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Council waives debt-to-income requirement to approve $21,700 septic loan for Tonkil Road homeowner
Summary
Council approved a waiver for a community septic loan to Luke and Antoneta Capaso (855 Tonkil Road) for $21,700 at 1% over 10 years despite the applicant not meeting the program's debt-to-income ratio, citing property equity and second-lien position.
The Town Council approved a waiver of the Community Septic Loan Program debt-to-income requirement for applicants Luke and Antoneta Capaso of 855 Tonkil Road, authorizing a loan of $21,700 at 1% for 10 years.
Staff told the council the property appears to have significant equity (estimated Zillow value about $350,000 with a $137,000 mortgage) and that the town would take a second-position lien if the loan proceeds, per the application. Town staff and counsel said they had not completed independent due diligence but believed the town's position would not be at unacceptable risk.
Councilors discussed program strictness — staff said rules are stringent and most applicants must meet the debt-to-income criteria — but agreed the property's equity and second-position lien justified an exception in this case. The motion to approve the waiver and the loan passed by voice vote.
