Hanover Affordable Septic Program
The Hanover Affordable Housing Trust offers residents in need of septic system upgrades the opportunity to apply for financial assistance to complete necessary improvements. The Hanover Affordable Septic Program is available for eligible Hanover residents to apply for a partially forgivable septic system betterment loan of up to $15,000. The Hanover Affordable Housing Trust provides this loan at a three-and-a-half percent (3.5%) interest rate for a period of 7 years, and the loan is 90% forgivable if you remain in the home for the full term of the loan.
Eligible Costs
The following costs are eligible for funding under the program:
- Performing soil and percolation tests and other site analysis.
- Specifications of failed system components to be repaired, replaced, and/or upgraded.
- Design of the system or components to be repaired, replaced, and/or upgraded.
- Obtaining all applicable permits and approvals required to complete the work.
- Minimizing any disruption of utility service and reasonably restoring the property to near original condition.
Please note: Other costs may be eligible, directly or indirectly related to the project. Before the commencement of the project, the Board of Health or its administrators and the homeowner should agree on the scope of work.
No credit check is required. All real estate taxes, water bills, or any other municipal accounts should be paid in full and up-to-date. The loan process is reviewed and approved by the Affordable Housing Trust.
Frequently Asked Questions
What does this program do?
This provides partially forgivable loans to low and median-income homeowners in Hanover to repair, improve, or replace their home’s septic system or cesspool.
Who may apply for this program?
To qualify, you must be a:
- Hanover resident who is the homeowner and occupies the house;
- All real estate taxes, water bills, or other municipal account payments should be current; and
- Have a family income below 90 percent of the current year's area median income (AMI) for the Town of Hanover. AMI changes annually based on HUD calculations.
- For 2025, 90% AMI for Hanover is as follows:
- 1-person household $104,220
- 2-person household $119,115
- 3-person household $134,010
- 4-person household $148,860
- For 2025, 90% AMI for Hanover is as follows:
How may funds be used?
Loans may be used to repair, improve, or replace failing, failed, or insufficient septic systems and cesspools in the Town of Hanover.
How much money can I get?
The maximum loan is $15,000, 90% forgivable.
What are the terms of the loan/grant?
- Loaned funds must be repaid in full if the property is sold within 7 years.
- The loan is 90% forgiven after 7 years of maintaining home ownership.
- The loan interest rate is calculated on a fixed annual basis of 3.5%.
- Loan interest is calculated on the balance of the loan at the time of repayment for the number of years the loan was outstanding.
- Full title service is required for loans of $2,500 or more, with an administrative fee of $500, due at the time of execution of the agreement.
How much will this loan cost me?
If the property is transferred, and I repay the loan at the end of Year 4 (before year 7), what do I have to pay on a $15,000 loan?
- Since property was transferred before the 7 years, the entire loan balance plus 4 years of accrued interest.
- $15,000 loan balance + $2,100 accrued interest = $17,100.
If the property is not transferred/transferred after 7 years, what do I have to pay on a $15,000 loan?
- Since property was held for 7 years, 90% of the loan is forgiven, leaving 10% of the loan balance due, plus 7 years of accrued interest.
- $1,500 loan balance + $367.50 accrued interest = $1,867.50.
Is there a deadline to apply?
Applications for this program are accepted in the Finance Department at Town Hall year-round.
How long does an application take?
Applications are easy to fill out. Approval times depend on funding availability and verification.
Who can answer questions, and how do I get started?
Answers to questions about this program may be directed to the Finance Department at Hanover Town Hall.
Why does the Hanover Affordable Housing Trust do this?
The Hanover Affordable Housing Trust does this to help residents afford to stay in their homes and have important wastewater systems in good working order. Upgrading septic systems and old cesspools keeps fecal coliform and other pollutants out of our groundwater, helps to improve our water quality, and makes the quality of life better for all Hanover residents. Keeping the cost of homeownership affordable helps young families, senior citizens, and the whole community.