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Home > Programs > Land Use Planning > Financial Assistence > Sewer Extension Loan Program

Land Use Planning


Great American Neighborhood
Sewer Extension Loan Program

"SUPPORTING WALKABLE NEIGHBORHOODS AND COMMUNITIES"

The State of Maine is offering a pilot program to assist Maine cities and towns that wish to encourage neighborhood development in residential growth areas. The Program, part of our “Hometown Maine” initiative, is a cooperative effort of the Maine Municipal Bond Bank, the Maine Departments of Environmental Protection and Economic and Community Development, the State Planning Office, and the U.S. Environmental Protection Agency. $3 million is available through this pilot program.

The purpose of this program is to provide low-interest rate loans covering the cost of sewer or sewer extensions to eligible areas with a graduated or “patient” payback provision that keeps payments low at the start of the project. Interest rates and loan terms are intended to be attractive enough that the program represents a significant incentive for communities and developers to create new or add to existing “Great American Neighborhoods”.

Great American Neighborhoods can be found in many older Maine villages, town centers and cities. They are the compact neighborhoods where the homes keep their value year after year.

  • They have six, nearly universal, features:

  • They are walkable from end to end.

  • They have a civic core and a mix of neighborhood uses

  • They have a street network that is interconnected

  • They have recognizable boundaries that separate one neighborhood from another.

  • They have a human scale.

  • They provide for both chance meetings and personal privacy through their street, sidewalk, and lot design

Recent studies in Maine indicate that there is a pent up demand among homebuyers to purchase new homes located in “traditional” or Great American Neighborhood settings; that communities have identified areas in their comprehensive plans where residential growth is desired and encouraged; and that a key factor holding up development in such areas is the need for sewer extensions and the high upfront costs associated with providing them. The Sewer Extension Loan Program addresses this need and aids cities and towns to encourage new neighborhoods in growth areas, thus relieving development pressure in rural areas.

Program Statement and Phase I Application materials (PDF, 259 KB)

Phase II Loan Application (PDF, 191 KB)

For more information, contact:

John DelVecchio, Phase I Design Application, State Planning Office, 287-8058

Karen Asselin, Phase II Loan Application, Maine Municipal Bond Bank, 622-9386

Bill Brown, Sewer Construction, Department of Environmental Protection, 287-2111