Public Sewer Connection: Feasibility

[Mark K]

BTW, there's quite a few homes in this area that have a sewer line running in front of their home but are not able/allowed to connect. Some of these lines are pressurized lines that run from a lift station to gravity line/manhole down the road, sometimes as far as a mile away. Just because there's a sewer line at the road doesn't automatically mean its 'available'. Our GIS shows sewer lines but you have to call the dept of public works to find out if its 'available' to the site.

 

[Tom4value]

Many municipalites have server and water maps as to where those services are currently available. Also, you can look up the availability of public (sometimes private) sewer and water, natural gas, garbage and power company. If a county webpage does not have that info, the service provider will. So you just need to find out if any of those services are available and report that. For instance, Sewer and water pipe are within X feet of the subject property. Or there are no services readily accessible to the subject property. What no water/sewer/garable/whatever company? Report that. Can't be feasible if not available. The only exception to this is if the connection to public sewer and water is required on deed transfer. Then feasibly is moot.

Correct! That is exactly what I do!

 

[Zoe]

That investor that owned the home he was selling was in unincorporated area when it was built. The City of Bartlett had incorporated it a long time before my appraisal. City of Bartlett has some of the strictest rules relative to building code.

When I told him what the city had told me, he got upset and said what will that cost me? I said Sir, I don't know. That is not my area of expertise. I am sure City of Bartlett knows many contractors you could contact or you can search for some licensed and bonded contractors by yourself.

They will have to pull a permit with the City of Bartlett before you can sell this house Sir. You will have to connect to public sewer.

Of course he was not my client. I didn't discuss anything else with him.

 

[Sadie]

No where did it say the appraiser has to determine if it is feasible. Also, your sources are dated and have been replaced with the 4000.1 handbook.

The requirement is now to report "The Appraiser must report on the availability of public sewer to the site." Its a little different for MH

 

[RSW]

The requirement is now to report "The Appraiser must report on the availability of public sewer to the site." Its a little different for MH

I completely agree which is what I said in a prior post.

 

[Sadie]

I completely agree which is what I said in a prior post.

Ok, we all agree. Life is good.

 

[Terrel L. Shields]

pressurized lines that run from a lift station to gravity line/manhole down the road

I had to explain to a client-owner that he would have to pave under a road and build a pump station to get to the sewer a quarter mile away. The pump station on his side was a dedicated station paid for by federal funds to serve an elementary school. It could not be hooked onto for 25 years. Same with their water tap.

 

[ZZGAMAZZ]

One of the last R/W appraisals I completed involved C2C due to the new R/W encroaching into the septic finger system. Sewers were available at the street but the house was lower in elevation than the sewers.
Cost: Private lift station cost plus installation including electric for the pump and physical connection to the main line, $28,000. Abandon septic tank, pump and fill with sand, $1,500, Connection fee to municipality $5,600, landscaping and lawn repair, $2,500. Ballpark of $38,000 to connect for a $150K house. Yes, the state paid the cost.

Just because there are sewers at the street doesn't mean that it is financially feasible to connect.

Why did the state pay the cost? Did you mean to say "Estate"? Thanks.

 

[ZZGAMAZZ]

You do have to address the feasibility of connecting to public sewer and water. It can be done in a singe sentence. By address feasiblity I mean, report where/if there is infrastructure to support connection, not actual cost.

here ya go: "
B. Individual Sewage Systems:

1. Individual sewage systems may be acceptable when the cost to connect to a public or community sewage system is not reasonable as defined by the lender.
   • a) 3% or less of the estimated value of the property is the suggested benchmark.b) The lender is responsible for determining if connection is feasible.
2. If the property cannot be connected to a public system, FHA will accept individual sewage systems that are acceptable to the local health authorities. This includes numerous types of sewage systems including cesspools, individual pit privies, and mound systems.
3. Inspection and/or testing is not automatically required, but is required when such actions are customary in the area, when the appraiser suspects a problem with the system, or problems are common in the area. In these instances, the appraiser is to condition for a certification by a professional such as the local health authority, a licensed sanitarian or an individual determined to be qualified by the DE Underwriter.
   • a) FHA does not require the lender to submit evidence or documentation in the case binder that the state or local jurisdiction requires a test or inspection.
4. For distances between water sources and sewage, required for new construction, please see HUD Handbook 4150.2 Section 3-6 and CFR 200.926d.

References: 4905.1 Rev-1, 4150.2 Section 3-6 and Mortgagee Letter 2005-48."

If the reasonableness of connecting is the lender requirement, how does the appraiser know whether to conduct the assignment As Is or Subject To? Is an EA needed that the lender will make the correct decision????????????

 

[ZZGAMAZZ]

I completely agree which is what I said in a prior post.

I always give myself a "Like" for my posts that are especially erudite, IMNSHO !!!!!!!!!!!!!!!!!!! lol