When Waukegan applied for $3.7 million in funding from the State of Illinois in the form of a loan for its lead pipe replacement program a year ago, the city did not qualify for more attractive loan terms as a disadvantaged community.
As the city prepares to seek $3.5 million for the state’s coming fiscal year starting July 1, modified rules will enable Waukegan to have the loan forgiven as long as the U.S. census rates the areas of the city involved as disadvantaged.
Gary Bigenheimer, the section manager for the State Revolving Fund Loan Program, said the federal government — which provides the money — now requires that the requests to include the census information.
“Even affluent communities can have disadvantaged areas,” he said. “A disadvantaged community is one where the median income is less than the state average. Waukegan did not qualify last year, but parts of Waukegan qualify now.”
Jesus Alquicira, Waukegan’s city engineer, said he made sure the 400 to 500 buildings which will have their lead pipes replaced between July 1 and June 30 of next year are from areas that qualify as disadvantaged.
“We intend to use the plan,” he said. “We’re getting the lead out of Waukegan.”
Waukegan and North Chicago both plan to take advantage of more than $240 million the U.S. Environmental Protection Agency (EPA) gave to the Illinois EPA (IEPA) in May for lead pipe replacement as part of President Joe Biden’s Investing in America agenda.
Gov. J.B. Pritzker said in a press release from the IEPA that Illinois is receiving more money for lead pipe replacement that any other state. The funds will be used to, “equitably identify and replace lead pipes statewide.”
Bigenheimer said 51% of the loans are low-interest and long-term, going to areas which are not necessarily disadvantaged. Another 49% are designed for disadvantaged areas and are forgivable.
“It means they are basically a grant,” he said. “If you have not used the money by March 3, you must reapply.”
There is a mandate to replace all lead pipes with copper ones, but no requirement exists forcing municipalities to pay for the replacement to avoid contaminated drinking water. Both Waukegan Mayor Ann Taylor and North Chicago Mayor Leon Rockingham Jr. said their cities are footing the bill.
“We are finding every grant and every program we can to raise the money for this,” Taylor said. “Most of the lead pipes are in the older parts of town. There aren’t many in the eighth and ninth wards, which are our higher-income communities.”
There are a limited number of contractors who do lead pipe replacement. Taylor said it is important to quickly get bids to expedite funding applications to the IEPA. The window from the time the city city approves its budget until the application deadline is only a few months.
“We’re all competing for the same people, and we’re all trying to access the same funds,” Taylor said. “This sets up competition, and we’re all using the same contractors.”
Starting the Waukegan program a little more than two years ago, officials started by asking residents to supply photos or do other tests to determine if their homes had lead pipes. Alquicira said pipes have been replaced in approximately 550 homes thus far.
Most of the replacements being done are east of McAree Road. With hopes of doing 400 to 500 a year, Alquicira said he estimates there are approximately 9,000 homes with lead pipes rather than copper or galvanized.
Rockingham said a $500,000 grant courtesy of U.S. Sen. Richard Durbin is helping North Chicago replace lead pipes in buildings in the areas around Park Drive, 16th Street and Hervey Avenue.
“This is where we have a lot of older homes,” Rockingham said. “We have more lead pipes in homes east of Lewis Avenue. We’ll be applying for the new IEPA (forgivable) loans.”
People who live in homes built after 1986 most likely do not have lead pipes. Regardless, Alquicira said residents who have not completed the city’s survey about their piping situation should do so because the program is ongoing.
Going to the city’s website, Alquicira said participants should let the city know if they are an owner or renter, and whether the property is residential or commercial. They should take a picture of the area from the water meter to the wall and upload it.
“There is also a scratch test to help us know if the pipes are copper, galvanized or lead,” Alquicira said.
