Bonds

Overview

Builders, developers, or owners of public improvement projects must establish a bond or surety as part of the land development process.  The bond will remain in place until the public improvements are completed or a maintenance period has been successfully fulfilled. If the builder, developer, or owner fails to meet the obligation to complete public improvements, the Town of Huntersville can use bond monies to complete the improvements.

Bond Types

Construction/Performance: Required when public improvements are shown on an approved plan but are not yet constructed. These improvements can include trees, landscaping, roadways, pavement, sidewalk, storm drainage infrastructure, Best Management Practices (BMPs), and other infrastructures. These bonds must be established prior to approval of construction plans or prior to Town signing of a plat. Construction bonds have minimum time period of six months or longer depending on the improvement(s) required.

Maintenance: Required when certain public improvements, typically roadways and BMPs, are completed, but the majority of the development activities associated with the project have not been completed. Passing one or more field inspections is required before a maintenance bond can be secured.

  • A roadway maintenance bond is required once the number of homes built in a subdivision meets the Town’s density requirements (typically 75% to 100% of homes or lots are completed) and the Town Board accepts the streets for maintenance. Roadway maintenance bonds have a minimum time period of one year.
  • A BMP maintenance bond must be established once the water quality BMP as-built survey has been certified compliant by the engineer of record and approved by the Town. BMP maintenance bonds have a minimum time periods of two years depending upon the improvement.  

Acceptable methods of providing funds include:

  • Letter of Credit (LOC) - prepared by and obtained from a banking institution
  • Cash - a certified bank check or money order, made payable to "Town of Huntersville"
  • Surety - prepared and obtained from an insurance entity

Fees 

A $500 bond processing fee is required, per bond, per transaction.   Bond transaction types include, but are not limited to, posting of a new bond, yearly renewal, replacement, one-time reduction and/or final release.   Please note that any change in the bond type, or any possible one-time reduction request must be received by Town a minimum of 60 days prior to the current bond term date.  Please note the bond request may result in a bond amount increase due to current project conditions.  Fees must be paid for the bond to be considered secured.  Fees are subject to change.  

New Bond

All projects must be submitted to the Town Land Development staff for review.  Town staff will advise if a bond is required for a project or subdivision.   Follow the steps below to secure a Town bond.  

  1. Submit a Bond Inspection Request Form (BAINSP) for a project or subdivision along with a completed Bond Estimate Form.  If a plat is required, the Bond Estimate Form should be submitted to EPM with the plat submittal. 
  2. Town will review the forms and perform a field inspection to verify the current project status. 
  3. The Town Bond Administrator will email the applicant the approved bond dollar amount and the appropriate Guarantee of Installation form.  
  4. The Applicant secures the bond and submits the following original documents to the Town: 
      • Original, signed and sealed Guarantee of Installation form and attachments
          • Cash Guarantee of Installation Form (Form BA071903)
          • Letter of Credit Guarantee of Installation Form (Form BA071902).  Also provide the Town of Huntersville Letter of Credit Instructions Form LOC0719 to the financial institution that will generate the Letter of Credit.  This exact verbiage must be used by the bank.
          • Surety Guarantee of Installation Form (Form BA071901)
      • Original bond itself (Letter of Credit, Cash or Surety)
      • Appropriate bond fee(s)

Bond Replacement, Reduction or Release

Follow the steps below to replace, reduce or release a bond. 

  1. Complete and submit the Bond Inspection Request Form (BAINSP) for the project or subdivision
  2. Complete and submit a Bond Estimate Form at least 60 days prior to the term date.   (not applicable for release). 
  3. Pay the appropriate bond fee 

The Bond Administrator will inform the proper entities of the request. Town conducts a field inspection to verify project conditions.  The applicant is notified via email and provided further instructions to complete the request. 

No bond may be accepted by Town until all approvals, fees and requirements are satisfied.

  1. Kim Behrenbrinker

    Land Development Bond Administrator
    Phone: 704-766-2257