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 Kentucky
Under KRS 100.281, each Kentucky planning unit's subdivision regulations must state the physical improvements a developer must install or dedicate and when, along with the surety required to guarantee completion. The local planning commission, or the fiscal court in counties without planning, sets the amount.
- Separately, KRS 367.474 requires sellers of certain recreational or retirement subdivisions to post a performance bond payable to the Attorney General covering advertised 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.