The Commonwealth has developed 3 programs to assist homeowners with wastewater management problems.

Homeowner Septic Loan Program

Designed to meet the demand for funds by homeowners whose systems will not pass Title 5 inspection.

Comprehensive Community Septic Management Program

Provides funding for long term community/regional, or watershed-based solutions to address a comprehensive approach to on-site disposal failure in areas of high environmental impact.

Tax Credit

Provides a tax credit of up to $6,000 over 4 years to defray the cost of septic repairs to a primary residence.

Program Details

Homeowner Septic Loan Program

This program provides below market rate loans to homeowners upgrading systems. Loans are administered by banks and are then purchased by the MHFA.

Comprehensive Community Septic Management Program:

This program will have two options for communities to choose from to receive subsidized loans to make repairs for homeowners through the betterment process. The betterment loans will be available at an interest rate of either 2 % or 5 %, a decision made by the community.

Option 1. Community proposes a Comprehensive Community Septic Management Program on either a community-wide basis, or for a portion of the town, targeted sensitive areas (such as shellfish beds, recreational lake, or water supply) and high failure rates. Under this option, a $20,000 pre-loan assistance payment is awarded to assist communities in identifying priority areas and establishing a comprehensive approach. Upon approval of the plan, loans of $20,000 are available. Communities proposing a comprehensive inspection program that meets MassDEP's requirements for the Time of Transfer exclusion contained in Title 5, and communities that join other communities, will be eligible for larger loans.

Option 2. Community opts to target known or suspected failures. Under this option, loans not to exceed $100,000 are available.

Tax Credit:

Forms are available from the Department of Revenue to enable homeowners to claim up to $6,000 in tax credits for septic upgrades. The credit cannot exceed $1,500 in any year and may be spread out over 4 years. The tax credit is limited to work done on a primary residence only.