Where:  Campo, CA

Issue:  Lake Morena’s Oak Shores Mutual Water Company needed to replace distribution pipelines to improve drinking water quality.

Outcome:  RCAC’s Loan Fund provided a $32,100 predevelopment loan so the company could apply for state funding to complete the construction project.

The Village of Lake Morena is near Campo a Census Designated Place inCalifornia about 60 miles east of San Diego County and five miles north of the Mexican border. Most Lake Morena residents are low-income.

Lake Morena’s Oak Shores Mutual Water Company (LMOS), which serves about 200 customers in the village, needed to replace its 85 year old water distribution system. The county health department considered the replacement project critical, but for LMOS to qualify for state funding the project needed to be ready for construction, and the organization did not have enough cash on hand to cover predevelopment costs and could not borrow money from a conventional lender. Because they had received financing from the Loan Fund in the past, they knew RCAC was a resource.

RCAC’s Loan Fund provided a $32,100 predevelopment loan for the design, engineering and environmental studies required to submit a complete funding application to the Drinking Water State Revolving Fund. In October 2016, the LMOS board received notice that its grant application was approved and the $300,000 construction project was fully funded. Construction is expected to begin in early 2017, when the loan will be repaid.