Starting July 1, 2024, there will be a $302 fee associated with each surety case created in accordance to the 2024 Fiscal Year Development Fee Guide. Applicants will be able to pay this fee on the Permit and Development Portal.
Development projects in Raleigh may require public improvements in the right-of-way (such as street trees, water and sewer mains/services, and street & sidewalk construction). A surety is a way to secure funding for these public improvements.
For reference, please see Section 8.1.3 of the Unified Development Ordinance (UDO).
The City accepts sureties in the form of:
- Letter of Credit;
- Performance bond;
- Certified check; or,
A letter of credit or performance bond should be for a minimum term of two years, plus one two-year renewal if needed.
The Surety for any Residential project must be posted prior to plat recordation. The approved amount must reflect the total construction cost of all remaining public infrastructure required in accordance with the approved construction documents.
The Surety for any Commercial project must be posted prior to building permit issuance. The approved amount must reflect the total construction cost of all remaining public infrastructure required in accordance with the approved construction documents.
Before posting a surety, the amount to be secured is determined with an approved estimate. Please use this Infrastructure Surety Estimate Template to calculate the initial submittal.
Step 1: Submitting an Initial Infrastructure Estimate
As part of the submittal process, a reviewer will set up a Link for the initial submittal on the Permit and Development Portal as part of the ASR (Administrative Site Review) or SUB (Subdivision) case pertaining to your project.
This step will appear under the Sub-Record for the case and allow the upload of documents throughout the entire surety process.
For the Initial submittal, please upload the following items:
- Initial Estimate Calculation (signed and sealed) – Please use this template Infrastructure Surety Estimate Template (The spreadsheet with the estimate must be an .xlsx file extension before submittal. Please verify before saving and downloading)
- A City of Raleigh approved copy of the site plan sheet showing the improvements.
The initial estimate must be completed by a licensed professional.
The estimate will be reviewed by staff. Please check your portal account and email for any communication for correction or acceptance can be monitored on your Portal account.
After approval of the Initial Estimate, please proceed to STEP 2.
Step 2: Infrastructure Surety Agreement and Financial Instrument
After the surety estimate is approved in the portal, the applicant will need to submit a completed surety agreement to Dee.An@RaleighNC.Gov with a copy of the financial instrument copied onto Exhibit D. The applicant will need to obtain a financial instrument in the amount of the approved estimate. The following financial instruments are allowed:
- Bond or Letter of Credit (Please note, that if you submit a bond or letter of credit, you do not need to send a physical copy- only a digital copy!)
- Certified Check (the applicant will need to drop off or mail the check to the following address: 1 Exchange Plaza, Suite 500, Raleigh, NC 27601 Attn: Dee An, Surety Coordinator)
Please note that you cannot combine financial instruments or surety agreements for separate estimates.
Surety agreements do NOT need to be mailed or dropped off; they only need to be emailed to the surety coordinator. The Surety Coordinator will then route the agreement using Docusign to all parties printed on page 9 of the surety agreement. The applicant will sign the document via Docusign when routed by the coordinator. Once the agreement and financial instruments are submitted, the infrastructure surety is routed for signatures (Step 3).
Step 3: Review & Execution of the Surety Agreement
Upon receipt of the submittal packet, the documents are routed to the City Clerk's office, City Manager's office, and City Attorney's office for review and execution. If changes to the agreement are required, the specified representative will be contacted by one of our Team members.
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 as needed to ensure that sureties and associated agreements are adequate and in good standing.
Once the agreement is executed by the City, a copy will be sent to the contact person for their record.
Surety Reductions (Partial Release)
In accordance with Section 8.1.3.B, a partial release of funds can be requested after consultation and approval by the Inspections Coordinator for the project. Please communicate via email prior to the revised estimate submittal if the partial release can take place. After evaluation for readiness of partial releases, the revised estimate must be sent to the
Permit and Development Portal for review.
For the reduction request, please upload the following items:
- A Cover Letter requesting the reduction.
- A copy of the new Infrastructure Surety Estimate showing the reduction.
- All applicable surety documents from the financial institution.
After public improvements are completed, the surety can be released. Please upload the Release request to the Permit and Development Portal. It is then evaluated by the Inspections Coordinator for your project.
For the release request, please upload the following items:
- A Cover Letter requesting the reduction.
- Signed Acceptance letter from the Inspections Coordinator.