[Massplanners] Subdivision -Letter of Credit (performance bond)

[Wayne Feiden]

Letters of Credit are typically the easiest performance guarantee to
collect on, when the letter is properly written.  Under subdivision law,
the developer gets to select what they provide, although if you are also
requiring Letters of Credit under zoning you can set your standard.

I wrote two articles on this subject, one chapter from a decade ago
<https://www.planning.org/publications/report/9101254/> and one an entire
monograph on the subject from two decades ag
<https://www.planning.org/publications/report/9117596/>o, but surprisingly
not that much has changed since I wrote them. They are behind APA's
paywall, but free for APA members.

*Wayne Feiden FAICP*


On Thu, May 30, 2024 at 1:32 PM Gary Bechtholdt via MassPlanners <
massplanners at masscptc.org> wrote:

> Good Afternoon:
>
>
>
> Curious to know of experiences with Letters of Credit as a performance
> security for a residential subdivision.
>
>
>
> Having not dealt with this form of performance bond before -figure I would
> check in to see if municipalities still use and allow this form of surety?
>
>
>
> Is a Planning Board obligated to use this type (Letter of Credit) if
> proposed by the Developer or can they opt for an alternative?
>
>
>
> As always -any thoughts & insight is appreciated.
>
>
>
> Thanks & take care,
>
>
>
> -Gary
>
>
>
> R. Gary Bechtholdt II
>
> Planning & Community Development Director
>
>
>
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