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Nags Head seeks state 0% septic replacement loans and extends town loan repayment to five years
Summary
Town staff will apply for a pilot NC DEQ loan program that could supply 0% loans (and principal forgiveness for qualifying households) for septic replacement; the board also extended the town's septic loan repayment term from three to five years to make replacements more affordable.
Town staff asked the board to authorize an application to the NC DEQ Division of Water Infrastructure pilot loan program and to extend the town's septic loan repayment term from three to five years to reduce monthly payments for property owners.
"They're offering communities...the ability to grant loans for replacement of malfunctioning septic systems at 0% interest," staff member Andy told the board, describing an opportunity to pass through state funds and noting that, for qualifying low‑income residents, the program would allow principal forgiveness.
Andy said the town's current septic loan rate is "prime rate minus 2.5 percent" (about 5.5 percent in current conditions) and that extending the term to five years combined with 0% funding could substantially reduce monthly payments and expand participation in the replacement program.
The board approved a resolution authorizing staff to apply for the state program and separately approved extending the town's repayment term to five years.
What was approved: authorization to apply for state DEQ funds and a policy change to allow five‑year repayment for town septic loans. Staff noted additional eligibility criteria would apply (systems must be malfunctioning or in need of repair) and that principal forgiveness would be available to qualifying applicants under the state program.
