Iowa s Time of Transfer Septic System Inspection Program. Passing Legislation to Protect Iowa s Waterways MOWA Conference 2014
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1 Iowa s Time of Transfer Septic System Inspection Program Passing Legislation to Protect Iowa s Waterways MOWA Conference 2014
2 The Problem Estimated 100,000 failing systems Many systems with no secondary treatment Approx. 17MGD Approx. 500 unsewered communities Includes thousands of unmaintained systems
3 Why Time of Sale Inspections? Time of Transfer inspections will systematically eliminate illegal septic systems Illegal = no or failed secondary treatment, NOT grandfathered! Protect home buyers, environment and public health
4 Why Time of Sale Inspections? Best available time financially Complaints alone don t produce good results Many counties (21 in Iowa in 2008) already require time of transfer inspections FHA, VA other lenders also require inspection
5 Why Time of Sale Inspections? Existing enforcement mechanism and authority Groundwater Hazard Statement (GWHS) Blanket inspections considered too intrusive
6 Legislative Process Begins Initial efforts failed to gain support Sanitarians to do inspections? Private well inspections? These first drafts were opposed by some stakeholders, bills fail to clear committees
7 Engaging the Stakeholders Iowa Association of Realtors Iowa Bankers Association Iowa Bar Association Iowa State Association of Counties IA Environmental Health Assn. IA Recorders Assn. Iowa Land Title Association Iowa Onsite Wastewater Association Iowa Environmental Council
8 Stakeholder Concerns Timeliness and availability of inspectors Private, state certified inspectors proposed Well inspections Separated for septic inspection bill
9 Stakeholder Concerns Uniformity of inspections and process in all 99 counties! State mandated inspection procedure Certified inspectors Will it hold up closing? Inspection is required before deed transfer. Does it have to meet today s code? Must have working primary and secondary treatment
10 Resulting Inspection Law Senate File 261 passed in April 2008 and took effect July 1, 2009 Requires that every building or home with a septic system have that system inspected prior to transfer of the deed. County Recorder cannot record the deed or conveyance document without proof of inspection or binding document for inspection
11 Certified Inspectors SF261 requires Time of Transfer inspectors certified by the IDNR Law requires a uniform inspection procedure and the use of a standard inspection form
12 Resulting Inspection Law Amended by HF2437 in 2010 Removes abstracting requirement Specifically preempts local regulation relating to time of transfer inspections Some county programs more restrictive Defines transfer to exclude various deed transfers (exemptions)
13 Transfers Includes all types of ownership transfers not specifically exempted Includes seller financed real estate contracts Includes sales, exchanges, contracts of one, but not more than 4 homes
14 Transfers Exempted Transfer pursuant to a court order Foreclosure or forfeiture Transfer by trustee in bankruptcy Transfer by eminent domain Transfer by a fiduciary in the execution of a trust, estate or guardianship Transfer between joint tenants
15 Transfers Exempted Transfers made to a spouse or a person in the lineal line of consanguinity Transfer between spouses resulting from divorce, legal separation or property settlement Transfer of a property that will be razed or demolished (requires legally binding proof)
16 Transfers Exempted Transfers of five hundred dollars or less. Transfers between family corporations, partnerships, LLP s, LLC s, as defined in section 428A.2, subsection 15, and its stockholders partners, or members for the purpose of transferring real property in an incorporation or corporate dissolution or in the organization or dissolution of a partnership, LP s, LLP s, LLC s under the laws of this state, where the deed is given for no actual consideration other than for shares or for debt securities of the family corporation, partnership, LP, LLP or LLC.
17 Transfers Exempted Transfers of a property with a septic system installed within the last two years Transfers arising from a partitioning process Transfers from a tax sale deed by the county treasurer
18 Inspection Delays Inspections delayed by weather Requires binding acknowledgement with county BOH to do inspection ASAP Also responsible for any required modifications
19 Special Cases Binding Agreements Seller knows system will not pass System installed within the last 2 years House/building will be demolished
20 Inspection Criteria Septic system with primary and secondary treatment that is not creating an environmental or public health hazard should pass What ifs; Tank or field/filter is too small Too close to groundwater or bedrock etc. System does not have to meet today s code Inspections valid for 2 years (includes new installations)
21 Inspection Procedures Records search and verification Tank lids uncovered, tank pumped and inspected Distribution box uncovered and inspected Verification of secondary treatment Gauge condition of systems Sampling discharging systems Reporting
22 Reporting and Disclosure Complete inspection worksheet Provide written report describing the findings of your inspection - full disclosure Provide copies of inspection documents to; IDNR County Environmental Health/Sanitarian Seller/buyer/agents Seller must provide GWHS to buyer
23 Environmental Benefits To date approx 20,000 inspections conducted 6000 systems replaced 1MGD now treated Thousands of minor repairs D-boxes and baffles
24 Environmental Benefits Education! Homeowner awareness Stakeholder education Many more involved in wastewater decisions
25 Questions? Daniel Olson, RS Private Sewage Disposal Program
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