HUD no longer maintain list of approved systems. The appraiser must note on the
URAR the name of the community system(s). The lender is responsible to ensure the
community system(s) are licensed and adequate to service the property.
Individual Sewage Systems
For properties that cannot connect to a public system and are served by an individual sewage system that is acceptable to the local health authority, the system is then acceptable to HUD/FHA. This includes numerous types of sewage systems including cesspools, individual pit privies, and mound systems.
Certifications are only required if the appraiser suspects a problem with the system, or problems are customary in the area. In those instances, the appraiser is to condition for a certification by the local health authority, a licensed sanitarian or an individual determined to be qualified by the DE Underwriter.
Appraiser’s site sketch should indicate approximate location of individual systems and leach fields. See the section of this manual titled .
For distances between water sources and sewage, see HUD Handbook 4150.2 Section 3-6 and CFR 200.926d.
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Community Water System - Is a central system, owned, operated and maintained by a private corporation or a non-profit property owners association. HUD no longer maintain list of approved systems.
1. If on community water, the appraiser must note on the URAR the name of the
water company. The lender is responsible to ensure the community system(s) are
licensed and adequate to service the property.
B. Individual Water Systems
Refer to the section of this guide titled Utilities, , to see when connection to a public or community system is required. HUD Handbook 4905.1 REV-1, 2-5.B.2 and 4150.2
Individual water supply systems (wells) may be acceptable when connection to a public or community water system is not available and there is
Copy Printed: REVISION I
02/16/0222 Revision Effective: 05-30-00