These programs may help septic-system owners with failing systems.
Guide Title 5/Septic Systems: Financial Assistance Opportunities for System Owners
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.
- Please contact your local Board of Health for more information on Betterment loans.
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.
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.
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.