Living with a failed septic system is hard enough, but paying for a new one can be catastrophic for some homeowners. The Board of Health (BOH) has an article on the Annual Town Meeting Warrant that could ease the pain by providing for low-interest loans for septic repairs, replacement, or upgrades.
Article 34 asks voters to allow the town to participate in a state Department of Environmental Protection program that provides no-interest loans to communities, which in turn lend money to homeowners at 2 percent interest to cover administrative costs. The loans are funded by the Massachusetts Water Pollution Abatement Trust (MWPAT), which was set up in 1989 to provide low-cost capital financing to cities, towns, and other eligible entities. Across the state, more than 4,000 septic systems have been replaced or upgraded with over $22 million in low-interest loans.
According to Harvard Board of Health member Sharon McCarthy, the program is a “win/win” proposition, helping homeowners while protecting the groundwater.
It works like this: if the voters approve the article, the Board of Health would develop criteria for loan qualifications. In general, the three basic criteria are financial need, a failing septic system, and living in an environmentally sensitive area, McCarthy said. But other factors are considered as well, and McCarthy was quick to add that the Harvard BOH has not yet discussed what criteria might be established for town residents. The board will have access to technical support under the program to help develop those criteria, she said.
Article 34 is not asking voters to raise money for the program, but simply for approval to borrow up to $200,000-$300,000, as needed, from the MWPAT.
The money would be borrowed as each homeowner’s loan application is approved by the Board of Health, and the loans would be repaid quarterly as betterments on the homeowners’ property tax bills.
Article 34 requires a two-thirds majority to pass.
