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 Maine
Maine towns review subdivisions under 30-A M.R.S. §4403 and may approve them on terms and conditions. Each town's subdivision ordinance sets the performance guarantee, which can be a surety performance bond payable to the town or an irrevocable letter of credit.
- 30-A M.R.S. §4403(5)(C) lets the reviewing authority grant approval upon terms and conditions; the statute itself does not set a guarantee amount.
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.