DEQ awards $220,000 low-interest wastewater construction loan to South Park Estates Water and Sewer, Inc.
Friday, January 24, 2020
BOISE — The Idaho Department of Environmental Quality (DEQ) today announced the award of a $220,000 low-interest wastewater construction loan to South Park Estates Water and Sewer Inc., in Bingham County.
The funding will be used for the construction of a new lagoon, permanent road access, and site piping adjustments.
DEQ is authorized by state law to make loans to assist in the construction of public wastewater systems. Since the annual cost of wastewater service for residential customers exceeds one and one-half percent of the median household income, South Park Estates Water and Sewer Inc. is able to qualify for a disadvantaged loan, which carries very favorable repayment terms.
The loan from DEQ’s State Revolving Loan Fund, which is capitalized annually by grants from the Environmental Protection Agency, carries a simple 1.75% interest rate, is payable over 30 years, and has $3,065 of principal forgiveness. The favorable loan terms represent a $36,760 savings to the community when compared to average costs for municipal general obligation debt issuances.