2006 Minnesota Statutes

115.57 INDIVIDUAL SEWAGE TREATMENT SYSTEM OR WATER WELL LOAN
PROGRAM.
    Subdivision 1. Purpose. The legislature finds that a need exists to provide for the creation
of a public loan program that assists property owners to finance the site evaluation, design,
installation, repair, and replacement of individual sewage treatment systems and to finance the
sealing and replacement of wells on privately owned property. Such a public loan program
promotes the public health and welfare by furthering the policy of the state of Minnesota to
prevent, reduce, and eliminate water pollution. The legislature declares that the actions required to
establish and implement a public loan program for the purposes stated in this section are a public
purpose and that the execution and financing of such a program is a public purpose.
    Subd. 2. Definitions. (a) The terms defined in this subdivision and section 115.55,
subdivision 1 , apply to this section.
(b) "Improvement" means the site evaluation, design, installation, repair, or replacement of
an individual sewage treatment system or sealing or replacement of a well.
(c) "Municipality" means a township, city, county, or any other governmental subdivision
of the state responsible by law for the prevention, control, and abatement of water pollution in
any area of the state.
(d) "Property owner" means the owner or owners as recorded on the tax roll of the county
where the real property on which the individual sewage treatment system or well is installed,
repaired, or replaced is located.
(e) "Well" means a well as defined in section 103I.005, subdivision 21:
(1) that is required to be sealed under section 103I.301, subdivision 1; or
(2) the relocation of which is necessary for compliance with applicable requirements as
defined in section 115.55, subdivision 1.
    Subd. 3. Authority. A municipality may, individually or cooperatively with other
municipalities, establish an individual sewage treatment system or well loan program, or both, for
the purpose of providing loans to property owners for the site evaluation, design, installation,
repair, or replacement of individual sewage treatment systems or for the sealing or replacement
of wells on privately owned property. The governing body of a municipality shall provide for
the operation and administration of the program by ordinance. A municipality may appoint an
administrator to operate the program.
    Subd. 4. Limitations. Loans may not be used to facilitate new building construction. As
used in this subdivision, "facilitate new building construction" includes increasing capacity of
an individual sewage treatment system beyond what is reasonably required to serve existing
buildings and lots in existing recorded plats.
    Subd. 5. Financing. A municipality may issue bonds in accordance with chapter 475 to
finance the program, except that an election is not required and the obligations are not subject
to the general limit on net debt for the municipality. Financing may also be provided by issuing
certificates of indebtedness, securing loans, or transferring available funds that the municipality is
not obligated by law to use for some other purpose. Funds procured for the individual sewage
treatment system or well loan program shall be dedicated to the program.
    Subd. 6. Assessments. (a) An amount loaned under the program, including accruing interest,
shall be a lien against the real property for which the improvement was made and shall be assessed
against the property or properties benefited unless the amount is prepaid. An amount loaned under
the program and assessed against the property shall be a priority lien only against subsequent liens.
(b) Upon issuing a loan, the municipality shall provide the property owner a notice that states
the following information:
(1) the amount to be specially assessed against the property;
(2) the right of the property owner to prepay the entire assessment;
(3) the public official to whom prepayment must be made;
(4) the time within which prepayment must be made without the assessment of interest;
(5) the rate of interest to be accrued if the assessment is not prepaid within the required
time period; and
(6) the period of the assessment.
(c) The municipality shall, by ordinance, provide for a right of property owners to prepay the
assessment and may establish such other assessment procedures as determined necessary and
consistent with the provisions of this section.
    Subd. 7. Ordinances; construction standards. A municipality may not establish an
individual sewage treatment system loan program unless ordinances in compliance with section
115.55 are in full force and effect. All repairs and improvements made to individual sewage
treatment systems under this section shall be performed by a licensed individual sewage treatment
system professional and shall comply with section 115.55 and other applicable requirements. All
improvements to wells under this section must be made by a well contractor or a limited well
contractor, as appropriate, licensed under chapter 103I.
    Subd. 8. Dissolution. The governing body of a municipality may dissolve the program
by ordinance. The ordinance shall provide for the collection of all outstanding assessments,
repayment of any remaining indebtedness incurred to finance the program, and the final
distribution of any money remaining in the loan fund.
History: 1996 c 427 s 4; 1997 c 235 s 8