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 $10,000. 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 upon the scope of work.
No credit check is required. All real estate taxes, water bills, or any other municipal account should be paid in full 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.
- Have a family income below 90 percent of the area median income.
- Currently, the area median income is $89,600 for a one-person household and $102,400 for a two-person household.
- Subject to change based on DHCD area median income calculation.
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 $10,000, 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.
- Full title service is required for loans of $2,500 or more, with an administrative fee of $500.
How much will this loan cost me?
- If the home is transferred and I repay the loan after 7 years what do I have to repay on a $10,000 loan: $1,000 loan balance + $35 annual interest charges + $500 admin fee.
- If the home is transferred and I repay the loan before 7 years what do I have to repay on a $10,000 loan: $10,000 balance + $350 annual interest charges + $500 admin fee.
- If the home is not transferred in 7 years what do I have to repay on a $10,000 loan: $1,000 loan balance + $35 annual interest charges + $500 admin fee.
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.