AN ACT TO REDUCE COSTS AND AID HOUSING AFFORDABILITY BY STREAMLINING THE PERFORMANCE GUARANTEE PROCESS BETWEEN DEVELOPERS AND LOCAL GOVERNMENTS.
Amends GS 160A-372, concerning subdivision control ordinances and performance guarantees.
Provides that the type of performance guarantee is at the election of the developer. Sets the duration of the performance guarantee or bonded obligation to one year unless the developer determines that the scope of the work for the required improvements necessitates longer. Requires the developer to demonstrate reasonable, good-faith progress toward completion of the required improvements secured by the performance guarantee or extension. Allows for a developer to have the performance guarantee extended for an additional period or a new performance guarantee issued only for a duration necessary to complete the required improvements.
Requires the county or city to return letters of credit or escrowed funds upon completion of the required improvements to the specifications of the city or county, or upon acceptance of the required improvements if appropriate. Requires the county or city to timely provide a written acknowledgement that required improvements have been completed upon request by the developer when required improvements are secured by a bond.
Authorizes the city or county to determine the amount of the performance guarantee or use a cost estimate determined by the developer (current law caps the performance guarantee amount at 125% of the reasonably estimated cost of completion at the time of issuance). Requires the reasonably estimated cost of completion to include 100% of labor and materials required for the improvements, with the remaining 25% allowed to include inflation and all administrative costs. Requires costs to be based on unit pricing where applicable. Requires the amount of any extension of any performance guarantee to be determined according to the initial guarantee, not exceeding the 125% of the reasonably estimated cost of completion of the remaining incomplete improvements still outstanding at the time of the extension. Authorizes a city or county to require the performance guarantee to be posted either at the time the plat is recorded or at a time subsequent to plat recordation, at the discretion of the city or county.
Allows the developer to post one type of performance guarantee (surety bond, letter of credit, or other equivalent security) for all development matters related to the same project requring performance guarantees. Excludes performance guarantees associated with erosion control and stormwater control measures. Makes clarifying and organizational changes to the statute. Makes further conforming changes.
Makes conforming changes to GS 153A-331, concerning county subdivision control ordinances.