Buncombe County Stormwater Management Bond
For developers in Buncombe County, North Carolina, the County Code of Ordinances requires developers to provide a stormwater control plan mitigating drainage impacts to the local watershed. Before receiving their building permit, developers must post a surety bond in order to ensure that the stormwater control measures are installed in accordance with the approved plan. This permit bond, provided by Jet Insurance Company, serves as a means of financial guarantee for Buncombe County, ensuring that if the developer defaults on the project, the county will be reimbursed by Jet for the cost to complete stormwater improvements for the disturbed land.
PURCHASE BUNCOMBE COUNTY STORMWATER MANAGEMENT BOND
Jet’s mission is to cut out the middlemen who bog down the surety bond process with lengthy applications and exorbitant commissions and fees. We are also a direct carrier, meaning that Jet is with you from start to finish of your project, and will even come to your defense against claims.
How Is the Cost Determined for the Bond?
The cost of the bond will depend on the bonding limit required, which is calculated based upon the estimated cost to build the stormwater improvements outlined in the approved plan. The county’s Stormwater Engineer will review the plan, estimate the itemized cost of the project, and add an incremental cost factor of 25%.
Furthermore, the personal credit and financial strength of the developer can also factor into the eligibility and price of the bond. Once approved, the bond cost starts as low as 1% of the bonding amount. Refer to the chart below for example pricing for someone with preferred credit.
| Term | Cost |
|---|---|
| Monthly | $10 |
| 1 Year | $100 |
| 2 Years | $175 |
| 3 Years | $250 |
Jet is taking on the surety bonding process to streamline it and remove the red tape. We want to get you your bond, save you money, and get you back to business ASAP.
What Is the Purpose of the Stormwater Management Bond?
The Stormwater Management Bond exists to provide a performance guarantee to Buncombe County, ensuring that developers will complete the stormwater control measures to which they have committed. The bond from Jet, a third party financial guarantor, ensures that there is a means of reimbursement for the County, should they need to finish stormwater control measures for a developer who has abandoned their work.
Can Jet File the Bond to Buncombe County for Me?
Absolutely! With successful payment for your bond, Jet will ship the original bond to the Buncombe County Stormwater Administrator. An electronic copy will be emailed to you for your records.
Other surety carriers may charge you shipping fees when they send you the bond, and then leave you on the hook to handle the final delivery to Buncombe County. We don’t work that way at Jet!
If you prefer to have the original bond mailed to you instead, that option will be available when you checkout. Please note that all documents must be shipped to the county at the following address:
Stormwater Administrator
Buncombe County Planning Department
46 Valley Street
Asheville, NC 28801
Can I Cancel My Buncombe County Stormwater Management Bond?
No. The Stormwater Bond, once in force, requires release by the Erosion Control Inspector, and neither the developer nor Jet can cancel the bond at any time.
How Does a Developer Avoid Bond Claims?
To avoid seeing a claim on the surety bond, developers must act in accordance with the Stormwater Management Ordinance and fulfill their commitment to build the items in the approved stormwater control plan.
Any consumer who has sustained some damage by the contractor may file a complaint with the Contractors’ Licensing Board on its “File a Complaint” page, for a period of one year after the completion of the work. From that point, the Board will conduct an investigation of the complaint and submit a recommendation to the board, ranging from dismissing the complaint to imposing a disciplinary action.
Bond claims are possible in cases where the developer abandons a project or builds without adhering to the stormwater control plan. If either occurs, Buncombe County is within their rights to draw funds from the surety bond to complete (or repair) the project.
What Happens If I Get a Bond Claim on my Stormwater Management Bond?
If you abandon the stormwater control measures in the approved plan, or fail to fulfill what you have committed to in the plan, Buncombe County may elect to claim against the bond. As much as is possible based on the circumstances, Jet will investigate to determine if the claim is valid or not. If possible, Jet will defend you against the claim.
If the claim is shown to be valid, Jet is obligated per the Stormwater Management Ordinance to reimburse Buncombe County up to the bond limit. In this case, the surety (Jet) acts as a line of credit, and the developer (the “principal”) remains responsible for their actions (or failed actions) and must reimburse Jet for the reimbursement paid. This action will affect a developer's future plans of receiving a permit or a bond.
How to Apply for the Stormwater Management Bond With Jet
Jet took the traditional bond application process and removed all the stops. You can apply for your bond with minimal hassle and minimal time, by submitting some basic information about your business. Once Jet has this information, we review your application and will promptly get a quotation to you for your bond.
As the dollar value of bond limits increase with more complex stormwater control measures, Jet may ask for the some additional information that helps us provide your quote:
- Personal Financial Statement
- Business Financial Statements (balance sheet and income statement)
- Copy of the agreement between the Developer and County that our bond will be guaranteeing
- Stormwater Control Plan description
- Engineer’s estimate
- Proof of funding
Once you have paid the premium for your bond, a purchase receipt and copy of the bond will immediately be made available to you.
PURCHASE BUNCOMBE COUNTY STORMWATER MANAGEMENT BOND
When Does the Stormwater Management Bond Obligation End?
The Stormwater Management Bond is considered continuous and active until all required elements of the stormwater control plan are completed, inspected, and approved by the county’s Stormwater Engineer. Liability for the developer and surety will be released once the final inspection is approved, and release processed by the bond administrator.
Jet offers the Stormwater Management Bond in one, two, and three year increments. Renewal will be required if the project extends past the original purchase term.
Are There Other Bonds That a Developer Needs?
The State of North Carolina has various licensing requirements for contractors in the field, and developers should be aware of the licenses and associated surety bonds. Other North Carolina construction bonds can be found by clicking here
