FHA INFO 2026-17: FHA Issues Waiver to Well Water Distance Requirements for Existing Construction

Today, the Federal Housing Administration (FHA) announced that it has issued a broad waiver of the well distance requirements for Individual Water Supply Systems, which are part of FHA’s Minimum Property Requirements (MPR) for Existing Construction set forth in Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1). With today’s waiver, FHA is streamlining its well water distance requirements that may have been a barrier to affordable housing supply.

FHA’s well water distance requirements do not universally align with those of many local jurisdictions where local authorities have officially deemed lesser distances safe, compliant with local codes, and acceptable for residential use other than those found in Handbook 4000.1.

This waiver applies only to existing construction when:

• the property meets the distance requirements of the local jurisdiction*; and
• acceptable water testing results are documented by the mortgagee.

*The local jurisdiction refers to the local health authority, environmental agency, or governing municipality who has inspected, permitted, or grandfathered the private water system in its current configuration.

This waiver is effective immediately and does not apply to FHA's minimum property standards (MPS) for new construction, which is covered under separate regulations.

This waiver is the first in a broader effort to modernize FHA’s MPRs by removing outdated barriers while maintaining adequate health and safety standards. FHA expects to announce a comprehensive set of additional MPR updates in the future.

Interested stakeholders are encouraged to review the waiver located on the Department of Housing and Urban Development’s (HUD) Housing Waivers webpage.

If you have questions, contact the FHA Resource Center (referenced below).