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 Hawaii
In Hawaii, each county sets subdivision improvement security in its own subdivision ordinance. For example, Maui County lets a subdivider get final approval by posting a surety bond, certified check or other approved security that guarantees the required improvements will be built. No statewide subdivision bond amount applies.
- Maui County's improvement guaranty form also covers defects in materials or workmanship for one year after final approval of the improvements.
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.