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 Oregon
Oregon cities and counties approve subdivision plats and set improvement security. Under ORS 92.090, a plat can be approved before the water supply or sewage system is installed if the subdivider gives the city or county a bond, irrevocable letter of credit, contract or other assurance, in an amount set by a registered professional engineer.
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.