Division of Environmental and Financial Assistance

Home Sewage Treatment Systems (HSTS)

Promoting water quality benefits by providing financing through local health departments for the upgrade and repair of HSTS.

This map represents all HSTS awards from 2009–2019. 81 counties participating. Colors represent
Ohio EPA district dffices. Click to enlarge.


Ohio EPA offers three options for directing funding assistance to homeowners for improvements to failing home sewage treatment systems (HSTS):

1) Development of a “linked deposit” program; 
2) Local loan capitalization program; and
3) Principal Forgiveness loans to Local Health Districts (LHDs).  

Because the principal forgiveness loans are like grant funds, it is the most popular of the three options. Since 2016, Ohio EPA has awarded almost $50 million to Ohio LHDs for them to administer to eligible homeowners.

Through the principal forgiveness program, the LHDs set priorities and identify income-eligible residents (100%, 200% and 300% of the Health and Human Services poverty guidelines) with failing HSTS. This program is for homeowners only and is not intended for commercial applications.



Awards to LHDs range from $150,000 to $300,000 per year. For 2019, the maximum is $150,000. Up to three percent of the award amount can be used for administrative expenses. LHDs have 18 months to draw the funds from the loan.

For existing systems, funds may be used for repairs, replacements and lateral connections. For new systems, funds may be used for site evaluation, design and some permitting costs.

LHD Responsibilities

  • Nominate projects during August nomination period.
  • Bid and award contracts, inspect work.
  • Receive funds and pay contractors.
  • Maintain records of all transactions, and keep supporting documentation on hand.

Homeowner Eligibility

Homeowners can qualify for up to 100 percent as principal forgiveness. No minimum or maximum amounts per household.

Less than 100% of the HHS Poverty Guideline 100% PF to homeowner
Between 100% - 200% HHS Poverty Guideline 85% PF to homeowner
Between 200% - 300% HHS Poverty Guideline 50% PF to homeowner


HSTS Funding through the WPCLF

Year Funding Available Funds Awarded Funds Disbursed Number of Health Districts
2016 $13.2 million $13,298,500 $10,105,987 57
2017 $13.2 million $13,169,600 $9,655,473 51
2018 $13.2 million $13,431,600 $10,941,307 72
2019 $10.3 million $10,194,000 $8,409,486 71
2020 $10.8 million $10,825,000 $2,604,380 75
Totals (to date) $60.7 million $60,918,700 $41,716,633  


Summary of HSTS Results

Funding Year Soil Evaluations Repairs Completed Replacements Installed Lateral Connections
2016 802 261 763  
2017 724 158 643 94
2018 842 87 743 114
2019 519 108 563 50
2020 161 29 181 35
Totals 3,048 643 2,893 293


Interest Rates

The following interest rates will be in effect in October 2021
WPCLF/WSRLA Standard Entity  0.48% 
WPCLF Small Systems 0.24% 
WSRLA Small Systems 0.24%
WPCLF Hardship Community  1% or 0% 
WPCLF Local Loan Capitalization Program (10 years) 0% 
WPCLF/WSRLA Linked Deposit  Refer to the Program Management Plan 
Note: WPCLF/WSRLA construction loans are typically for 20 years, unless noted in the PMP. Shorter term planning and design loans are available. 


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