Federal Funds Available for Septic Tank Conversion

Low-income residents who want to switch from the septic tank to the sewer may soon apply for deferred, zero-interest loans to pay for the hookup, which can cost up to $5,000, Los Angeles City Councilman Alex Padilla announced.

“This is an issue I hear from constituents about on a very regular basis,” Padilla said Friday. “There are a significant percentage of low-income residents who are still on septic tanks yet have a sewer backbone running through their community, only 50 feet away from their houses.”

The Los Angeles City Council on Wednesday unanimously approved the program that will use federal funds to provide the loans that would be repaid when the home is sold. A family of four with a household income of less than $41,000 per year would qualify.

Between $8 million and $10 million in Home Investment Partnerships funds from the U.S. Department of Housing and Urban Development, in addition to $500,000 in federal community development block grants are being used to fund the program.

The city’s Environmental Affairs Department is preparing a report exploring additional funding sources so the program can be expanded beyond low-income families, said John Lee, Padilla’s chief legislative deputy.

A total of 14,446 homes citywide are on septic tanks. Padilla expects applications to be available to residents throughout the city in a couple of weeks.