Private Sewer Lateral (PSL) Loan Program
What is the Private Sewer Lateral Loan Program?
Sanitary District No. 2 (SD2) established the Private Sewer Lateral (PSL) Loan Program to loan funds to property owners within the District to replace 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. 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. This one-time grant loan will be funded by the District on a first-come basis.
Where does the funding for the program come from?
The funding for this program comes from SD2's capital budget and a total of $100,000 for two fiscal years (FY 2020-2021 and FY 2021-2022), has been allocated to fund the program. The program began on September 15, 2020 and will continue through June 30, 2022, unless before that time the allocated funds are exhausted.
How do I know if my PSL qualifies for the program?
The private sewer lateral qualifies for inclusion in the PSL Loan Pilot Program when:
- sewage overflow or malfunction has occurred on the property; or the adjacent sewer main is being improved or roadway is being paved as part of the Capital Improvement Program (CIP) led by the Town Sanitary District No. 2, or other governmental agency
- the property owner is unable to obtain private financing for their required PSL projects and are able to provide written documentation from a financial institution that they are unable to qualify for private financing at an annual interest rate similar to the District’s (3.0%).
The property owner must enter into an Assessment Agreement providing that the loan amount be added to the property tax as an assessment to the property.
The program goes into effect on September 15, 2020. Reimbursments for work completed prior to that date are not authorized under this program, but may qualify for reimbursement under the pre-existing program.