North Carolina Project Development Financing

North Carolina Department of Commerce

Program Type:

Tax Increment Financing

Eligible Geography:

North Carolina

Program URL:

https://www.sog.unc.edu/resources/microsites/tax-increment-financing-north-carolina/

Summary:

In North Carolina, the use of project development financing by eligible local governments is authorized by North Carolina General Statute City Redevelopment: 160A-515.1 and City and County Development: 158-7.3. Project development financing is a debt financing mechanism that allows local governments to borrow money to fund certain public improvements with the purpose of attracting private investment in a designated area. The debt incurred by funding the public improvements is both secured by and repaid from the additional property tax revenue resulting from the area’s new private development.

Eligible Recipients:

Local Government; For-Profit Business

Eligible Recipients Detail:

Counties and municipalities (including cities, towns, and villages) may issue project development bonds.

Eligible Purpose:

General Infrastructure; Last Mile Infrastructure; Building Infrastructure; Anchor Institution Infrastructure

Eligible Purpose Detail:

Project development bond proceeds may be used only to finance the capital costs of specified purposes that enable, facilitate, or benefit private development within the development financing district. Eligible projects include capital costs for publicly owned infrastructure within public rights-of-way; public transit stations and right-of-way; public transit vehicles; public school construction; public beautification (lighting, streetscape, landscaping, etc); public parking structures; park construction.

Other Eligibility Criteria:

The project development district is comprised of property that meets at least one of the following criteria:
i)Blighted, deteriorated, deteriorating, undeveloped, or inappropriately developed from the standpoint of sound community development and growth;
ii)Appropriate for rehabilitation or conservation activities; or
iii) Appropriate for the economic development of the community.

TIF implementation also requires public hearings and a determination that growth and redevelopment of the area cannot be accomplished without public intervention (known as a "but for" test).

Source:

https://www.cdfa.net/cdfa/tifmap.nsf/index.html?open&state=NC