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 Pennsylvania
Pennsylvania municipalities require financial security for subdivision and land development improvements under Section 509 of the Municipalities Planning Code. The usual amount is 110% of the cost of completing the 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.