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Grants & Loans
The District offers grant and loan funding to property owners requiring sewer work. Prior to performing work, property owners must review both programs; Individuals may only apply for one program.
Please note the application process differs.
See below tabs 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 that have received an official "Notice to Repair" from the District.
• Properties in high inflow & infiltration basins predetermined by the District.
• Properties affected by upcoming municipal paving projects.
• Properties performing work within a road moratorium street.
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 Application (click the link to download).
- Paid-in-full invoice from your licensed contractor.
- ACH Payment Authorization Form with VOID check attached.
- Signed W-9 Form. (Not required for HOAs with a Taxpayer Identification Number).
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
Complete applications can be mailed in or dropped off to our office location at 2960 Kerner Blvd, San Rafael, CA 94901. All applications must be received within 180 days from the District 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. 75 on August 16, 2023, amending the framework and guidelines for the Loan Program to assist ratepayers with the cost of replacing their private sewer laterals and converting from septic-to-sewer systems. Click the link to read Ordinance No. 75.
Loan Funding
The District offers low-interest loans up to $25,000 to replace your private sewer lateral, or up to $50,000 for septic-to-sewer conversions.
If funding is approved, the District pays the contractor directly. Repayment is then collected through the semi-annual property tax bills as a special assessment over a 10-year period. The annual interest rate is 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. If you intend to sell your property before the 10-year repayment period, you must pay the remaining balance. Owners may also choose to pay the loan off in advance.
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 the District final inspection, you will have 30 days to apply. If approved, documentation and payment can take 6 to 8 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 Application (click the link to download).
- Signed Notice of Completion.
- Final Itemized Invoice.
If approved, the owner(s) listed on the property title must complete a Contractual Assessment Agreement for recording with the County. A $25 recording fee will be added to the principal amount of the loan.
How to Submit
Complete applications can be emailed to Administrative Staff, mailed in, or dropped off at 2960 Kerner Blvd, San Rafael, CA 94901. If approved, the owner(s) must complete additional paperwork. All applications must be received within 30 days from District final inspection. Applications received after the 30-day deadline are ineligible for loan funds.
How to Calculate the Current Interest Rate
- Click the link: 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. Click here for information on common laterals.
- Partial work such as spot repairs and/or partial pressure tests.
- Unpermitted sewer work and/or incomplete permit applications.
- Submitting a late 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, and no more than 50 percent of the total replacement cost. 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.