St. Mary's Metropolitan Commission wins approval to seek $36 million DHCD loan
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Summary
The county board approved MetCom’s request to submit a DHCD loan application for roughly $36 million to fund wastewater and force‑main projects constrained by a Maryland Department of the Environment consent decree; commissioners debated reserve levels and loan timing before approving the request.
The Commissioners of St. Mary's County voted to allow the St. Mary’s Metropolitan Commission (MetCom) to submit a Maryland Department of Housing and Community Development (DHCD) loan application for major capital projects and a separate 10‑year loan for vehicles and equipment.
MetCom representatives told the board the 30‑year application would support several large projects — including the Piney Point force main, the Forest Run wastewater pump station and the Piney Point wastewater pump station — that are constrained by timelines set in a Maryland Department of the Environment consent decree. MetCom said the DHCD loan program's flexibility and bundling with other applicants helps secure better terms and lets the utility transfer funds among projects if bids vary.
“In fact, the 36,000,000 number seems relatively high compared to the amount of past loans,” a MetCom presenter said, but added DHCD plans to bundle requests to achieve better rates and distribution of administrative costs. Presenters also described prior DHCD borrowing and an outstanding draw balance on a previous package.
Commissioners pressed MetCom on whether to borrow now and begin paying principal and interest within 180 days of drawing funds, or to stage smaller requests in later years to reduce interest paid while projects remain in design. MetCom responded that most consent‑decree projects are construction‑ready, that permitting precedes bidding, and that projects would be staggered so draws occur over multiple years.
After extended questioning about reserves, obligated funds and alternatives such as Maryland Water Quality Fund loans, the board approved MetCom’s motions. The commission voted to permit MetCom to submit a 30‑year DHCD loan application not to exceed $35,993,393 plus issuance and administrative fees, and separately approved a 10‑year DHCD application not to exceed $1,215,000 for vehicles and equipment.
The board recorded dissent during the deliberations but approved both requests and authorized the commissioner president to sign related documents. MetCom said it will return with further capital‑budget and draw‑schedule details as projects move to bid and construction.
