Loan & grant programs for septic upgrades

Dear True,
The Tofte-Schroeder Sanitary Sewer District conducted a survey of all the septic systems in Tofte and Schroeder last summer. Residents and businesses were informed that this was NOT a compliance survey. Nonetheless, about 40 percent of all systems were deemed noncompliant or nonconforming according to present-day standards. The district wishes to make it easy for residents, even with low incomes, to upgrade their systems. At an open house last fall, those attending favored a Point of Sale inspection program, meaning that inspection would be required whenever a property was sold and necessary upgrades done as part of the sale proceeds. Over time, this would bring most systems into compliance.
But there are some systems that may need action sooner, and not only residential ones: Schroeder Town Hall and the Birch Grove building both need upgrades within a couple of years.
The district is looking to several grant sources to explore management alternatives, including an option for regular septic maintenance to be contracted by the district directly to homeowners at discounted rates.
In the meantime, we have looked into loan or grant options open to residents and include a brief summary here. For more details, contact the sources listed or email us at tsssd@boreal.org with your mailing address, and I will send out some additional details.
Your comments about the serious problem of clean water and responsible wastewater management are always welcome.
Nancye Belding
Secretary

Tofte Schroeder Sanitary Sewer District
PO Box 2307, Tofte, MN 55615 e-mail: tsssd@boreal.org
Loan and Grant Opportunities for Homeowners’ Septic System Upgrades

USDA Rural Development

 Low Income 504 1% loans up to $20,000 and up to 20 years
These loans are for low-income people (ranging from $19,800 for one person to $37,300 for eight persons).

 Low Income Loan & Grant combination for Seniors
Seniors 62 and over can qualify for a grant up to $7,500 in addition to the 504 1% loan of up to $20,000.

Contact: Julie Claussen, 4840 Miller Trunk Highway, #1B, Duluth, MN 55811, phone 218-720-5330, ext. 4


Arrowhead Economic Opportunity Agency

 Low Income Deferred Loan
Deferred no-interest 30-year loans available up to $15,000 for low-income residents ($19,800 for one person, $28,250 for four person household).

 Minnesota Housing Finance Agency Fix-up Fund
The Fix-Up Fund offers loans up to $35,000 at a current interest rate of 7 ¾% for up to 20 years. Maximum household income limit is $90,000. Check out http://mhfa.state.mn.us on-line or 800-710—8871.

Contact: Lorraine Erickson, AEOA, 702 3rd Ave. South, Virginia, MN 55792 or 1-800-662-5711.


Grand Marais State Bank

 Five-year 3 to 4 % interest loans up to $35,000
This loan is available to households with income up to $90,000. Inquire at the bank for more information or apply on-line at http://grandmaraisstatebank.com.