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DNREC’s Environmental Finance (EF) has initiated a Community Outreach Initiative for the Clean Water State Revolving Fund’s (CWSRF) Septic System Rehabilitation Program. EF through a professional contract with First State Community Action Agency will identify moderate to low income homeowners in the Chesapeake and Inland Bay Watersheds that may need financial assistance to replace failed and/or failing septic systems.
The goal of the septic system community outreach initiative is to replace 100 failing and/or failed septic systems per year. Funding will be provided from the CWSRF Septic System Rehabilitation Loan Program (SRLP) and Non-Federal Administrative Account (NFAA) which funds the Septic System Extended Funding Option Program (SEFO). The primary differences between the SRLP and SEFO programs are as follows:
- Three percent (3%) or six percent (6%) (depending on income) SRLP loans require monthly loan repayments after the loan has been closed; whereas,
- Zero percent (0%) SEFO loans are due on transfer with no monthly loan payments required.
Under the SEFO program, the loan becomes 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 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; and
- 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. All loans will be secured by mortgage liens.
First State Community Action Agency-Stanford L. Bratton Bldg.
308 N. Railroad Avenue,
Georgetown, DE 19947