The Community Septic System Loan Program (CSSLP) is a lending program that provides low-cost, long-term financing to residential property owners for the repair or replacement of substandard or failing septic systems or to replace cesspools when the homeowner wishes to upgrade to a septic system.
- Financing is interest-free, with borrowers only subject to a $300 loan origination fee and a 1% annual servicing fee on the outstanding loan balance (differs in some communities)
- Residents may borrow up to $25,000 with a term of up to ten years (maximum loan amount varies by community)
- Funds may be used to pay for engineering costs in addition to construction work
- Rhode Island Housing is responsible for underwriting and servicing loans made through the program
As a prerequisite to a homeowner participating in the program, your community must have an On-Site Wastewater Management Plan approved by the Rhode Island Department of Environmental Management (DEM). In addition, the municipality must be on DEM’s Project Priority List and be issued a Certificate of Approval. The municipality may then apply to the Bank for a lending facility, the proceeds of which can utilized to make direct loans to homeowners.
