Hernando County Changes Building Permits, Escrow and Bond Requirements

Hernando County Development Services announced on Jan. 5, 2026, that it is transitioning to a new permit and records management software and implementing immediate procedural changes in the Building Division and Planning & Zoning. The county said new escrow accounts are temporarily closed during the transition. Existing escrow account holders may add funds only through the close of business on Jan. 23, 2026, and all escrow funds must be applied by midnight Jan. 23; any unused balances will be refunded.

The notice also described temporary modifications to the contractor self-issuance permitting process while the county moves to the new system. Planning and zoning procedures have been revised to require surety bonds in lieu of cash bonds or escrow for certain performance and maintenance obligations. County and local chamber communications list contact points for questions and advise contractors to monitor the Building Division webpages for updates.

The immediate operational impact is practical and financial. Contractors who rely on cash escrow to secure performance or maintenance obligations will need to secure surety bonds, a change that can affect project cash flow and bonding capacity, particularly for smaller firms or individual contractors. The temporary closure to new escrow accounts and the Jan. 23 deadline for applying existing escrow funds create a compressed timeline for developers and permit applicants to reconcile funds or switch to alternative security instruments.

For homeowners and property owners awaiting inspections or permits, temporary changes to self-issuance processes could delay issuance timelines and affect project schedules. The county's shift in how it accepts security for obligations transfers administrative burden from holding cash to managing bond instruments, which may reduce the county's need to maintain escrow accounting but requires staff and applicants to adjust procedures and documentation.

From a policy and institutional perspective, the transition highlights trade-offs local governments face when modernizing permitting systems: potential long-term efficiencies and improved records management versus short-term disruption and the need for clear guidance to the regulated community. Requiring surety bonds instead of cash shifts financial risk management to bonding companies and may alter local market dynamics for contractors and sureties.

Contractors and residents seeking the latest details and procedural guidance should consult the Hernando County Building Division webpage at hernandocounty.us/departments/departments-a-e/building-division-1717 and contact the county or chamber offices listed there for specific instructions and available contact information. Monitoring updates will be essential to avoid missed deadlines and unexpected refunds or delays.