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Chapter 267-13 DRINKING WATER STATE REVOLVING LOAN PROGRAM FOR DISADVANTAGED COMMUNITIES

Rule 267-13-.01 Purpose

In compliance with the "Fair and Open Grants" Article of the "Budget Accountability and Planning Act of 1993," following is the information on a subsidy loan program being implemented in the Federal Fiscal year of 2005.

Rule 267-13-.02 The Name of the Grant Program

The Drinking Water State Revolving Loan Program for Disadvantaged Communities.

Rule 267-13-.03 The Citation to Statutory Basis for the Grant Program in the Official Code of Georgia Annotated or Other General Law of the State of Georgia

Funded from a federal capitalization grant provided by the United States Environmental Protection Agency.

Rule 267-13-.04 The General Scope and Purpose of the Grant Program

To assist public water systems finance the cost of infrastructure needed to achieve or maintain compliance with the Safe Drinking Water Act requirements and to protect public health.

Rule 267-13-.05 General Terms and Conditions of the Grant

Eligible activities include public water system improvements which 1) maintain compliance with standards, 2) rehabilitate or replace aging infrastructure, 3) rehabilitate or develop sources to replace contaminated sources of drinking water, 4) install or upgrade treatment facilities to improve drinking water quality, 5) install or upgrade storage facilities to prevent microbiological containment from entering the system, and 6) install or replace transmission and distribution pipes to prevent contamination. DWSRF funds can also be used to restructure and facilitate the consolidation of systems that lack the technical, managerial and financial capability to maintain the system. A maximum of $3 million has been reserved for subsidy loan assistance.

Rule 267-13-.06 Eligible Recipients of the Grant

Local governments as defined in O.C.G.A. 50-23-4(7).

Rule 267-13-.07 The Criteria for the Award of the Grant

Subsidized loans will be awarded to those communities, which meet the affordability criteria for disadvantaged communities. The affordability test consist of 1) determining whether a community is performing at a reasonable level of effort given its economic characteristics, based upon the minimum monthly household water bill for 6,000 gallons and 2) the community's 2000 Median Household Income (MHI) multiplied by 1.25 percent to ascertain the target user rate. Should the actual resulting user rate be higher than the target monthly water rate, the community will be eligible to be considered "disadvantaged" for the purposes of a subsidized loan not to exceed $500,000. Communities must also be on the DWSRF priority list.

Rule 267-13-.08 Directions and Deadlines for Applying for Such Grant

Applications are received at any time during the year for communities on the DWSRF Comprehensive List of Potential Loan Recipients.