Subdivision or Site Improvement Bonds are guarantees provided to government entities ensuring that developers complete required modifications within a specified time frame and in compliance with governing standards. Municipalities, counties, cities, and developers frequently require these bonds to facilitate project approvals, protect public interests, and ensure adherence to local government regulations.

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?

Subdivision Bonds are required by local governments to ensure that developers complete the public improvements outlined in the subdivision agreement. These improvements may include streets and sidewalks, utilities (water, sewer, electricity), storm drainage systems, and landscaping.

Developers are often required to secure a Subdivision Bond before selling individual lots within the subdivision.

What is a Site Improvement Bond?

Site Improvement Bonds are necessary for projects involving modifications to a single site, such as commercial developments or private properties. These bonds ensure compliance with local regulations and guarantee the completion of on-site and off-site improvements, including parking lots, driveways, lighting systems, grading, erosion control, and other infrastructure upgrades.

What are the key requirements for Subdivision or Site Improvement Bonds in Washington State?

  • Bond Amount: The bond is typically set as a percentage of the total project cost to cover the expense of required improvements.
  • Submission of Plans: Developers must provide detailed project plans, cost estimates, and an improvement agreement.
  • Bond Duration: The bond remains active until all required improvements are completed and formally accepted by the municipality.
  • Surety Evaluation: Before issuing the bond, the surety evaluates the developer’s financial standing, credit history, and project experience.