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Topic 19. Community Water Supply/Sewage Disposal Requirements
March 28, 2019
This Chapter has been revised in its entirety.
a. Community Water/Sewer to be Noted in an Appraisal
A community water/sewage system refers to a central system that is owned, operated, and maintained by a private corporation or a nonprofit property owners’ association. The appraiser must note that the property is on a community water/sewage system in the appraisal report.
b. Sufficient Water Supply
The water supply must be sufficient in size for the project. Water quality must be approved by the local or state health authority.
c. Adequate Size Sewage System
The sewage system must be adequate in size and properly operated and maintained to prevent it from becoming a menace to public health.
d. Local/State Authority Approval
The lender must obtain evidence of approval of the facilities by the local or state health authority.
e. Trust Deed
A trust deed is required if the local or state authority that approved the system does not:
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enforce compliance with its requirements,
fix rates, and
provide for prompt relief in case of deficient operation, service, or exorbitant rates.
f. Trust Deed for Private System
If a trust deed is required for a privately-owned system, it should be similar to the trust deed found in HUD Handbook 4075.12.