# North Carolina Auditor Reviews Chapel Hill Housing Bonds

North Carolina’s State Auditor reported that Chapel Hill’s voter-approved $10 million affordable housing bond program supports eight projects planned to deliver 343 affordable units. By June 2026, 124 units were complete and 98 were occupied. The review also found a federal bond-arbitrage compliance issue; the Town calculated and paid $389,292.84 to the IRS and received recommendations to strengthen pre-issuance and ongoing compliance monitoring. The report identifies no open solicitation or new contract opportunity.

- Municipal agencies managing bond-funded capital projects should account for bond-arbitrage compliance in both pre-issuance planning and ongoing financial oversight.
- The program’s delivery figures offer a concrete reference point for tracking housing-project progress: 124 of 343 planned units were complete by June 2026, and 98 were occupied.
- Contractors and housing-sector businesses should note that this report is an oversight finding, not a solicitation; it does not announce new work to bid on.

**Jurisdictions:** sled
**Industries:** Construction & Infrastructure
**Topics:** Regulatory Compliance, Grants & Funding
**Published:** October 30, 2026

### Government Entities
- North Carolina Office of the State Auditor (OSA)
- Town of Chapel Hill
- Internal Revenue Service (IRS)

### Key Quotes
> At the Office of State Auditor, we’re taking a dive into taxpayer-funded, voter-approved bonds to ensure there’s follow-through and accountability.
> — Dave Boliek, State Auditor

### Sources
- [Bond Status Report: Chapel Hill's $10 Million Affordable Housing Bond Program | NC Auditor](https://www.auditor.nc.gov/news/press-releases/2026/10/30/bond-status-report-chapel-hills-10-million-affordable-housing-bond-program) - NC