Rhode Island Infrastructure Bank (RIIB), in partnership with the Rhode Island Department of Environmental Management (DEM) and Rhode Island Housing, also oversees a Sewer Tie-In Loan Fund (STILF) that provides low-interest loans to homeowners to connect to the local sewer system and abandon their individual septic system or cesspool.
· STILF financing is interest-free, with homeowners being responsible for a $300 loan origination fee and a 1% annual servicing fee on the outstanding loan balance
· Residents may borrow up to $10,000 with a term of up to five years
· Connections to the sewer by either gravity or low-pressure, including the grinder pump, are both STILF eligible
· The cost to properly abandon the existing septic system (pumping out its content and filling with sand) is also STILF eligible
· STILF funds cannot be used to connect newly-constructed homes to sewers, or to repair, replace, or upgrade existing sewer connections.
· Rhode Island Housing is responsible for underwriting and servicing loans made through STILF
A municipality must first be placed on DEM’s Project Priority List Annually and be issued a Certificate of Approval for the project. The municipality can then apply to RIIB for a STILF loan in an amount up to $150,000 at an interest rate of 0% to the municipality. After receiving a STILF loan from RIIB, municipalities can allow residents to access STILF funds.