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SFAA Seeking Clarification on Illinois Bill for Subdivision Bonds

Monday, April 16, 2018  
SFAA Seeking Clarification on Illinois Bill for Subdivision Bonds 

Illinois HB 4531 would amend Section 3 of the Illinois Public Construction Bond Act and related county and municipal codes. Section 3 of the Bond Act is generally understood to pertain to instruments securing subdivision related work. This Section currently provides subdivision developers the flexibility of maintaining a locally filed surety bond or letter of credit, which exempts it from being required to furnish individual performance security for project improvements, so long as the filed security remains 110% of the work in progress and out for bid. Absent a filed bond, Section 3 also, currently, grants local governments the flexibility of requiring letters of credit, cash bonds, and surety bonds. This bill would remove cash bonds and filed security as options for subdivision improvement performance security. This bill would also remove a home rule preemption clause in Section 3, and would eliminate a requirement for counties or municipalities with a population under 1 million people to approve the surety on the bond. HB 4531 passed out of committee in the House to meet legislative deadlines.

Members should visit Advocacy / General Info (Members) for more information.

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