310 CMR 44.08 - Eligible Project Costs
(1) Costs which the
Department determines are necessary for the completion of the project are
eligible for financing in the loan and to receive a subsidy under the
loan.
(2) Costs which the
Department determines are not necessary for completion of the project are
ineligible for financing in the loan.
(3) The Department will base its eligible
project cost determinations on its "Policy on Eligible Project Costs", which
identifies the specific types of costs that are within the two categories under
310
CMR 44.08(1) and
(2).
(4) Project costs incurred by an applicant
prior to the date of issuance of the Department's project approval certificate
are not eligible for a subsidy under the loan, except as follows:
(a) Preliminary engineering, comprehensive
wastewater management planning, design or related professional services and
construction work, may be approved by the Department prior to the issuance of a
project approval certificate as project costs eligible for subsidy if:
1. the applicant has submitted a written and
adequately substantiated request for approval;
2. written approval by the Department is
obtained before initiation of the project and award of any loan for the
project; and
3. the project is
included and maintains its status on the current calendar year priority
list.
(b) The
Department's prior approval of costs in accordance with
310
CMR 44.08(4)(a) does not
constitute a commitment to approve financial assistance for any project.
Instead, such costs will be considered eligible project costs only if a loan is
made by the Trust for the project. Accordingly, an applicant receiving the
Department's prior approval of costs in accordance with
310
CMR 44.08(4)(a) proceeds at
its own risk.
(5) Costs
incurred in excess of the approved project costs are not eligible for financing
by the loan, unless the project approval certificate and the loan are both
amended to include the cost increase.
(6) A loan recipient shall exercise its best
efforts to accomplish the work program set forth in the loan within the loan
amount. Whenever a loan recipient reasonably believes that its project costs
will exceed or be substantially less than the approved loan amount, it must
promptly notify the Department in writing. The loan recipient must submit
revised cost estimates for the project to the Department as soon thereafter as
practicable. Neither the Department, nor the Trust, is under any obligation to
approve costs in excess of the amount previously approved in the project
approval certificate and loan.
(7)
The final eligible project costs shall be the eligible costs approved by the
Department upon completion of the project, unless audited. If such project
costs are audited, the final eligible costs shall be the eligible costs
approved by the Department at the completion of the audit.
Notes
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