Sewage Systems

Information by State  Print version

Chapter 1
Appraisal & Property Requirements
Page 1-20

A. Community Sewer Systems: HUD no longer maintains list of approved systems. It is helpful if the appraiser notes the name of the community system(s) on the appraisal report. The lender is responsible to ensure the community system(s) is licensed and capacity is adequate to service the property. The appraiser must note if public sewer is available to the subject site.

B. Individual Sewage Systems:

1. Individual sewage systems may be acceptable when the cost to connect to a public or community sewage system is not reasonable as defined by the lender.

a) 3% or less of the estimated value of the property is the suggested benchmark.
b) The lender is responsible for determining if connection is feasible.