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When new buildings or developments are built in Raleigh, they may need to make improvements in the right‑of‑way. A right‑of‑way is a strip of land that is set aside for public use and is owned and maintained by the City. It connects different properties and usually includes things like roads, sidewalks, and multi-use paths. Some private development projects may need to add or improve things in the right‑of‑way, such as street trees, utility lines, or new roads and sidewalks.
A surety is a type of financial guarantee that ensures these improvements are completed. For more details, see Section 8.1.3 of the Unified Development Ordinance (UDO).
General Information
We accept sureties in the form of:
- Letters of credit
- Performance bonds
- Certified checks
- Cash
*Note: A letter of credit or performance bond must last at least two years, with one two‑year renewal if needed.
Before Submitting Your Surety
Find out if your property is considered residential or non-residential (commercial), as the process is different depending on the property type.
RESIDENTIAL PROJECTS
The Surety for any Residential project must be paid and accepted by the City before the plat, or property map, is recorded. The approved amount must cover the full construction cost of any public infrastructure that still needs to be built, in accordance with the approved plans.
COMMERCIAL PROJECTS
The Surety for any Commercial project must be paid and accepted by the City before a building permit is issued. The approved amount must cover the full construction cost of any public infrastructure that needs to be built, in accordance with the approved plans.
Before beginning the process, please calculate the initial estimate amount using the approved Infrastructure Surety Estimate Template.
Step 1: Submitting an Initial Infrastructure Estimate
To begin the process, a staff reviewer will create a link for you in the Permit and Development Portal as part of your Administrative Site Review (ASR) or Preliminary Subdivision (SUB) case. This link will appear under the Sub‑Record for your project and will be used throughout the surety process.
The initial infrastructure estimate must be completed by a licensed professional. Upload these items with your initial submittal:
- Initial Estimate Calculation (signed and sealed):
Use the Infrastructure Surety Estimate Template to input your specific project infrastructure requirements. The spreadsheet with your estimate must be saved and uploaded as an Excel (.xlsx) file before you submit to the Permit and Development Portal. - A City of Raleigh approved copy of the site plan sheet showing the improvements.
Once you submit the estimate, City staff will review it. To keep your project on schedule, be sure to check your portal account and email for any communication about corrections or acceptance. You can monitor other updates and approval timeline using your Permit and Development Portal link.
After approval of the Initial Estimate, please proceed to STEP 2.
Step 2: Infrastructure Surety Agreement and Financial Instrument
Once your estimate is approved, email a completed surety agreement to lenny.wallace@raleighnc.gov along with a digital copy of your financial instrument (included on the Exhibit D page).
Accepted financial instruments:
- Bond or Letter of Credit (digital copy only; no hard copy needed).
- Certified checks (must be mailed or dropped off):
- 222 W Hargett Street, Suite 400, Raleigh, NC 27601, Attn: Lenny Wallace, Surety Coordinator.
- Note: You do not need to drop off your Surety agreement in addition to a certified check.
You cannot combine financial instruments or use one agreement for multiple estimates.
The Surety Coordinator will send the agreement through DocuSign for signatures of everyone listed on page 9. After the agreement and financial instruments are submitted, the surety process moves to STEP 3.
Step 3: Review & Execution of the Surety Agreement
The submitted documents are sent to the City Clerk's Office, City Manager's Office, and City Attorney's Office for review and signatures. If changes to the agreement are needed, a staff member will contact the listed representative.
Note: At any point during the life of the project, the City reserves the right to withdraw any active permits or hold Certificates of Occupancy if the surety and agreement are not adequate or in good standing.
Once the agreement is signed by the City, a copy will be sent to you for your records.
Surety Reductions (Partial Release)
You may request a partial release of funds after approval by your project’s Inspections Coordinator, as stated in UDO Section 8.1.3.B.
Email the Coordinator before submitting a revised estimate to confirm that a partial release is allowed. After the partial release is evaluated for readiness, you can submit the revised estimate in the Permit and Development Portal.
Upload the partial release request, and the following items to the Permit and Development Portal:
- A Cover Letter requesting the reduction.
- A revised Infrastructure Surety Estimate.
- Any required documents from the financial institution.
Surety Release
After all public improvements are completed, you may request a full release of the surety.
Upload the release request and the following attachments to the Permit and Development Portal. The Inspections Coordinator will review it.
- A Cover Letter requesting the release.
- A signed acceptance letter from the Inspections Coordinator.