March 23, 2017 Department of Health Awards Loan to Holmesville Water System for Drinking Water System Improvements

Baton Rouge, La., Mar 23, 2017 - The Louisiana Department of Health recently awarded a $1,920,000 loan to the Holmesville Water System through the State’s Drinking Water Revolving Loan Fund. This low-interest subsidized loan will help improve Holmesville’s water system.

LDH and Holmesville officials closed the loan in February. The proposed project includes improvements to two water treatment facilities with new treatment units and storage tanks and a new well and emergency power equipment at one of the facilities. Also, the system will use the funds to make modifications to the electrical control systems and chlorination system to comply with the EPA’s drinking water standards. 

In addition to the loan, the Fiscal Year 2016 Drinking Water Capitalization Grant allowed for additional subsidies in the form of principal forgiveness of up to 20 percent of the loan’s principal, with a cap of $500,000 of principal forgiveness per project. 

Through this special provision, the fund will provide additional financial assistance in the form of principal forgiveness in the amount of $384,000 for this loan for the Holmesville Water System.   

“Consistent access to safe, clean drinking water is critical to the health and well-being of any community,” LDH State Health Officer Dr. Jimmy Guidry said. “The Drinking Water Revolving Loan Fund provides an affordable way for communities and water systems such as Holmesville to update their drinking water systems and keep their residents safe.”

Loans made through this program have low interest rates and repayment periods capped at 20 years. Both public and privately-owned community water systems and nonprofit, non-community water systems are eligible for these loans. Once a loan has been approved, water systems can use the funds to make necessary improvements. As the systems pay back the loans, the principal and interest are used to make more money available for loans to other communities. All projects funded by these loans are approved based upon a priority ranking system. Among other factors, projects that address the most serious risks to human health and those that ensure compliance with the federal Safe Drinking Water Act are given the highest priority.

Congress established State Drinking Water Revolving Loan Fund Programs in 1996 as part of the amendments to the Safe Drinking Water Act. The program is jointly funded by an annual grant from the U.S. Environmental Protection Agency and the individual participating states. In Louisiana, the fund is administered by the LDH Office of Public Health. 

“The Fund allows the Department of Health to provide communities with low-interest subsidized loans,” said Jennifer Wilson, program manager for LDH’s Drinking Water Revolving Loan Fund. “This allows the communities to make needed infrastructure improvements and protect public health.”

For more information about the program, contact Jennifer Wilson at 225-342-7499.

The Louisiana Department of Health strives to protect and promote health statewide and to ensure access to medical, preventive and rehabilitative services for all state residents. To learn more about LDH, visit www.ldh.la.gov. For up-to-date health information, news and emergency updates, follow LDH's Twitter account and Facebook.