MA municipal water projects to receive over $6.7M in loan forgiveness funds
State Treasurer Deb Goldberg, chair of the Massachusetts Clean Water Trust, has announced more than $6.7 million in loan principal forgiveness that will provide financial improvements to drinking water and wastewater infrastructure in 13 communities statewide.
May 27, 2015 -- Today, State Treasurer Deb Goldberg, chair of the Massachusetts Clean Water Trust (MCWT), announced more than $6.7 million in loan principal forgiveness that will provide financial improvements to drinking water and wastewater infrastructure in 13 communities statewide. The funds, administered by the state and backed by the federal government, were awarded on a competitive basis to cities and towns most in need of financial assistance associated with loan payments to the Trust.
The MCWT improves the water quality in the Commonwealth through the provision of low-cost capital financing to cities, towns and other eligible entities and maintains stewardship of public funds with prudence, professionalism and integrity. Because of the reduction of loan principal funded by this program, impacted communities will see their bi-annual loan payments reduced, freeing up capital for other local needs. The loans were originated to pay for municipal water projects such as upgrades to water treatment facilities and stormwater and sewer improvement projects.
"By providing access to low-cost capital, the Clean Water Trust enables communities to make much needed investments in this critical, yet often forgotten infrastructure," said Undersecretary for the Executive Office for Administration and Finance and designee to the Clean Water Trust Board of Trustees, Rachel Madden. "I look forward to working with the Treasurer's Office, the Department of Environmental Protection and all other members of the Clean Water Trust on similar projects in the future."
Commissioner Martin Suuberg of the Massachusetts Department of Environmental Protection, which is a member of the Clean Water Trust, added, "This state revolving fund principal forgiveness will help these communities save millions of dollars, allowing local officials to keep water and sewer rates lower. These savings are achieved while we increase the protection of our natural resources and the public health."
The $6.7 million in loan forgiveness funds is associated with a total original loan amount of over $190 million. The MCWT lends financial assistance to the Commonwealth under the State Revolving Fund program by providing subsidized loans to cities and towns for clean water and drinking water infrastructure development. Since its establishment in 1989, the Trust has loaned approximately $6 billion to improve and maintain the quality of water in the Commonwealth. An estimated 97 percent of Massachusetts' citizens have benefited from its assistance.