Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. The board of selectmen of the town of Holliston is hereby authorized to make loans and grants in accordance with the provisions of this act to residents of said town for the purpose of enabling such residents to repair or replace malfunctioning septic systems which are threatening the public health. Whenever the board of health of the town of Holliston determines that a malfunctioning septic waste disposal system is a threat to the public health in said town, said board shall prepare estimates of the cost of repairing said system categorized by the cost of the repairs or of the construction of a new septic system for the respective buildings in the area. The cost of repairs or construction shall thereupon be apportioned among all of the owners of said property, after said board of health has contracted for said repairs or construction, divided equally among the owners of such property as elect to have the town repair or construct such systems, as hereinafter provided.
The board of selectmen may thereupon make available to the affected property owners their apportioned share, to be used for the purpose of paying the same to the agency or entity repairing or replacing such malfunctioning septic systems. Such apportioned costs shall, in the aggregate, equal the entire cost of said repairs or reconstruction. The selectmen shall establish reasonable maximum income categories for the purpose of determining, on the basis of low or moderate income assets, whether the amounts so paid shall be deemed to be loans or grants, and in the case of loans, reasonable scaled interest rates to be charged therefore. The principle amount of any loan shall include only the share of the costs of said repair or construction. Loans made under the authority of this act shall be evidenced by a written agreement which shall be recorded in the registry of deeds in Middlesex county, and which shall constitute a lien on the affected real estate in the same manner as a lien for betterments under chapter eighty of the General Laws.
SECTION 2. The treasurer of the town of Holliston is hereby authorized to sell bonds, after having been approved according to the procedures required under the provisions of paragraph (a) of section twenty-one C of chapter fifty-nine of the General Laws, not to exceed ten years in date of maturity, upon vote of the board of selectmen of the town of Holliston, to provide funds for the septic waste disposal system repair or construction provided for in section one of this act.
The board of selectmen of the town of Holliston is hereby authorized to expend any amounts appropriated or proceeds derived from the sale of bonds or notes, except premiums and accrued interest, to provide for loans and grants for said repairs or construction as authorized in said section one.