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Nags Head readies $500,000 no-interest septic repair loan; staff outlines Davis-Bacon and American Iron & Steel compliance

Nags Head Board of Commissioners · October 1, 2025
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Summary

Town staff said Oct. 1 that a $500,000 award from the North Carolina Clean Water State Revolving Fund will fund a no-interest residential septic repair and replacement loan program targeting vulnerable properties; staff outlined compliance with Davis-Bacon prevailing-wage rules and American Iron & Steel requirements and plans for contractor prequalification and outreach.

Town planning staff told the Board of Commissioners on Oct. 1 that a $500,000 award through the North Carolina Clean Water State Revolving Fund would launch a no-interest loan program for residential septic repair and replacement focused on environmentally vulnerable properties and prioritized vulnerable households.

"Earlier in the year, the town was awarded $500,000 through the North Carolina clean water state revolving fund," Planning Director Kelly Wyatt said, describing the scope packet to be submitted that day to the Division of Water Infrastructure. The packet lays out how the town will identify high-risk properties, prioritize elderly, disabled and low-income homeowners, and comply with federal requirements.

Wyatt described required compliance steps for projects funded through the program, including certified payroll documentation and steps to address the Davis-Bacon Act and the American Iron and Steel requirements. Staff will hold a workshop for septic contractors to walk through compliance and contractor prequalification; Wyatt said the town has contacted contractors and expected 11–13 to attend the workshop.

Board members asked about the town’s administrative burden for reviewing certified payrolls and materials compliance. Wyatt said contractors will certify compliance and the town would maintain records and could perform incremental audits and check-ins. The town also plans to publish a prequalified-contractor list for homeowners and use its existing loan-administration procedures as a template.

Staff said they would submit the scope to the Division of Water Infrastructure that day and expected feedback by Dec. 1; if accepted, staff could begin homeowner outreach and program implementation thereafter.