Loan and Grant Information
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.
Loans for non-technical assistance projects:
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.
Except as provided elsewhere in OAR chapter 123, division 43, the interest rate on a loan is based on market conditions for similar debt and is set at the time of the award.
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.
Maximum amount for a loan for a project will be determined by the Authority on the basis of the departments financial analysis of the municipalitys capacity for repaying the debt, the availability of moneys in the fund and prudent fund management but will not exceed $10,000,000.
The loan shall be a full faith and credit obligation which 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.
Grants for non-technical assistance 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:
The Authoritys financial analysis determines that the municipalitys financial resources, including its borrowing capacity, are insufficient to finance the project;
The projected annual residential utility rate for the system is at least equivalent to a minimum rate as determined by the Authoritys policy. The Authoritys 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;
Only a distressed community is eligible for a grant award; and
Grants may be awarded up to $750,000 based on the Departments policy, but not more than 50 percent of the financial award from the fund.