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 Mississippi
Mississippi cities and counties set subdivision improvement bonds in their own subdivision ordinances. For example, Senatobia will not record a final plat until the improvements are finished or a performance bond, in an amount set by the City Engineer, is filed with the city.
- Senatobia also requires a maintenance bond for at least one year after it accepts road 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.