July 6, 2021
BOISE — The Idaho Department of Environmental Quality (DEQ) today announced the award of a $750,000 low-interest wastewater construction loan to the Moose Draw Association, Inc. in Latah County, Idaho.
The funding will be used to pay for the facility plan and environmental report for the association’s wastewater system project and upgrade the treatment system to comply with the permit.
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 1.5% percent of the median household income, the Moose Draw Association Inc., 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 $647,310 principal forgiveness.
The favorable loan terms represent a $880,890 savings to the community when compared to average costs for municipal general obligation debt issuances.
Grants & Loans Bureau Chief