ELIGIBILITY DEPT. OF COMMERCE ECONOMIC - CDAP USDA, RURAL DEVELOPMENT WATER & WASTEWATER REVOLVING FUND FINANCE AUTHORITY Applicants Non-entitlement counties, cities, villages, and townships incorporated as units of local government. Public and not-for-profit organizations serving cities and towns with populations less than 10,000, or other rural areas when conventional financing is not affordable. Wastewater: Units of local government, including special service and sanitary districts. Water: Units of local government and some community water supplies operated and administered as a distinct water utility. Public, Private and not-for- profit organizations. Targeted Beneficiaries 51% of beneficiaries of project must meet income criteria. towns and villages, rural water systems and not for profit corporations. Funding priority is given to projects based on relative significance in achieving objectives of the CWA or SDWA. General Public Projects Eligible applicants must demonstrate need for the project. Eligible applicants must demonstrate need for the project. Eligible applicants must demonstrate need for the project. Any Costs Planning Administration Legal Design Easements/Land Construction Contingency Construction Engineering Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes No No Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
APPLICATION & AWARDS DEPT. OF COMMERCE AND COMMUNITY AFFAIRS - CDAP USDA, RURAL DEVELOPMENT WATER & WASTEWATER REVOLVING FUND FINANCE AUTHORITY Funding Cycles One funding round each year. Continuous (1) Continuous Generally two pooled bond issues per year but funds can be made available throughout the year. Pre-Application N/A Initial application filed with area office; if eligible, applicant invited to submit full application. Pre-applications filed by March 31 form the basis for subsequent year priority list. Any applicant may submit a full loan application. N/A Application One round per year. Application may be submitted after applicant receives invitation from Agency. Application may be completed at any time. From Oct. 1 – March 31, funding is first reserved for highest priority projects identified in the “Intended Use Plan” (IUP). Applications may be submitted year round. Award Process Competitive review of eligible projects; readiness to proceed is a critical factor in awarding funds. Eligible projects are priority ranked; readiness to proceed is a critical factor in awarding funds. Readiness to proceed is a critical factor; if are limited, awards are based on priority rank as well as readiness. Review of the applicant’s ability to repay the debt. Awarding of Funds Award letters. Notice of fund obligation. Loan Agreement issued on the basis of actual as-bid costs. Approval letter. Financial Closing Synonymous with award agreement. Once all program requirements are satisfied, and prior to construction. Synonymous with award agreement. Approximately 10 days after the interest rates have been set by the market.
FINANCIAL ASSISTANCE DEPT. OF COMMERCE AND COMMUNITY AFFAIRS - CDAP USDA, RURAL DEVELOPMENT WATER & WASTEWATER REVOLVING FUND FINANCE AUTHORITY Maximum Grant Available $350,000 (construction) $150,000 (design only $15,000 (planning) 75% of eligible costs when median household income is below 80% of State’s non-metropolitan median household income; 45% of eligible costs when median household income is below the State’s median household income. N/A N/A Match Required 25% Not required but increases funding priority. N/A N/A Loan Rates N/A Poverty Rate – 60% of the Bond Buyer Index for projects in areas with median household incomes below 80% or less of State median and needed to meet a health or sanitary standard. Intermediate Rate – 80% of bond buyer index in areas with incomes between 80 and 100% of State median. Market Rate – For higher income applicants. Rate tied to bond buyer index. 4.375% Rate for new loan awards in the current fiscal year is established each July 1 at ½ of the average market rate for the previous 12 months. Most recent four years: 2.5%. Less than 3.0% for Last eleven years. Double tax-exempt revenue bonds, backed by the moral obligation of the state, currently trade as “A” rated with positive outlook. Maximum Loan Term N/A 40 years. 20 years. 40 years. However, loan terms may not exceed the useful life of the facility being financed. Loan Repayment N/A Bond, Debt Certificate or Note. Bond or Note. notes, or any debt instrument allowed by law to be utilized by applicant.