July 27, 2021
BOISE — The Idaho Department of Environmental Quality (DEQ) today announced the award of a $1,251,000 low-interest drinking water construction loan to Sunnyside Water Association in Bonner County, Idaho.
The funding will be used to add two booster stations, replace piping, and rehabilitate the existing water storage reservoir.
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% percent of the median household income, Sunnyside Water 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 US Environmental Protection Agency, carries a simple 1.75% interest rate, is payable over 30 years, and has a $515,517 principal forgiveness.
The favorable loan terms represent a $741,719 savings to the community when compared to average costs for municipal general obligation debt issuances.
Grants & Loans Bureau Chief