The Community Outreach Initiative identifies low- and moderate-income homeowners in the Chesapeake and Inland Bay Watersheds that may need financial assistance to replace failed and/or failing septic systems.

The Community Outreach Initiative is a partnership involving the Environmental Finance Office and the First State Community Action Agency to help homeowners take advantage of the Clean Water State Revolving Fund (CWSRF) Septic System Rehabilitation Program. The initiative has a goal of replacing 100 failing or failed septic systems each year. Loan funds come from the Fund’s Septic System Rehabilitation Loan Program (SRLP) and the Non-Federal Administrative Account (NFAA) which funds the Septic System Extended Funding Option Program (SEFO). All loans will be secured by mortgage liens.

The primary differences between the SRLP and SEFO programs are:

• Three percent (3%) or six percent (6%) (depending on income) SRLP loans require monthly loan repayments after the loan has been closed
• Zero percent (0%) SEFO loans are due on transfer with no monthly loan payments required

Loans under the SEFO program become due and payable upon property transfer. Applicants must first be denied for an SRLP loan (due to insufficient income, credit problems, liens and/or judgments, etc.) before being considered for a SEFO loan.

First State Community Action Agency has developed a personalized loan application intake process to work one-on-one with potential loan applicants. The loan intake process is comprehensive and includes:

• Explaining SRLP and SEFO program information to potential applicants
• Determining applicant eligibility to apply for a septic system rehabilitation loan
• Assisting applicants with completing loan applications
• Ensuring that all necessary documentation needed to process loan applications are collected from applicants and sent to DNREC for processing

DNREC will review and process loan applications, assist borrowers with obtaining and scheduling septic system replacements, and arranging for loan closings.

Related Topics:  finance, loan-financing, loans, outreach, septic systems