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

The Ohio Water Pollution Control Loan Fund (WPCLF), in partnership with local health districts, provides financial assistance to individual property owners for the repair or replacement of failing household sewage treatment systems (HSTS), also known as on lot systems or septic systems. This funding reduces the overall cost of the improvements for the property owner and helps ensure effective wastewater treatment.

The WPCLF program offers principal forgiveness loans to Local Health Districts (LHDs) to assist homeowners with failing HSTS. Principal forgiveness loans are grant-like funds and do not require repayment. Since 2016, Ohio EPA has awarded over $112 million to LHDs which have repaired or replaced more than 5,800 HSTS statewide.

Through the HSTS principal forgiveness program, 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 structures.

Basics

Awards to Local Health Districts (LHD) typically range from $50,000 to $150,000 per year. 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.

How does the program work?

WPCLF program allocates funds with participating local and county health departments (LHD) to administer the HSTS repair/replacement program. Homeowners request assistance directly from the LHD's. The LHD's hire contractors to perform the repair or replacement improvements. 

Generally, any repair or complete replacement of a failing HSTS is eligible for the program. This work may also include installing a private service lateral, connecting it to an existing, publicly owned sanitary sewer, and then abandoning the failed HSTS. 

How does a homeowner participate in the program?

Homeowners interested in this funding should check with their local health district to see if they participate in the WPCLF program. The homeowner will work with the local health district to request assistance. The LHD advertises for contractors to perform the work needed at each property. Once all permitting and prework certifications are in-place the LHD issues a notice to proceed. The contractor and LHD will coordinate with the property owner during the onsite work and to collect payment for the homeowner's portion of the project costs, if applicable (See Homeowner Eligibility section above). 

HSTS Funding through the WPCLF

HSTS funding information as of July 31, 2025

Summary of HSTS Results

HSTS program results as of July 31, 2025