R317-101-5. Financial Assistance For Onsite Wastewater Systems

  A. Replacement or repair of Onsite Wastewater Systems (OWS), as defined in Section R317-4-2, are eligible for funding if they have malfunctioned or are in non-compliance with state administrative rules or local regulations governing the same.

  1. Funding will only be made for the repair or replacement of existing malfunctioning OWS when the malfunction is not attributable to inadequate system operation and maintenance.

  2. The Executive Secretary, or another whom the Board may designate, will authorize and execute OWS grant agreements and loan agreements with the applicant for a wastewater project as defined by Subsection R317-101-2.C.

  3. OWS funding recipients must have a total household income no greater than 150% of the state median adjusted gross household income, as determined from the Utah Tax Commission's most recently published data or other means testing as approved by the Executive Secretary.

  4. Eligible activities under the OWS Financial Assistance program include:

  a. septic tank;

  b. absorption system;

  c. building sewer;

  d. appurtenant facilities

  e. conventional or alternative OWS;

  f. connection of the residence to an existing centralized sewer system, including connection or hook-up fees, if this is determined to be the best means of resolving the failure of an OWS; and

  g. costs for construction, permits, legal work, engineering, and administration.

  5. Ineligible project components include:

  a. land;

  b. interior plumbing components;

  c. impact fees, if connecting to a centralized sewer system is determined to be the best means of resolving the failure of an OWS;

  d. OWS for new homes or developments; and

  e. OWS operation and maintenance.

  6. The local health department will certify the completion of the project to the Division.

  7. To be reimbursed for project expenditures the borrower must solicit bids for the work, maintain and submit invoices, financial records, or receipts that document the expenditures or costs.

  B. The following procedures apply to OWS loans:

  1. OWS loan applications will be received by the local health department which will evaluate the need, priority, eligibility and technical feasibility of each project. The local health department will issue a certificate of qualification (COQ) for projects which qualify for a OWS loan. The COQ and completed loan application will be forwarded to the Division for its review;

  2. the maximum term of the OWS loan will be 10 years;

  3. the interest rate of OWS loans may be between 0% and 60% of the interest rate on a 30-year U.S. Treasury bill;

  4. security conditions for OWS loans:

  a. the borrower must adequately secure the loan with real property or other appropriate security; and

  b. the ratio of the loan amount to the value of the pledged security must not be greater than 70%;

  5. OWS loan recipients will be billed for monthly payments of principal and interest beginning 60 days after execution of the loan agreement;

  6. the OWS loan must be paid in full at the time the property served by the project is sold or transferred; and

  7. the Division, or its designee, will evaluate the financial aspects of the project and the credit worthiness of the applicant.

  C. The following procedures apply to OWS grants:

  OWS grants may be made to recipients that are unable to secure a loan but are otherwise eligible for funding as identified in Subsection R317-101-5.A.4.