Grant Programs for Private Sewer Laterals

Private Sewer Lateral Pilot Grant Program

What is the PSL Pilot Grant Program? 
Sanitary District No. 2 (SD2) established a Private Sewer Lateral (PSL) Pilot Grant Program allowing the District to award a grant of District funds for 50% of the cost of repairing or replacing any part of a PSL that is needed for the PSL to pass a PSL pressure test as set forth in Municipal Code Sections 21.20.0004, 21.20.060 and 21.22.020, to any property owner within the District, regardless of income level provided. However, the maximum amount per grant from the District cannot exceed $2,500 per parcel or $3,500 for parcels connected to a shared lateral who are triggered by another party connected to their shared lateral. 
Where does the funding for the program come from? 
The funding for this program comes from SD2's capital budget for two fiscal years (FY 2022-23 and FY 2023-2024), which has been allocated to fund the program until that amount is exhausted or until the SD2 Board terminates the program.

Please note that a property owner is disqualified from this program if the property owner has benefited from the Lower Lateral CIP Pilot Program, the PSL Pilot Grant Program or any other District funding assistance program within the last 10 (ten) years. 

When do I get a sewer permit if I have been approved for a grant? 
For all applications that are submitted and approved, the District requires property owners to submit an application for a sewer permit. The application for the sewer permit must be approved prior to starting work on the PSL. If any sewer work is begun on the property without an approved sewer permit, the property owner will not be eligible for any District or Town funding assistance.

Other important information you need to know.
Please keep in mind that each property owner will continue to own and maintain the entire PSL regardless of whether it is included in the program and the entire PSL will be required to pass a pressure test within 180 days of the sewer permit issuance date in order to receive the grant.

The PSL Pilot Grant Program was approved and went into effect on May 21st, 2019 and the updated PSL Grant Program which offers a maximum of $2,500 when into effect on July 1, 2022. No retroactive payments or reimbursements for work completed prior to those dates will be authorized. The grant application should be submitted after the PSL work is complete and the lateral has passed a pressure test with a copy of the paid contractor invoice.

How do I apply for this program? 
To apply for the PSL Pilot Grant Program, you will need to submit an application. Please click here to download the application. 

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Lower Lateral CIP Pilot Program

What is the Lower Lateral Capital Improvement Project (CIP) Pilot Program?
The District will incorporate the repair or replacement of qualified, privately-owned and maintained lower lateral section of a PSL that is needed for the lower section of the PSL to pass a pressure test as set forth in Municipal Code Section 21.20.004, into a District sewer main project occurring on the same street.

How do I know if I qualify for this program? 
The Town will notify all homeowners who are located within a CIP project boundary by mail before the sewer project begins. No application is necessary for the Lower Lateral CIP Pilot Program.

Lower laterals qualify for inclusion in the Lower Lateral CIP Pilot Program when all of the following are met:

  1. The lower lateral connection is within the sewer and/or paving CIP project limits
  2. The majority of the sewer main on the part of the street that is being repaired is within project limits
  3. The PSL has not been replaced within the last 10 years depending on the records available and at the discretion of the District Manager
  4. The District Manager, or that person's designee, has determined it is in the best interest of the District for the District to repair or replace the lower lateral section of the PSL as part of the sewer main project because doing so will:
    • Avoid delaying or negatively impacting a public construction project that benefits the Town or District
    • Provide an overall cost savings to the District or Town in the delivery of a capital project
    • Provide a significant benefit to the Town or District by reducing traffic congestion(in particular, on high volume roads).

Where does the funding for the program come from and how is funding distributed? 
The funding for this program comes from SD2's capital budget for two fiscal years (FY 2022-2023 and FY 2023-2024), has been allocated to fund the program. The program shall continue beginning July 1, 2022 through June 30, 2024, unless before that time the allocated funds are exhausted.

Other important information you need to know.
Private property owners who are part of a District CIP project are automatically included in the project and notified by mail. Property owners may opt out of the Lower Lateral CIP Pilot Program by contacting the District. Property owners should keep in mind that they will continue to own and are obligated to maintain all portions of their PSL regardless of whether it is included in the program.

After the District has completed the CIP project and all lower private sewer lateral are replaced, the District will send out a second letter giving homeowners 180 days to pressure test and/or replace their upper laterals.


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Low-Income Grant Assistance Program

What is the Low Income Grant Assistance Program? 
The District Board authorized this grant program intended to defray the costs of full private sewer lateral replacements to low-income households when such replacements (including the required SD2 inspections) are triggered by a Capital Improvement Project (CIP) within SD2. The program will be contingent on property owners proving that laterals were replaced based on allowed involuntary ordinance triggers, and that income is verified based on filed/approved federal tax returns as well as proof of housing occupancy.

Where does the funding for the program come from and how is funding distributed? 
The funding for this program comes from SD2's capital budget for the next two fiscal years, FY22/23 and FY 23/24.

What grant options might be available to me under this program? 

  1. Grant amounts of 75% cost match up to $10,000 may be available for households at 80% ("Low") or less of the Median Family Income (MFI) limits. 

To view the U.S. Department of Housing and Urban Development (HUD) FY 2022 Median Family Income Limits, please click here. 

Please note that for the purpose of this program, Persons in Family is defined as follows: 

Family: A single person, who may be an elderly person, displaced person, disabled person, near-elderly person, or any other single person; or,

A group of persons residing together, and such group includes, but is not limited to: 

  1. A family with or without children (a child who is temporarily away from the home because of placement in foster care is considered a member of the family);
  2. An elderly family;
  3. A near-elderly family;
  4. A disabled family;
  5. A displaced family; and,
  6. The remaining member of a tenant family.

How to apply for this program?
To apply for the Low Income Grant Assistance Program, you will need to submit an application. Please click here to download the application. Please note that in order to verify if you qualify for the PSL Low Income Grant Program you must include a copy of your most recently filed tax return (IRS Form 1040)for the last 2 years–NO EXCEPTIONS. Please make sure your Social Security Number is redacted (blacked out).


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