New program helps Vermont homeowners finance failed wastewater or drinking water systems
MONTPELIER -- A new program is available to help Vermont homeowners with the cost of repairing or replacing failed residential wastewater and drinking water systems. The program, established by the Vermont legislature in 2012, assists Vermonters with limited financial resources to cope with increasingly expensive failed systems.
"The On-site Revolving Loan Program fills a critical need," according to David Mears, Commissioner of the Vermont Department of Environmental Conservation. "This is a program aimed at Vermont homeowners, one that provides low-cost financing to those faced with a failing residential wastewater or drinking water system. It is unique in that it provides a viable option to those who demonstrate need, but who have already been rejected by traditional financing in the commercial marketplace."
The program includes guidelines to determine eligibility. These include: the system must be failed; the loan recipient must reside in the residence on a year-round basis; the recipient must have been denied financing for needed repair by at least one financing entity; and the gross household income must be equal to or less than 200 percent of the statewide average median income ($129,260 for 2014).
The standard term of the loans is 15 years but can be extended to 20 years where affordability is an issue, and the interest rate is 3 percent. The loans are secured by a lien on the property.
The On-site Loan Program is funded and administered by the Agency of Natural Resources, Department of Environmental Conservation, with loan underwriting and servicing provided by the Opportunities Credit Union in Winooski, Vermont.
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