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The Septic Rehabilitation Loan Program provides low-interest financing to replace failing septic systems and cesspools with on-site wastewater disposal systems that will function in an environmentally sound and cost effective manner. The program also provides funding for new septic construction and costs associated with connecting to central sewer systems.
Financing is available at interest rates of 3 or 6 percent depending on income. A loan of $1,000 (minimum) to $35,000 (maximum) for individual systems and $250,000 (maximum for community or mobile home park systems) can be repaid over 20 years with no prepayment penalty. There is a non-refundable fee of $11 for individual and $15 for a joint credit history report. Loans are secured by a mortgage lien on the rehabilitated property.
The program is managed by Environmental Finance with technical assistance from the Ground Water Discharges Branch. Applicants can get assistance with applications from from program specialists in the Georgetown and Dover offices of the First State Community Action Agency (FSCAA), which has partnered with DNREC in the Septic System Outreach Initiative.
Eligible costs for on-site systems include site evaluation, septic system design, permits, construction costs, and closing and recording charges. Eligible costs for central sewer projects include impact fees, connection fees, permit costs, electrical, and abandonment of septic systems.
Property owners with on-site wastewater disposal systems that need replacement; new construction of system; and central sewer connection, are required to meet program income guidelines, and can demonstrate the ability to repay the loan.