Stormwater Development Bond - County of York, VA in Virginia

Brief Summary

York County will not let stormwater work start until the developer posts security for it. A surety bond on the county's Stormwater Development Agreement Performance Bond form satisfies that requirement without locking project cash in an escrow or letter of credit for the life of the job.

York County, Virginia requires a stormwater management development surety from applicants for a land disturbing permit when the approval letter calls for stormwater infrastructure. The bond guarantees the developer will install the required stormwater management infrastructure on time and in line with the Stormwater Development Agreement. It is separate from the erosion and sediment control surety and must run at least 60 days past the agreement's performance date.

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How to Apply for a Stormwater Development Bond:

• Submit the VSMP-LDA permit application to York County Public Works Stormwater with the required plans.
• Receive the approval letter and confirm whether a stormwater surety is required in addition to the E&S surety.
• Execute the county's Stormwater Development Agreement, or the combined ESC and SWM agreement.
• Obtain the bond on the County of York Stormwater Development Agreement Performance Bond form for the amount the county sets.
• Make sure the bond term runs at least 60 days past the agreement's performance date.
• Request release after stabilization, approved as built drawings and the Certificate of Completion.

Detailed Information About the Virginia Stormwater Development Bond:

Two sureties, not one

The most common mistake is assuming one bond covers the whole site. The York County Development Guide says a surety is required to cover the cost of installing erosion and sediment control measures, and a separate surety is needed to cover stormwater infrastructure if the approval letter says so. This page covers the stormwater surety. The county publishes a separate E&SC bond form and also offers a combined ESC and SWM development agreement.

Who posts it

The bond is posted by the developer applying for a Virginia Stormwater Management Program land disturbing activity permit through the York County Department of Public Works Stormwater division. The county's VSMP-LDA application applies to land disturbance over one acre, or over 2,500 square feet inside a Chesapeake Bay Preservation Area. The application tells applicants they will be required to post a SWM development surety in the form of a cash escrow, escrow agreement, letter of credit, certified check, cashier's check or bond.

State law sets the outer limit. Va. Code 62.1-44.15:34 allows the local program authority to require a performance bond with surety, cash escrow, letter of credit or similar arrangement from an applicant, excluding state agencies and federal entities.

What the bond guarantees

The county form names the County of York, Virginia as obligee and is written for the dollar amount entered for the specific project. The condition is that the principal, within the time specified and in accordance with the Stormwater Development Agreement, faithfully installs the required stormwater management infrastructure. If the principal defaults, the surety must promptly remedy the default or reimburse the county for its reasonable costs, up to the bond amount. The surety must be a corporation authorized to transact surety business in the Commonwealth of Virginia.

Timing and release

The Development Guide requires sureties to be issued for a term extending at least 60 days beyond the performance date set in the agreement. The surety is returned at the end of construction once the area is stabilized and as built drawings are submitted and approved, and release occurs within 60 days of the Certificate of Completion. State law also requires the security or its unused portion to be refunded or terminated within 60 days after the program authority's conditions are met.

Permit fee

The county's VSMP-LDA permit application fee is $50 plus $0.005 per square foot of disturbed area above 2,500 square feet, capped at $1,000. A separate state registration fee applies based on the county's stormwater ordinance table.

Premium

The surety sets the premium as a percentage of the bond amount after reviewing the developer's credit, financial statements and history completing site work. Confirm the bond amount, current form and filing steps with the Department of Public Works Stormwater division before the bond is issued.

Eligibility and Requirements for a Virginia Stormwater Development Bond:

• County of York, Virginia named as obligee.
• Surety company authorized to transact business in the Commonwealth of Virginia.
• Bond amount matching the figure set in the Stormwater Development Agreement.
• Principal name matching the developer on the agreement and permit application.
• Credit and financial review of the developer by the surety.

Virginia Stormwater Development Bond FAQs:

Official and Additional Resources for the Virginia Stormwater Development Bond: