department of the environment maryland water quality revolving loan fund financing stormwater...
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Department of the Environment
Maryland Water Quality Revolving Loan Fund
Financing Stormwater Infrastructure
Jag Khuman, DirectorMaryland Water Quality Financing Administration
410-537-3119
December 7, 2015
Water Quality Revolving Loan Fund
Water Quality Revolving Loan Fund
Water Quality Revolving Loan Fund
Federal Funds & 20% State Match
Borrower
Revenue Bond Proceeds
Below Market Interest Rate Loans
Loan Debt Service Repayments
Investment Earnings
Debt Service Payments to Bond holders
Provides below market interest rate loans to finance Water Quality capital infrastructure
Loans up to 100% of project cost. FY 2016 budget = $130 million (Funding capacity can be increased by issuing revenue bonds)
Interest Rate (Dec 2015): Standard Rate = 1.50% fixed Disadvantaged = 0.70% fixed
Term: Up to 30 years (based on useful life of the asset)
Loan Fee: 5% of P&I payment, collected annually with debt service payments (adds ~0.50% to true interest rate on a 20-year term loan)
MD Water Quality Revolving Loan Fund
WQRLF - Potential Debt Service Savings
Water Resources Reform and Development Act of 2014 (WRRDA)
Key Stormwater WQSRF Eligibility Provisions:
• For measures to manage, reduce, treat, or recapture stormwater or subsurface drainage water.
• For reusing or recycling wastewater, stormwater, or subsurface drainage water
Public Private Partnership (P3) Financing
P3 Public Entity(e.g., MS4 Permitted Local Government)
P3 - Private EntityP3 - Private Entity
P3 Master Agreement
General Contractor
Water Quality Revolving Loan
Fund
Water Quality Revolving Loan
Fund
Debt Service Payment in Advance of Due Date
Loan Proceeds
Trustee Bank(3rd party/lock box)
Trustee Bank(3rd party/lock box)
Payment for work completed
Debt Service Payments
WQRLF Debt Service Payment Guarantee
P3 Public Entity(e.g., MS4 Permitted Local Government)
P3 - Private EntityP3 - Private Entity
P3 Master Agreement
General Contractor
Private/Capital Market Financing
Private/Capital Market Financing
Guarantee Payment to Cure Debt Service Payment Deficiency
Loan Proceeds
Water Quality Revolving Loan
Fund
Water Quality Revolving Loan
Fund
Payment for work completed
Debt Service Payments
Repayment back to WQRLF for amount of Guarantee used, if any
1800 Washington Boulevard | Baltimore, MD 21230-1718410-537-3000 | TTY Users: 1-800-735-2258
www.mde.state.md.us
Maryland Department of the Environment
Maryland Water Quality Financing Administration1800 Washington Boulevard
Baltimore, MD 21230 410-537-3119
www.mde.maryland.gov/wqfa