The Town of Barnstable announced Tuesday that it will make loans available to homeowners to connect to the town sewer. Funding for the loans is available through the US Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) program.
The interest free, non-payment deferred loans are payable upon the sale or transfer of the property, according to a release from the Barnstable Growth Management Department.
Loans are available to facilitate the connection between the home and the sewer line and are not available for betterment. The loan amount is based on the cost to connect. The maximum amount offered through the program is $8,000.
Homeowners must meet the requirements as set by the town under the loan program. The person applying for the loan must be a US citizen and must be the owner of the home. The home must also be the applicant's primary residence.
The income of all household members is counted towards the annual income of the applicant. A list of income limits is available on the town's website.
For more information regarding financial requirements and the guidelines dictating the repayment of the loan, visit the town's Sewer Connection Loan Program (SCLP) page. A brochure containing information and answers to the ten most asked questions is available here. The application is available as a downloadable Excel file here.
The CDBG program was started by HUD in 1974.