Sewer Assistance Program
Direct Grants and Deferred No Interest Loans
The Springfield City Council has authorized Community Development Block Grant Funds and General Funds to defray the cost of Sanitary Sewer Installation and Connection for low and moderate income families. This pamphlet describes what assistance is available, helps you determine if your family might be eligible, and tells you how to apply or get additional information.
Types of Assistance Available
Two types of assistance will be available:
- A deferred no interest sewer connection loan is available to assist you in paying for connecting your house to the sewer system. The loan does not have to be repaid until the property is sold or transferred. You will be required to connect your house to the sewer system before a special assessment grant will be made on the property.
- A direct grant will be available to offset the tax bill that will be paid for by a grant is determined by your family size and income.
Final determination of eligibility will be made by the Planning and Development Department. Eligibility will be based on the following criteria:
- You must own and occupy the property to be assisted.
- First, determine the number of persons in your household. Second, calculate your adjusted annual household income by taking your annual gross income and subtracting the medical expenses, not covered by insurance, which is in excess of 3% of your gross income. Find the number of persons in the household on the Schedule and compare this with the income figure reported on the Schedule. This will give you your percentage of eligibility.
The Jones family has 4 persons in their household and have an annual gross income of $30,000 and the medical expenses not covered by insurance are $3,000. Three percent(3%) of $30,000 equals $900. Therefore, the Joneses are allowed to deduct $2,100 from their household income to arrive at the adjusted income of $27,900.
($30,000 gross household income minus unreimbursed medical expenses in excess of 3% of income, or $2,100, equals $27,900).
The Joneses would be eligible for 93% assistance.
Liquid Asset Limitation
In addition to the income limitations above, Liquid Assets held by the Family shall not exceed $20,000 when the head of the household is less than 62 years of age and $40,000 when the head of the household is 62 years of age or older.
The term "Liquid Assets" means Bank or Savings Accounts, Stock, Bonds, Certificates of Deposits or any other Assets which may be readily converted to cash.
Restrictions Placed on Property?
If you receive a grant or loan, a lien will be placed on your property. The lien will continue for five (5) years in the case of a grant or until the loan is repaid in case of a sewer connection. If you sell or convey your property while the lien is in effect, you will be required to pay the remaining balance of your loan and a certain portion of the grant you received within thirty (30) days of the land transfer.
If you want to subdivide your property while the lien is in effect, that part of the grant or loan applicable to the newly created lot(s) or tract(s) independently meet the eligibility requirements.
How to Apply
After the sewer is completed in your area, you will be sent a letter billing you for the installation of the sewer. You will have ninety (90) days from the date you are billed to file an application with the Planning and Development Department, Grants and Program Implementation Division for a grant to pay for all or part of the sewer assessment charge. GRANTS DO NOT HAVE TO BE REPAID UNLESS YOU SELL YOUR PROPERTY WITHIN A FIVE (5) YEAR PERIOD. You will have ninety (90) days from the billing to apply for a loan to pay for the cost to connect the sewer to your residence. Applications will be processed by the Planning and Development Department, Grants and Program Implementation Division.