The Sewer Tie-In Loan Fund (STILF) is a lending program that provides low-cost loans to homeowners to connect to the local sewer system and abandon their individual septic system or cesspool.
- 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 $10,000 with a term of up to five years
- The cost to properly abandon the existing septic system (pumping out its content and filling with sand) is also eligible
- Funds cannot be used to connect newly-constructed homes to sewers, or to repair, replace, or upgrade existing sewer connections.
- Rhode Island Housing is responsible for underwriting and servicing loans made through the program
For residents to access funds through STILF, a municipality must first be placed on DEM’s Project Priority List and be issued a Certificate of Approval for the project. The municipality can then apply to the Bank for a lending facility, the proceeds of which can be utilized to make direct loans to homeowners.