June 27, 2024
Contact: MaryAnna Peavey, Grants and Loans Bureau Chief, MaryAnna.Peavey@deq.idaho.gov
BOISE – The Idaho Department of Environmental Quality (DEQ) today awarded two low-interest drinking water construction loans to organizations in Canyon and Fremont counties.
The Caldwell Housing Authority in Canyon County received a $2.5 million loan to to connect to the city of Caldwell’s water system. Big Twelve Water Association in Fremont County received $4.3 million to address water supply and distribution deficiencies.
DEQ is authorized by state law to make loans to assist in the construction of public drinking water systems. Since the annual cost of drinking water service for residential customers exceeds 1.5% of the median household income, both entities qualify for a disadvantaged loan, which carries favorable repayment terms.
The loans from DEQ’s State Revolving Loan Fund, which are capitalized annually by grants from the United States Environmental Protection Agency, carry a simple 1.75% interest rate and are payable over 30 years.
This translates to $610,740 in principal forgiveness and $2,160,136 in savings for Canyon County, and $1,714,297 in principal forgiveness and $4,033,711 in savings for Fremont County when compared to average costs for municipal general obligation debt issuances.