Halifax Water looking to introduce loan program to get the lead out
Paul Withers | CBC News | Posted: October 25, 2017 8:51 PM | Last Updated: October 25, 2017
Up to 15,000 homeowners have private lateral lead service lines running under their properties
Halifax Water is asking the Nova Scotia Utility and Review Board for the authority to lend homeowners up to $10,000 to replace lead water service pipes on their property.
It's the latest step by the utility to tackle the issue in a city with up to 15,000 private lateral lead service lines, mostly in homes on peninsular Halifax and in old Dartmouth.
"What we are trying to do is break down as many barriers as possible that prohibits homeowners from taking advantage of replacements, because it's in their interests and our interest to see those old defective lines being replaced," said Carl Yates, Halifax Water's general manager.
The proposed five-year loan would carry an interest rate of prime plus two per cent and would be secured by a lien on the property. The maximum loan would be $10,000.
In August, the utility launched a subsidy program that covered 25 per cent — up to $2,500 — of the cost of replacing lead pipes.
Pending regulatory approval, the new program would be offered, which would allow both programs to be used in conjunction with each other.
In its application to regulators, Halifax Water said it's responding to a reality that "many customers have difficulty or are simply unable to deal with unanticipated out-of-pocket expenses regarding the private portion of laterals."
In addition to lead service lines, Halifax Water wants its financing option available for other replacements, such as the private portion of defective sewer lines and leaking water service lines.
Halifax Water acknowledges it will be more cost effective for customers to pay for a lateral line replacement directly or arrange their own financing. It forecasts 26 loans per year for the next five years.
It says it will not have to go to ratepayers to pay for the loan program, which would have an annual program cap of $200,000.
Homeowners are not obliged to replace lead water service pipes, but it is recommended by the utility.
"We want to protect the residents that we deliver drinking water to and most residents want to protect themselves. In particular, this is a health hazard for families with young children," said Yates.
Program conditions
Only registered property owners are eligible for financing. Outstanding balances on any loan must be paid in full at the time of a property sale, unless there is an agreement to transfer the lien to the new owner.
Pending approval by the board, the loan program will go into effect in the spring of 2018.