Creekside Neighbor Rebate Program (PILOT)

Valley Water owns or manages about one-third of the creek channels within Santa Clara County, while the remaining creek property belongs to local agencies or private landowners. Owning or living next to a creek offers many benefits but also presents challenges, such as flooding and bank instability, which can be costly to address.

As part of the Safe, Clean Water and Natural Flood Protection Program, Valley Water created the Creekside Neighbor Rebate Program to assist creekside property owners in mitigating these challenges. This program provides financial assistance to property owners who undertake creek maintenance projects such as bank stabilization (erosion repair), sediment, vegetation, or debris removal, and storm drain outfall repair. Rebates of up to $150,000 are available for qualifying construction and permit costs.

Applications are accepted and evaluated on an ongoing basis in the order they are received.

General Requirements
Once pre-approved, property owners must sign an agreement acknowledging rebate requirements and submit the necessary documentation upon project completion. Rebates cover actual construction costs and permit fees up to the maximum amount for each rebate type.

Eligibility Verification
Participants must own the property, and/or have express, written consent of all property owners, to qualify. Projects must meet public benefit criteria and obtain pre-approval of the project application.

Project Pre-Approval
Upon pre-approval of a project application, participants must sign a rebate agreement and receive written approval in the form of a Notice to Proceed before starting any work.

Steps to Receive a Rebate:

Sign a program agreement.
Obtain all necessary permits and approvals, including CEQA compliance.
Complete the project according to approved plans and permits.
Request a Valley Water inspection.
Submit required documentation in accordance with program guidelines.

Rebates of $600 or more may qualify as taxable income. Participants must provide a W-9 form signed within the calendar year of the rebate, and a 1099 tax form will be issued for the following tax season. Valley Water and participating agencies are not responsible for any taxes incurred due to rebate receipt.

Valley Water's Creekside Neighbor Rebate Program offers rebates in four categories, based on public benefit qualifications and up to the following maximum amounts:

Downed Tree and Blockage Removal: Up to $10,000*
Sediment Removal: Up to $50,000*
Outfall Repair: Up to $50,000*
Erosion Repair/Bank Stabilization: Up to $150,000*

(*Higher rebates may be available in certain areas. Click here for more information.)

A house sits on a hillside with significant erosion, exposing soil and a damaged fence. Green grass peeks through the dirt.

Bank Stabilization / Erosion Repair Projects

Qualifying bank stabilization projects must be designed by an engineering professional, use bioengineering techniques if feasible, and may require CEQA, regulatory approvals, and grading/building permits (to be obtained by the property owner). To qualify, projects must provide a public benefit and meet the following criteria:
- The bank failure is due to natural stream processes
- If caused by adjacent development factors such as concentrated stormwater runoff, overwatering, or structures on the creekbank, the project must address (remove) these causes
- Must demonstrate it will increase stream stability and not contribute to stream instability.
- Must not increase flood risk

Sediment Removal Projects

Qualifying sediment removal projects must be designed by an engineering professional to reduce flood risk and/or improve stream stability. These projects must not have adverse impacts on native fish habitat and may require CEQA, regulatory, and grading permits (to be obtained by property owner).

Downed Tree and Blockage Removal Projects

Qualifying downed tree and blockage removal projects must be necessary for flood risk reduction (ie, creek has less than 100-year flood capacity or is documented to flood adjacent properties) and minimize adverse impacts to fish and wildlife habitat.

Outfall Repair Projects

To qualify, the project must meet one of the following conditions:

- The outfall is causing stream bank erosion.
- The bank protection or pipe is missing or failing.

Additionally, the original pipe/outfall must have been properly permitted and comply with the Water Resources Protection Manual.

Apply Online

Completed applications can be sent via email to [email protected] or by mail to 5750 Almaden Expy, San Jose, CA 95118. Review the program overview to understand rebate steps and rates.