Nags Head staff outline $500,000 0% septic repair loan program targeting 283 vulnerable properties

Town planning and environmental staff told the Board on April 1 that the town’s scope for a Division of Water Infrastructure loan has been approved and will expand the existing low‑interest septic program.

The program will remain a complement to the town’s existing up‑to‑$12,000 loan but will allow up to $20,000 per property at 0% interest repaid over five years for qualifying repairs. Staff said they identified roughly 283 properties most at risk because of proximity to marshes, sounds or drainage areas; they excluded properties that recently had maintenance, non‑conventional systems, or recent program participation. Outreach will be targeted: identified owners will receive letters explaining selection and the opportunity, and where appropriate staff will contact rental management companies to facilitate work.

Staff described an implementation flow: property owner application, county health department permitting, homeowner selects from a prequalified contractor list, town staff and finance will process loans, and staff will GPS tank and drainfield locations to build a program database. Staff also noted compliance steps for federal funding, including Davis‑Bacon prevailing‑wage and American Iron & Steel requirements.

Speakers said the town is awaiting the formal funding offer but has signed the scope and is preparing outreach, contractor prequalification and internal workflows so it can move quickly when funds are available.

Speakers quoted or paraphrased in this article are identified from the meeting transcript and include planning and environmental staff and the deputy planning director.