Grant Program to Replace or Repair PSL

You May Qualify for a Grant
to Repair or Replace Your Private Sewer Lateral


The City is accepting applications for the 2022-2023 fiscal year. Read below to find out which application would best suit your sewer lateral needs.

The City of Morgan Hill is offering two cost assistance options in the form of grant opportunities for property owners to apply for to encourage sewer lateral lines to be repaired. Repairing or replacing damaged private sewer lateral lines helps in the city’s efforts to reduce inflow and infiltration of stormwater into sewer lines that can lead to sewage overflows. 

A private sewer lateral is a pipeline that transports wastewater from all the drains of a residence or building to the city sewer main. This privately-owned pipe collects and transports the wastewater from output sources such as toilets, showers, urinals, etc. This pipeline, typically but not always, travels from the exterior of the house, under the ground of a yard, under the sidewalk, and sometimes the street, and connects to the city sewer main.

The Private Sewer Lateral Grant programs were established to assist property owners with the costs of repairing any damaged points in the line or replacing the entire line in some cases. All grant funds are allocated on a first come, first served basis until all funds have been exhausted. 

A grant must be approved and a Letter of Approval from the City of Morgan Hill must be received by the property owner BEFORE any construction work begins. All sewer lateral construction work done before grant approval is ineligible for funding.

The FY 2022-2023 Budget for these two grants options is $100,000, to be dispersed between both grant opportunities until the funds are fully allocated. 

The Private Sewer Lateral REPAIR Grant (PDF) is for targeted point repairs in the line that need to be fixed. The maximum grant amount is set to be for 50% of the lowest contractor bid, up to a maximum of $2,000.

The Sewer Lateral REPLACEMENT Grant (PDF) is for the entirety of the existing sewer lateral line to be replaced with a new one. The maximum grant amount is set to be for 50% of the lowest contractor bid, up to a maximum of $5,000.

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