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​2016 Construction Loan Program 

  

Approximately $175 Million May Be Available For Funding 

  • Applications accepted mid-March; due May 16
  • $7 million maximum per jurisdiction, per biennium
  • No local match required
  • 2.55% interest rate.  Rates are based on loan term selected and a certain percentage of average daily tax-exempt municipal bond market rates 30-60 days prior to application cycle, OR before contract execution (whichever is less)
  • For drinking water and sanitary sewer projects not on the 2014 unfunded PWTF construction loan list, applicants must FIRST apply to the Departments of Health / Ecology during their normal funding cycle.  Only projects not selected for funding and/or partially funded by Departments of Health / Ecology will be eligible for the 2016 Construction Loan program.
  • Each system has a separate application (see right side of this page).  Be sure to select the correct link to download the correct application.

Program Description 

Local governments may now apply for low-interest loans 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.
 

Eligible applicants:

  • Cities
  • Counties
  • Special purpose districts
  • Quasi‐municipal organizations
Tribes, school districts, and port districts are ineligible for this program.
 

Eligible infrastructure systems:

  • Domestic Water
  • Roads/Streets
  • Bridges
  • Sanitary Sewer
  • Solid Waste/Recycling
  • Storm Water 

Threshold requirements:

Growth Management Act:

Applicants required to plan under the Growth Management Act (GMA) must be in conformance with the GMA by the time they go to contract.  To verify conformance with the GMA, please contact the Department of Commerce's Growth Management Unit.
 

Capital Facilities Plan:

The proposed project must be included in the applicant's adopted Capital Facilities Plan (CFP) or equivalent by the application deadline.
 

Real Estate Excise Tax:

Counties, cities, and towns must have adopted a local Real Estate Excise Tax (REET) rate of at least 0.25% as allowed by RCW 82.46.010(2) at the time of application. 2013 local REET rates are published through the Department of Revenue.
 

Greenhouse Gas Emissions Reduction:

Applicants must have an adopted policy to reduce greenhouse gas emissions as required by RCW 70.235.070 by the application deadline.  Please see sample policy.
 
 

The Board is mandated by statute to recommend a construction loan list for FY 2016.

Applications for construction loans are due May 16, 2014, with funds available in July 2015 subject to Legislative approval.

 

 

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