Loan and Grant Information
(1) The Authority may award financing in a manner that maximizes the use of available resources and maintains the desired credit standards of the fund. The Authority shall determine the amount, type, interest rate and terms of any financing awarded. It may offer an alternate mix or lower amount of assistance than requested. The amount of the award may be the minimum amount that the department determines is necessary to enable the project to proceed, and the Authority may investigate and recommend other sources of funds for all or part of a proposed project. Projects that the Authority determines are not financially feasible will not be funded.(2) Loans for water projects:(a) The term of a loan is limited to the usable life of the contracted project, or 30 years from the year of project completion, whichever is less.(b) The interest rate on a loan is based on market conditions for similar debt. In addition to, or in lieu of a grant, the Authority may offer a subsidized interest rate if the community meets the criteria identified in (3)(b) and (3)(c) below.(c) The interest rate on a bond funded loan is equal to the coupon rates on the state revenue bonds funding the loan. Until the state revenue bonds funding the loan are sold, the municipality will pay interest at a rate established by the Authority on loan funds disbursed to the municipality.(d) The maximum amount for a loan for a project will be determined by the Authority on the basis of the department’s financial analysis of the municipality’s capacity for repaying the debt, the availability of moneys in the fund and prudent fund management, but will not exceed $10,000,000.(e) A loan must be secured by a full faith and credit obligation that is payable from any taxes which the municipality may levy within the limitations of Article XI of the Oregon Constitution and all legally available revenues and other funds of the municipality. A pledge of specific revenues of the municipality may be required by the Authority to be pledged in addition to the foregoing.(3) Grants for water projects: When making a determination to award a grant, the Authority will apply prudent fiscal management of the fund in order to manage limited funding resources. The Authority shall determine if the project meets the criteria of a grant and make a determination on the amount of the grant based on financial need or other special circumstances. In making its determination, the Authority shall apply the following criteria:(a) The Authority’s financial analysis determines that the municipality’s financial resources, including its borrowing capacity, are insufficient to finance the project;(b) The projected annual residential utility rate for the system is at least equivalent to a minimum rate as determined by the Authority’s policy. The Authority’s policy may include such factors as the most recent U.S. Census data on median household income and annual adjustments for inflation since the most recent census;(c) Only a community with a median household income below the state average is eligible for a grant award; and(d) Grants may be awarded up to $750,000 based on the department’s policy, but not more than 50 percent of the financial award from the fund.(4) Loans for technical assistance projects:(a) A loan of up to $60,000 may be awarded for a technical assistance project. Interest shall be at 50 percent of the annual interest rate for other loans made in accordance with the requirements of this OAR chapter 123, division 43. The loan term shall not exceed seven years.(b) A loan must be secured by a full faith and credit obligation that is payable from any taxes which the municipality may levy within the limitations of Article XI of the Oregon Constitution and all legally available revenues and other funds of the municipality. A pledge of specific revenues of the municipality may be pledged in addition to the foregoing.(5) Grants for technical assistance projects: (a) A grant of up to $20,000 per water, sewer, and storm drainage system may be awarded once every three (3) years for a project.(b) No more than $600,000 of grant may be awarded for technical assistance projects in any biennium.