Could a bond be required for developing a difficult site?

[Simonsays]

A heavily wooded, steeply sloped triangular site on a private street was purchased at a fire sale price due to its prohibitive cost of development. The youthful purchasers want to construct a single family ranch-style residence, unaware of the geotechnical aspects of the site and potential engineering ameliorations necessary. Unaware of their finances, could a bond be required as part of the building permit to prevent an unfinished blight in the neighborhood?

 

[jar546]

P&Z typically does not require a bond for a SFR. With that being said, we do for the protection of the street in case of damage.

 

[steveray]

Anything is possible....Or wait for it to be blight and pursue it under your blight regs....It is not a violation until it is....

 

[Mark K]

So subjective. What about a particularly aggressive real estate developer. Are you going to request they submit their financials so you can have an accountant review the.

What criteria would be used to determine who must post a bond and who does not?

Does the building department have expertise to determine the costs and hence the size of the bond? I think you need more that the historically reported costs used to determine permit fees.

The cost of the bond will have a negative impact on development in your jurisdiction or is this a one off requirement. Can you impose a bond in the absence of an ordinance? I think not since we are a country of laws.

You already have a mechanism to address blight.

The geotechnical and engineering cost impact will be identified during the permitting process. Then when contractor submits its price, the homeowner will know what the total cost will likely be. The banks and lending institutions will then look at whether the owner has the financial resources because if the developer/owner does not have the resources the lender will likely have ownership and will be motivated to complete the project so they can recoup at least a part of their loan.

 

[ICE]

Sounds like age discrimination.

 

[jar546]

Our local ordinance requires a $10K cash bond only given back after CofO unless Public Works takes money out of it for repairing damage caused by construction.

 

[e hilton]

The cost of the bond will have a negative impact on development in your jurisdiction

Not necessarily. In theory the full bond amount will be refunded.

15-ish yrs ago i got a notice from Albemarle county Va (charlottesville) that they were ready to refund a bond for a project my company had done. The time restriction on the bound had timed out and the work was acceptable, sonthey made the refund with interest.