Indiana Finance Authority
In order to provide economic efficiencies and management synergies and enable the State of Indiana (“State”) to communicate as one voice with the various participants in the financial markets, the Indiana Development Finance Authority, the State Office Building Commission, the Indiana Transportation Finance Authority, the Recreational Development Commission, the State Revolving Fund Programs and the Indiana Brownfields Program were consolidated into a new and separate entity called the Indiana Finance Authority (“IFA”) on May 15, 2005. The Indiana Health and Educational Facilities Finance Authority was also merged into the IFA, effective July 1, 2007.
As the successor entity to these formerly separate debt-issuing entities, the IFA is authorized to issue revenue bonds payable from lease rentals under lease agreements with various state agencies and to finance or refinance the cost of acquiring, building and equipping structures for state use including state office buildings, garages, highways, bridges, airport facilities, correctional facilities, state hospitals and recreational facilities related to State parks. The IFA also manages the Wastewater and Drinking Water State Revolving Fund Loan Programs and the Indiana Brownfields Program.
Indiana’s Drinking Water State Revolving Fund (DWSRF) Loan Program provides low-interest-rate financing to construct drinking water infrastructure. As loans are repaid, money is available to be used again for new financings, thus making the program a “revolving fund.”
The program’s funds originated from capitalization grants from the U.S. Environmental Protection Agency (U.S. EPA). Today, the program still receives such grants, but also uses the revolved repayments along with leveraging in open market to allow more money to be available at a low interest rate for eligible projects.
The DWSRF Loan Program has provided more than $321 million in financing to Indiana communities since the program’s first drinking water loan closing in 1999. Since then, the DWSRF Loan Program has provided over $34 million in savings to Indiana communities. In SFY 2008 alone communities saved more than $8 million by taking advantage of the DWSRF Loan Program’s subsidized interest rates.
Political subdivisions (cities, towns and counties), regional water districts, privately-owned and not-for-profit facilities are eligible to apply for financing through the DWSRF Loan Program.
Indiana’s Wastewater State Revolving Fund (WWSRF) Loan Program provides low-interest-rate financing to construct water quality protection projects. As loans are repaid, money is available to be used again for new financings, thus making the program a “revolving fund.”
The WWSRF Loan Program’s funds originated from capitalization grants from the U.S. Environmental Protection Agency. Today, the WWSRF Loan still receives such grants, but also uses the revolved repayments along with leveraging in open market to allow more money to be available at a low interest rate for eligible projects.
The WWSRF Program has provided more than $1.84 billion in financing to Indiana communities since the program’s first loan closing in 1991. Since then, the WWSRF Program has provided over $170 million in savings to Indiana communities. In SFY 2008 alone communities saved more than $19 million by taking advantage of the SRF Loan Programs’ subsidized interest rates.
Political subdivisions (cities, towns and counties), regional sewer/water districts and conservancy districts are eligible to apply for wastewater SRF project financing.
