31 Tex. Admin. Code § 363.16 - Pre-Design Funding Option
(a) This loan
application option will provide an eligible applicant that meets all applicable
board requirements an alternative to secure a commitment and close a loan for
the pre-design, design or building costs associated with a project. Under this
option, a loan may be closed and funds necessary to complete planning and
design activities released. If planning requirements have not been satisfied,
design and building funds will be held or escrowed and released in the sequence
described in this section. After planning and environmental review, the
executive administrator may require the applicant to make changes in order to
proceed with the project. If the portion of a project associated with funds in
escrow cannot proceed, the loan recipient shall use the escrowed funds to
redeem bonds purchased by the board in inverse order of maturity.
(b) Except for flood projects funded through
the Flood Infrastructure Fund, flood control and municipal solid waste projects
are not eligible for funding under this option.
(c) The executive administrator may recommend
to the board the use of this section if, based on available information, there
appear to be no significant permitting, social, environmental, engineering, or
financial issues associated with the project. An application for pre-design
funding may be considered by the board despite a negative recommendation from
the executive administrator.
(d)
Applications for pre-design funding must include the following information:
(1) for loans including building cost, a
preliminary engineering feasibility report which will include at minimum: a
description and purpose of the project; area maps or drawings as necessary to
fully locate the project area(s); a proposed project schedule; estimated
project costs and budget including sources of funds; current and future
populations and projected flows; alternatives considered; and a discussion of
known permitting, social or environmental issues which may affect the
alternatives considered and the implementation of the proposed
project;
(2) contracts for
engineering services, which may be in draft form;
(3) evidence that an approved water
conservation plan will be adopted prior to closing;
(4) all information required in §
363.12 of this title (relating to
General, Legal and Fiscal Information); and
(5) any additional information the executive
administrator may request to complete evaluation of the
application.
(e) After
board commitment and completion of all closing and release prerequisites as
specified in §
363.42 of this title (relating to
Loan Closing) and §
363.43 of this title (relating to
Release of Funds), funds will be released in the following sequence:
(1) for planning and permitting costs, after
receipt of executed contracts for the planning or permitting phase;
(2) for design costs, after receipt of
executed contracts for the design phase and upon approval of an engineering
feasibility report as specified in §
363.13 of this title (relating to
Engineering Feasibility Report) and compliance with §
363.14 of this title (relating to
Environmental Assessment) as applicable; and
(3) for building costs, after issuance of any
applicable permits, and after bid documents are approved and executed
construction documents are contingently awarded.
(f) Board staff will use preliminary
environmental data provided by the applicant, as specified in subsection (d) of
this section and make a written report to the executive administrator on known
or potential significant social or environmental concerns. Subsequently, these
projects must have a favorable executive administrator's recommendation which
is based upon a full environmental review during planning, as provided under §
363.14 of this title (relating to
Environmental Assessment), as applicable.
(g) The executive administrator will advise
the board concerning projects that involve major economic or administrative
impacts to the applicant resulting from environmentally related special
mitigative or precautionary measures from an environmental assessment under §
363.14 of this title (relating to
Environmental Assessment), as applicable.
Notes
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