Sewer Capacity Unit Transfer Program for Affordable Housing

The South Tahoe Public Utility District recognizes that diverse housing stock is needed to meet the changing needs in our communities. Seniors and students need different housing than families and young professionals. Having a wide variety of housing with a variety of pricing builds stability, year-round residency, community vibrancy, and support for businesses and the economy.

To assist in promoting the development of affordable housing in South Lake Tahoe, District sewer customers can now transfer excess sewer capacity units for use by affordable housing projects.

What is a sewer capacity unit?

A sewer capacity unit is an estimated measurement of the quantity and strength of wastewater discharged to the sewer system. A sewer capacity unit is used for the purpose of determining sewer service charges.

What is an excess sewer capacity unit?

An excess sewer capacity unit is any sewer capacity unit assigned to a parcel in excess of the number of sewer capacity units currently being used on a parcel. Additional sewer capacity units might be assigned to the parcel if they had been purchased or used in the past. A commercial example would be a parcel that used to be a laundromat but is now an office building that would have excess sewer capacity units.

How does transferring excess sewer units help affordable housing projects?

Owners of any new proposed development are required to pay sewer capacity fees. Excess sewer capacity units are currently valued at $4,050.00 each and can be donated to affordable housing projects to help drive down upfront costs. Excess sewer capacity units cannot be sold.

Why would I want to keep my excess sewer capacity unit?

Keeping an excess sewer unit on your parcel allows for additional development upon the same parcel.  Excess sewer capacity units may be transferred from one parcel to another parcel for the development of affordable housing but cannot be sold or transferred to other property owners.

What is an affordable housing project?

Affordable Housing is defined as deed-restricted housing to be used exclusively for households with an income not in excess of the greater of 120 percent or the upper limit of the area median income as defined by the applicable City or County code.

How can I support the development of affordable housing?

If you have excess sewer unit(s) on your property that you would like to transfer to affordable housing development(s) in South Lake Tahoe, follow the link: https://stpud.watersmart.com/SUT. The District will then verify the information provided and after approval, will transfer the requested number of excess sewer capacity units to the El Dorado Community Foundation to hold in an affordable housing charitable account for future affordable housing projects. Upon transfer, the Foundation will send you an acknowledgment letter and charitable tax number. Developers of affordable housing projects within the District’s service area can apply to receive these donated sewer capacity units at no cost.

I am planning an affordable housing project in South Lake Tahoe, how do I request donated sewer capacity units?

If you are an affordable housing developer who would like to request donated sewer units, contact the District’s Customer Service Supervisor at 530-544-6474 x6233.

For questions about the program, contact the Customer Service Supervisor at 530-544-6474 x6233.