Idaho Administrative Code › Title IDAPA 58 - Environmental Quality, Department of › Rule 58.01.12 - RULES FOR ADMINISTRATION OF WASTEWATER AND DRINKING WATER LOAN FUNDS › Section 58.01.12.021 - DISADVANTAGED LOANS

Current through August 31, 2023
Disadvantaged Loan Awards. In conjunction with the standard
				loans, the Department may award disadvantaged loans to applicants deemed
				disadvantaged using the following criteria: (3-24-22)
01.
Qualifying for a Disadvantaged
			 Loan
. In order to qualify for a disadvantaged loan, a loan applicant
			 must have a residential user rate for either drinking water or wastewater
			 services that exceed two percent (2%) of the applicant community's median
			 household income or, if the user rate is between one and one-half percent
			 (11/2%) and two percent (2%)
			 of the applicant community's median household income, the community must also
			 have: unemployment that exceeds the state average; and a decreasing population.
			 The applicant shall agree to a thirty (30) year loan unless the design life of
			 the project is documented to be less than thirty (30) years. The annual user
			 rate would be based on all operating, maintenance, replacement, and debt
			 service costs (both for the existing system and for upgrades). If the
			 applicant's service area is not within the boundaries of a municipality, or if
			 the applicant's service area's median household income is not consistent with
			 the municipality as a whole, the applicant may use the census data for the
			 county in which it is located or may use a representative survey, conducted by
			 a Department approved, objective third party, to verify the median household
			 income of the applicant's service area. (3-24-22)
02.
Adjustment of Loan Terms
.
			 DEQ will equally apportion funds available for principal forgiveness to all
			 prospective disadvantaged loan recipients. For wastewater loan funding, the
			 length of the repayment period is set at the borrower's discretion, up to the
			 maximum repayment period of thirty (30) years. For drinking water loan funding,
			 extensions of repayment term to thirty (30) years are only allowed for
			 disadvantaged applicants. Consistent with achieving user rates as per the
			 criteria set forth in Section
			 021, and where possible with
			 available funds, loan terms may be adjusted in the following order: decreasing
			 the interest rate and providing principal forgiveness. (3-24-22)
a. Decreasing Interest Rate. The loan
			 interest rate may be reduced from the rate established by the Director for
			 standard loans to a rate that results in an annual user rate equaling the
			 criteria set forth in Section
			 021. The interest rate may be
			 reduced to as low as zero percent (0%). (3-24-22)
b. Principal Forgiveness. If even at zero
			 percent (0%) interest, the annual user rate per residential user still exceeds
			 the criteria set forth in Section
			 021, then the principal that causes
			 the user charge to exceed the criteria set forth in Section
			 021 may be partially forgiven or
			 reduced. The principal reduction cannot exceed fifty percent (50%) of the total
			 loan, unless the user rate will exceed $100 per month (in which case the
			 principal reduction may exceed fifty percent (50%). Principal forgiveness terms
			 may be revised (from initial estimates established in the annual Intended Use
			 Plan) based upon final construction costs, such that loan terms do not result
			 in user rates that are below the criteria set forth in Section
			 021. (3-24-22)