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RCAC loans enable broad spectrum of rural West improvements

April 26, 2011

West Sacramento, Calif. — RCAC made nine loans that totaled nearly $4 million in its second quarter of Fiscal Year 2011. RCAC second quarter loans covered six states in the West, including Arizona, California, Colorado, Hawaii, New Mexico and Nevada to help small, rural and low-income communities develop a fire station, an adult day care center, farm worker housing, self-help housing, and water and wastewater systems. A few of the loans are highlighted below.

Community facility loan

In Rough and Ready, California, the Rough and Ready Fire Protection District (RRFPD) operates from a metal building that was originally constructed to store only two fire engines. While several additions were made, the existing structure has poor ventilation, no air conditioning, poor heating, inadequate and unsafe wiring, mold, non-potable water, an undersized and un-expandable septic system, no sleeping quarters, almost no insulation, poor lighting, no fire suppression system, an undersized generator, and a severely leaky roof. The building is too small for the amount of equipment and personnel required to provide fire protection to the district. Additionally, the district needs to replace a 21-year old fire engine. The newer, comparable fire engines will not fit into the existing engine bay.

The RCAC loan will position RRFPD to build a facility twice the size of the existing fire station. The new station will be ADA compliant, and it will have five engine bays, four drive-through bays, gender-specific sleeping quarters and bathrooms, a decontamination room, staff day room, kitchen, administrative offices, a training room, a 45,000 watt emergency generator and fire sprinklers.

Housing loans

In Delta, Colorado, an RCAC loan will fund Alta Vista de la Montana to construct 40 units of rental housing for low-income farmworkers. Delta is located in western Colorado, approximately 65 miles from the Colorado/Utah boarder. Ranching and agriculture are the largest industries in the region.

In Grantsville, Utah, Clark Cove Cottages received an RCAC loan to fund 24 units of affordable rental housing for low- and very-low income seniors and families.

Both the Colorado and Utah projects include several green build features such as passive solar design, energy efficient appliances, a programmable thermostat and more.

Water loan

Broadview Terrace Mutual Water Company (BTMW), a small, rural water system in Oakhurst, California, received an RCAC loan to upgrade its existing water distribution system and connect to a permanent water supply. BTMW serves approximately 600 residents in 177 households.

The Broadview Terrace subdivision was developed in the early 1960s. The original developer formed a water company and provided subdivision residents with water for domestic, livestock and garden consumption along with fire protection. The system consists of eight wells, a partially buried 55,000 gallon concrete storage facility, two large pressure tanks and distribution lines. In 1984, Broadview Terrace subdivision homeowners purchased the water system and formed BTMW. A 50,000 gallon steel, above-ground storage tank was added to increase water capacity as well as a hook-up to Hillview Water Company (HWC) to supplement the water supply during peak summer months.

In April 2008, BTMW’s water system failed the total coliform rule of the California Safe Drinking Water Act and was issued a citation from the California Department of Public Health (CDPH). The contamination source could not be identified. CDPH directed BTMW to install chlorination equipment for each of its eight wells and hire a certified water operator to oversee the chlorination treatment, or to purchase all water from HWC. BTMW chose to purchase water from HWC, as this was the less costly option. BTMW’s own water system is designated for emergency use only.

BTMW now seeks to upgrade the water distribution system and reconnect to HWC with a larger meter. The RCAC loan will enable BTMW to address the most pressing issues of how to provide a permanent long-term potable water supply to the residents of the Broadview Terrace subdivision.

“RCAC’s Loan Fund continues to address critical rural community development needs – from safe drinking water to fire safety to affordable housing. Each loan we make not only addresses important needs, but creates or retains jobs,” said Michael Carroll, RCAC Loan Fund director.

Founded in 1978, RCAC provides a wide range of community development services for rural and Native American communities, agricultural workers and community-based organizations in 13 western states. RCAC has strong core services and expertise in housing, environmental infrastructure (water, wastewater and solid waste), leadership training, economic development and financing. RCAC created its Loan Fund in 1988 and was later certified as a CDFI. To find out more about RCAC's Loan Fund products, visit www.rcac.org/doc.aspx?82.

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