HB892 (2007) Detail

Relative to bonding for subdivisions and condominium projects.


HB 892-FN – AS INTRODUCED

2007 SESSION

07-1028

08/04

HOUSE BILL 892-FN

AN ACT relative to bonding for subdivisions and condominium projects.

SPONSORS: Rep. Infantine, Hills 13

COMMITTEE: Municipal and County Government

ANALYSIS

This bill allows subdivision planning boards to make certain improvements without a complete municipal bond.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

07-1028

08/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

AN ACT relative to bonding for subdivisions and condominium projects.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Planning Board Powers; Municipality Bonding. Amend RSA 674:36, III to read as follows:

III. The subdivision regulations of the planning board may stipulate, as a condition precedent to the approval of the plat, the extent to which and the manner in which streets shall be graded and improved and to which water, sewer, and other utility mains, piping, connections, or other facilities shall be installed. The regulations or practice of the planning board:

(a) [May] Shall provide for the conditional approval of the plat before such improvements and installations have been constructed, but any such conditional approval shall not be entered upon the plat.

(b) Shall provide that, in lieu of the completion of street work and utility installations prior to the final approval of a plat, the planning board shall accept a performance bond, irrevocable letter of credit, or other type or types of security as shall be specified in the subdivision regulations; provided that in no event shall the exclusive form of security required by the planning board be in the form of cash or a passbook. As phases or portions of the secured improvements or installations are completed and approved by the planning board or its designee, the municipality shall partially release said security to the extent reasonably calculated to reflect the value of such completed improvements or installations. The municipality shall grant the reduction within 120 days of the request subject to the submission of proper paperwork and requirements of municipal regulations. The municipality shall not be required to reduce the bond amount or provide a partial release more than twice in a 12-month period. Cost escalation factors and all other fees including administrative, engineering, supervision, and contingency fees that are applied by the planning board to any bond or other security required under this section shall not exceed [10] 15 percent of the total estimated completion costs per year. The planning board shall, within the limitations provided in this subparagraph, have the discretion to prescribe the type and amount of security, and specify a period for completion of the improvements and utilities to be expressed in the bond or other security, in order to secure to the municipality the actual construction and installation of such improvements and utilities. The municipality shall have the power to enforce such bonds or other securities by all appropriate legal and equitable remedies.

(c) [May] Shall provide that in lieu of the completion of street work and utility installations prior to the final approval of the plat, the subdivision regulations [may] shall provide for an assessment or other method by which the municipality is put in an assured position to do said work and to make said alterations at the cost of the owners of the property within the subdivision.

IV.(a) The planning board shall allow improvements to street work and utilities to be performed prior to any party requesting a building permit requiring bonding for offsite improvements, public utilities connections and services and erosion control only. A bond in the full amount of the estimated completion costs of a project plus appropriate escalation costs shall be required before a building permit will be approved.

(b) The municipality may not require bonding for infrastructure improvements for non-residential improvements other than offsite improvements, erosion control, public utilities connections or services, or curb cut improvements.

(c) The municipality shall release all remaining escrow funds within 30 days from final acceptance of improvements subject to appropriate security for any maintenance requirements.

2 Effective Date. This act shall take effect 60 days after its passage.

LBAO

07-1028

Revised 02/05/07

HB 892 FISCAL NOTE

AN ACT relative to bonding for subdivisions and condominium projects.

FISCAL IMPACT:

      The New Hampshire Municipal Association states the fiscal impact on local revenue and expenditures is indeterminable. There will be no fiscal impact on state and county revenue or expenditures.

METHODOLOGY:

    The New Hampshire Municipal Association states this bill will allow subdivision planning boards to make certain improvements without a complete municipal bond. Based upon the Association’s interpretation of this bill, there is no fiscal impact to municipalities.