MICHIGAN FORGIVES CITY OF FLINT’S DRINKING WATER REVOLVING FUND LOANS
On Nov. 16, State Treasurer Nick Khouri declared the city of Flint’s outstanding Drinking Water Revolving Fund (DWRF) loans have been forgiven effective immediately. That means the city will no longer have the obligation of paying more than $20 million in outstanding DWRF loans. No further amounts related to the loans will be due.
“I am pleased to support the forgiveness of these loans as provided under federal law,” Khouri said. “This action provides financial relief to the city, as it continues down its path toward fiscal stability and recovery.”
The over $20 million in outstanding debt was from four DWRF loans that were initiated between 1999 and 2003. They were used for upgrades and improvements to the water treatment plant. The decision comes at the direction of Michigan Department of Environmental Quality (DEQ) under the authority of the 2017 Consolidated Appropriations Act, which was federally signed into law this past May.
Flint is the only community eligible for DWRF loan forgiveness nationwide, per federal guidelines.
“This loan forgiveness will help provide some financial relief and stability for the city of Flint,” said C. Heidi Grether, director of DEQ. “The department will continue to coordinate with the city to address critical water and infrastructure needs.”
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