House committee substitute makes the following changes to the 1st edition.

Under current law, cities (GS Chapter 160A, Article 19) and counties (GS Chapter 153A, Article 18) are authorized to adopt subdivision control ordinances to regulate the subdivision of land within their territorial jurisdiction. To assure compliance with these and other ordinance requirements, cities and counties are authorized to provide for performance guarantees to assure successful completion of any required improvements.

Amends GS 160A-372(c) (pertaining to cities) and GS 153A-331(e) (pertaining to counties) to clarify that a subdivision control ordinance may provide for a performance guarantee at the time that the plat is recorded.

Amends new subsection GS 160A-372(g), which applies to cities, and also new GS 153A-331(g), applicable to counties, which require that any performance guarantee must comply with (g). Defines performance guarantee as any of the following: (1) a surety bond issued by any company authorized to do business in this state (deletes language requiring that the bond be among those listed annually as acceptable sureties on federal bonds in Circular 570 of the US Treasury); (2) a letter of credit issued by any financial institution (was, any bank) licensed to do business in this state; or (3) other form of guarantee of equivalent (was, equivalent or greater) security than a surety bond or letter of credit.

Provides that if the improvements are not complete, the performance guarantee must be extended, and that the form of the guarantee would remain the choice of the developer.

Sets a cap on the amount of a performance guarantee at 125% of the reasonably expected cost of completion at the time the performance guarantee is issued (was, set the cap at 110% of the cost of completion at the time the performance guarantee is issued). Clarifies that the performance guarantee must only be used for the completion of the required improvements (was, development) shown on the plat, and not for repairs or maintenance after completion.

Clarifies that neither a city nor a county may withhold the issuance of a building permit or a certificate of occupancy to compel completion of work for a separate permit or compliance with land use regulations with respect to another property or parcel.

Deletes amendments to GS 113A-61 and to GS 143-214.6A, which added a new subsection to each declaring that any performance guarantee required under the section had to comply with GS 160A-372(g), amended in this act.