What a subdivision bond is
Cities and counties often require a developer to bond the public improvements in a new subdivision or site plan, like streets, sidewalks, storm drains, sewer and water lines, before they approve the final map or permits. The bond guarantees the improvements are built to the agency's standards.
In Alaska
Alaska boroughs and cities set subdivision improvement guarantees in their own platting codes. In Anchorage, the subdivision agreement must guarantee the required public improvements, and a performance bond is one accepted method, in an amount equal to the estimated cost of the improvements plus an overrun allowance.
- Anchorage's bond form is a combined performance and warranty guarantee tied to the subdivision agreement; the ordinance requires a two-year warranty on public improvements after final acceptance.
- Anchorage's code was later reorganized; the section number shown is from the 1998 ordinance.
You need this bond if you're
- A developer or subdivider recording a final map
- A builder with a site plan that includes public improvements
- A contractor building improvements under a developer agreement
- An owner required to bond grading or erosion control
What the surety looks at
The project, the engineer's cost estimate for the improvements and the developer's finances. Larger projects need financial statements.