Financial Resources for Cesspool Conversion

Federal Programs for Financial Assistance

    • Provides loans and grants to low-income homeowners in rural areas for necessary repairs, including those related to water and waste disposal systems

    • Also known as Section 504 Home Repair Program

    • Apply via the USDA website

    • More details on this info sheet

    • Please contact info@waicleanwater.org for questions or assistance

  • 502 & 504 Single Family Housing: 

    Direct Loan Program
    • Income restrictions
    • Online Assessment tool

    Repair Loans & Grants
    • 62 years or older
    • Low-income only 
    • 20 year loan 
    • $40k max with 1% interest rate
    • Grants up to $10k

    Eligible area - unshaded (see map above)
    • www.rd.usda.gov/programs-services
    • WAI can assist with application

    USDA Rural Decentralized Water System Grant Program (DWS):
    • Grant funds for non-profits to establish a Revolving Loan Fund for cesspool conversions
    • Loan terms: 1% fixed interest rate, 20-year maximum term, $15,000 maximum loan per household
    • Eligibility: All of Maui

    USDA Water & Waste Disposal Loan & Grant Program
    • Funding for clean and reliable drinking water, sewage disposal, solid waste disposal, and stormwater drainage
    • Eligible areas: Rural areas and towns with populations of 10,000 or fewer

  • Veterans Affairs Home Loans
    • Provided by private lenders. VA guarantees a portion of the loan, for veterans
    • VA accepts cesspool conversions for lending purposes in Hawaiʻi

Hawaiʻi Programs for Financial Assistance

  • In March 2023, the DOH launched a program that aims to help support the financial burden of low- and moderate-income property owners in converting, upgrading, or connecting their cesspools to a more environmentally friendly wastewater management system.

    Due to the limited amount of applicants that can take part in the pilot program and the long waitlist, the DOH is no longer receiving applications for the grant program. WAI advocated for the renewal of this program under Act 153 during the 2024 Legislative Session- however the bill did not pass. WAI is working hard to develop a new bill for the next session in hopes that the legislature will fund the program again next year.

    Under this program, eligible recipients can receive up to $20,000 in reimbursements for their conversion or connection costs incurred. The total grant program is $5 million, which will be allocated on a first-come, first-served basis, subject to funding availability. The priority of an application will be determined by its submission date.

    ELIGIBILITY

    To be eligible for this grant, applicants must:

    A) Be an owner of real property or a Department of Hawaiian Homelands (DHHL) lessee

    B) Have the subject cesspool located in either a priority level 1 or 2 using DOH’s map. Note: Properties within a highlighted red zone are eligible to apply.

    C) Meet the household income requirements outlined within the attached document. 

    APPLICATION REQUIREMENTS

    If you meet all the eligibility criteria, complete and submit an application to any DOH office, but if mailing, application must be sent to: Department of Health Wastewater Branch on Oahu.

    Address: State of Hawaiʻi, Wastewater Branch, 2827 Waimano Home Road, Ste 207, Pearl City, Hawaiʻi  96782

    APPLICATION PROCESS

    The Department staff will review and process the application, then notify the applicant roughly a month after receiving as to whether or not they are eligible to receive the grant.

    If your application is accepted, you will be required to submit the following documents within 9 months of receiving grant qualification letter:

    1) Design plans prepared by a licensed engineer 2) Engineers final construction inspection report 3) Copy of Approval-to-use letter of Wastewater System 4) Receipts of payments made to the licensed engineer or contractor 

    WAI is really excited about this opportunity that will support homeowners with the conversion of cesspools and provide assistance to those in greatest need. Check out our 1 pager here.

    APPLY HERE

  • Community Development Block Grant - Hawaiʻi Island, Kauaʻi, Maui
    • Funds allocated to Hawaiʻi Island, Kaua’i, and Maui counties via Requests for Proposals (RFPs) from the community
    • Potential use of funds for decentralized cluster wastewater systems like Orenco Prelos system
    • Low/moderate income households
    • Annually, the U.S. Department of Housing and Urban Development (HUD) allocates approximately $2,000,000 in federal funds to the County of Maui

  • Council for Native Hawaiian Advancement (CNHA) Loan Fund
    • Hawaiian Homestead Construction Renovation Loan ranges from $35,000 to $500,000 
    • Home Repair Loan ranges from $10,000 to $35,000