We write subdivision bonds.
The Bond Agency has been writing Subdivision Bonds for Developers in the Mid-Atlantic region for over 25 years. These are Subdivision Development Bonds or Completion Bonds which guarantee completion of infrastructure (streets, roads, entrances, drainage improvements, etc.) which are often required as a condition of approval of the subdivision.
About Subdivision Bonds
A subdivision bond is a guarantee to a city, county, or state that a principal involved in the construction of a subdivision will finance and complete mandatory public improvements.
EXPERIENCE, EXPERTISE & CAPABILITIES
We specialize in writing bonds here in the Mid Atlantic (DE, MD, PA, VA, NJ, NY & DC) but we are licensed in 36 States.
We have a streamlined application process, offer competitive rates and have extensive knowledge to assist you in the subdivision bonding process. We work with all State, County and Municipal Governments on Residential and Commercial Developments, large and small.
RATES AND PREMIUMS
We charge rates that are competitive with the cost of Bank Letters of Credit.
In many cases, if the bond renews after the initial term, premiums can be reduced to reflect work completed and accepted by the Obligee (State, County or Municipal Government) if allowed by the Obligee.
The Difference Between Bonds and Bank Letters of Credit
Bonds are superior to Letters of Credit for the following reasons:
Bonds will not use up or reduce your bank borrowing capacity.
In the unlikely event of a dispute or default by an Obligee (State, County or Municipal Government) a Bank will merely surrender the amount of the Letter of Credit, upon demand whereas a bonding company will send a claims consultant to investigate and negotiate on your behalf before responding to payment demands.
Let’s work together.
Get started today by completing our Quick Interest Form.
Subdivision Bond Underwriting Requirements
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A completed subdivision bond application (click here for blank form).
A business financial statement on the development company (if available) or any businesses affiliated with the Developer(s) by common ownership.
Personal financial statements of the equity owner(s) of the project (click here for blank form). If you have personal financial statements prepared in another format feel free to send those instead.
The LLC Operating Agreement of the LLC that owns the project or was formed for this project.
Copy of a bank financing commitment letter confirming financing is in place.
Copy of the subdivision Development Agreement with Obligee (Sate, County, City or Municipality) and / or worksheets or letters from the Obligee stipulating as to the required bond amount. We will also request an email from the Obligee confirming the required bond amount.
Estimate(s) from the General Contractor or Site Work Contractor performing the work subject to the bond.
