Bill Would Eliminate "Builder's Choice" on Form of Performance Security
Under Illinois law, a municipality or ocunty can require a developer or builder to post security to guarantee the completion of public improvements related to a development. However, the law currently allows the developer or builder to choose the form of the security. Specifically, the law states that if a municipality or county requires performance security to be posted, the builder or developer has the option to file a letter of credit, surety bond, or letter of commitment in an amount equal to or greater than 110% of the amount of the bid on the particular improvements, and the municipality or county is obligated to accept it.
HB 4531 would modify the statute to eliminate the language giving the developer or builder the choice on the form of security that it posts with the municipality or county. If passed, the law would allow a municipality or county to choose the form of security (except for cash bonds, which would be eliminated from the "menu" of forms of security under the statute). The bill would also eliminate the limitation on the amount of security that must be posted (currently, the statute allows the builder or developer to post security of its choosing in an amount of 110% of the improvements). Finally, the bill removes the home rule preemption language.
We'll monitor this legislation to see if it moves forward.
0 comments:
Post a Comment