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Brief description of program
The Septic Rehabilitation Loan Program provides low interest financing for replacing failing septic systems and cesspools with on-site wastewater disposal systems that will function in an environmentally sound and cost effective manner. The loan is secured by a mortgage lien on the rehabilitated property. This program is managed by Environmental Finance with technical assistance from the Division of Water's Ground Water Discharges Section.
DNREC Environmental Finance shares a partnership with First State Community Action Agency (FSCAA), which has program specialists in Georgetown and Dover to assist with the application process. For more information on the partnership with FSCAA and the Septic System Outreach Initiative, please click here.
Eligibility is open to property owners with on-site wastewater disposal systems that need rehabilitation in order to meet regulatory requirements, meet program income guidelines, and the applicant demonstrates the ability to repay the loan. 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 $14 for a joint credit history report. Eligible loan costs include:
- Site evaluation
- Septic system design
- Construction costs
- Closing and recording charges