Effective date: 7/20/1999

Funding of pre-construction loans for planning, engineering, and administrative allowances shall be made only to project sponsors having rate-based community water systems for projects which have a public health risk priority component under paragraphs 62-552.650(4)(a) through (d), F.A.C. A pre-construction loan shall not be available as a supplement to a pre-construction grant. A pre-construction loan project sponsor must qualify as a small community unless the project priority is based, in part, on consolidation or regionalization under paragraph 62-552.650(5)(c), F.A.C. Pre-construction loans shall be available only after a listing on the fundable portion of the priority list has been obtained, a complete loan application has been submitted to the Department, and execution of a loan agreement for which the Department shall have the primary responsibility for drafting and settling of terms. Pre-construction loans shall be available before the completion of project planning.
    (1) The maximum estimated adjusted post-allowance project costs, for the purpose of establishing allowances, shall be limited to $2,000,000.
    (2) The planning activities under a pre-construction loan shall address, at a minimum, all of the small community’s public health and compliance related drinking water facilities needs throughout the planning period required under paragraph 62-552.700(4)(b), F.A.C.
    (3) Loan recipients shall prepare and submit to the Department, no later than the time set forth in the loan agreement:
    (a) Water facilities plan.
    (b) Affirmation of availability of all project sites for the purposes of construction, operation, and maintenance over the useful life of the facilities.
    (c) Biddable plans and specifications consistent with the selected alternative described in the water facilities plan.
    (d) Value engineering report for operationally related project facilities for which the adjusted post-allowance project costs are valued at more than $5,000,000.
    (4) Loan agreements shall provide for the continuation of the pre-construction interest rate for post-allowance activities to be covered under an additional completion loan when the conditions stated in subsection (3) above have been met. When the conditions have not been met, the Department’s commitment to continue the interest rate shall be terminated.
    (5) Loan agreements shall provide for the following:
    (a) The loan repayment reserve, semiannual loan repayment, interest rate determination, loan service fee, loan security features, escrow account, pledged revenue coverage, legal affirmation, assurances of compliance with SRF program requirements, disbursement, and annual certification requirements of Rule 62-552.430, F.A.C.
    (b) The late repayment remedies under Rule 62-552.430, F.A.C.
    (c) A project sponsor shall be entitled to the special interest rate consideration given in subsection 62-552.300(9), F.A.C., when a project to be funded with an additional completion loan has been planned and designed according to the schedule incorporated into a pre-construction loan agreement, and the project has been included on the fundable portion of the priority list.
    (d) The Department shall have no lien on or security interest in or claim on any moneys of the project sponsor except as expressly provided in the loan agreement.
    (e) The project sponsor shall begin repaying a loan no later than the date originally scheduled under the loan agreement. The scheduled date shall be six months after completion of planning, engineering, and administrative activities. Pre-construction administrative activities include the Department’s written notification of completion of all documentation required under subsection 62-552.350(3), F.A.C.
    (f) A project sponsor shall be entitled to roll over the pre-construction loan principal into a construction loan when a project to be funded with such an additional completion loan has been planned and designed according to the schedule incorporated into a pre-construction loan agreement and the project has been included on the fundable portion of the priority list for a construction loan. However, the loan service fee, if included in the principal of the pre-construction loan, shall not be rolled over into the principal of the construction loan. The loan service fee for both the pre-construction and construction portions of the total loan principal shall be applied as described under subsection 62-552.400(1), F.A.C.
Specific Authority 403.8532 FS. Implements Florida Statutes § 403.8532. History-New 8-10-98, Amended 7-20-99.