Betterment Loan Program

About the Program

Recently the Southborough Board of Health secured an additional $500,000 in funding to continue the Southborough Septic System Repair Loan program.   The program was started with the goal of assisting residents in repairing septic systems and complying with Title 5.   In the first round, the town lent over $700,000 to residents.   As with the first two rounds, the Town will only borrow what it needs to meet the demand from owners.   The terms of the loan from the state allow the Town to lend the money to homeowners at a below market interest rate of 5%.

The Title 5 septic system regulations are designed to provide more comprehensive protection of Massachusetts' water resources.   Protecting water resources such as the Sudbury Reservoir is especially important in our community as they provide present and future sources of drinking water and are critical components of our wetlands.   However, the Board of Health recognizes that complying with Title 5 can place a financial strain on a homeowner.   That is why the Board pursued the loan from the state and established a low-interest loan fund.  

Who Can Qualify for Assistance?

As an owner of a property in Southborough you must meet the following minimum criteria in order to apply for assistance from this program:

1.   The septic system on your property must be failing.

2.   The person(s) applying for the loan must be the owner(s) of the property, as loan repayment will be secured by placing a betterment assessment on the property.

3.   The failing system must be located on a property in Southborough (as the owner of the property you do not have to live in Southborough).

How Much Can I Borrow, What Are the Terms of the Loan, Etc.?

You may apply to borrow up to the $22,000.00 towards the cost of repairing your septic system, including the costs for the inspection and engineering services.   As previously noted, the interest rate on the loan will be five percent.   You will have up to 20 years to repay the loan and there is no penalty for early repayment.   If the demand for assistance exceeds the amount of available funds, the Board may put a cap on the amount each applicant may borrow.   It is the Board's intention to assist each homeowner to the fullest extent possible.  

The loan will be recorded as a betterment to your property, and you will receive a payment notice on your tax bill.   One of the benefits of a betterment is that responsibility for betterment payments can be transferred to a new owner.    This means that you do not necessarily have to pay off the full amount of the loan in order to sell your property.   If you do sell your property, how the betterment responsibility is handled will be left up to you and the buyer.

How Will Applicants Be Chosen?

All homeowners with onsite systems are eligible to apply for assistance.   As a condition of accepting the loan from the state, the Town agreed to develop evaluation criteria that ensure the assistance goes to projects proposing repairs that will impact the most environmentally sensitive areas of the Town. This will not only help protect the sensitive areas but also provide as much benefit as possible to all residents.   Therefore, applications proposing repairs to areas impacting the Sudbury Reservoir will receive priority consideration.   When the demand from these applicants has been met all other applications will be considered.   Applications within each group will be ranked on their overall proposed environmental benefit and the evaluation will consider factors such as proximity to a wetland, impact on abutting properties, and the severity of the failure.  

How Do I Apply for a Septic System Repair Loan?

You may pick up an application at the Board of Health office (17 Common Street).   The application and directions will likely answer any questions you may have.   Please call at (508) 481-3013 x2 for more information.

The deadline for the first round of applications will be ___________________________

Applications received after this date will be evaluated on a first-come, first-serve basis.   Please note that the Town only has access to these funds for a limited time.   After that this type of assistance may not be available.   If you are considering selling your home or repairing your system in the next few years and it is currently failing, this program may be right for you.