Utah Admin. Code 309-705-4
Funds within the SRF may be used for loans and other authorized forms of financial assistance. Funds may be used for construction of publicly or privately owned works or facilities, or any work that is an eligible project cost as defined by Section 73-10c-2 or as allowed by 42 U.S.C.A. 300f et seq. Project costs which meet the criteria of Subsection R309-705-4(1) that are incurred after the applicant's funding application has been approved by the Board and before the financial assistance agreement is executed are eligible for reimbursement from the proceeds of the financial assistance agreement.
To qualify for negative interest or principal forgiveness, the system must qualify as a disadvantaged community as defined in Section R309-705-3. Upon application, the Board will make a case-by-case determination whether the system is a disadvantaged community. To be eligible to be considered as a disadvantaged community, the system must meet the definition provided in Section R309-705-3. Additionally, the Board will consider the type of community served by the system, the economic condition of the community, the population characteristics of those served by the system, factors relating to costs, charges and operation of the water system, and other such information as the Board determines relevant to making the decision to recognize the system as a disadvantaged community.
The assessment will be calculated based on the procedures and formulas shown in Section R309-705-6.
Annual repayments of principal, interest, fees or Hardship Grant Assessment generally commence 18 months after project completion. Project completion is defined as the date the funded project is capable of operation and a notice of beneficial occupancy is given to the general contractor. Where a project has been phased or segmented, the repayment requirement applies to the completion of individual phases or segments.
The loan must be fully amortized 30 years after project completion or 40 years after project completion if the community served by the water system is determined to be a disadvantaged community. The yearly amount of the principal repayment is set at the discretion of the Board.
Eligible water systems meeting the definition of disadvantaged community may qualify for financial assistance in the form of forgiveness of a portion of the principal loan amount. Terms for principal forgiveness will be determined by Board resolution.
Eligible applicants for principal forgiveness financial assistance will be considered by the Board on a case-by-case basis. The Board will consider the type of community served by the system, the economic condition of the community, the population characteristics of those served by the system, factors relating to costs, charges and operation of the water system, and such other information as the Board determines relevant to making the decision to recognize the system as a disadvantaged community.
Eligible water systems meeting the definition of "disadvantaged community" may qualify for financial assistance in the form of a loan with a negative interest rate, as determined by Board resolution.
Eligible applicants for "negative interest" financial assistance will be considered by the Board on a case-by-case basis. The Board will consider the type of community served by the system, the economic condition of the community, the population characteristics of those served by the system, factors relating to costs, charges and operation of the water system, and such other information as the Board determines relevant to making the decision to recognize the system as a disadvantaged community.
Loan recipients must establish one or more dedicated sources of revenue for repayment of the loan. As a condition of financial assistance, the applicant must demonstrate a revenue source and security, as required by the Board.
The Board may use funds from the SRF to buy or refinance debt obligations of municipal, inter-municipal or interstate agencies, where the initial debt was incurred and construction started after July 1, 1993. Refinanced projects must comply with the requirements imposed by S D WA as though they were projects receiving initial financing from the SRF.
The Board will determine whether a project's funding may receive all or part of a loan, credit enhancement agreement or interest buy-down agreement. To provide security for project obligations, the Board may agree to purchase project obligations of applicants, or make loans to the applicants. The Board may also consider making loans to the applicants to pay the cost of obtaining letters of credit from various financial institutions, municipal bond insurance, or other forms of insurance or security for project obligations. The Board may also consider other methods of assistance to applicants to properly enhance the marketability of or security for project obligations.
Interest buy-down agreements may consist of any of the following:
The Board may establish a fund or account into which the proceeds of an annual fee on loans will be placed. These funds will be used to finance technical assistance for eligible water systems.
This fund will provide low interest loans for technical assistance and any other eligible purpose as defined by SDWA to water systems that are eligible for Federal SRF loans. The Board may forgive the principal amount of a technical assistance loan, in whole or in part, for any eligible water system whether the system qualifies as a disadvantaged community or not.
Projects ineligible for financial assistance include the following.
Utah Admin. Code R309-705-4