Resolution No 17-2024 - Revised Sewer Lateral Reimbursement Program Policy

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occupied or rental. The policy also covers residential infill developments consisting of five (5) units or more, whether developed at one time or over a period of time, for infill residential housing units constructed by not-for-profit development companies or supported by low-income housing tax credits. (iii) Residential structure valuation: To target the program for low and moderate income housing, applicants will have to show proof that their project meets certain thresholds: The unit construction cost must fall at or below the Median Sale Price of Houses Sold for the Midwest Census Region (determined by the US Census Bureau and the US Department of Housing & Urban Development). By way of example, if an applicant intends to construct a three (3) unit multifamily residential structure, and the Median Sale Price in the Midwest for a new single family residential structure is $200,000 (true number will be based on the applicable census data at the time of the application), the City will permit a reimbursement for a sewer lateral expense if the construction cost of the new three (3) unit multifamily residential structure is at or below $600,000 (3 X $200,000). (iv) Ineligible locations: A greenfield site (i.e. land previously undeveloped), is not eligible for participation. Section 3: Reimbursement Amount The City will reimburse the applicant up to $20,000 per lateral for qualifying expenses. The property owner may be responsible for a portion of the project expenses and such cost share shall be outlined in the program application. Section 4: Qualified Expenses: Funding for the replacement of new sewer laterals will be provided as reimbursement to applicants who meet all the qualifications of the program. Funding may be used towards the cost of the entire sewer lateral (from the main line to the residential structure). Qualifying costs for reimbursement include labor and materials for the sewer lateral work, pavement restoration, sidewalks, curbs, and traffic control. Engineering and permitting costs are not eligible for reimbursement. In certain circumstances, existing sewer laterals can be lined as part of this program. To be considered for lining, the existing lateral must be a minimum of 6”, and it must be inspected to verify that it is in a condition suitable for lining. The applicant will be responsible for providing video of the existing lateral for Engineering review. Lateral lining will need to be approved by Engineering prior to approval of the reimbursement application. Sewer laterals not suitable for lining will need to be fully replaced. Section 5: Program Application Interested property owners will apply for the program prior to starting any construction on the sewer lateral. The application will be available on the City of South Bend’s website and will be reviewed by City staff.