June 1, 2023 | Kailey Truczinskas
what is the housing trust fund?
The Charlotte Housing Trust Fund (HTF) was established in 2001 to set aside funding for the construction of new affordable homes and preservation of existing housing in the Charlotte region. As the demand for housing in Charlotte and its surrounding communities increases, the HTF has provided funding for over 10,000 affordable units for people living and working in the area. Every two years, Charlotte voters decide if and how the fund should be replenished. More money for the HTF can be set aside if voters allow the City of Charlotte to issue bonds.
what is a bond?
A bond is a debt security. You can think of this as a sort of “IOU” that one entity issues (or sells) to other entities, whether that be individual consumers, corporations, or organizations. In the case of the housing bond, the City of Charlotte issues these bonds to “lenders” (or lending entities) under an agreement that the city will repay the lenders over a set amount of time with an agreed upon amount of interest.
When individuals vote on the bond measure, they are basically deciding whether to allow the City of Charlotte to issue these IOUs, which, if passed, would mean that the city is also committed to paying those lenders back over the coming years.