Council weighs changing CSLP rules to help Hillsdale mobile-home park with failing septic systems

Representatives of the Hillsdale Mobile Home Cooperative and nonprofit technical advisors told the council Sept. 16 they are seeking access to the town’s Community Systems Septic Loan Program (CSLP) to finance replacement or repair of dozens of failing septic cesspools in the park.

RCAP Solutions and other technical advisers said the cooperative contains a cluster of failed systems and that some residents qualify for low-interest loans under CSLP, administered through the Rhode Island Infrastructure Bank, but that the program’s current terms require a real-property deed and do not easily accommodate mobile‑home ownership by bill‑of‑sale. Advisors asked the council to approach the bank to explore a narrowly tailored exception or program modification to permit mobile-home lots to use CSLP funds.

Council members and staff discussed legal and financial risks: the CSLP is a loan program in which the town is intermediary and the town could be obligated for repayment if borrowers default. Town Planner Talia Gillette and the Town Solicitor emphasized the need to determine whether the Infrastructure Bank could accept a UCC (personal property) lien rather than a deeded real‑property lien, and whether the Infrastructure Bank or Rhode Island Housing would underwrite any program change.

No binding action was taken Sept. 16, but RCAP and the cooperative said they are coordinating with other towns that have raised similar requests; the council signaled willingness to pursue discussions and to have staff and the solicitor engage the Infrastructure Bank and RI Housing to identify options and safeguards for Richmond taxpayers and residents.

Councilor Jim Madnick asked that the town be included in any formal meetings with the bank or with legal counsel so the town’s legal and fiscal exposure can be assessed before any program change is adopted.