HUD HOC Reference Guide

Community Water Systems

A community water system is a central system, owned, operated and maintained by a private corporation or a non-profit property owners association. HUD no longer maintains a list of approved systems. The appraiser must note in the appraisal report if public water is available to the subject site.

If a property is on community water, it is helpful if the appraiser notes the name of the water company on the appraisal report. The lender is responsible to ensure that the community system(s) is/are licensed and adequate to service the property.

Please see: HUD Handbooks 4150.2 Section 3-6, 4150.1 Section 12-16, & HUD Handbook 4075.12