Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. The city of Gloucester is hereby authorized to provide financial assistance to an owner of property located in said town for the cost of repair, replacement or upgrade to a septic system on such property which has been deemed to constitute a present or potential threat to human health, safety, welfare or to the environment. Said city may use public funds for the purposes set forth in this act in an amount not to exceed 25 per cent of the total cost to the property owner but in no event shall said amount exceed $6,000 for each such property. To qualify for said funds from said city, repairs, replacement or upgrading of a septic system must be pursuant to a mandate or order by said city's wastewater management plan, court decree in United States and Commonwealth of Massachusetts v. City of Gloucester, case number 89-2206-Y or the board of health of said city, pursuant to section 11 of chapter 83 or section 127B½ of chapter 111 of the General Laws or regulations of the board of health of said city.

SECTION 2. Notwithstanding the provisions of chapter 40, 80, or 83 of the General Laws or any other general or special law, rule or regulation to the contrary, the city of Gloucester may borrow and incur debt for the purposes of this act.

Said city shall enter into an agreement with a residential property owner, who otherwise qualifies under the provisions of this act, to furnish financial assistance under the provisions of this act; provided, however, that said agreement shall be in accordance with the provisions of section 127B½ of chapter 111 of the General Laws, except for the funds contributed by said city.

SECTION 3. This act shall take effect upon its passage.