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 New Hampshire
New Hampshire planning boards set subdivision security in their subdivision regulations under RSA 674:36, III. Instead of building streets and utilities before final approval, the board must accept a performance bond, letter of credit or other security named in its regulations, and must release it in part as work is completed.
- SB 78 (2023), Chapter 208, took effect October 3, 2023, and requires partial release of security as phases are completed.
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.