Current through Register Vol. 54, No.43, October 26, 2024
Section 963.13 - Advance funding(a)Advance funding assistance. The Authority may make funding available to finance those activities undertaken prior to application for construction financing-for example, feasibility analyses, design and engineering work. Definitions, provisions, restrictions, procedures and authorizations that are enumerated in the act and in this chapter apply in the same manner to advance funding assistance as they do to construction financing assistance, except as modified by subsections (b)-(i).(b)Types of assistance.(1)Drinking water projects. Advance funding assistance may be available for two separate types of activities, each requiring the submittal of its own application as follows: (i)Feasibility analyses. Costs associated with prefeasibility and feasibility studies may be funded. Applicants shall complete an Advance Funding Application for Feasibility Analyses to apply for the funding needed to help identify problems, possible solutions, alternative sources of financing, and the like, and to perform related tasks undertaken prior to, but not including, the design and engineering of a potential construction project.(ii)Design and engineering. Costs associated with design and engineering work can be funded by financial assistance obtained by completing an Advance Funding Application for Design and Engineering. Eligible costs include those incurred between the point of completing a feasibility analysis and the point of applying for construction financing, although prior costs incurred for feasibility analysis may be reimbursed by this financial assistance.(2)Wastewater projects. Advance funding will be available only for design and engineering. Costs incurred prior to this will not be eligible for financing by advance funding as long as 50% grants remain available for reimbursing costs incurred under the Pennsylvania Sewage Facilities Act (35 P. S. §§ 750.1-750.20).(3)Stormwater systems.(i)Feasibility analyses. Section 963.7(a) and (b) (relating to application procedure) applies. After the tasks described in § 963.7(a) and (b) are complete, an applicant may submit to the Authority an Advance Funding Application for Feasibility Analyses.(ii)Design and engineering. Section 963.7(a) and (b) applies. After the tasks described in § 963.7(a) and (b) are complete, an applicant may submit to the Authority an Advance Funding Application for Design and Engineering.(c)Terms of loans. Advance funding loans will be for a term of up to 5 years. Repayment will begin at the completion of the feasibility analysis or design and engineering work-as applicable-funded by this loan. If the recipient of an advance funding loan subsequently receives a higher level of Authority assistance-for example, for either design and engineering or construction, as applicable-the outstanding balance of the advance funding loan may be subsumed in this assistance and, in the case of a subsequent loan, carry the terms established by that subsequent loan.(d)Funding limitations. Section 963.17 (relating to funding limitations) applies, with the exception that the applicable funding limits shall be 10% of the amounts specified in § 963.17(f). In other cases, the provisions established pursuant to construction are applicable to feasibility analyses or design and engineering, as is appropriate.(e)Total amount of available advance funding assistance. It will be the Authority's general goal to set aside up to 10% of total available financial assistance for advance funding during a fiscal year. This percentage can be exceeded with an affirmative vote of nine members of the Board.(f)Additional requirements for applications.(1)Drinking water systems.(i)Feasibility analyses. Section 963.7(a) and (b) applies. After the tasks described in § 963.7(a) and (b) are complete, an applicant may submit to the Authority, an Advance Funding Application for Feasibility Analyses.(ii)Design and engineering. Section 963.7(a) and (b) applies. After the tasks described in § 963.7(a) and (b) are complete, an applicant may submit to the Authority an Advance Funding Application for Design and Engineering.(2)Wastewater systems. Section 963.7(a)-(c) applies. After the tasks described in § 963.7(a)-(c) are complete, an applicant may submit to the Authority an Advance Funding Application for Design and Engineering.(g)Continuation of overall project. A recipient of financial assistance for advance funding shall initiate construction of the proposed project in accordance with the time frames established by the Authority at the time of approval. If the recipient fails to implement the proposed project in accordance with either the original approved time frame schedule or an amended schedule approved by the Authority, funds disbursed to the recipient by the Authority shall immediately be due and payable. The Authority will exercise power it deems necessary or appropriate under section 6 of the act (35 P. S. § 751.6) to effectuate the repayment of these amounts.(h)Effect of advance funding assistance. The awarding of advance funding assistance will not have an effect on the priority or ranking of subsequent applications submitted by the recipient for higher levels of Authority assistance.(i)Limitation. Advance funding assistance will not be made available that might jeopardize or compromise a source of Authority funds.The provisions of §963.13 amended July 7, 1995, effective 7/8/1995, 25 Pa.B. 2720.