§ 45-23-46. General provisions — Construction and/or improvement guarantees.
(a) The local regulations shall require approval of the permitting authority of agreements
for the completion of all required public improvements prior to final plan approval
in the form of: (1) Completion of actual construction of all improvements; (2) Improvement
guarantees; or (3) Combination thereof.
(b) Where improvements are constructed without a financial guarantee, the work is to be
completed prior to final approval. All construction shall be inspected by the appropriate
town staff or agents in a timely manner and approved under the direction of the administrative
officer and according to local regulations.
(c) Improvement guarantees shall be in an amount and with all necessary conditions to
secure for the municipality the actual construction and complete installation of all
the required improvements, within the period specified by the permitting authority.
The amount shall be based on actual cost estimates for all required public improvements
and these estimates shall be reviewed and approved by the permitting authority. The
permitting authority may fix the guarantee in a reasonable amount in excess of the
estimated costs to anticipate for economic or construction conditions. Local regulations
may include provisions for the review and/or upgrade of guarantees.
(d) The security shall be in the forms of financial instruments set forth in local regulations
and shall enable the municipality to gain timely access to the secured funds, for
cause. The local regulations shall provide at least three (3) acceptable forms of
financial security and the approving authority shall not limit the security to one
specific form of the acceptable forms set forth in the local regulations.
(e) The local regulations shall establish procedures for the setting of improvement guarantee
amounts; for inspections of improvements; for acceptance of improvements by the municipality;
and for the release of the improvement guarantees to the applicant. Procedures may
include provisions for partial releases of the guarantees as stages of the improvements
are completed, inspected, and approved under the coordination of the administrative
officer and reported to the permitting authority.
(f) In the cases of developments and subdivisions that are being approved and constructed
in phases, the permitting authority shall specify improvement guarantee requirements
related to each particular phase.
(g) The permitting authority may also require maintenance guarantees to be provided for
a one-year period subsequent to completion, inspection, and acceptance of the improvement(s)
unless there are extenuating circumstances. Such maintenance guarantee shall not exceed
ten percent (10%) of the original guarantee amount, or the original cost of the public
improvements if no guarantee was required.
(h) Procedures for the acceptance of required improvements shall stipulate that all improvements,
once inspected and approved, shall be accepted by the municipality or other appropriate
municipal agency for maintenance and/or part of the municipal system.
(i) The municipality is granted the power to enforce the guarantees by all appropriate
legal and equitable remedies.