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Nags Head pursues $500,000 0% septic loan program to target 283 vulnerable properties
Summary
Town staff announced a $500,000 Division of Water Infrastructure scope approval that would allow low‑interest loans up to $20,000 per property at 0% for five years; staff will target about 283 low‑lying properties for outreach and pre‑qualification once formal funding is received.
Town leaders told the Board of Commissioners on April 1 that the Division of Water Infrastructure has approved the scope for a $500,000 program to expand the town’s existing septic repair loan offering.
Under the proposed program staff described, property owners could receive up to $20,000 per property with a five‑year, 0% repayment term; the program builds on the town’s existing low‑interest septic loan (up to $12,000). Staff identified a targeted cohort of roughly 283 properties—those adjacent to marshes, sounds and large drainage areas and not recently serviced by county records—to prioritize outreach and maximize water‑quality benefits.
Environmental Planner Connor Twitty and Deputy Planning Director Joe Costello outlined outreach plans: personalized notification letters to selected property owners explaining the offer, coordination with rental management companies where applicable, pre‑qualified contractor lists, assistance with Dare County Health Department permits, and town support for Davis‑Bacon and American Iron & Steel compliance. Staff said they are finalizing pre‑qualified contractors and internal workflows (planning and finance) and will begin targeted outreach as soon as the formal funding letter arrives.
Commissioners asked about the number of targeted properties (staff confirmed ~283) and the program’s potential to be a model for other communities. Staff noted the program’s intent is to remove financial barriers, encourage proactive repairs that protect sensitive waters and reduce future failures.
Next steps: staff will finalize contractor pre‑qualification, workflows and outreach materials and launch targeted mailings when the formal funding agreement is executed.
