Basic Requirement

If the property will be served by a community water and/or sewage disposal system, VA must be satisfied that the type of system and organization will provide adequate, continuous service at reasonable rates. 

The water supply must be sufficient in size for the project.  The quality of the water must be approved by the local or State health officials. 

The sewage system must also be adequate in size and properly operated and maintained so as to prevent it from becoming obnoxious or a menace to public health.

Documentation Required

For properties appraised as existing or new construction, the only requirement is evidence of approval of the facilities by the appropriate State or local public utility and health authorities.

For properties appraised as proposed or under construction, the VA field station will review the following documentation:

·   evidence of the financial stability and technical experience of the corporation, firm or organization operating the facilities

·   evidence of approval of the facilities by the appropriate State or local public utility and health authorities, and

·   rates for the water supply and/or sewage disposal systems (to ensure that they are not greater than the charges for like services to properties similarly situated).

When a Trust Deed is Required

The trust deed will be designed and established to ensure satisfactory control and adequate protective measures if the State Board of Health, Public Utility Commission, or similar State authority does not

·   enforce compliance with its requirements

·   fix rates, or

·   provide for prompt relief in case of deficient operations or service or exorbitant rates.