Relating to on-site septic systems; and prescribing an effective date.

Septic repair help for homes and businesses

Oregon funds local financial-help programs for septic systems through grants from its Department of Environmental Quality. These programs provide low-interest loans for work that addresses health or safety risks or protects water quality. Eligible properties include owner-occupied and rental homes, including multi-unit housing, and for-profit businesses producing less than 3,500 gallons of wastewater daily. Short-term lodging and industrial-waste systems do not qualify. Covered work includes repairs, replacements, upgrades, waste-disposal-well or sewage-drill-hole replacements, and regional evaluations of repair or replacement needs. Replacement options include new, used or reconditioned systems, shared septic systems, and sewer connections. Alterations qualify as part of a repair or when the system being upgraded is more than 25 years old. Loans cover 100 percent of eligible costs unless the borrower requests and agrees to less. The septic lender must agree that the borrower's mortgage lien comes first. When a damaged or failed system must connect to an available public sewer, assistance pays for connection and proper septic closure. An available sewer is one the property can legally connect to without a major sewer extension. Grant selection favors programs helping low- and moderate-income households, housing providers, and small-business applicants unable to get traditional financing. Selection also favors experienced lenders and assistance providers, and programs planning outreach with other groups. Grant recipients must sign an agreement before receiving funds, follow government accounting standards, and ensure compliance with locally required system upkeep. The Environmental Quality Commission can adopt program rules. The law takes effect on the 91st day after the 2025 regular session adjourns.