CO HB1120

Creates the Septic-System Replacement Enterprise within the Department of Local Affairs to provide interest-free or low-interest loans to low-income or low-credit-score households for replacing failing septic systems

Imposes fees on septic-system installation/replacement permits ranging from $10 to $200 based on permit cost, with collection beginning July 1, 2026

Establishes a 7-member governing board appointed by the governor, including representatives from rural counties, local health boards, municipalities, and state agencies, with 4-year terms

Requires the enterprise to contract with at least 2 community development financial institutions to administer the loan program, with contracts limited to 3-year terms

Eligible households must have income at or below 200% of federal poverty guidelines, at or below 80% of county median income, or primary earners with mean credit scores below 640