AUBURN – Federal block grant money could help pay for some heating this winter, councilors said Tuesday.

The city would loan low-income families up to $1,000 – interest-free – to help pay for oil. The loans wouldn’t have to be repaid right away. The city would put a lien on the property and collect the loan when the property sold.

Councilor Dan Herrick said that didn’t make much sense to him.

“I don’t like the idea of putting a lien on someone’s house to get a tank full of heating oil,” he said. “It doesn’t seem fair.”

Community Development Coordinator Reine Mynahan said the city does not have enough block grant money to give it away.

“One of the reasons we do loans is so that we eventually get paid back, so we can continue to help people down the line,” Mynahan said.

She said the loans would be available to people who would make as much as 80 percent of median income this year. For example, a family of four with household income of $43,000 would qualify.

“These would be people who have too much money to get General Assistance, but can’t still can’t afford to heat their homes,” Mynahan said.

Dot Meagher, city health and social services director, said the city has about $3,700 set aside for General Assistance to help this winter.

“But that’s not going to last,” she said. “We’ve had too many calls already this year. We’ve never had a situation like it, this early in the year.”

Families with household incomes of between 50 percent and 80 percent of the median would be able to get up to $500 in loans. Those with household incomes below 50 percent could qualify for up to $1,000.

The loans would be interest-free, paid for with Auburn’s share of federal community development block grant money. Mynahan said the city had up to $19,000 available.

People who participate would be allowed to do so year after year, up to a total of $10,000 over the course of 20 years.

Mynahan will bring the plan back to councilors in the next few weeks for a vote.