Well / Septic Loans

Applications for the Well / Septic Loan program are being accepted through Friday, October 16, 2020.  Projects must be completed by Friday, November 6. 

In response to the Coronavirus (COVID-19) pandemic and to protect our customers and employees, Anoka County temporarily limited its public-facing services.  Employees are available to help via email, phone and virtual visits.

Agricultural Best Management Practices (AgBMP) is a water quality program that provides low interest loans to property owners. The program’s purpose is to improve water quality. Funding is only allocated to approved projects that fix water quality issues.

The AgBMP loan program provides financing on qualified projects to property owners and is paid back through a special assessment on property taxes. These low interest loans make it more affordable to implement practices to correct water quality problems.

The AgBMP Loan Program is funded by the Minnesota State Legislature, the Minnesota Public Facilities Authority, and the U.S Environmental Protection Agency and is administered through the Minnesota Department of Agriculture.

NOTE: Loan MUST be approved PRIOR to project start.

Loans to Fix Water Quality Issues:

* Septic Systems

* Private Wells

* Connection to City Sewer/Water    

Eligibility for Program:

Property owner must be current on their mortgage payments and property taxes; they must own the property where the repair/ replacement will be installed. Reverse mortgages do not qualify for the loan program.

Application Process:

1. Property owner/Borrower submits application, fee, and required attachments including project estimate

2. Project eligibility for AgBMP program is determined

3. If approved, borrower completes lien agreement

4. Borrower completes project with licensed/certified installer or contractor

5. Borrower provides final project receipts to County

6. Borrower and County close the loan, payment paid directly to contractor

7. Special assessment certified to property tax

Terms of Loan:

* Maximum loan length is 10 years based on total project cost (over $20,000 paid over 10 years, under $20,000 paid over 5 years)

* Interest rate 3% plus 1% loan origination fee

* $200 loan application fee (if project denied, fee refunded)

* Loan amount up to $100,000 per project (limit 2 projects) 

* Borrower repays Anoka County via special assessment to property tax (payments collected with semi-annual property taxes)

Eligible Projects (if loan approved):

Septic Systems-must solve existing / potential groundwater pollution problem 

* Mound Septic Systems

* Septic Repair/Replacement

* Cluster Systems

* Connection to city sewer

Private Wells-must solve existing / potential groundwater pollution problem
* To meet set back requirements
* Repair broken casings
* Contaminated wells
* Abandon/sealing open well

Not Eligible Projects:
* Projects already started / completed
* Projects having court filings against them
* New construction or remodeling that makes the current system non-compliant (i.e. bedroom addition)