Greensboro Stormwater Management Bond: A Comprehensive Guide
May 17, 2022
This guide provides information for insurance agents to help their customers obtain a Greensboro Stormwater Management bond
At a Glance:
- Average Cost: Between 1% to 12.5% of the bond amount per year based on the applicant’s credit history
- Bond Amount: Determined on a case by case basis (more on this later)
- Who Needs it: Developers in Greensboro, North Carolina seeking to obtain final certification of a wet detention pond or stormwater wetland before establishing a permanent pool
- Purpose: To ensure the city will receive compensation for financial harm if the developer fails to install and maintain the watershed protection feature (permanent pool)
- Who Requires the Bond: The Greensboro Stormwater Management Division
The Greensboro Stormwater Management Manual requires developers to install proper stormwater control measures, while following best management practices (BMPs), before obtaining approval of a final subdivision plat. The city enacted this requirement to ensure that new developments have measures in place to protect the public from stormwater runoff. The most common BMPs are wet detention ponds and stormwater wetlands, and developers may purchase and maintain a surety bond to obtain final certification of this BMP before the required permanent pool is established. Once a bond is purchased, developers will be issued a Temporary Certificate of Occupancy (TCO) which is valid for 180 days while the stormwater control measure is built.
What is the Purpose of the Greensboro Stormwater Management Bond?
Greensboro requires developers seeking final certification of wet detention ponds or stormwater wetlands, before establishing a permanent pool, to purchase and maintain a surety bond. The bond ensures that the city will receive compensation for financial harm if the developer fails to abide by the provisions outlined in the bond form. Specifically, the bond protects the city if the developer fails to install and maintain the required watershed protection feature. In short, the bond is a type of insurance that protects the public if the developer abandons the project before establishing a permanent pool.
How Can an Insurance Agent Obtain a Greensboro Stormwater Management Surety Bond?
BondExchange makes obtaining a Greensboro Stormwater Management bond easy. Simply log in to your account and use our keyword search to find the “Greensboro” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
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How is the Bond Amount Determined?
The Greensboro Stormwater Management Manual dictates that the bond amount must be, at a minimum, equal to the cost of relining the bottom of the permanent pool with an impervious layer (more on this later). The Greensboro Water Resources Department will inform the developer of the required bond amount.
Is a Credit Check Required for the Greensboro Stormwater Management Bond?
Surety companies will run a credit check on the bond applicant to determine eligibility and pricing for the Greensboro Stormwater Management bond. Applicants with excellent credit and work experience can expect to receive the best rates. Applicants with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the applicant’s credit.
How Much Does the Greensboro Stormwater Management Bond Cost?
The Greensboro Stormwater Management bond can cost anywhere between 1% to 12.5% per year. Insurance companies determine the rate based on several factors including your customer’s credit score and experience. The chart below offers a quick reference for the bond cost on a $10,000 bond requirement.
$10,000 Stormwater Management Bond Cost
|Credit Score||Bond Cost (1 year)|
|680 – 719||$150|
|650 – 679||$200|
|600 – 649||$400|
|550 – 599||$750|
|500 – 549||$1,250|
Who is Required to Purchase the Bond?
Greensboro requires developers to purchase a Stormwater Management bond as a prerequisite to obtaining a TCO. A TCO is required when developers want to obtain approval for a final subdivision plat and therefore occupy a structure, before building the required stormwater control measure. As mentioned above, developers must adhere to BMPs when designing stormwater control measures and most commonly use wet detention ponds and stormwater wetlands to satisfy these requirements.
Both wet detention ponds and stormwater wetlands contain a permanent pool, which prevents pollutants that have settled within the pond from resurfacing. When the wet detention pond or stormwater wetland is located on sandy or gravelly soils or in fractured bedrocks, the permanent pool must be sustained by an impervious clay or synthetic liner. Once the developer has installed the permanent pool and liner and passed a final, they will be issued a final Certificate of Occupancy and have their bond released.
How Do Greensboro Developers Apply for a Temporary Certificate of Occupancy?
Developers in Greensboro must navigate several steps to obtain a TCO. Below are the general guidelines, but developers should contact the city’s Water Resources Department for details on the process.
Temporary Certificate of Occupancy Period – All Greensboro TCOs are valid for 180 days from the date of issuance
Step 1 – Create a Watershed Protection Plan
Developers must create a watershed protection plan that contains information on how the developer will utilize BMPs to construct adequate stormwater control measures (wet detention ponds and stormwater wetlands). The Water Resources Department’s Planning & Engineering Section will advise the developer on what the plan needs to contain and inform them on the steps needed to construct/maintain the stormwater control measure.
Completed plans should be submitted to the Planning and Engineering Section.
Step 2 – Purchase a Surety Bond
Once the watershed protection plan has been approved, the developer must either build the stormwater control measure or purchase a surety bond before obtaining final plat approval. If the developer chooses to purchase a bond, the department will inform them of the required bond amount.
How Do Greensboro Developers File Their Stormwater Management Bonds?
Developers in Greensboro should submit their completed bond forms, including the power of attorney, to the following address:
City of Greensboro
Stormwater Management Division
Attn: Toni Branson
2602 South Elm-Eugene Street
Greensboro, NC 27401
The surety bond requires signatures from both the surety company that issues the bond and from the applicant. The surety company should include the following information on the bond form:
- Legal name and state of incorporation of entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Name of the development
- Bond amount
- Date the bond is signed
What Can Greensboro Developers Do to Avoid Claims Against Their Stormwater Management Bonds?
To avoid claims on their Stormwater Management bonds, developers in Greensboro must ensure that they:
- Adequately construct and maintain the stormwater control measure
- Pay all contractors and subcontractors as well as suppliers of materials
What Other Insurance Products Can Agents Offer Developers in Greensboro?
Most reputable developers will purchase liability insurance. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Greensboro Stormwater Management Bond Customers?
For information regarding developers in need of these bonds, we suggest contacting the Water Resources Department directly. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.