                                 CODE OF VIRGINIA

OPTIONAL PROVISIONS OF A SUBDIVISION ORDINANCE (§ 15.2-851.1)

A. As an alternative to the requirements of the first paragraph of subdivision 5
of &#xA7; 15.2-2241, a subdivision ordinance may include reasonable regulations
and provisions that apply to or provide for the acceptance of dedication for
public use of any right-of-way located within any subdivision or section
thereof, which has constructed or proposed to be constructed within the
subdivision or section thereof, any street, curb, gutter, sidewalk, bicycle
trail, drainage or sewerage system, waterline as part of a public system or
other improvement dedicated for public use, and maintained by the locality, the
Commonwealth, or other public agency, and for the provision of other
site-related improvements required by local ordinances for vehicular ingress and
egress, including traffic signalization and control, for public access streets,
for structures necessary to ensure stability of critical slopes, and for storm
water management facilities, financed or to be financed 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 been paid to the person constructing such
facilities; (ii) furnishes to the governing body a certified check or cash
escrow in the amount of the estimated costs of construction; (iii) furnishes a
personal, corporate, or property bond, with surety satisfactory to the governing
body or its designated administrative agency, in an amount sufficient for and
conditioned upon the construction of such facilities, or a contract for the
construction of such facilities and the contractor&#8217;s bond, with like
surety, in like amount and so conditioned; or (iv) furnishes to the governing
body a bank or savings institution&#8217;s letter of credit on certain
designated funds satisfactory to the governing body or its designated
administrative agency as to the bank or savings institution, the amount, and the
form. If the owner or developer has not met all previous land development
obligations in accordance with all development agreements with the locality as
determined by the governing body or its designated administrative agency for the
previous seven years, then a personal, corporate, or property bond may be
disallowed by the governing body as security for such facilities, and in such
event, security for such facilities shall be restricted to a certified check,
cash escrow, or a letter of credit that meets the requirements of clause (iv)
herein. The amount of such certified check, cash escrow, bond, or letter of
credit shall not exceed the total of the estimated cost of construction based on
current unit prices for new public or private sector construction in the
locality and a reasonable allowance for estimated administrative costs,
inflation, and potential damage to existing roads or utilities, which shall not
exceed 25% of the estimated construction costs. However, if for the previous
seven years the owner or developer has not met all previous land development
obligations in accordance with all development agreements with the locality as
determined by the governing body or its designated administrative agency, the
governing body may require that the allowance for estimated administrative
costs, inflation, and potential damage to existing roads or utilities be greater
than 25% of the estimated construction costs, but not to exceed 50% of the
estimated construction costs. &#8220;Developer,&#8221; as used in this section,
means any owner, builder, subdivider or other person or entity engaged in the
land development process and shall include their principals, officers, members,
managers, partners, alter egos, and members of the immediate family related to
any of the foregoing. &#8220;Such facilities,&#8221; as used in this section,
means those facilities specifically provided for in this section.

B. As an alternative to the requirements of subsection E of &#xA7; 15.2-2245, a
subdivision ordinance may provide that upon written request by the subdivider or
developer, the governing body or its designated administrative agency shall be
required to make periodic partial releases of such bond, escrow, letter of
credit, or other performance guarantee in a cumulative amount equal to no less
than 90% of the original amount for which the bond, escrow, letter of credit, or
other performance guarantee was taken, and may make partial releases to such
lower amounts as may be authorized by the governing body or its designated
administrative agency based upon the percentage of public facilities completed
and approved by the governing body, local administrative agency, or state agency
having jurisdiction. If the subdivider or developer has not met all previous
land development obligations in accordance with all development agreements with
the locality as determined by the governing body or its designated
administrative agency for the previous seven years prior to the written request
for partial release, the cumulative amount released may be equal to no less than
80% of the original amount for which the bond, escrow, letter of credit, or
other performance guarantee was taken. &#8220;Subdivider&#8221; and
&#8220;developer,&#8221; as used in this section, mean any owner, builder,
subdivider, or other person or entity engaged in the land development process
and shall include their principals, officers, members, managers, partners, alter
egos, and members of the immediate family related to any of the foregoing.
Periodic partial releases may not occur before the completion of at least 30% of
the public facilities covered by any bond, escrow, letter of credit, or other
performance guarantee. The governing body or administrative agency shall not be
required to execute more than three periodic partial releases in any 12-month
period. Upon final completion and acceptance of the public facilities, the
governing body or administrative agency shall release any remaining bond,
escrow, letter of credit, or other performance guarantee to the subdivider or
developer. For the purpose of final release, the term &#8220;acceptance&#8221;
means when the public facility is accepted by and taken over for operation and
maintenance by the state agency, local government department or agency, or other
public authority which is responsible for maintaining and operating such public
facility upon acceptance.

HISTORY: 2006, c. 736.