N.M. Code R. § 8.16.3.10

Current through Register Vol. 35, No. 11, June 11, 2024

Section 8.16.3.10 - EVALUATION OF APPLICANT AND PROJECT

A. Evaluations and determinations by department.

(1) The department will determine whether an application is complete.

(2) Once the application is complete, the department will evaluate the applicant and the proposed project for eligibility and make a determination as to eligibility.

(3) If the department determines that an applicant is eligible, the department will determine the programmatic priority for each application.

(4) Upon completion of its evaluation of eligibility and determination of programmatic priority, the department will refer the applications that have been determined eligible and have been assigned a programmatic priority to the authority.

B. Financing approval by the authority.

(1) The authority will perform an independent analysis of the financial feasibility of each application for a loan. In evaluating an application the authority will consider:

(a) the ability of the eligible applicant to secure financing from other sources;

(b) the costs of the loan;

(c) the applicant's ability to repay the loan; and

(d) the applicant's ability and agreement to satisfy any other requirements for approval of the loan as the authority requires by policy or otherwise.

(2) The evaluation must include a finding that the useful life of the project will meet or exceed the final maturity of loans made or bonds purchased or issued by the board and must meet standards for reasonable costs set by the board.

(3) Restrictions on loans:

(a) An applicant shall not be given a loan if the applicant received a loan from the fund in the immediately preceding five years.

(b) An applicant shall not be given a loan if the applicant has not completed repayment of a previous loan from the fund.

(c) No more than twenty percent of the fund available for the funding cycle may be loaned to a single provider in a single loan.

(4) The authority will make a written recommendation to the application committee setting forth its recommendations for approval of specific applications.

C. Recommendations to board by application committee. Upon receipt of the authority's recommendation the application committee shall review and evaluate the loan applications and make a recommendation to the board. The application committee will review and evaluate the applications for eligibility, programmatic priority, feasibility and readiness to proceed. The application committee may confer with outside parties as necessary to obtain more information. The application committee will make a written recommendation to the board of the applications that are eligible, feasible and ready to proceed. The recommendation will include the estimated costs of the projects and may include recommendations for loan covenants necessary to ensure programmatic integrity and adjustments to the department's programmatic prioritization of applications.

D. Approval by board. Upon receipt of the application committee's recommendation the board will act on the recommended applications and any associated loan documents or agreements no later than the next regular board meeting at which such item may be properly considered. The board may approve all or part of any application recommended or may disapprove the application and deny funding. Board approval may specify, at the board's discretion, terms and conditions of the loan as necessary to ensure repayment, including but not limited to maximum loan term and maximum annual payments. The authority will notify the applicant of the approval or disapproval of its application by telephone and will mail written notification by mail within seven (7) working days of board action.

E. Communications regarding applications. All communications regarding an applicant's original application shall be directed to the department.

F. Project feasibility. Although the department, the authority and the application committee will analyze each project to determine whether the project is feasible, a loan by the authority does not constitute a warranty or other guarantee as to the feasibility of the project and the authority shall not have any responsibility or liability with respect to any project.

N.M. Code R. § 8.16.3.10

8.16.3.10 NMAC - Rp, 8.16.3.9 NMAC, 09/14/07