Greensboro Subdivision Bond: A Comprehensive Guide
At a Glance:
- Average Cost: Between 1% to 12.5% of the bond amount per year based on the applicant’s credit history
- Bond Amount: Determined on a case by case basis (more on this later)
- Who Needs it: Developers in Greensboro, North Carolina that are working on privately funded jobs and seeking to record subdivision plats before constructing all required public improvements
- Purpose: To ensure the city will receive compensation for financial harm if the developer fails to construct public improvements
- Who Requires the Bond: The City of Greensboro
Background
Greensboro Land Development Ordinance (LDO) 30-4-20 requires developers to obtain a Certificate of Occupancy before recording subdivision plats. Greensboro enacted this requirement to ensure that developers construct public improvements such as roadways, water and sewer systems, erosion controls, and sidewalks. However, developers may purchase a surety bond to be eligible to have their subdivision plats recorded while the required public improvements are being installed.
What is the Purpose of the Greensboro Subdivision Bond?
Greensboro requires developers to purchase a surety bond as part of the application process to obtain a Certificate of Occupancy. The bond ensures that the city will receive compensation for financial harm if the developer fails to abide by the regulations outlined in Greensboro LDO 30-4-20. Specifically, the bond protects the city if the developer does not construct all roadways, water and sewer systems, erosion controls, and sidewalks. In short, the bond is a type of insurance that protects the city if the developer does not install all public improvements.
How Can an Insurance Agent Obtain a Greensboro Subdivision Surety Bond?
BondExchange makes obtaining a Greensboro Subdivision bond easy. Simply log in to your account and use our keyword search to find the “subdivision” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
Not an agent? Then let us pair you with one!
Click the above image to find a BX Agent near you
How is the Bond Amount Determined?
Greensboro LDO 34-4-20 dictates the bond amount must be equal to the estimated cost of installing the public improvements. The Greensboro Technical Review Committee (TRC) will determine the required bond amount.
Is a Credit Check Required for the Greensboro Subdivision Bond?
Surety companies will run a credit check on the applicant to determine eligibility and pricing for the Greensboro Subdivision bond. Applicants with excellent credit and work experience can expect to receive the best rates. Applicants with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the applicant’s credit.
How Much Does the Greensboro Subdivision Bond Cost?
The Greensboro Subdivision bond can cost anywhere between 1% to 12.5% of the bond amount per year. Insurance companies determine the rate based on several factors including your customer’s credit score and experience. The chart below offers a quick reference for the bond cost on a $10,000 bond requirement.
$10,000 Subdivision Bond Cost
| Credit Score | Bond Cost (1 year) |
|---|---|
| 720+ | $100 |
| 680 – 719 | $150 |
| 650 – 679 | $200 |
| 600 – 649 | $400 |
| 550 – 599 | $750 |
| 500 – 549 | $1,250 |
Who is Required to Purchase the Bond?
Greensboro requires developers, working on privately funded projects, to purchase a surety bond as a prerequisite to obtaining a Certificate of Occupancy if the required public improvements are not yet complete.
How Do Developers Apply for a Certificate of Occupancy in Greensboro?
Developers in Greensboro must navigate several steps to obtain a Certificate of Occupancy. Below are the general guidelines, but developers should refer to the city’s bonding procedures page for details on the process.
Step 1 – Submit Construction Plans to the TRC
Developers must submit construction plans to the TRC, and can do so online here. The TRC will then determine the required public improvements. From here, the city will calculate the developer’s required bond amount based on the estimated installation costs of the public improvements.
Step 2 – Purchase a Surety Bond
Before recording a subdivision plat, developers must either complete the public improvements or purchase and maintain a surety bond.
Once the public improvements are installed, the developer must maintain them for a period of one year, after which their bond will be released.
How Do Greensboro Developers File Their Subdivision Bonds?
Developers in Greensboro should submit their completed bond forms, including the power of attorney, to the following address:
300 W. Washington St., third floor
Greensboro, NC 27401
The surety bond requires signatures from both the surety company that issues the bond and from the applicant. The surety company should include the following information on the bond form:
- Legal name of entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Bond amount
- Name of the plat
- Date the bond is signed
What Can Greensboro Developers Do to Avoid Claims Against Their Subdivision Bonds?
To avoid claims on their Subdivision bonds, developers in Greensboro must ensure that they adequately construct all public improvements and maintain them for a period of one year.
What Other Insurance Products Can Agents Offer Developers in Greensboro?
Most reputable developers will purchase liability insurance. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Greensboro Subdivision Bond Customers?
We suggest contacting the Greensboro Engineering and Inspections Department to obtain information on Greensboro developers seeking approval for subdivision plats. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
