VA Lenders Handbook (VA Pamphlet 26-7), Chapter 12, Topic 19 — Community Water Supply/Sewage Disposal Requirements

VA Lenders Handbook (VA Pamphlet 26-7), Chapter 12, Topic 19 — Community Water Supply/Sewage Disposal Requirements

19. Community Water Supply/Sewage Disposal Requirements Change Date 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: • 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. VA Pamphlet 26-7, Revised Chapter 12: Minimum Property Requirements 12-27

Source: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 12, Topic 19 — Community Water Supply/Sewage Disposal Requirements · source URL · snapshot 824171a914866a59