Applying for Financial Assistance
If you received a required connection notice from the City that you need to correct your sewer connection, you could apply for financing. The City offers several financing options, which are outlined on this page.
Apply for a Sewer Connection or Conversion Loan
System Development Charge Loans
Property owners may use System Development Charge Loans to finance city sewer connection or conversion charges. This loan offers options for 5, 10, and 20-year repayment terms with no penalty for early payoff and no pre-qualifications based on income or credit history.
The city finances these installment loans by selling improvement bonds at favorable interest rates. The city charges an interim interest rate of 6.2% before the bond sale. After the bond sale, the interest may be adjusted to equal the true interest cost of the bonds. The adjusted rate will become the permanent interest rate for the remaining term of the loan. The city makes every effort to keep the permanent interest rate within a few percentage points of the interim rate.
Additional costs associated with this loan include a one-time finance fee of $40.00 plus 0.49% of your loan amount and a billing transaction fee of $3.00 per bill.
Private Plumbing Loans
Property owners may use Private Plumbing Loans to finance the cost of hiring a contractor to decommission cesspools or nonconforming sewer connections and install private sewer lines connecting with the public sewer. To qualify, the property cannot be encumbered with delinquent property taxes, special assessments, or assessment loans.
These loans currently have a fixed and simple interest rate of 6.1% per year and repayment terms of 5 or 10 years. Additional costs associated with this loan include a one-time finance fee of $90.00 plus a billing transaction fee of $3.00 per bill. The city calculates an Annual Percentage Rate (APR) as a method of summarizing the total cost of interest, financing and origination fees, and monthly service charges. Borrowers may use the APR to compare the total cost of the loan to loans offered by private lenders. Penalties for late and non-payment will be applied as necessary.
Initiating Private Plumbing Loans
The borrower must submit three bids from bonded and licensed contractors with the Oregon Construction Contractor's Board to initiate this loan. The city does not make recommendations but can supply a list of contractors with sewer construction experience. The city establishes a borrowing limit based on the lowest and most reasonable bids, not to exceed a loan cap of $20,000.
It is the property owner's responsibility to select the contractor to perform the work. Property owners pay the difference when the selected contractor is not the same one that provided the lowest bid.
The city will pay the contractor upon completion of the work and receipt of the Certificate of Completion and final inspection report.
Safety Net Low Income Loans
Safety Net Connection Loans
Property owners who qualify may use this loan to finance city sewer connection or conversion charges imposed upon a property to recover the costs of constructing public sanitary sewers. To be eligible for the Safety Net Connections Loan, the applicant must own and live at the property to be connected. The applicant's income cannot exceed the income caps in the following table, and additional assets cannot exceed $100,000.
| Household Size | Family Income |
|---|---|
| 1 | $81,830 |
| 2 | $93,520 |
| 3 | $105,210 |
| 4 | $116,900 |
| 5 or more | Contact Our Office |
These loans currently have a fixed and simple interest rate of 1.5% per year. Borrowers under age 62 may defer making payments for five years. The original applicant must re-apply and qualify for an additional five-year deferment at the end of the deferred payment period. Otherwise, the unpaid principal and accrued interest will be combined into a single loan balance and become payable in equal monthly installments. The length of this installment period shall be 5, 10, 15, or 20 years, depending upon the amount owed.
Borrowers age 62 and older may defer making payments until the property is sold or transferred. Loans are due in full upon sale or transfer of property.
Safety Net Private Plumbing Loans
Property owners may use Safety Net Private Plumbing Loans to finance the cost of hiring a contractor to decommission cesspools or nonconforming sewer connections and install private sewer lines connecting with the public sewer. The qualifications and terms are the same as the Safety Net Connection Loan. Initiation procedures are the same as for Private Plumbing Loans.
Safety Net Sewer Connection Deferral
Qualified property owners may enter into an agreement with the City that will allow them to remain on their cesspool/septic system for five years. Longer terms are available for people over age 62.
All City Loans
For City Loans, no down payments are required, and there are no penalties for early payoff. Penalties for late and non-payment may be charged if necessary. The City Auditor's Office will secure the loans via an assessment and entry into the Docket of City Liens. Contact the Bureau of Revenue at 503-823-4090 to make an unscheduled payment or get a loan payoff amount.