Mississippi Administrative Code › Title 33 - Public Health - Local Governments And Rural Water Systems Improvements Board › Part 18 - Drinking Water Systems Improvements Revolving Loan Fund Program Regulations DW SRF Lead Service Line Replacement Intended Use Plan › Section 33-18-VI - Priority System

Current through June 25, 2024
The SDWA provides the state with the flexibility to determine
				how to best utilize the LSLR Cap grant. To meet the goals of public water
				systems in the State of Mississippi and this FFY-2023 LSLR IUP, those projects
				which meet the following will be given priority:
1. Address the most serious risk to human
			 health related to lead in service lines and associated activities directly
			 connected to the identification, planning, design and replacement of lead
			 service lines.
2. Assist systems
			 most in need, on a per household basis.
A.
Funding and Ranking Rationale
Projects will be placed on the fundable portion of the Priority
				List according to both priority ranking and readiness to proceed. The term
				"ready to proceed" means that all loan application requirements established in
				the Program regulations are met, and all documents necessary for loan award are
				approved. If a project cannot reasonably be expected to meet the Priority
				System deadlines, then the project will not be placed on the current year's
				Priority List but will be placed on the Planning List. It is the Board's
				judgment with input from the DWSIRLF staff as to when a project is ready to
				proceed. Loans will be awarded to projects (within available funds) that are
				above the funding line on the current year's Priority List, that have met all
				Priority System deadlines and are ready to proceed. Additionally, when
				potential loan recipients are deciding on the needs for their public water
				supplies, they should ensure that all public health and state safe drinking
				water laws are followed.
1. Funding
			 Lists and Bypass Procedure
Should any projects on the FFY-2023 LSLR Priority List (which
				are above the funding line) fail to comply with the deadlines in Section D, the
				project shall be bypassed, and the funds reserved for said project will be
				released. Released funds will first be made available to listed projects, to
				ensure that all projects above the funding line meeting priority system
				deadlines are funded. Any remaining funds will be made available to the
				highest-ranking project(s) shown below the funding line that is ready for loan
				award at the time funds become available. If no projects above the funding line
				are ready for loan award at the time funds become available, projects shown
				below the funding line will be funded on a first-come, first-served basis as
				they become ready for loan award and until the released funds are awarded. This
				same process will continue as each deadline passes and released funds become
				available.
2. Loan Decreases
Any funds recovered from loan decreases during the year will be
				used:
a) first to fund bid overruns,
			 if funds from the loan increase reserve are not sufficient to cover the bid
			 overruns;
b) then to ensure that
			 all projects above the funding line meeting the priority system deadlines are
			 funded (for at least the amount shown on the priority list); and
c) then to fund other loans and/or increases
			 on a first-come, first-served basis.
Any funds not obligated for these purposes may be made
				available for new loan awards ready to proceed on a first-come, first-served
				basis.
3.
			 Subsidization from FFY-2023 LSLR Cap Grant
49% of the FFY-2023 LSLR Cap Grant will be subsidized. Based on
				the Grant of $28,650,000, the required amount of subsidization is $14,038,500.
				The DWSIRLF's subsidization will be in the form of "Principal Forgiveness" (PF)
				to individual public water supplies that are considered disadvantaged
				communities, and which received reimbursements with Federal LSLR Cap Grant
				funds during the lifetime of the project, from loan initiation through loan
				closeout. If the amount of PF which a project is eligible exceeds the amount of
				Federal LSLR Cap grant funds which it received, the amount of PF extended will
				be limited to the amount of Federal Cap grant funds used for
				reimbursement.
Subsidization may be used over a two-year period. Subsidization
				remaining from a previous year may be awarded to loans which are eligible for
				PF over a two-year period. Subsidization for FFY-2023 LSLR Priority List
				projects may be awarded to projects eligible for PF in FFY-2025 and
				FFY-2026.
Disadvantaged Community Program
a.
DWSRF LSLR Capitalization Grant
			 Funds
For this funding, the following Principal Forgiveness (PF)
				methodology will be used to meet the requirements of the BIL (P.L. 117-8) for
				providing subsidy for disadvantaged systems. For the LSLR fund, 49% will be
				subsidized. The FFY-2023 LSLR federal appropriation for the Program is
				$28,650,000. The principal forgiveness (49%) allowable to eligible borrowers is
				$14,038,500.
The amount of PF for which a potential "Loan Recipient" (LR)
				may be eligible will be determined by calculating the percentage of the "Median
				Household Income" (MHI) of the potential LR versus the MHI of the State of
				Mississippi
($52,719)
as a whole.
90% < LR MHI < 100%
- 49% Principal Forgiveness
80% < LR MHI < 90%
- 56% Principal Forgiveness
70% < LR MHI < 80%
- 63% Principal Forgiveness
LR MHI < 70%
- 70% Principal Forgiveness
PF will be extended to projects until all mandated subsidy
				funds are obligated. Due to the limited amount of PF funds, the maximum amount
				of PF funds a loan recipient may receive for a project will be 70% of the
				project budget, which is capped at $5,000,000. The amount of PF given will be
				assigned at loan award. Once subsidy funds are depleted, only standard loans
				will be made with DWSIRLF funds.
In the event that a LR declines their loan that includes PF,
				the released PF may be reallocated to other projects for the present fiscal
				year that are eligible for PF, or the PF may be carried over to projects for
				the next fiscal year.
If returned PF funds are reallocated to projects awarded during
				the existing fiscal year. The reallocation of PF will be given first to
				projects which did not receive their full allowable amount based on the above
				table up to the maximum allowed limit.
In all cases, the amount of PF which is awarded to a project
				may not exceed the amount of Federal Cap grant funds which the project was
				reimbursed during the construction of the project.