15.2-851.1 - Optional provisions of a subdivision ordinance.
§ 15.2-851.1. Optional provisions of a subdivision ordinance.
A. As an alternative to the requirements of the first paragraph ofsubdivision 5 of § 15.2-2241, a subdivision ordinance may include reasonableregulations and provisions that apply to or provide for the acceptance ofdedication for public use of any right-of-way located within any subdivisionor section thereof, which has constructed or proposed to be constructedwithin the subdivision or section thereof, any street, curb, gutter,sidewalk, bicycle trail, drainage or sewerage system, waterline as part of apublic system or other improvement dedicated for public use, and maintainedby the locality, the Commonwealth, or other public agency, and for theprovision of other site-related improvements required by local ordinances forvehicular ingress and egress, including traffic signalization and control,for public access streets, for structures necessary to ensure stability ofcritical slopes, and for storm water management facilities, financed or to befinanced in whole or in part by private funds only if the owner or developer(i) certifies to the governing body that the construction costs have beenpaid to the person constructing such facilities; (ii) furnishes to thegoverning body a certified check or cash escrow in the amount of theestimated costs of construction; (iii) furnishes a personal, corporate, orproperty bond, with surety satisfactory to the governing body or itsdesignated administrative agency, in an amount sufficient for and conditionedupon the construction of such facilities, or a contract for the constructionof such facilities and the contractor's bond, with like surety, in likeamount and so conditioned; or (iv) furnishes to the governing body a bank orsavings institution's letter of credit on certain designated fundssatisfactory to the governing body or its designated administrative agency asto the bank or savings institution, the amount, and the form. If the owner ordeveloper has not met all previous land development obligations in accordancewith all development agreements with the locality as determined by thegoverning body or its designated administrative agency for the previous sevenyears, then a personal, corporate, or property bond may be disallowed by thegoverning body as security for such facilities, and in such event, securityfor such facilities shall be restricted to a certified check, cash escrow, ora letter of credit that meets the requirements of clause (iv) herein. Theamount of such certified check, cash escrow, bond, or letter of credit shallnot exceed the total of the estimated cost of construction based on currentunit prices for new public or private sector construction in the locality anda reasonable allowance for estimated administrative costs, inflation, andpotential damage to existing roads or utilities, which shall not exceed 25%of the estimated construction costs. However, if for the previous seven yearsthe owner or developer has not met all previous land development obligationsin accordance with all development agreements with the locality as determinedby the governing body or its designated administrative agency, the governingbody may require that the allowance for estimated administrative costs,inflation, and potential damage to existing roads or utilities be greaterthan 25% of the estimated construction costs, but not to exceed 50% of theestimated construction costs. "Developer," as used in this section, meansany owner, builder, subdivider or other person or entity engaged in the landdevelopment process and shall include their principals, officers, members,managers, partners, alter egos, and members of the immediate family relatedto any of the foregoing. "Such facilities," as used in this section, meansthose facilities specifically provided for in this section.
B. As an alternative to the requirements of subsection E of § 15.2-2245, asubdivision ordinance may provide that upon written request by the subdivideror developer, the governing body or its designated administrative agencyshall be required to make periodic partial releases of such bond, escrow,letter of credit, or other performance guarantee in a cumulative amount equalto no less than 90% of the original amount for which the bond, escrow, letterof credit, or other performance guarantee was taken, and may make partialreleases to such lower amounts as may be authorized by the governing body orits designated administrative agency based upon the percentage of publicfacilities completed and approved by the governing body, local administrativeagency, or state agency having jurisdiction. If the subdivider or developerhas not met all previous land development obligations in accordance with alldevelopment agreements with the locality as determined by the governing bodyor its designated administrative agency for the previous seven years prior tothe written request for partial release, the cumulative amount released maybe equal to no less than 80% of the original amount for which the bond,escrow, letter of credit, or other performance guarantee was taken."Subdivider" and "developer," as used in this section, mean any owner,builder, subdivider, or other person or entity engaged in the landdevelopment process and shall include their principals, officers, members,managers, partners, alter egos, and members of the immediate family relatedto any of the foregoing. Periodic partial releases may not occur before thecompletion of at least 30% of the public facilities covered by any bond,escrow, letter of credit, or other performance guarantee. The governing bodyor administrative agency shall not be required to execute more than threeperiodic partial releases in any 12-month period. Upon final completion andacceptance of the public facilities, the governing body or administrativeagency shall release any remaining bond, escrow, letter of credit, or otherperformance guarantee to the subdivider or developer. For the purpose offinal release, the term "acceptance" means when the public facility isaccepted by and taken over for operation and maintenance by the state agency,local government department or agency, or other public authority which isresponsible for maintaining and operating such public facility uponacceptance.
(2006, c. 736.)