It is the Development Review Coordinator's responsibility to track the Bond Expiration dates and prepare all necessary notifications of pending expirations and/or renewal documents. The Development Review Coordinator produces a monthly report showing a list of Active permits as well as Released permits. The report is updated each month according to permits issued and/or released and data is also entered in the storm-water management database. Approximately thirty (30) to sixty (60) days prior to expiration of a permit, the Coordinator meets with the Manager of Construction & Inspections to determine which permits may be renewed, extended or completed before the permit expiration date. The applicant is then contacted by the Coordinator via letter and advised of the expiration date and is directed to either complete the work before the specified date or contact this Department to extend the permit and surety.
Upon demonstration of good cause and other pertinent factors (ie. market conditions, weather, percent of work completed, # of homes built / permitted, progress since the last inspection, etc. ) the Department will present extension requests along with it's recommendations to the Commissioners of St. Mary's County for consideration / approval. A maximum of three (3) extensions up to a combined total of thirty (30) months may be authorized. Subsequent requests for extensions shall require payment of a fee by the applicant in accordance with the then-current schedule of fees established by the County Commissioners. Please refer to our Permit Extension Request Form for use in submitting requests of this nature.
If the applicant does not complete the work or does not contact this Department by the expiration date, this Department has the authority to recommend to the Commissioners of St. Mary's County that the bond be called. The Claim Letter is forwarded to the Commissioners of St. Mary's County for execution and returned to the Department. In the event of a default, the Development Review Coordinator is then in a position to prepare the surety for claim. If a claim is warranted, the Development Review Coordinator pulls the original bond or letter of credit from the Department's safe and makes a copy of the permit for attachment to the surety. A copy of the claim letter is attached as a cover sheet with a space typed for execution by the surety that they received the documents when presented. The surety company/lending institution is contacted in person or by Certified Mail and the monies are collected to complete the work. Any remaining monies are returned to the Surety Company, unless otherwise specified as a part of a Subordination Agreement.
Calling of Surety
If a claim is not pursued (i.e., new surety received, permit extension granted or work completed), the Claim Letter is voided within the permit file. If a bond does not have a specific expiration date, the statute of limitations period (Courts and Judicial Proceedings Article Subsection 5-102) expires twelve (12) years after the date on which the bond became due.
The Md. COURTS AND JUDICIAL PROCEEDINGS Code Ann. § 5-102 (2016)
§ 5-102. Specialties specifically states:
(a) Twelve-year limitation. -- An action on one of the following specialties shall be filed within 12 years after the cause of action accrues, or within 12 years from the date of the death of the last to die of the principal debtor or creditor, whichever is sooner:
(1) Promissory note or other instrument under seal; (2) Bond except a public officer's bond; (3) Judgment; (4) Recognizance; (5) Contract under seal; or (6) Any other specialty.
(b) Suspension of time. -- A payment of principal or interest on a specialty suspends the operation of this section as to the specialty for three years after the date of payment.
(c) Exception. -- This section does not apply to: (1) A specialty taken for the use of the State; or (2) A deed of trust, mortgage, or promissory note that has been signed under seal and secures or is secured by owner- occupied residential property, as defined in § 7-105.1 of the Real Property Article.
Reduction of Surety
If a project is partially completed and typically if the base asphalt is in place for roads, and upon written request by the developer, the DPW&T will consider a Reduction of Surety. At least 50 percent of the total value of work authorized under the permit must be completed in order to request a reduction. To submit a Reduction of Surety request, please utilize our Inspection Request Form. Once a reduction amount has been established by the Manager of Construction & Inspections, based on an inspection and assessment of the remaining work to be done (or in accordance with the approved Draw Schedule), an Addendum to the Public Works Agreement or Grading Permit is issued to the applicant with the reduction amount. The addendum is recorded in the County's Land Records by the Department once it has been approved and executed by the County Commissioners. Typically, a bond is not reduced to a value below the estimated cost of completing the remaining work plus 10%, but never less than $10,000. If the Addendum has not been executed by the applicant and approved by the DPW&T and/or the Commissioners of St. Mary's County on or before the expiration date, the surety will be claimed in the full amount of the surety.
Stormwater Maintenance Bond
A Storm-water Management bond will not be released until after inspected by the Department of Permits and Inspections, the As-Built has been approved and the Notice of Construction Completion Form is executed by the Inspector.