This bill amends existing subdivision regulations concerning the completion of improvements such as street work, utility installations, landscaping, and fire suppression systems prior to the final approval of a plat. The bill allows for conditional approval of the plat before such improvements are constructed, provided that the planning board accepts a performance bond, irrevocable letter of credit, or other specified types of security instead of requiring the completion of these improvements upfront. The bill specifies that the planning board may not exclusively require cash or a passbook as security and must partially release the security as substantial improvements are completed. It also caps cost escalation factors applied to bonds or other securities at 15 percent per year and prohibits cost increases for non-construction reasons.

Additionally, the bill outlines that the planning board cannot require a letter of credit, cash, or passbook as the only method of securing the completion of work. It allows for the start of road and utility construction without a bond, but a bond must be in place before any land sale within the subdivision or a request for a building permit for human habitation. The bill also sets time frames for inspections and release of bonds and states that the planning board cannot require the installation of fire suppression sprinkler systems in one- or two-family residences as a condition of approval, although other credible water sources may be mandated. The act is set to take effect 60 days after its passage, with an effective date of October 03, 2023.

Statutes affected:
Introduced: 674:36
As Amended by the Senate: 674:36
As Amended by the House: 674:36
Version adopted by both bodies: 674:36
CHAPTERED FINAL VERSION: 674:36