Location: Kelseyville, Lake County, CA

Problem:  A small water system needed financing to replace a water tank

Solution:  Rural Community Assistance Corporation’s (RCAC) Loan Fund provided $225,500 loan for predevelopment expenses

Clear Water Mutual Water Company (CWMWC) is a small nonprofit water system that provides water to approximately 100 households in Konocti Bay Estates, in the unincorporated Lake County area near Kelseyville. The water company needs to replace an aging redwood storage tank, which has inadequate capacity and is leaking treated water. If it fails, CWMWC would be unable to provide drinking water to its customers.

RCAC’s environmental staff performed a median household income (MHI) survey that determined the community’s MHI to be $29,750, which is well below the Lake County and state MHIs of $35,578 and $62,883 respectively. The survey determined CWMWC’s service area includes a severely disadvantaged community, which makes it eligible for Prop 1 grant funding. However, in order to apply for the funds, the system needed to submit engineering and environmental reports.

If the system had to apply for grant funding for predevelopment costs, it could take up to seven months to process, thereby delaying the project. RCAC’s Loan Fund provided a $225,500 environmental predevelopment loan so the system could contract for the required reports and submit the grant application for the construction project. Once it receives Prop 1 funding, the system can move forward with tank replacement in a timely manner and provide safe drinking water to its customers.