2016 Construction Loan Program
Board recommends $173.8 million to fund 51 projects
The 2016 construction loan list is the Board’s first funding recommendation since 2013 due to the state budget crisis and slow pace of economic recovery. Pending approval by the Governor and Legislature, contracts could be awarded as early as July 2015. The Board also proposes $1.2 Million to fund future emergency projects.
2.55% basic interest rate
Reduced interest rate for all projects located in communities that have been declared a natural disaster
$7 million maximum per jurisdiction, per biennium
No local match required
Ninety applications worth $263.5 Million were received in May 2014; 81 applications were considered eligible.
Program Description: Low-interest loans for local governments to finance public infrastructure construction and rehabilitation. Eligible projects must improve public health and safety, respond to environmental issues, promote economic development, or upgrade system performance.
- Special purpose districts
- Quasi‐municipal organizations
Tribes, school districts, and port districts are ineligible for this program.
Eligible infrastructure systems:
- Domestic Water
- Sanitary Sewer
- Solid Waste/Recycling
- Storm Water
The Board is mandated by statute to recommend a construction loan list for FY 2016.
Loans worth $175 Million will be made in July 2015 subject to Legislative approval.