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HB2096In effect since September 12, 2026

Any Arizona county may now apply to the water infrastructure finance authority for financial assistance, including principal that can be forgiven, to close or replace cesspools that pose a demonstrated risk to water or public health, without needing voter approval to accept it.

Official title: forgivable financial assistance; cesspool remediation

Local governmentsHomeownersHousing
  • September 12, 2026

What changes

  • BeforeOnly a county authorized to operate a sewage system could use this law to borrow from or get financial assistance from the water infrastructure finance authority for wastewater or nonpoint source projects.

    NowA county that identifies and remediates cesspools may also apply for and receive financial assistance, including forgivable principal, to remediate, close or replace cesspools that present a demonstrated risk to surface water, groundwater or public health.

  • NowThe money may be used only to eliminate an existing cesspool and replace it with an on-site wastewater system approved by the Department of Environmental Quality or a connection to a wastewater treatment facility. It may come from the clean water or drinking water revolving funds.

  • NowA county receiving this aid must prioritize cesspools in areas of known groundwater vulnerability, near surface waters, or in communities with low-to-moderate income households. A county may set income-based eligibility for owner-occupied properties but may not apply means testing to abandoned or uninhabitable properties.

  • BeforeCounties generally must put financial assistance loan repayment agreements to a vote of the county's voters.

    NowA county is not required to get voter approval to accept cesspool financial assistance, including forgivable principal. The county must coordinate with the Department of Environmental Quality so each project fits the county's water quality management plan or the department's nonpoint source management plan.

  • NowBy January 1 each year, the authority's board must report the number and location of cesspools remediated or replaced, the total aid awarded and forgiven, and recommendations for improving the program.

Who it affects

  • Property owners with cesspools, including owners of owner-occupied, abandoned or uninhabitable properties
  • Communities with low-to-moderate income households
  • Counties
  • Water Infrastructure Finance Authority of Arizona
  • Arizona Department of Environmental Quality

What you need to do

Nothing.

What the law doesn't answer

  • How much money will be available for cesspool projects or how much principal may be forgiven
  • Whether individual property owners can apply directly or must go through their county
  • Whether property owners must pay any share of the cost or repay any portion
  • How a cesspool's risk will be demonstrated or verified
  • What income limits a county might set for owner-occupied properties

This summary describes the law as enacted. Later laws, court rulings or referendum petitions can change the picture. Check the official text for the current wording.

Source

Read the official text ยท Report an error