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USDA Funding Wastewater Improvements for Kona Subdivision

September 4, 2013, 9:38 AM HST
* Updated September 4, 12:48 PM
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The US Department of Agriculture has approved both a grant and a loan for improvements to the wastewater system in a Kona subdivision.

The USDA’s Office of Rural Development will provide the county Department of Environmental Management with a $4 million grant and a $2.4 million loan for the improvements at the Lono Kona subdivision in Kailua-Kona, the office of Sen. Brian Schatz said in a press release issued Tuesday.

The funding comes from the USDA’s Waste Disposal Loan and Grant program.

The loan carries a 35-year term and an interest rate of 2.125%.

According to Schatz’s office, the county qualified for the lowest possible rate because of the community’s median household income and because the project will resolve health and safety issues.

The subdivision has also been called “Hamburger Hill” because of its location above a McDonald’s restaurant.

The project involves installation of new sewer pipes, manholes and lateral lines, followed by restoration of roadway pavements and connection to the existing county sewer system.

The loan will be repaid using proceeds from annual assessments paid by subdivision residents through the establishment of an improvement district.

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