TITLE 35: ENVIRONMENTAL PROTECTION SUBTITLE C: WATER POLLUTION
SUBTITLE C: WATER POLLUTION
CHAPTER II: ENVIRONMENTAL PROTECTION AGENCY
PART 365 PROCEDURES FOR ISSUING LOANS FROM THE WATER POLLUTION CONTROL LOAN PROGRAM SUBPART A: INTRODUCTION
SECTION 365.250 PRINCIPAL FORGIVENESS
Section 365.250 Principal Forgiveness
a) When the Agency provides assistance to a public loan recipient, the Agency shall, until the available principal forgiveness funding established in the Capitalization Grant is exhausted, provide additional subsidization in the form of principal forgiveness to a public loan recipient to finance a project or activity eligible for assistance under 33 USC 1383(c)(1) that meets the affordability criteria of subsection (b).
b) Affordability Criteria
1) In order to qualify for principal forgiveness under subsection (a), a public loan recipient must meet the following requirements:
A) A service population of 30,000 or less, unless the loan applicant's median household income (MHI) is 70%, or less, of the statewide average;
B) The MHI of the public loan applicant's service population is less than or equal to the statewide MHI; and
C) Score at least 21 points based on the following criteria:
i) Median Household Income
iii) Additional Criteria
2) The amount of principal forgiveness under subsection (a) will be capped for qualifying public loan recipients and applied only to eligible projects costs as follows:
c) Notwithstanding the principal forgiveness caps in subsection (b)(2), the Agency may establish a base cap applicable to each public loan recipient within its Intended Use Plan each year. The base cap shall be the same amount for each public loan recipient receiving principal forgiveness. In determining the base cap, the Agency must consider the following factors:
1) the amount of federal appropriation allocated to the Agency for principal forgiveness;
2) the number of qualifying public loan recipients;
3) the availability of equity in the State Water Revolving Fund while ensuring the fund operates in perpetuity; and
4) requirements established by USEPA.
d) The Agency shall award principal forgiveness to loan applicants in the order that loan applicants have been issued a loan by the Agency pursuant to Section 365.410.