What is a Pennsylvania Housing Rehab Center Bond - City of Hermitage?
The City of Hermitage, Mercer County, Pennsylvania requires contractors working for housing rehabilitation centers in the area to procure a surety bond before being able to start construction work.
The Housing Rehab Center Bond assures the City of Hermitage and the public its compliance with the ordinances relating to building, plumbing, and electrical Work, rules and regulations promulgated by authority of said Codes and Ordinances, the HUD Section 8 H.Q.S., the DCA Minimum Housing Rehabilitation Standards, and the City of Hermitage General Specifications for Housing Rehabilitation.
What are the bond conditions?
- The bond must be issued by a Surety authorized to conduct business in the Commonwealth of Pennsylvania.
- The Principal (Housing Rehab Center Contractor) as required by ordinance adoption and other Codes of the City of Hermitage, must be seeking a permit to perform electrical, plumbing, alteration, and general construction work in a housing rehab center in the area.
- The bond assures the Director and Staff of the Community Development Department of the City of Hermitage, Mercer County, Pennsylvania the performance and completion of the contractor’s prescribed obligations.
- If a claim is made against the bond, the Principal must correct violations and pay all fines and penalties in a prompt and timely manner.
- If the Principal abides by all pertinent rules and regulations in the performance of his or her contractual obligations, then the obligation will be null and void. Otherwise, it will remain in full force and effect.
- The aggregate liability of the Surety will not exceed the bond amount deposited.
What is the bond amount?
The bond amount is $22,500.
The cost of the bond is a percentage of the bond amount. The percentage will be calculated as your bond premium, which is usually 1%-5% of the bond amount.
How can I obtain a Housing Rehab Center Bond?
To secure this type of bond, the license applicant must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the prequalification process is fulfilled, we will execute the bond and send it to you!