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 Wisconsin
Wis. Stat. § 236.13(2)(a) lets a town or municipality require a subdivider to install public improvements, or post a surety bond or other security for them, as a condition of plat approval. The local governing body sets the amount, within limits set by the statute.
- Security cannot be demanded sooner than reasonably needed before work starts, or held more than 14 months after the improvements are substantially complete (2013 Wis. Act 280).
- Counties do not have authority to require public improvements as a condition of plat approval (UW Extension).
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.