MISSOURION-SITEWASTEWATER IMPROVEMENTGRANT-LOANPROGRAM

FACT SHEET

PURPOSE

ThepurposeoftheMissouriOn-site WastewaterImprovementGrant-Loanprogramistoprovidefinancingforhomeownersseekingtomakeimprovementsto,orreplacetheiron-sitewastewatertreatmentsystemwhichwillimproveMissouri’swaterquality. Theprogramis fundedbytheMissouriDepartmentofNaturalResourcesanddeliveredbyMissouri’sregionalplanningcommissionsandcouncilsofgovernment.

ELIGIBLEAPPLICANTS

  • Homeownerswithafailingorfailedon-sitewastewatertreatmentsystemasdocumentedbyacertifiedinstallerorlocalhealthagency.
  • Homeownersmusthaveasufficientincometomaketheloanpaymentandmaintainthesystem.
  • Thevalueofthesystemfundedcannotexceedthe valueofthepropertyonwhichthesystemisplaced.

ELIGIBLEACTIVITIES

  • Fundscanbemadefor repairorreplacementofprivatewastewatertreatmentsystemsforsingle-familyhouses,andmulti-familyhousingconsistingoffourunitsorfewer.
  • Fundscanbeusedtofinanceonlyapprovedsystemsthatareinstalledbycontractors,approvedbyeachcounty’srespectivehealthdepartment.Alistofapprovedinstallerscanbefoundat:
  • OnlysystemsrecommendedbytheCountyHealthDepartment,DepartmentofHealthSeniorServices,orthelocalauthoritywillbefunded.
  • Costsrelatedtotheinstallationofanapprovedsystem(suchassoilsinvestigation,engineeringservicesandsurveying)areallowableexpenses.

INELIGIBLEACTIVITIES

Fundscannotbeusedforthefollowing:

  • Connectinghomestoaclustersystemorpublicsewersystem;
  • Installinganon-sitesystemfornewconstruction;
  • Coveringcostsincurredpriortotheloanapproval;
  • Payinghomeownersforworktheydoontheirownsystem,unlesstheyareanapprovedcontractor.

PROGRAMGRANT–LOANGUIDLELINES

  • Grantavailabilityupto50%ofprojectcost.
  • GranteligibilitybasedonincomeguidelinesoutlinedbytheDepartmentofHealthandHumanServices.
  • Householdincomeabovelow-income10%grant-60%loan-30%applicant
  • HHincomebelowlow-income–50%grant –50%loan

  • Loantermswillbebasedontheborrower’sabilitytorepay,nottoexceed$25,000or10yearsperconnection.
  • Thevalueofthesystemfundedcannotexceedthevalueofthepropertyonwhichthesystemisplaced.
  • Loanpaymentswillberequiredonamonthlybasis.
  • Loanswillbesecuredbya lienonthesubjectproperty,adeedoftrust,apromissorynote,orotheracceptableencumbrances,intheamountof theloanwithrepaymentrequireduponsale.

Loanswillbeofferedtoeligibleborrowersforeligibleuses.Interestrateswillnotexceed5%.

  • Borrowerwillberesponsibleforallclosingcosts,recordingfees,legalfeesandotherfeesrelevantto theloan.Anestimateofthefeesandchargeswillbeprovidedtotheborrowerpriorto closingontheloan.Feesrelatedtotheloancanbefinancedthroughtheloanprogramaslongasthe

totaldoesnotexceedthemaximumloanlimitof$25,000.

  • Lendermay collectalatepaymentfeenotto exceed1.5%oftheoutstandingbalance. Defaultofpaymentcouldresultin amechanicslienplacedonthesubjectproperty.
  • A$30feewillbeassessedforallchecksandpaymentsreturnedforinsufficientfunds.
  • Allpersonalandconfidentialinformationprovidedby

potentialborrowerswillbemaintained intheprojectfileattheregionalplanningcommissionoffices. DNRmayreviewthisinformationforauditpurposes.

  • Constructionpaymentswillbeissuedjointlytotheborrowerandcontractorsapproximately30daysaftercompletionoftheworkandsubmissionoftheappropriatedocumentation.

HOMEOWNERRESPONSIBILITIES

Approvedapplicantsareresponsible forprocuringservicesrelated to theproject. Aminimumofthree bidsmustbereceivedforallprojectrelatedexpenses. Ifcosts arelessthan$5,000,aminimumof threephonebidsarerequired. Ifcostsaregreaterthan$5,000aminimumofthreewrittenbidsarerequired. Thelowestbiddershouldbeselected. Ifnot,thehomeownermustprovidejustificationfornotselectingthelowestbidderandrequestapproval fromthelocalregionalplanningcommission.

Homeownersparticipatingin theprogrammustagreetoanongoingmaintenanceagreement,attheirexpense,foranyadvancedtreatmentsystem.

Wastewatertreatmentimprovementswillbeownedbytheborrower.

Applicantsmustcertifytheywillprovideappropriatesystemmaintenanceoverthelifeof theloan;attendtrainingonoperatingandmaintainingthesystem;andperiodicallyhave thesysteminspectedtoinsureitis operatingproperly.Theinspectionschedulewillbedeterminedbythetypeofsystembeinginstalled,but mustbeperformedatleastevery5years.

DOCUMENTSREQUIREDTOPROCESSLOAN

  • Loanapplication(signed)
  • Copyofwarrantydeed
  • Violationnotice(ifapplicable)fromlocalhealthdepartment
  • Latesttax return
  • Costestimateofproject

HOWTOAPPLY

Applicationpacketsareavailableateachregionalplanningcommission(seelistbelow)andonlineat

13.NortheastMissouriRegionalPlanningCommission

121S.CecilStreetMemphis,MO63555(660)465-7281

Federal Poverty Guidelines 2016
Sizeof Family / 150%ofPoverty
1 / $17,820
2 / $24,030
3 / $30,240
4 / $36,450
5 / $42,660
6 / $48,870
7 / $55,095
8 / $61,335
Forfamilies withmore than8persons, add$4,160 for each additional person

TheMissouriAssociationofCouncilsofGovernment(MACOG)isthestatewideassociationrepresentingMissouri’s19regionalplanningcommissionsandcouncilsofgovernment.