DEQ awards $2.5 million to the Carlin Bay Property Owners Association
Friday, June 19, 2020
BOISE—The Idaho Department of Environmental Quality (DEQ) today announced the award of a $2.5 million low-interest drinking water construction loan to the Carlin Bay Property Owners Association, located in Kootenai County, Idaho.
The funding will be used for planning, design, and construction, including replacing the water filtration system and booster pumps and making reservoir and distribution system upgrades.
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 services for residential customers exceeds 1.5% of the median household income, the Carlin Bay Property Owners Association qualifies for a disadvantaged loan, which carries favorable repayment terms.
The loan from DEQ’s State Revolving Loan Fund, which is capitalized annually by grants from the U.S. Environmental Protection Agency, carries a simple 1.75% interest rate, is payable over 30 years, and has $467,765 of principal forgiveness. The favorable loan terms represent a $789,051 savings to the community when compared to average costs for municipal general obligation debt issuances.