Eligibility
Cities, counties, townships, sanitary districts or other governmental subdivisions responsible for providing public drinking water are eligible.
Minimum Project Requirements
Projects must be included on the Minnesota Department of Health's Project Priority List and the PFA's Intended Use Plan. Projects must be certified by the Minnesota Department of Health before the PFA may approve a loan.
Applicants must demonstrate the financial capacity to repay the loan and that complete financing of the project is in place. Borrowers must issue a general obligation bond to the PFA as security for the loan.
Allowable Costs
Allowable costs include land costs, site preparation, construction, engineering, equipment and machinery, bond issuance, and certain fees and contingency costs. Projects that are primarily to serve growth are not eligible
Interest Rates
Rates are determined by a market rate index (market scale) or the PFA's bond market rate (Authority scale), which ever is higher, less a 1.0 percent discount approved by the PFA. Borrowers with a service area population under 2,500 may be entitled to additional discounts. The type of security pledged to the PFA, the loan term and principal schedule, and the presence of a significant user will affect the interest rate of the loan.
Terms
Loans are amortized up to a maximum of 20 years, or up to 30 years if the average annual resident cost would exceed 1.2 percent of median household income.
Disbursement of Funds
Funds are disbursed on a monthly basis as costs are incurred.
Applications Accepted
Applications are accepted within six months after the Intended Use Plan is approved using the PFA's loan application forms. The IUP is compiled once a year but may be amended during the year.
