Several south suburbs are will get millions of dollars in state loans to replace lead water service lines through the state’s new budget that starts July 1.
Despite the loans, taken together, communities are indicating that the amount will barely scratch the surface, as replacing a single lead line can cost about $10,000.
Communities across the country are trying to meet a federal mandate to eliminate lead service lines, and the Illinois Environmental Protection Administration offers no-interest loans to municipalities.
Homewood officials just learned they will receive a $4.1 million loan this fall, enough to replace a fraction of the total number of lead lines in the village.
The village, however, says getting rid of all lead lines will run about $70 million and take several years. Other south suburban communities say that with the cost of replacing a single line running as much as $10,000, and some towns having hundreds or thousands of lines needing replacement, tens of millions will be needed to get the job done.
The federal mandate, for now, calls for communities across the country to be free of lead water lines by 2037.
Homewood has said it has roughly 3,700 lead lines to replace, and with the $4.1 million loan estimates it will be able to replace about 260 lines.
Of the total loan, half the principal is being forgiven.
As part of the state’s lead service line replacement, some communities can have all, or part, of their loan forgiven, meaning they don’t need to pay any part of the loan back.
Scoring for the loans favors disadvantaged census tracks and prioritizes projects with the greatest public health impact and need, including a prevalence of schools, hospitals and senior communities.
The Homewood Village Board voted Tuesday to approve plans for the state loan, with officials noting that, under the mandate, the village is required to replace a minimum of 10% of lead lines per year, with a completion in 2037.
Similar cost numbers have been cited by other communities, such as Calumet City, but line replacements can run from $6,000 to $10,000 or more for a single line.
Homewood’s engineering firm working on the village’s lead line replacement program said the cost is subject to change due to market conditions, labor costs and tariff impacts.
Homewood’s approval this mean leads to the next step of submitting a loan application and beginning a contractor bidding process. The village expects final loan approval later this fall.
Oak Lawn is taking steps to replace about 2,300 decades-old lead pipes, and had also applied for a $680,000 loan in the newest state round.
It and other communities are on a separate bypass list for loans, due to funding for this year having been exhausted, according to the state.
Other south and southwest suburbs are also in line for loans.
- Blue Island is getting a $5 million loan, with $2 million not having to be paid back, to replace 300 lead lines.
- Calumet City expects a loan of $4 million, of which $2 million will be forgiven, to replace 400 lead water lines. The city was awarded $4 million in 2023, with no obligation to repay the IEPA loan, to replace 333 lead lines. Calumet City estimated it has more than 7,000 lead water lines.
- Chicago Heights will receive a loan of $5 million, of which $2 million doesn’t need to be repaid, toward replacing nearly 300 water lines.
- Crete expects a loan of $2 million, none of which the village has to repay, Crete plans to replace 200 lines.
- Dolton plans to replace 350 lines and is getting a $3.5 million loan, of which $2 million is being forgiven.
- Evergreen Park anticipates a loan of $8 million, with the full amount needed to be repaid
- Harvey is getting a loan of $5 million, with $2 million being forgiven, to replace about 300 lines.
- Hazel Crest has a plan to replace 300 lines, and the village is getting a $3 million loan, with $2 million of that being forgiven.
- Lansing plans to replace 300 lines initially, and was approved for a loan of $3.5 million, of which $2 million is being forgiven.
- Markham will get a state loan of $1 million, which the city doesn’t have to pay back, to replace about 200 lines.
- Phoenix will replace 300 water lines, and is getting a $5 million loan, with $2 million of that being forgiven.
- South Holland is getting a loan of $3.5 million, with $2 million being forgiven, to replace 350 water lines.
While the lead line replacement fund is intended to be self-sustaining, with loan repayments replenishing the pot, Illinois will need additional federal grants to continue capitalizing the program, according to the IEPA.
Homewood Mayor Rich Hofeld said with the funding his community needs to replace all lead lines in the tens of millions, said the “fickleness of the current administration” is a concern.
Without federal support for no-interest loans, communities would need to look at options such as selling bonds to pay for the line replacements.
Hofeld said he keeps in touch with legislators to find out how federal funding, or changes in planned funding, are emerging from Washington.
“Nobody has heard anything about (federal grants to this program) being stopped,” he said. “We’re obviously keeping an eye on it.”
