# Division 4B. Deep Well Loan Fund

Codified through Bill No. CB-018-2026, adopted May 12, 2026, effective July 24, 2026. Source: Municode, Supplement 2026 Update 2. Editorial notes and legislative history omitted.

## Division 4B. Deep Well Loan Fund

### Sec. 10-173.05. Legislative findings and declaration of purpose

Prince George's County, Md., Code § 10-173.05 (2026)

The County Council of Prince George's County, Maryland, hereby finds that the owner-occupants of many residential structures, located predominantly in rural areas of the County, are living under conditions dangerous to health as a result of existing water supplies which are, or are likely to become, contaminated; that the capability of the County's public water authority to construct water facility supply systems to serve the needs of homeowners so situated is inexpedient and impractical in that the construction of public water lines constitutes an exorbitant expenditure of public funds which is unnecessarily burdensome to County taxpayers in general, and the intended beneficiaries in particular; that the creation of a self-sustaining County financed loan fund permitting homeowners so situated to finance the drilling of deep wells on terms and conditions comparable to those applied under special assessments for the public construction of water supply systems is not a capital project, as defined in County Charter, but is rather a method of providing capital for the purpose of necessary deep well drilling where any benefits to private property are only incidental to maintenance of health; and that in order to avert the existing and potential health hazards caused by such supplies and to protect and promote the health, safety and welfare of the entire community, the County Council hereby declares that it is necessary and appropriate for Prince George's County, Maryland, to provide an acceptable alternative to the construction of public water supply systems by establishing a mechanism of financial assistance for homeowners whose residences are situated under the aforesaid conditions and who are unable to secure the necessary well construction financing from private sources.

### Sec. 10-173.06. Establishment of Deep Well Loan Fund

Prince George's County, Md., Code § 10-173.06 (2026)

There is hereby established the Prince George's County, Maryland, Deep Well Loan Fund for the purpose of making loans, on preferred terms and conditions, to eligible owner-occupants of single-family, residential structures for drilling individual deep wells to provide a water supply to serve such structures. All funds made available for the purposes of this Division shall constitute a self-sustaining fund of Prince George's County and all such funds shall be paid into, or loaned out of, or otherwise expended from, such self-sustaining fund. In accordance with the provisions of Section 10-173.09 of this Division, the County shall make such initial and subsequent contributions into such self-sustaining fund as appropriate and necessary until such fund becomes self-sustaining as a result of the repayment of loans made therefrom.

### Sec. 10-173.07. Eligibility requirements for the making of loans

Prince George's County, Md., Code § 10-173.07 (2026)

(a) In addition to such requirements and conditions as are established under the rules and regulations required to be prepared and approved under Section 10-173.08 of this Division, no deep well loan authorized herein shall be made unless:

  (1) The property in question is a single-family, owner-occupied residential structure.

  (2) The County Health Officer has issued a written notification to the property owner in question of the Health Officer's determination that said property owner is serviced by a well or other water supply which is, or is likely to become, contaminated.

  (3) The property owner in question has made application to the County for a housing rehabilitation loan and/or grant made available pursuant to the provisions of Division 4A of this Subtitle for improvements including the drilling of a deep well and was determined to be ineligible for such loan and/or grant for reasons other than fund unavailability.

  (4) The property owner in question has applied in good faith to at least one (1) private institution for a loan for the same purpose as loans made hereunder, and has had such loan application rejected.

### Sec. 10-173.08. Issuance, maintenance, and administration of loans

Prince George's County, Md., Code § 10-173.08 (2026)

(a) The County Executive for Prince George's County, Maryland, is hereby empowered and authorized to make deep well loans under the provisions of this Division and the rules and regulations prepared and approved pursuant hereto, and to take any legal actions necessary for the collection of delinquent loan repayments.

(b) All loans made by the County Executive for the purposes set forth under this Division shall be made out of the County's Deep Well Loan Fund only.

(c) Prior to the making of any loan hereunder the County Executive shall prepare rules and regulations governing the maintenance and administration of the fund and the making of loans therefrom, and shall forward the same to the County Council for approval by resolution. Said rules and regulations shall include, at a minimum, stipulations regarding additional eligibility requirements as deemed necessary and appropriate; other terms and conditions of the loans, including the interest rate to be charged thereon; and the agency or agencies of County government to be charged with the administration and maintenance of the loan program. Any subsequent amendments to said rules and regulations, as may be necessary from time to time, shall be initiated and approved in the aforesaid manner.

### Sec. 10-173.09. Financing of the Deep Well Loan Fund

Prince George's County, Md., Code § 10-173.09 (2026)

(a) Commencing with the submission of the Fiscal Year 1978-79 County expense and capital budgets, and on at least an annual basis thereafter, the County Executive shall recommend to the County Council for approval, a proposed method of financing the Deep Well Loan Fund, taking into account all appropriate alternative methods of financing the fund, including the following methods:

  (1) The issuance of general obligation bonds;

  (2) The use of funds from current expense budget appropriations;

  (3) The use of funds derived from Federal or State grants made available to the County for financing deep well construction; or,

  (4) The repayment of principal and interest from loans made hereunder.