Financial Resources

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Financial Resources Financial Resources for the Replacement and Management of Household Sewage Treatment Systems

American Recovery and Reinvestment Act for Repair or Replacement of Failing Home Sewage Systems

The Ohio Department of Health (ODH) and the Ohio Environmental Protection Agency (OEPA) are pleased to announce the availability of a cost-share financial assistance program for the repair and replacement of failing home sewage treatment systems with funds from the American Recovery and Reinvestment Act (ARRA). ARRA, also known as the federal stimulus bill, was signed into law on February 17, 2009. The Ohio Water Pollution Control Loan Fund (WPCLF) has been designated to deliver approximately $220.6 million of the stimulus funds for water pollution control projects. For more information on the WPCLF, visit the OEPA Division of Financial Assistance online. A comprehensive look at ARRA funds for Ohio can be found at www.Recovery.Ohio.gov. ARRA funds, distributed through the WPCLF, will provide up to five (5) million dollars for the replacement or repair of failing sewage systems. Ohio homeowners whose household earnings do not exceed 200% of the Federal Income Poverty Level may qualify for this program.

The Ohio Environmental Protection Agency will be administering this program through counties, municipalities or regional water and sewer districts as local applicants for the grant project. ODH will facilitate and assist promoting the program with local health districts. Local health districts will work with local applicants to determine eligibility and installation requirements. Local project nomination forms and guidance documents can be accessed from the OEPA and ODH website.

2009 American Recovery and Reinvestment Act (ARRA) Fund Forms

Below are links to the forms and information necessary for each responsible local government agency to apply for the cost-share financial assistance program through ARRA.

ARRA HSTS Program Fact Sheet
Regulations & Forms To Be Included with Contract Documents - General Water Pollution Control Loan Fund (WPCLF) and Water Supply Revolving Loan Account (WSRLA) contract requirements.
Minimum Contractor Bonding Requirements
Database of ARRA Funds Awarded ARRA
Q&A and Conference Call Notes from Sept. 15, 2009
Q&A compiled from June 25 and 30, 2009 conference calls
Water Pollution Control Loan Fund Exhibit 3 Special Conditions of ARRA – special conditions related to ARRA/ WPCLF assistance.
ARRA Buy American Requirements – this document explains section 1605 of ARRA that requires that all iron, steel, and manufactured goods used in a project receiving stimulus funds must be produced in the United States.
How to Post Job Opportunities on OhioMeansJobs.com – Governor Ted Strickland has required that all jobs created with ARRA dollars be posted on OhioMeansJobs.com and with the closest county department of job and family services One-Stop center.
ARRA and the DavisBacon Act – This applies to contractors and subcontractors: if any part of a project receives ARRA funds, the whole project is subject to the Davis-Bacon provisions.

WPCLF (Water Pollution Control Loan Fund)

These funds are available from the Ohio EPA Division of Environmental and Financial Assistance (DEFA) for projects that address water quality or public health problems. There are a variety of other funding opportunities available through DEFA.

Onsite Management Programs:

USEPA is allowing the use of these funds to cover startup costs associated with establishing onsite management programs. Local health districts or other local government agencies, or water and sewer districts may apply to DEFA for use of the WPCLF funds to establish local onsite management programs.

Linked Deposit Program:

Linked Deposit Loan Programs are also available for funding onsite system replacements and sewer connections. In general, linked deposits are available to private organizations (banks) and individuals for funding the repair/replacement of failing systems identified by local health districts. What makes linked deposits different from a loan for nonpoint source activities is instead of borrowing directly from the Fund, a linked deposit loan is made to the applicant by a private lending institution at a below-market interest rate. The interest rate for the loan is supported by a WPCLF-funded certificate of deposit with the lender. Local health districts must develop a management plan for sewage systems and enter into a memorandum of agreement with Ohio EPA. Participating banks are identified and enter into an agreement to loan funds at below market rates to qualified applicants.

WPCLF Loans for Nonpoint Source Activities (System Repair and Replacement):

WPCLF loans for eligible nonpoint source activities are available to both public entities (Villages, Cities, Counties, and Sewer Districts) and private entities (e.g. non-profit organizations, private companies, individuals, etc.). With this type of loan, an application would be made by a public or private entity to fund the repair and/or replacement of failing sewage systems. The public or private entity would establish and identify a mechanism for repayment of the loan using mechanisms such as monthly fees or tax assessments paid by the system owner. Nonpoint source loans typically involve planning, design and implementation processes. Contact Ohio EPA, DEFA staff for more information.

Ohio EPA, DEFA Water Pollution Control Loan Fund website

Ohio DEFA Contact: (614) 644-2798

CDBG (Community Development Block Grant Funds):

CDBG funds are not allocated specifically for household sewage system replacement, but have been utilized in some Ohio jurisdictions for the abatement of sewage nuisance conditions. Funds are generally limited to repair or replacement of failing systems, but have also been used for system abandonment and access to public sewer. Eligible applicants usually must income qualify and be owner/occupants.

CDBG Contact: Your Local Board of County Commissioners

CHIP (Community Housing Improvement Program):

CHIP funds may be available in eligible jurisdictions. Applicants can apply for funds to address housing problems that will cover improvements to assure a safe and healthy environment, including the repair or replacement of a failing household sewage system.

CHIP Contact: Your Local Board of County Commissioners

USDA - Rural Housing and Rural Utilities Programs:

USDA funding is available to both property owners seeking grants or low interest loans for repair or replacement of failing sewage systems through the Rural Housing Service program under 502 Direct Loans and 504 Repair Loans and Grants. The pdf files below provide the brochures for these programs. Please contact either the state or district office below for more information.

The Rural Utilities Service also provides funds to and eligible rural jurisdictions for public sewer projects to serve neighborhoods with a significant number of failing systems (Water and Wastewater Disposal Loans and Grants).

Ohio 502 Loans and 504 Repair Loans and Grants

USDA Rural Housing Service webpage

USDA Rural Utilities Service webpage

USDA Contact:

State Office: (614) 255-2500

NE Office - Massillon (330) 830-7700

SE Office - Marietta (740) 373-7113

SW Office - Hillsboro (937) 393-0920

NW Office - Findlay (419) 422-0242

Housing and Urban Development (HUD):

The federal HUD program may also be used to provide low interest loans to homeowners for the repair and rehabilitation of homes, and these costs may also be included as part of the home purchase depending on the final appraised value. Please contact the district HUD office below for more information.

Cincinnati: (513) 684-3451

Cleveland: (216) 522-4058

Columbus: (614) 469-5737

HUD website

Last updated 10/01/09