What is a subdivision improvement bond?

A subdivision improvement bond is specifically designed to guarantee that essential infrastructure improvements, such as roads, drainage systems, and utilities, are completed in a subdivision development. This type of bond ensures that the developer fulfills their obligations to construct these improvements as required by local government regulations or agreements. By securing this bond, municipalities can ensure that the necessary public improvements are completed in a timely and satisfactory manner, ultimately protecting the interests of future homeowners and the community.

The correct answer focuses on the completion of infrastructure improvements, which is the primary purpose of a subdivision improvement bond. This bond provides assurance to local authorities that if the developer fails to meet their obligations, the surety company will step in to complete the work, thereby safeguarding the community's investment in essential services and infrastructure.