Public Water Connection

[NJ Valuator]

Subject has well water. Public water is available. What is the latest FHA protocol and where in the handbook is it referenced? Thanks in advance.

 

[Larry Phillips]

Subject has well water. Public water is available. What is the latest FHA protocol and where in the handbook is it referenced? Thanks in advance.

Good morning: 4150.2
"Individual Water Supply and Sewage Systems
Identify the type of utilities in the site section of the appraisal report. When water and sewer are
private, ... The appraiser is also required to report on the availability of connection to public and/or community water/sewer systems.
The lender is responsible for the determination of the feasibility for requiring connection."
It will save time to discover and report the cost of connection to public water, and feasibility (easement issues that may prevent connection) of connection. Best regards.

 

[NJ Valuator]

Good morning: 4150.2
"Individual Water Supply and Sewage Systems
Identify the type of utilities in the site section of the appraisal report. When water and sewer are
private, ... The appraiser is also required to report on the availability of connection to public and/or community water/sewer systems.
The lender is responsible for the determination of the feasibility for requiring connection."
It will save time to discover and report the cost of connection to public water, and feasibility (easement issues that may prevent connection) of connection. Best regards.

good morning. does Handbook 4000.1 have the same protocol?

 

[Tom D]

Yes in distance relation to a septic system. In your case you need to determine the cost to connect to public, usually price per linear ft. Depending on the cost, the underwriter can say it's not cost effective, and waive it. You just have to note it.

 

[NJ Valuator]

Yes in distance relation to a septic system. In your case you need to determine the cost to connect to public, usually price per linear ft. Depending on the cost, the underwriter can say it's not cost effective, and waive it. You just have to note it.

no septic here, but thanks for the heads up.