Bond Administration
During land development projects, project bonds are a funding mechanism to ensure that monies are available to complete public improvements once development begins. Bonds also ensure that the public improvements are maintained during a specified warranty period.
Builders, developers, or owners of public improvements must establish a bond or surety as part of the land development process that remains in place until the public improvements are completed or a warranty period has been successfully fulfilled. If the builder, developer, or owner fails to meet the obligation to complete public improvements, Mecklenburg County can use bond monies to complete the improvements.
Construction Bonds
Required when public improvements are shown on approved plans but not yet constructed. These improvements can include trees, landscaping, roadways, pavement, sidewalk, storm drainage infrastructure, Best Management Practices (BMPs), and other infrastructure. These bonds must be established prior to approval of construction plans or signing of a plat. Constructions bonds have minimum time period of six months or longer depending upon the improvement(s) required.
Maintenance Bonds
Required when certain public improvements, typically roadways and BMPs, are completed, but the majority of development activities associated with the project have not been completed.
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 completed) and the Town Board accepts the streets for maintenance.
A BMP maintenance bond must be established once the water quality BMP as-built has been certified compliant by the engineer of record and approved by Mecklenburg County. Maintenance bonds have typical minimum time periods of one to two years depending upon the improvement.
Types of Bonds
Prepared by and obtained from a banking institution
View the approved language and other information your banking institution must include in the letter.
Along with the letter from the banking institution you must:
- Submit a project throug Accela (if applicable)
- Provide a completed Letter of Credit-Cash Guarantee of Installation form.
A certified bank check or money order made out to “Mecklenburg County LUESA”. Along with the certified bank check or money order, you must:
- Submit a project through Accela (if applicable)
- Provide a completed Letter of Credit-Cash Guarantee of Installation form.
Prepared by and obtained from an insurance entity.
Along with the surety from an insurance company you must:
- Submit a project through Accela (if applicable)
- Provide a completed Surety Guarantee of Installation form.
Bond Process
To obtain a bond:
All projects must be submitted to Mecklenburg County Land Development for review before a bond can be posted. To submit a plat or project, the County's Accela system must be used.
Checklists are available providing the information required from you to submit a plat or project.
If you need a bond estimate, you may request it from Mecklenburg County Land Development by filling out the bond inspection request form.
Submit the completed form to Mecklenburg County Land Development.
Mail to: Mecklenburg County Land Development
2145 Suttle Ave., Charlotte, NC 28208
Attn: Virginia Mullis
If you prefer, the project engineer may estimate the bond. Complete the bond estimate form and emailing it. Please note: the bond estimate form should not be signed or sealed until approved. If a plat is required, it should be attached to the request.
The applicant must submit the following original documents to secure a bond:
The approved original signed and sealed bond estimate form (will accept emailed or scanned copy)
Completed Guarantee of Installation form
The bond itself (Letter of Credit, Cash or Surety)
To reduce, release or replace a bond:
You may request that Mecklenburg County Land Development reduce, release or replace a bond by filling out the bond inspection request form.
Submit the completed form:
Mail to: Mecklenburg County Land Development
2145 Suttle Ave., Charlotte, NC 28208
Attn: Virginia Mullis
The bond request will not be accepted until all approvals, outstanding fees and requirements are satisfied. Please note the bond request may result in a bond amount increase due to current project conditions.
Once the request is received the Bond Administrator will inform the proper entities regarding the request. A field inspection is typically conducted to verify project conditions and the applicant will be notified via email and provided further instructions to complete the request.
| Bond Fees | ||
|---|---|---|
| Type | Amount | Notes |
| Posting a new bond | $1,200 | |
| Bond renewal | $1,200 | |
| Bond reduction | $1,200 | Request must be submitted 60 days prior to bond expiration date. |
| Bond replacement | $1,200 | Process and fee applies when:
|
| Bond default letter | $530 | Required when bond holder does not provide timely bond renewal information and the County Attorney writes a default letter to ensure the bond does not expire. |