Ariz. Admin. Code § 18-15-105

Current through Register Vol. 30, No. 50, December 13, 2024

Section R18-15-105 - General Financial Assistance Conditions

A. The Authority shall not execute a financial assistance agreement with an applicant until the applicant provides all documentation specified by the Authority.

B. The documentation required prior to execution of the financial assistance agreement shall at a minimum include:

1. If there is a governing body, one copy of the governing body resolution approving the execution of the financial assistance agreement;

2. A project budget;

3. An estimated disbursement schedule; and

4. A legal opinion of the local borrower's counsel concurrent with closing date of the financial assistance agreement.

C. The financial assistance agreement between the recipient and the Authority shall at a minimum specify:

1. Rates of interest, fees, and any costs as determined by the Authority;

2. Project details;

3. The maximum amount of principal and interest due on any payment date;

4. Debt service coverage requirements;

5. Reporting requirements;

6. Debt service reserve fund and repair and replacement reserve fund requirements;

7. The dedicated source for repayment and pledge;

8. The requirement that the recipient comply with applicable federal, state and local laws;

9. A schedule for repayment; and

10. Any other agreed-upon conditions.

D. The Authority may require a recipient to pay a proportionate share of the expenses of the Authority's operating costs.

E. The recipient shall maintain the project account in accordance with generally accepted government accounting standards. After reasonable notice by the Authority, the recipient shall make available any project records reasonably required to determine compliance with the provisions of this Chapter and the financial assistance agreement. For purposes of this section, "project account" means the account in which the financial assistance is held or maintained.

F. The Authority shall release loan proceeds subject to a disbursement request if the request is consistent with the financial assistance agreement.

1. The applicant shall submit each disbursement request on the forms provided by the Authority. Each disbursement request shall include a certification and signature document, a cost-incurred report, and a DBE report. The Authority shall not process a disbursement until the applicant provides a completed disbursement form.

2. The applicant shall include copies of invoices, or other documents that show proof of eligible costs incurred with each disbursement request.

G. The recipient shall make repayments according to an agreed-upon schedule in the financial assistance agreement. The Authority may charge a late fee for any loan repayment not paid when due. The Authority may refer any loan repayment past due to the Office of the Attorney General for appropriate action.

Ariz. Admin. Code § R18-15-105

Adopted effective September 18, 1997 (Supp. 97-3). Amended by final rulemaking at 7 A.A.R. 5956, effective December 4, 2001 (Supp. 01-4). Section repealed; new Section made by final rulemaking at 16 A.A.R. 1709, effective October 9, 2010 (Supp. 10-3). Amended by final rulemaking at 24 A.A.R. 239, effective 3/11/2018. Amended by final expedited rulemaking at 30 A.A.R. 1982, effective 5/7/2024.