Contact: MaryAnna Peavey, Grants & Loans Bureau Chief, maryanna.peavey@deq.idaho.gov
BOISE – The Idaho Department of Environmental Quality (DEQ) awarded a $3,200,000 low-interest drinking water construction loan to the Bailey Creek Homeowners Association in Caribou County, Idaho.
The funding will be used to upgrade the booster pump station and purchase a new backup generator, water meters, and a supervisory control and data acquisition (SCADA) system.
DEQ is authorized by state law to make loans to help construct public drinking water systems. The loan from DEQ’s State Revolving Loan Fund, which is capitalized annually by grants from the United States Environmental Protection Agency, carries a simple 2% interest rate, is payable over 30 years, and has $2,814,323 in principal forgiveness. Since the annual cost of drinking water service for residential customers exceeds 1.5% of the median household income, the Bailey Creek Homeowners Association qualifies as a disadvantaged system and receives more favorable repayment terms. The favorable loan terms represent a $5,613,869 savings to the community when compared to average costs for municipal general obligation debt issuances.