Lateral Loan Program

Lateral Loan Program

Program Time Frame: March 16, 2016 – December 31, 2022

Program Area: Homes in Avon Lake needing to remove clean water sources from sanitary laterals

Program Incentive: Low-interest loan payable over 10 years


To comply with federal mandates (failure to do so will result in large fines), Avon Lake’s combined sewers are being separated. This entails separation within the public right of way (the responsibility of Avon Lake Regional Water) and separation on private property (the responsibility of the homeowner or another private party).

Approximately 3,000 homes in Avon Lake have been identified that might need separate laterals. In 2013, Avon Lake Regional Water began notifying residents about this requirement. As of February 2018, more than 2,600 of those homes have been inspected. Of the homes inspected, approximately one-third are found to be in compliance. The remainder needs work completed in order to achieve compliance. Many people have already completed the work, and their homes are now in compliance. However, a large percentage has not. In addition to these 3,000 homes, there are other homes in Avon Lake that may similarly need to have clean water sources removed from the sanitary laterals.

There are a variety of reasons why people have not completed the separation required on their properties. Some have stated that they do not have the money available to do it. In order to help these individuals achieve compliance, Avon Lake Regional Water established a loan program in 2016 to provide the money these homeowners need to do the work and allow the money to be repaid with the water and wastewater bill over a 10-year period.

For more information on the Lateral Loan Program, Apply here or call (440) 933-6226.

Program Rules

  1. Any Avon Lake home that is discharging clean water from foundation drains, yard drains, downspouts, etc. into the same lateral that also carries sanitary wastes from the building into a combined or sanitary sewer may be considered for the loan.
  2. The homeowner or responsible party must allow Avon Lake Regional Water representatives to inspect to determine if clean water is entering the sanitary sewer and, if that is the case, after completion of the work to assure the clean water has been permanently removed from the sanitary sewer.
  3. Once it is determined that clean water must be removed, the responsible party must obtain the required Avon Lake Regional Water permit and, possibly, City Building Permit (applicable fees have been waived for permits related to this program).
  4. Up to $4,000 may be borrowed from Avon Lake Regional Water for the customer’s lateral separation project and will be paid back over a 10-year period as part of the water and wastewater bill. (Currently, bills are issued on a quarterly basis. In time, however, Avon Lake Regional Water may implement monthly billing. If this is the case, bills will be adjusted as appropriate to continue with the 10-year repayment schedule paid monthly, instead of quarterly.)
  5. Because repayment is part of the water and wastewater bill, by taking part in this loan program, customers agree and acknowledge that their water will be turned off for non-payment and that non-payment could lead to Avon Lake Regional Water turning over for collection by the county auditor any outstanding amounts due.
  6. Avon Lake Regional Water will charge a simple interest rate of 2% on the outstanding loan balance.
  7. As an incentive and in concert with the Lateral Separation Program, Avon Lake Regional Water is offering a parallel program that provides a $1,000 wastewater bill rebate for those ending up with two laterals (see program for details).
  8. Loan principal will be retired equally each year over the life of the loan. (As an example, if a customer borrows $3,000 for the project, $300 of principal will be repaid each year. With quarterly billing and a 2% simple interest rate, the first year’s interest is $60. Therefore, $360 will be divided among four quarterly bills so that the customer pays $90 per quarter for year one. For year two, $2,700 will be outstanding. The interest on $2,700 is $54. Therefore, $354 is due in year two, or $88.50 per quarter. Payments will continue until all principal has been repaid.
  9. Avon Lake Regional Water’s incentives and assistance in no way implies an acceptance of liability for the work that is undertaken or the consequences therefrom.
  10. The responsible party accepts and/or retains ownership, operation, maintenance, and replacement responsibility for anything that may be installed under this program.
  11. The incentive is eligible for residents in the project area who complete the work between March 16, 2016 and December 31, 2022.
  12. Avon Lake Regional Water shall have sole authority to determine eligibility for program participation, prioritization of requests and compliance with all requirements of the program and Avon Lake Regional Water regulations.


Q: Is the program limited to residents based on income?

A: No. All who have not yet started their project are welcome to apply.

Q: What is the lateral loan process?

A: Accepted applicants can expect the following as part of the loan process:

  • Someone from our office will call you to set up your free home inspection, if you’ve not already had yours;
  • We’ll send you a letter after your inspection letting you know if you are eligible;
  • You’ll need to get quotes from contractors and submit them to us (scan and e-mail to or mail/bring to our 201 Miller Road office);
  • You’ll schedule a meeting between you, your selected contractor and us (Avon Lake Regional Water) for pre-project get-together at your house.
  • You’ll sign and return the loan agreement. (Must be signed prior to contractor beginning work.)
  • Contractor contacts Avon Lake Regional Water for inspection(s). All projects must be inspected and approved by Avon Lake Regional Water before payment will be rendered to contractor.
  • Contractor or property owner notifies Avon Lake Regional Water once project is done or nearly so, after which loan applicant signs check release form at Avon Lake Regional Water (201 Miller Road);
  • The agreed-upon amount is sent to contractor;
  • You begin repaying your 10-year loan with your next water/wastewater bill;
  • At the same time, you’ll begin receiving your $1,000 wastewater credit, which will continue to be credited to your home’s address for the next 10 years.



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