Guide Title 5/Septic Systems: Financial Assistance Opportunities for System Owners

These programs may help septic-system owners with failing systems.

Table of Contents

Community Septic Management Program

  • This program provides low-cost loans to communities to devise local inspection and septic management plans. Local inspection plans are intended to protect environmentally sensitive areas from contamination; septic management plans identify areas that need monitoring and maintenance.
  • The communities in turn provide low-interest betterment loans to eligible homeowners with failed septic systems through their local Boards of Health.

See more about the Community Septic Management Program and Betterments in the Guides linked below.

Homeowner Septic Loan Program

This is a bank loan program for homeowners whose systems have failed Title 5 inspection. Participating banks offer low interest rates to eligible homeowners through this MassHousing Program. For more information contact the Massachusetts Housing Finance Agency (MassHousing) at 617-854-1000 or check their website.

Key Actions for Homeowner Septic Loan Program

Tax Credit

The Commonwealth provides a tax credit of up to $6,000 over 4 years to defray the cost of septic repairs to a primary residence. 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. Tax Form Schedule SC is the correct form for the tax credits.

Federal Programs

US Department of Housing & Urban Development - Federal Housing Administration

FHA offers low-cost financing to those who qualify. For more information contact FHA:

  • Multi-family home: 202-708-2495
  • Single-family home: 202-708-3175

USDA Rural Development Program

This program offers government loans to assist very low income rural homeowners who are in need of repair and improvements to their homes for health or safety reasons, including septic system repairs or upgrades.

Additional Resources for Federal Programs

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