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No-Interest Loans Available for Septic System Fix

No-Interest Loans Available for Septic System Fix

By Ty Walker, The Mountain Times

Many Clackamas County homeowners have aging septic systems and face the high cost of repair and replacement. But thanks to an innovative program through the Clackamas Soil and Water Conservation District, they may be eligible for getting some relief. 

The Clackamas Soil and Water Conservation District has launched its septic repair and replacement program. The no-interest program helps homeowners fix or replace their antiquated septic systems.

Since 2023, the district has approved loans on 54 projects, District Grant Specialist Heather Nielsen said. Most of those loans are in the repayment stage and some projects are under construction.

The district secures a loan with a lien against the property, like most mortgages. Typically loans are for about 5 years. Septic tank replacements range from $12,000 to $22,000. A complete system costs $20,000 or more. The most the district can loan on a project is $45,000.

“We have done multiple projects in mountain communities, including Brightwood, Welches, Sandy, and Rhododendron,” Nielsen said.

The district borrows money from the DEQ Clean Water State Revolving Fund and Clackamas SWCD  lends it to property owners in Clackamas County for repair or replacement of their existing septic system. The loan program has a total of $2 million available for homeowners. 

Nielsen illustrated a possible septic system failure scenario: Homeowners may have taken into their household more residents recently, overloading their septic system because they’re using more water, or the system has worn out over time.

When a septic system fails, sewage can seep into soil, groundwater, and eventually move downstream, contaminating streams and rivers. Many county residents get their water from private wells or local rivers, including the Clackamas, Molalla, Sandy, and Willamette Rivers, making what happens upstream a concern for everybody.   

“You can get a no-interest loan from us for that repair, which includes permits from Clackamas County, and materials and supplies from the contractor,” Nielsen said. “We’re here to provide assistance for people going through that experience.”

In order to be eligible for the septic system program, homeowners must meet these conditions:

  • The septic system must be located in Clackamas County.
  • It must be a residential septic system that already exists and needs repair or replacement. For sewer connections, the sewer line must be in the street in front of the property. This program does not cover new septic systems or upgrades to systems already working. 
  • Only problems requiring a repair permit from Clackamas County are eligible. It cannot just be a plumbing or maintenance issue. For sewer connections, a permit is needed from the City or Water Environment Services.
  • The homeowner must hire a contractor from the Conservation District’s approved list to do the repairs.
  • All property owners must agree to sign a Loan Application, Loan Agreement, and a lien document that will be added to the property title until the loan is fully repaid.
  • The homeowner agrees to pay back the loan and take care of the septic system based on the recommendations from the manufacturer or contractor.