www.hudclips.org U. S. Department of Housing and Urban Development Washington, D.C. 20410-8000 July 27, 1995 OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING-FEDERAL HOUSING COMMISSIONER Mortgagee Letter 95-34 TO: ALL APPROVED MORTGAGEES SUBJECT: 1. Testing of Individual Wells Rescission of Mortgagee Letter 94-36, Clarification to Mortgagee Letter 92-18 2. On-site Well and Septic System Inspections Testing of Individual Wells Mortgagee Letter 94-36 dated July 21, 1994, is hereby rescinded. Over the past several months, the Department met with representatives from the industry and the Environmental Protection Agency (EPA) regarding Mortgagee Letter 94-36. With their assistance and cooperation, procedures for testing well water have been revised and simplified. These procedures reflect monitoring for acute contaminants, lead and, if of local concern, other contaminants. These requirements are consistent with EPA's Maximum Contaminants Levels (MCL) for these contaminants and the testing methods used are consistent with EPA's Analytical Methods for Regulated Drinking Water Contaminants (59 FR 62456 dated December 5, 1994). Additionally, the requirement for certifying new submersible pumps has been eliminated. The Water Systems Council has informed EPA that the industry has eliminated lead brass from all submersible pumps manufactured in the United States. Generally, State drinking water regulations contain both a list of test parameters and accompanying maximum content levels (MCL). The test parameters will normally include parameters with health and/or aesthetic significance. If there is a MCL for a parameter which is not satisfied, treatment of some kind is typically required. If a parameter has a MCL, it is considered important enough to apply in the determination for treatment, whether health related or not. Aesthetic parameters which are not satisfied will prohibit routine use of the water which can affect livability and pose health risks indirectly. Therefore, it is important to run all tests required and recommended by each local and State standard for private wells. If State or local standards are inadequate or non-existent, testing should be done in accordance with HUD's requirements which are based on EPA's Recommendation for private wells. MCL standards are applied at the drinking tap and dictate the need for treatment. For FHA mortgage insurance, the following procedures are required prior to accepting a house with an individual well: a.Well water must be tested in accordance with the latest local and State drinking water regulation for private wells. This includes all microbiological and chemical test parameters in the regulation. If there are no local or adequate State requirements and standards for private wells, then water quality must be tested for lead and acute contaminants, including nitrates/nitrites and microbial contaminants such as total and fecal coliform and, if of local concern, other contaminants. For information regarding acceptable test results and analytical methods see attachment. b.The water sample(s) necessary for microbiological and chemical testing must be tested in accordance with the State drinking water regulations and EPA's analytical methods by a State-certified private laboratory (see attachment). In some States, County Health Authorities are required to collect the test samples; however, if they are unable or are not required to collect the samples, an individual/company acceptable to the State and the laboratory may collect the samples. c.If water purification equipment is required to meet the State drinking water regulation and/or EPA's recommendations for private well water, follow the instructions in Mortgagee Letter 92-18 dated June 5, 1992. Mortgagee Letter 92-18 addressed the acceptance of individual residential purification equipment in existing and proposed construction. Paragraph B-3 of that Mortgagee Letter is now revised to read: "If there are no local (or State) water quality standards for private wells, then water quality must meet HUD's requirements for private well testing contained in the attachment. To test for lead and acute contaminants. HUD's requirements are based on EPA MCLs. Where other contaminants of local concern or occurrence are tested for, the HUD requirement shall be the same as EPA's MCL for that contaminant". If you have any procedural questions, you should contact your local HUD Office. Technical questions should be referred to the EPA Drinking Water Hot Line: 800-426-4791. On-site Well and Septic Inspections This is a clarification of the Department's policy concerning on-site well and septic system inspections outlined in HUD Handbook 4150.1 REV-1, Valuation Analysis for Home Mortgage Insurance. The handbook states that HUD Offices may accept only those on-site well and septic system inspections performed by local health departments. In response to requests by HUD Offices and industry representatives, State-licensed engineers may now be used for such inspections which are performed for FHA insurance purposes. This policy has been established in order to expedite inspection requests and broaden inspection opportunities for qualified individuals. In order to perform on-site well and septic inspections for the Department, engineers must meet the following criteria: a.Hold a current State license which authorizes them to perform such inspections; b.Perform inspections in accordance with the requirements and standards established by the local or State health authority; and c.Utilize laboratories which are State-certified and meet EPA standards. As the majority of on-site well and septic system inspections will be performed through a Direct Endorsement lender, engineer qualifications should be verified by individual lenders. Lender compliance will be determined during normal mortgagee monitoring activities. Should you have any questions concerning this section of the Mortgagee Letter, please contact your local HUD office. Sincerely yours, Nicolas P. Retsinas Assistant Secretary for Housing- Federal Housing Commissioner Click Here to Download PDF Attachment