Subdivision Bond

Please choose from the options below to apply:

Option One:  For bonds above $350,000, or for more difficult guarantees, the Standard Application is required.
Option Two: Sorry this class is not currently handled in the Express Bond Application program so the only option is number one.

What are Subdivision Bonds?

Subdivision bonds assure the state, city, or township that the principal will finance and construct improvements in accordance with the permit granted. Such improvements include, but are not limited to: streets, sidewalks, gutters, drainage systems, and landscaping, etc.

Cities and counties who are the bodies that normally require these bonds have many interpretations of what’s needed. In some areas these bonds guarantee not only the construction phase but also assessments until a certain number of lots have sold, which allows for the municipality to recover costs for constructing the infrastructure.  Others require bonds from the developer that might guarantee the assessments but also payment to the contractors for the various contractors that constructed the improvements. Still others treat the subdivision bond the same as an ordinary performance and payment bond. In other words, other than the bond running to the municipality or other government agency, they’re just looking for the improvements to be completed. This avoids the many stories we here about partially completed buildings, subdivisions, etc., where the owner/developer is gone and the project is a partially completed useless facility for the public to handle.

We provide all forms of subdivision bonds required of both developers and/or contractors. Since each municipality has specific subdivision requirements, we need the following to proceed:

• • Copies of the ordinance, statute that outlines the requirements as pertains to the improvements, warranty guarantee, dollar amount of guarantee and time allowed for performance
• • Business financial statements (last year-end and current interim) on the contracting firm
• • Personal Financial Statement on the owner
• • Any special bond forms