NC Subdivision Amendments

The NC General Assembly has recently amended laws which affect homebuilders and developers who enter into subdivision performance guarantees with NC cities and counties.  The new provisions apply to performance guarantees given on and after October 1, 2015.  The amendments describe the types of performance guarantees which developers may provide (surety bonds, letters or credit, or the equivalent); limit the amount of any performance guarantee to not more than 125% of the reasonably estimated cost of completion; and restrict the use of guarantees for completion of improvements only, and not for repairs and maintenance after completion.   The Coates’ Canons blog, published by the UNC School of Government, has posted an informative summary of the new legislation at:   http://canons.sog.unc.edu.