§ 64-EE — Peconic Bay region septic system replacement loan program

§ 64-ee. Peconic Bay region septic system replacement loan program. 1.\nAs used in this section, the following words and terms shall have the\nfollowing meanings:\n (a) "Peconic Bay region" means the towns of East Hampton, Riverhead,\nShelter Island, Southampton and Southold.\n (b) "Cesspool" means a drywell that receives untreated sanitary waste\ncontaining human excreta, which sometimes has an open bottom and/or\nperforated sides.\n (c) "Septic system" means a system that provides for the treatment\nand/or disposition of the combination of human and sanitary waste with\nwater not exceeding one thousand gallons per day, serving a single\nparcel of land.\n (d) "Septic system project" means the replacement of a cesspool with a\nseptic system, the installation, replacement or upgrade of a septic\nsystem or septic system components, or installation of enhanced\ntreatment technologies, including an advanced nitrogen removal system,\nto significantly and quantifiably reduce environmental and/or public\nhealth impacts associated with effluent from a cesspool or septic system\nto groundwater used as drinking water, or a threatened or an impaired\nwaterbody.\n (e) "Fund" means the community preservation fund created pursuant to\nsubdivision two of section sixty-four-e of this article.\n 2. The town board of any town in the Peconic Bay region may, by local\nlaw, establish a septic system replacement loan program using a portion\nof the water quality improvement monies from the fund, pursuant to\nparagraph (e) of subdivision three of section sixty-four-e of this\narticle.\n 3. Such program may make loans to the owners of real property located\nwithin the town to finance the installation of septic system projects.\nThe town shall establish priority areas within the town, which would\nreceive water quality and public health benefits from the installation\nof septic system projects, for such loans in order to maximize\nenvironmental and public health benefits.\n 4. To be eligible for a loan pursuant to this section, the septic\nsystem project shall be listed as an approved water quality improvement\nproject in the town's community preservation project plan pursuant to\nsubdivision six of section sixty-four-e of this article and be proposed\nfor real property located within an established priority area of the\ntown. Monies from the fund may only be loaned for projects which have\nbeen included in such plan and shall not include costs associated with\nroutine maintenance such as a pump out of a septic tank.\n 5. A local law establishing the septic system replacement loan program\nshall provide for the criteria for making such loans and the terms and\nconditions for repayment of such loans provided that:\n (a) For loans made to an owner of real property that is a commercial\nentity, not-for-profit organization, or entity other than an individual,\nthe town board shall have the authority by local law to impose\nrequirements on the maximum amount that may be borrowed through such\nloan, which may consider factors including but not limited to the\nproperty value, expected environmental and water quality benefit and\nexisting indebtedness secured by such property.\n (b) For loans made to an owner of real property who is an individual,\nthe principal amount of each such loan, excluding interest, shall not\nexceed the lesser of ten percent of the appraised real property value or\nthe actual cost of the septic system project including the costs of\ninstallation, necessary equipment, materials, and labor.\n (c) No such loan shall be made unless such septic system project will\nsignificantly and quantifiably reduce environmental and/or public health\nimpacts associated with effluent from a cesspool or septic system from\nthe proposed real property site to groundwater used as drinking water,\nor a threatened or an impaired waterbody.\n 6. Every loan made under the septic system replacement loan program\nshall be repaid over a term not to exceed ten years. The town shall set\na fixed rate of interest for the repayment of the principal amount of\neach loan at the time the loan is made provided that no interest rate\nshall exceed two and one-half percent and no applicant shall receive a\nloan more than once in any five-year period.\n 7. The principal amount of each such loan, excluding interest, shall\nnot exceed the actual cost of installing the septic system project,\nincluding the costs of necessary equipment, materials, and labor.\n 8. No such loan shall be made for a septic system replacement project\nunless such system is approved by the Suffolk County Department of\nHealth Services.\n 9. The loan made under the septic system replacement loan program\nshall constitute a lien upon the real property benefitted by such loan.\n 10. The town may require the loan made under the septic system loan\nprogram to be repaid by the property owner through a charge on the real\nproperty benefitted by such loan. Such charge shall be on the real\nproperty and shall be levied and collected at the same time and in the\nsame manner as town taxes, provided that such charge shall be separately\nlisted on the tax bill, and provided further that in the event such\ncharge should not be paid in a timely manner, no other municipal\ncorporation shall be required to credit or otherwise guarantee the\namount of such unpaid charge to the municipal corporation which\nauthorized the loan, notwithstanding any provision of law to the\ncontrary.\n 11. All revenues received by the town from the repayment of loans\nshall be deposited in the fund.\n