy bonds are, put simply, loaning money to the issuer for a fixed period of time.
As an affordable housing leader, CHA partners with private and nonprofit developers by issuing tax exempt bonds with tax credits. CHA’s quasi-governmental nature allows us to create one of North Carolina’s largest bond programs with tax credits that enable developers to make their projects more financially feasible. While CHA issues the bonds on projects, each developer is financially liable for the bond debt and other financing on their projects.
###Back to News