Senate Bill Would Limit Security on Development to 110 Percent of Completion CostApril 2021
Senate Bill No. 208 has been proposed as an Amendment to the Pennsylvania Municipalities Planning Code to limit the financial security required to be posted with the municipality as part of an approved subdivision/land development plan as not to exceed 110% of the estimated completion cost.
Unfortunately, it does not go on to better define the completion costs that are required to be escrowed or eliminate certain private improvements from this requirement. This Senate Bill also allows the governing body, prior to final release at the time of completion and certification by its engineers, to retain 10% of the original amount of the posted financial security. This Bill also fails to confirm the applicant’s right to post bonds as a form of financial security despite many municipalities refusing to accept them.
If you have any questions about these topics, or other land use matters in Pennsylvania or New Jersey, please contact Robert W. Gundlach Jr. at [email protected] or 215.918.3636.