Section 265.26.4. Project funding.

       26.4(1) Intended use plans/state project priority lists. The state project priority lists shall include projects eligible for SRF loans as provided in 567—Chapters 44 and 92. The authority will consider the following when determining whether to provide a loan to an eligible recipient:

        a.           Recipient’s financial capability to repay the loan and to provide operation and maintenance, replacement reserves, and, if required, debt service reserves;

        b.           Recipient’s statement of willingness to accept all loan terms and conditions;

        c.           The priority of the project;

        d.           Funds available; and

        e.           The technical review and approval of the project by the department.

       26.4(2) Phased or segmented projects. Loan funds for future portions of phased or segmented projects cannot be ensured, although subsequent segments of a project which has been awarded financial assistance will receive priority over other new projects. Loans made for separate phases or segments of a project will be administered separately.

       26.4(3) Loan adjustments. Loan amounts may be adjusted to reflect eligible costs.

       26.4(4) Recipient record keeping. The recipient shall maintain records that document all costs associated with the project. Moneys from the SRF and those contributed by the recipient shall be accounted for separately. Accounting procedures shall conform to generally accepted government accounting standards. The recipient shall agree to provide access to these records to the department, the authority, the state auditor, the state or EPA, and the Office of the Inspector General at the EPA. The recipient shall retain such records and documents for inspection and audit purposes for a period of three years from the date of the final loan payment.

       26.4(5) Site access. The recipient shall agree to provide the department and the department’s agent access to the project site at all times to verify that the loan funds are being used for the intended purpose and that the construction work meets all applicable state and federal requirements. Recipients shall also agree to provide the department periodic access to the project site for the duration of the loan to ensure that the project is being operated and maintained as designed.

       26.4(6) Cross-cutting laws. Other federal and state statutes and programs may affect an SRF project. Loan agreements will include an assurance that a recipient will comply with all applicable federal and state requirements.