Hernando County Announces $1.47M SHIP Grant for Septic-to-Sewer Conversions

Hernando County posted a notice of funding availability after securing an estimated $1,468,462 in State Housing Initiatives Partnership (SHIP) funds for State Fiscal Years 2025-2026 and opened applications for a Mandatory Septic to Sewer Conversion - Phase 1. The county says the SHIP allocation lists septic-to-sewer conversion among several eligible strategies and specifies that the connection fee will be paid directly to the Hernando County Utilities Department on behalf of approved, income eligible homeowners to offset the cost to connect to their central collection system.

County officials outline how SHIP funding is generated, noting that "Funding for the SHIP Program is based upon the amount of revenue generated through the local doc stamp tax paid on all real estate transactions and the State's approved budget through Florida Housing Finance Corporation (FHFC)." The SHIP program list of eligible activities includes Down Payment Assistance, Owner-Occupied Rehabilitation, Special Needs Housing, Emergency Repairs, Multi-Family Affordable Housing, Non-Profit Construction, Mandatory Septic to Sewer Conversion - Phase 1, and Disaster Strategies.

Applications for the Septic to Sewer Conversion Project Phase 1 will be accepted March 2, 2026 through March 31, 2026 in person or by mail at 621 West Jefferson St., Brooksville, FL 34601 and via the county’s housing and supportive services portal. Residents with questions or who need help with applications may contact Hernando County's Housing & Supportive Services Department at (352) 540-4338 or by email at HousingandSupportiveServices@hernandocounty.us. The county main line is (352) 754-4000.

The SHIP NOFA joins other county septic-to-sewer efforts that operate at different scales. A Hernando County Utilities Department agenda item (Legistar file #13967) authorized submittal of an application for a $150,000 Florida Department of Environmental Protection Springs funding grant to support a study focused on northwest Hernando County. That study description states the work "will identify the needed infrastructure, conceptual costs, and proposed phasing of the work and will also investigate the need for including centralized water in this study area for septic to sewer conversions, since this area is mostly outside of HCUD’S current water service area." The Legistar item also specifies the study will "determine the environmental benefit of septic to sewer and the nutrient reduction to Weeki Wachee and Chassahowitzka Springs" and describes the study area as approximately 13,500 acres.

County budget records show a related capital improvement entry, Project ID 111961, "Septic to Sewer District A Phase 1" in Spring Hill. The project description states converting an existing residential neighborhood of approximately 388 homes and businesses from individual septic systems to central sewer and notes the system will be installed to accommodate all 510 properties within the area. The capital plan also records "$4,025,000 of ARPA funding will be setup in FY24 or FY25 when project is awarded for construction" and that "$1.8M of undesignated funding will potentially be covered by an assessment."

None of the documents provided explicitly tie the $1,468,462 SHIP allocation to the Spring Hill District A construction project or the northwest Hernando study; the SHIP NOFA lists septic-to-sewer conversion as a permissible strategy but does not identify specific Phase 1 boundaries or eligibility thresholds. The county notes that "The County will make funds available at various times throughout the year for approved strategies and activities outlined in the current Local Housing Assistance Plan."

For homeowners weighing conversion costs, the immediate step is preparing an application for the March 2–31 window and contacting Housing & Supportive Services for eligibility details and documentation requirements. Longer-term planning and larger construction projects remain on separate funding tracks, including study grants and capital improvement allocations.