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Public Facilities Authority (PFA) <br />Drinking Water Revolving Fund <br />Program <br />To enable borrowers to finance public drinking water source, storage, treatment, and <br />Purpose: <br />distribution system improvements that meet Safe Water Act standards. <br />How it Works: <br />The Authority provides below -market rate loans to borrowers for upgrading and <br />constructing public drinking water systems. <br />Eligible <br />Any county, city, town, township, regional entity or governmental entity, or other <br />Applicants: <br />entities having primary responsibility for providing public drinking water. <br />Minimum <br />Projects must be included on the Minnesota Department of Health's (MDH) Project <br />Requirements: <br />Priority List (PPL) and on the Authority's Intended Use Plan (rUP). Requests for a <br />project to be placed on the PPL must be completed by the imposed deadline date <br />issued in the Spring of each year, typically mid May. Projects must be certified by <br />MDH before the Authority may consider approving a loan. An applicant must <br />demonstrate it has the financial capability to repay the loan and that complete <br />financing of the project is in place. Borrowers must issue a general obligation bond <br />to the Authority as security for the loan. <br />Eligible Projects: <br />Allowable cost as defined in the Safe Drinking Water act include site preparation; <br />land acquisition costs; construction costs; engineering costs; costs of equirmient and <br />machinery; bond issuance costs; and certain fees and contingency costs. Projects that <br />are primarily to serve growth are not eligible. <br />Interest Rates: <br />Rates are determined by a quarterly set rate minus discounts based on demographic <br />characteristics of the borrower; or borrowers may receive a discount from the <br />Authority's bond rate. <br />Terms: Loans are amortized up to a maximum of twenty years. <br />Applications Within six months after the IUP is approved, typically September of each year, using <br />Accepted: the Authority's loan application forms. The IUP and PPL are compiled once a year <br />but may be amended during the year. <br />Approval Public Facilities Authority. <br />Authority: <br />Disbursement of Loan funds are disbursed on a monthly basis as costs are incurred. Interim financing <br />Funds: may be necessary <br />s <br />SE H multidisciplined. single source. I www.sehine.com <br />