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USDA outlines loan and grant options homeowners can pursue to help pay for sewer connection
Summary
A USDA representative described single-family housing repair and loan programs that can assist homeowners with connecting to centralized sewer systems; grant eligibility and program timelines were explained and the agency warned of application delays due to federal continuing resolutions.
Laura Hammond, a USDA single-family housing specialist, told the Super District that USDA rural housing programs can help individual homeowners pay to connect to centralized sewer systems as part of its health-and-safety repairs programs.
Hammond described two main products: the Section 504 home repair program (grants and loans for repairs to eliminate health and safety hazards) and the Section 502 direct home loan program (income-based loans for home purchase and repair). She said the Section 504 grant is available only to homeowners age 62 or older who meet a "very low" income threshold (the speaker said $43,350 or less as the very-low threshold for the region). The maximum grant amount was stated as $10,000 lifetime; the maximum Section 504 loan cited was $40,000 with a 1% interest rate amortized over 20 years. For households above the "very low" but within the "low" income limit (speaker cited $69,350), the Section 504 loan at 1% amortized over 20 years may be available.
Hammond cautioned that the agency is operating under a continuing resolution that has created delays: she said there is roughly a nine-month wait list for the Section 504 home repair loan/grant program and at least a 12-month delay for the Section 502 loan program. She recommended homeowners apply early and noted that approved funding is set aside for an applicant but that USDA generally prefers funds to be expended within a year; if funds are not expended the agency must justify the unliquidated obligation.
Hammond also explained that USDA assistance can cover connection costs to a centralized sewer system but does not cover ongoing monthly sewer rates. She said district outreach materials and the district's website can include USDA program flyers, and the agency provided application packets and said staff in the Knox/Columbia City offices can help applicants.
Ending: USDA staff left flyers and application packets for distribution and recommended homeowners begin the eligibility review now because of the documented program wait list and processing delays.
