What are the Water and Sewer Charges?
The Water and Sewer Charges essentially replace the “front foot benefit charge” that was previously charged by the County or by the Washington Suburban Sanitary Commission (WSSC). Previously, the county governments or public water and sewer authorities installed the water and sewer lines in new subdivisions and recouped the cost of construction over a period of years by collecting a “front foot benefit charge.” In the 1990’s, decisions were made to redirect the initial construction cost burden to the developers. Most counties and water and sewer utilities no longer install water and sewer lines in new subdivisions and instead require the developer of the community to construct them. The developer then arranges for a company to construct the water and sewer lines, with the costs to be recouped over a number of years, similar to the previous system. Assessments are created by recording a Declaration in the land records creating a lien on the property and establishing an annual charge to be collected from the property owner, usually for a period of 23 to 40 years. The obligation to pay the annual charges runs with the land and is transferred to the new owner when a property is sold. The county or public water and sewer authority does have ongoing responsibility for the maintenance of the water and sewer lines which have been dedicated for public use.
Is this charge included in my water and sewer bill?
No, your water and sewer bill only covers water and sewer usage. It is based on the amount of water you use and the volume of sewage you produce.
What is the legal documentation for the charges?
The Declaration of Deferred Water and Sewer Charges is the principal document that describes the Water and Sewer Charges. The Declaration of Deferred Water and Sewer Charges has been recorded in the County land records and establishes a lien against the property for non-payment. The HUD-1 Settlement Statement for each home that is sold should contain a line entitled Water and Sewer Facilities Assessment, Water and Sewer Charge, Front Foot Benefit Fee, or some similar term. The Water and Sewer Charges are a legal and enforceable charge, just as homeowners association dues and condominium fees are. If the homeowner does not pay the charge, late fees including interest and legal fees may be assessed and a lien may be placed on the property. Contact Suburban Utility Services to request a copy of the Declaration.
Who is responsible for the charges?
The owner of the home is responsible for paying the charges. Your mortgage lender may have established an escrow account for the charges, just as it did for your homeowners insurance and real estate property taxes. If an escrow was established, forward the bill to your mortgage lender with a request that it be paid from your escrow account. You will continue to receive a bill even if it is paid through your escrow account.
How do I pay the charges?
Suburban Utility Services will send you a bill each year to remind you of the payment that is due. However, it is not mandatory for Suburban Utility Services to do so. If a bill is not received due to oversight, omission, or mail error, it is the sole responsibility of the homeowner to ensure that the payment is made. Please pay the bill by check or money order only. Please send your payment by mail to the address found on bill. Checks should be made payable to Suburban Utility Services.
When is payment due?
Your payment is due by December 31 of each year or a later date if indicated on your bill. The annual billing period runs from January 1 to December 31 of each year. Payments are prepaid at the start of each year. The charges are prorated at the time of your initial home purchase settlement and payment is sent to Suburban Utility Services by the title company. The payments are due for the number of years specified in the Declaration of Deferred Water and Sewer Charges.
Can I prepay the charges?
You can have the right to pay the Water and Sewer Charges in full for the amount equal to the present value of the future payments discounted at a rate of 4% per annum. Contact Suburban Utility Services to obtain the current payoff balance. If you prepay the charges, you will receive a full release indicating that all payments have been made and the release can be recorded in the County land records.
What happens if I sell my house?
When a homeowner sells their property the new homeowner takes over the obligation to pay the remaining Water and Sewer Charges. If you are selling your home please provide the contact information for Suburban Utility Services to the title company since they must contact us. If you have already made the annual payment, the prorated amount will be refunded back to you at settlement. You or the title company must notify Suburban Utility Services of any sale within 15 days of settlement.
