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 Mexico
New Mexico enabling statutes authorize municipalities (NMSA § 3-19-6) and counties (NMSA § 47-6-9) to require a developer to post a bond before final subdivision plat approval, securing construction of streets, utilities, and other public improvements. The bond amount and conditions are set by the local planning commission; no statewide fixed dollar amount is prescribed. In lieu of a bond, a municipality may accept a written agreement requiring the developer to complete improvements within two years of final plat approval.
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.