What the CSSLP is
The Community Septic System Loan Program is a Rhode Island loan for repairing or replacing a failing septic system or replacing a cesspool. The Rhode Island Infrastructure Bank lends to towns at 0% with no fees, and towns pass the money to homeowners. RIHousing handles the underwriting and servicing.
A town can only take part if it has a RIDEM-approved On-Site Wastewater Management Plan. As of April 30, 2025, the program had made 1,237 loans to property owners, and 22 plans were approved statewide (RIIB SFY2026 plan). It can help pay for work required by the one-year rule on our Rhode Island cesspool law page.
Loan terms: rate, fee and caps
Under the RIIB SFY2026 plan, the homeowner's cost is 1% per year on the outstanding balance plus a $300 origination fee, for a term of up to ten years. RIHousing says most programs cap loans at $25,000, and properties with up to four units can qualify.
Town terms do differ, and some town documents are older than the current state plan. Always confirm the current rate, cap and fee with your town or RIHousing before you sign a contract. Ask as well whether your town limits the program to failed systems, owner-occupied homes or certain income levels, since those local conditions decide whether you qualify at all.
This is general information, not legal or tax advice.
| Source | Cap | Term | Notes |
|---|---|---|---|
| RIIB SFY2026 plan and RIHousing | Most programs $25,000 | Up to 10 years | 1% a year plus $300 fee; up to 4 units; DTI 45% or less |
| Narragansett | $20,000 | Up to 10 years | Failed systems only; excludes sewered areas |
| North Kingstown | $1,000 to $25,000 | 3, 5, 7 or 10 years | Run by the Water Department |
| Westerly application (rev. Feb 2018) | $25,000 | 10 years | Lists a 2% fixed rate and income limits; may be outdated |
Which South County towns take part
Eight Washington County towns are listed as CSSLP participants on the current RIIB and RIHousing pages: Charlestown, Hopkinton, Narragansett, New Shoreham, North Kingstown, Richmond, South Kingstown and Westerly. Exeter is not listed. RIDEM's 2022 summary also said Exeter "does not yet participate" (RIDEM municipal summary).
Each town runs its own intake, so local details vary. Narragansett takes pre-applications through its Department of Community Development (Narragansett CSSLP). North Kingstown runs the program through its Water Department (North Kingstown). Richmond's older information sheet lists a 1% rate, a $300 fee and no income limits (Richmond).
Who qualifies and how to apply
You apply through your town, not directly to the state. RIHousing says the program covers properties with up to four units and uses a debt-to-income ratio of 45% or less. Towns may add their own limits; Narragansett, for example, lends only for failed systems backed by a RIDEM notice or documented failure.
A typical sequence looks like this:
- Call your town's septic or community development office and ask for the current CSSLP application.
- Get a design from a licensed designer and a quote for the work; see our septic design and soil testing page.
- Submit the application with the quote; RIHousing reviews credit and income.
- Secure the RIDEM permit, then have a licensed installer build the system.
- Repay the loan to RIHousing, which services CSSLP loans.
What a loan payment looks like
On a $25,000 loan at 1% a year over 10 years, the monthly payment is about $219. Over 120 payments you repay about $26,281, or roughly $1,281 in interest, and the $300 fee brings the total borrowing cost to about $1,581. Our cesspool replacement cost guide shows the full calculation.
That payment can cover a conventional cesspool replacement in RIDEM's published $10,000 to $15,000 range with room to spare. A nitrogen-reducing system at $23,000 to $32,000 may run past a $25,000 cap, so plan for the gap (RIDEM OWTS program).
This is general information, not legal or tax advice.
If you need to connect to sewer instead
RIHousing also runs a Sewer Tie-In Loan Fund for owners connecting to public sewer. It lends up to $10,000 for up to five years, and participating communities include Westerly and New Shoreham (RIHousing). RIDEM's figures put a sewer tie-in well below the cost of a new septic system where a line is available.
Ask your town whether sewer reaches your street before you apply for either loan. If you are selling or buying, our buying a house with a cesspool guide explains how financing fits the one-year deadline. For a quote to include with your application, call 401-535-7951.
RI septic loan program questions
Is the CSSLP interest rate really 1%?
The RIIB SFY2026 plan sets homeowner cost at 1% a year on the outstanding balance plus a $300 origination fee. Some older town documents list different terms, such as Westerly's 2018 application at 2% fixed. Confirm the current rate with your town or RIHousing before you commit.
Can I use the loan to replace a cesspool that has not failed?
RIIB says the program covers failing systems or replacing cesspools, so many towns allow cesspool replacement. Some towns are narrower; Narragansett's program lends only for failed systems documented by a RIDEM notice or other record of failure. Ask your town office what it accepts before you apply, and bring a written quote.
I live in Exeter. Can I get a CSSLP loan?
Exeter is not listed as a participating town on the current RIIB and RIHousing pages, and a town needs a RIDEM-approved wastewater management plan to take part. Ask the Exeter Building Department whether that has changed, and look at private financing if not.
Does the loan cover a rental or multi-family property?
RIHousing says properties with up to four units can qualify, subject to the debt-to-income limit of 45%. Individual towns may add conditions, such as owner occupancy and income limits on Westerly's older application, so check the current town rules and ask RIHousing how your property would be treated.