Cesspool or Septic System Replacement and Retrofit Loan

To further CDCLI’s mission of increasing investment in neighborhoods, protecting the assets of homeowners, and protecting the environment, a low-interest rate loan product is now available to assist with the installation of a new septic system in homes with failing cesspools!

To reverse decades of damaging nitrogen pollution of ground and surface waters on Long Island, this new loan from CDCLI is made available to assist with the cost of replacing outdated and failing septic systems with a state-of-the-art nitrogen reducing systems or a lesser cost hybrid system. CDCLI will make its low interest loan available, if the homeowner is in need of additional funds to cover the costs of installing the new system. Loan application fees and closing costs do apply for this product. Loan amounts cannot exceed $10,000.

 Available for homeowners anywhere on Long Island, near water or further way in the center. Primarily, those homeowners who do not qualify for the Suffolk County program for Septic Replacement System. This loan product is not available for homeowners who are looking to replace a conventional cesspool with another conventional cesspools system.

Loan Guidelines:
  • Loans amount: $10,000 per household.
  • Houses must be residential single family or two-family properties, owner or non-owner occupied. Other type of houses can be considered on a case-by-case basis.
  • Property Taxes must be current.
  • A credit score of 625 will be used as an underwriting guidelines.
  • Interest rate: 3% or 5% depending on the percent of the applicant’s household income in relation to the Area Median Income (AMI).
  • Maximum loan term is 15 years.
  • Loan fees:
    • $120 application fee
    • $125 processing fee
    • 1% origination fee
  • UCC-1 filing required to secure the loan
  • Applicant(s) must be the legal owner(s) of the property.
  • A signed contract with the contractor is required

Contact Information:
(631)-471-1215 ext. 1510 or 1930



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