Financing
Septic System Improvements
The Board of Health for the Town of
Hopkinton has received funding approval from the
Commonwealth of Massachusetts - Department of
Environmental Protection to prepare and administer
a septic system repair program. This program,
referred to as the Community Septic Management
Betterment Loan Program, will enable our community
to provide financial assistance to homeowners
living in designated environmentally sensitive
areas to upgrade failing septic systems. Through
this Program, the engineering and general
construction costs associated with upgrading a
failed septic system either by connection to an
existing sewer main, or replacing the on-site
disposal system will be provided as a low interest
loan to homeowners. The loan will be paid back to
the Town of Hopkinton with payment of your real
estate tax bill.
The Betterment Law
Under a
revised state law, every town and city in
Massachusetts has the option of providing
financing for replacements or upgrades of failed
septic systems. This is done in much the same way
many communities currently undertake public works
improvements, such as the paving of roads and the
installation of sewer or water mains. The
Betterment Law allows a community to create a loan
fund that must be authorized by Town Meeting vote.
The loan fund pays for Board of Health approved
upgrades to septic systems. The Community recovers
those costs from homeowners receiving loans by
assessing annual betterments on the individual
homeowner’s property tax bill.
Financial
Assistance Terms
Financial
Assistance consists of a five percent (5%) loan,
that you, the homeowner, repay with each real
estate tax payment. Loan repayment may be over a
20-year time period. Loans may be paid back early,
without penalty.
Elderly Deferral
Elderly
homeowners, eligible for a real estate tax
exemption under clause 41A of Section 5 of Chapter
59 of the General Laws may request a deferred
payment loan. Eligibility has to be applied for
and determined each year. As long as the applicant
is eligible for the exemption this type of loan
does not have to be paid back to our community,
until the property is sold or transferred. The
authority to have a deferred payment loan program
must be specifically approved by Town Meeting
vote. Loans may be paid back early, without
penalty.
Community Yearly
Program
Each fiscal
year, the Board of Health will provide a number of
loans to homeowners located in designated
environmentally sensitive areas based on the
availability of funds in that fiscal year. The
number of homeowners provided loans will be based
on available money and the priority set for the
specific location of the property within the
environmentally sensitive area of the town. Your
application will be kept on file, regardless of
whether you qualify that particular year. Notice
will be provided yearly, of homeowners standing,
through the issuance of a priority list. Setting
of priorities within the designated
environmentally sensitive areas will be based on
environmental concerns, such as the proximity of
the failed septic system to drinking water
supplies, surface waters, and wetlands.
General Assistance
If you are
eligible for a loan, the Board of Health will
assist in the preparation of a Betterment Loan
Agreement for your execution. Upon completion of
the loan agreement, the Board of Health will
assist you and/or a designated family member with
completion of the upgrade of the septic system.
All bills incurred for the work are submitted to
the Board of Health for payment.
For Further
Information
For further
information on this program, please contact the Board
of Health, 508-497-9725.
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