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Grant & Loan Programs
The District has grant and loan funding available to property owners who require private sewer lateral replacement. Prior to performing sewer work, property owners must review both programs; Individuals can only apply for one program. Please note the application process differs.
See below for more information.
The District adopted Resolution No. 21-1608, amending the framework and guidelines for the Lateral Replacement Grant Program to assist ratepayers with the cost of replacing their private sewer laterals. Click the link to read Resolution No. 21-1608.
Grant Funding
The District provides individual grants of up to $1,500.
The following scenarios may qualify a property to receive $2,500:
• Properties in high inflow & infiltration basins predetermined by the District.
• Properties affected by upcoming municipal paving projects or a road moratorium.
Check with your local municipality to determine if your street is scheduled for paving or was recently paved.
Once your project is complete, follow the steps below.
How to Apply:
Submit the following items:
- Grant Program Application. Click the link to download.
- Paid-in-full invoice from your licensed contractor.
- ACH Payment Authorization Form.
- Completed W-9 Form. (HOAs with a Taxpayer Identification Number do not require a W-9).
W9 forms are used to request the tax id of the individual for any award above $600. The District will email 1099 forms to grant fund recipients by January 31 of the following year.
How to Submit:
Completed applications can be emailed to Administrative Staff or submitted (mail or drop off) to our office location, 2960 Kerner Blvd, San Rafael, CA 94901. All applications must be received within 180 days from the final inspection date. Applications received after the 180-day deadline are ineligible for funding. This deadline is firm.
Questions about permits? View our Permits page by clicking the link.
The District adopted Ordinance No. 74 on January 18, 2023, amending the framework and guidelines for the Lateral Replacement Loan Program to assist ratepayers with the cost of replacing their private sewer laterals. Click the link to read Ordinance No. 74.
Loan Funding
The District offers low-interest loans up to $25,000 to replace your private sewer lateral. Payments are collected through the semi-annual property tax bills as a special assessment.
Repayments of loans will occur over ten years at an annual interest rate based on the current 10-year U.S. Treasury rate plus 0.5% per annum (fixed). To calculate the interest rate, see below for more information.
Loans are non-transferable to a new owner. If you intend to sell your property before the 10-year loan repayment period, you must pay the remaining balance in advance. Owners can also choose to pay the loan off in advance of the repayment schedule.
Before you Apply:
- Review the Eligibility Criteria (under "Eligibility Tab") to see if you qualify for funding.
- Let your contractor know you intend to apply for the loan. Once you pass a final inspection, you will have 30 days to apply. If approved, documentation and payment can take 4 to 6 weeks to process. Check with your contractor about their payment deadline requirements.
- Review the Program Guide and Flowchart (under "How to Apply" below).
Once your project is complete, follow the steps below.
How to Apply:
Submit the following items:
- Loan Program Application. Click the link to download.
- Signed Notice of Completion.
- Copy of the Final Itemized Invoice for the work.
If approved, the owner(s) listed on the property title must complete a Contractual Assessment Agreement for the recording with the County.
How to Submit:
Completed applications can be emailed to Administrative Staff or submitted (mail or drop off) to our office at 2960 Kerner Blvd, San Rafael, CA 94901. The District will require additional paperwork to be signed and completed if approved. All applications must be received within 30 days from the final inspection date. Applications received after the 30-day deadline are ineligible for loan funds.
How to Calculate the Current Interest Rate:
- Click the link here: Resource Center | U.S. Department of the Treasury
- Make sure "Daily Treasury Par Yield Curve Rates" and the current year are selected.
- Look at the date of your application and the "10 Yr." rate column.
- Add 0.5%
For example, if the application was received on January 6, 2023, the 10-year treasury rate was 3.55%. Add 0.5% to that, and the effect rate is 4.05%.
Questions about permits? View our Permits page by clicking the link.
Qualification for these programs is not based on income. Most applicants are eligible for funding.
The following are disqualifying factors:
- Capital Improvement Projects where the lower lateral has been replaced by the District.
- Common lateral connections with a neighboring property. Click the link for information on common laterals.
- Partial work such as spot repairs and/or partial pressure tests.
- Unpermitted sewer work and retroactive permits.
- Submitting a late application and/or incomplete application.
In some Common Interest Developments (CIDs), the Homeowners’ Association (HOA) has assumed responsibility to maintain all private sewer laterals. CIDs must comply with the Ordinance by January 30, 2024, for all laterals under their responsibility.
Grant Funding
Maximum grant funding for HOA's shall be one grant award per sewer lateral connection to the sewer main, regardless of the number of units that the sewer lateral serves. In cases where the HOA has not assumed responsibility, the individual property owners are eligible to apply.
Loan Funding
HOA's cannot apply for loan funding as payments are collected through the semi-annual property tax bill as a special assessment. In cases where the HOA has not assumed responsibility, the individual property owners are eligible to apply.
Questions about HOA compliance? View our Compliance page by clicking the link.