ABSTRACT
The planning commission has the authority to require the subdivider to install all of the required public improvements before a subdivision plat is finally approved and recorded. Requiring improvements to be completed before plat approval often causes long delays and expense to a developer who can neither sell lots nor begin the construction of homes until the plat is recorded. Final subdivision plat approval may be granted prior to completion of improvements if the subdivider guarantees to complete the improvements, which takes the form of requiring the subdivider to post some type of security for its promise to complete improvements following final plat approval. Most state enabling acts permit the use of a variety of security devices and each form of security presents its own particular set of advantages and disadvantages that the local government should consider in light of the overall purposes of subdivision regulation. Most local governments also have the authority to accept letters of credit as security.
