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Town council waives debt-to-income limit for community septic loan for Martinez family
Summary
The Glocester Town Council approved a one-time exception to the community septic loan program's debt-to-income limit for borrowers Sarah and George Martinez, allowing a $30,500 loan at 1% for 10 years.
The Glocester Town Council voted Aug. 7 to grant a borrower an exception to the town's Community Septic Loan Program debt-to-income (DTI) requirement so Rhode Island Housing may proceed with a $30,500 loan.
Elizabeth A. Beltram, the town's finance director, had recommended granting the exception after Rhode Island Housing reported the borrowers' DTI at about 50%, exceeding the program cap of 45%. A finance department memo noted the borrowers, Sarah and George Martinez of 835 Turtle Hot Hill Road, have owned the property since 2021 and are employed full time.
The loan was described in council documents as $30,500 at 1% interest for 10 years, with a monthly payment of $280.56. Ruth Anglom, listed in correspondence from Rhode Island Housing as a community lending processor, asked the town to advise whether it would waive the credit criteria so the lender could proceed.
A motion to grant the DTI exception passed by voice vote; no roll-call tally was recorded in the meeting minutes. Councilors moved to "waive the credit criteria relating to debt to income ratio" for this application and instructed staff to notify Rhode Island Housing.
Why it matters: The Community Septic Loan Program's DTI limit is intended to limit lending risk; the council's exception permits this household to obtain a loan needed for septic work. The decision affects one named property and may set a precedent for future exceptions.
What the record shows: The finance director recommended the exception after the borrowers provided additional written income information; the memo said the additional information was reasonable and recommended approval. The council's motion authorizes staff to notify Rhode Island Housing to proceed.
