Maybe. CHIP funds infrastructure projects, like wastewater, when there is a specific housing development. A developer and housing development plan is required to prove housing benefit. If the housing project is other than affordable housing, you’ll also have to demonstrate that the housing project and the infrastructure improvement would not have occurred as proposed or would have occurred in a significantly different and less desirable manner than as proposed in the application but for the proposed utilization of the incremental tax revenues.
If use of CHIP is justified for the wastewater system, CHIP can only pay an amount up to the tax increment revenue generated by the specific housing project. Most wastewater systems are built using multiple funding sources (a.k.a. a funding stack).