Subdivision or Site Improvement Bonds guarantee to a government entity that the developer will execute the necessary modifications within a certain time frame, in compliance with the governing body's standards. Municipalities, counties, and cities, as well as developers or builders, frequently need these bonds.
These bonds defend public interests, make project approvals easier, indicate the developer's commitment to following local government standards, and ensure that developers bear financial responsibility for the implementation of renovations.
What is a Subdivision Bond?
Local governments require these bonds to ensure that the developer completes the public improvements specified in the subdivision agreement. Public improvements include streets, sidewalks, utilities (water, sewer, electricity), storm drainage systems, and landscaping. A Subdivision Bond is often necessary before a developer may sell individual lots in the subdivision.
What is a Site Improvement Bond?
These bonds are necessary when modifications are done to a single site (e.g., a commercial development or private property) to assure compliance with local regulations. They guarantee the completion of particular on-site and off-site improvements, such as parking lots, driveways, lighting systems, grading, erosion control, and other infrastructure upgrades.
What are the key requirements for Subdivision or Site Improvement Bonds in Oregon?
Bonds are normally established as a proportion of the overall project cost to cover the cost of improvements. Developers must submit project plans, cost estimates, and an improvement agreement. The bond is active until the renovations are completed and accepted by the municipality. The surety checks the developer's financial status, credit history, and experience before issuing the bond.