(a) Escrow of funds. The executive administrator may
deposit funds into an escrow account at the time of closing of the
financial assistance. Releases from an escrow account shall occur
on a reimbursement method as described in subsection (b), sequentially
based on milestones as described in subsection (c) of this section,
or in accordance with phasing required for the applicable project.
The Applicant must submit outlays for all expenses incurred.
(b) Method of release of funds to construction account.
There are two methods for the release of funds from the escrow account
to the construction account depending on whether there is a principal
forgiveness component. If there is no principal forgiveness, then
the funds are released from the escrow account to the construction
account when the Applicant has achieved the project milestones described
in subsection (c) of this section or has completed the phases as approved
by the Board, and requests in writing a release of funds. If there
is a principal forgiveness component, then funds are released on a
reimbursement method. The executive administrator may issue a written
authorization for the release of funds from an escrow account based
on the receipt of outlay reports supported by detailed invoices of
expenditures. The outlays and the releases from an escrow account
must be consistent with the approved project schedule. In addition,
for all financial assistance the executive administrator may approve
the deposit of funds for certain costs into the construction account
at the time of closing on the financial assistance.
(c) Sequence of availability of funds. Financial assistance
shall be available for disbursement in the following sequence:
(1) for planning and permitting costs, after receipt
of executed contracts for the planning or permitting phase, and after
approval of a water conservation plan and a project schedule;
(2) for design costs, after receipt of executed contracts
for the design, after approval of an engineering feasibility report,
and after completion of the environmental review; and
(3) for construction costs, after issuance of any applicable
permits, after acquisition documents and contract documents (including
plans and specifications) are approved and executed, and after the
executive administrator has approved the issuance of a Notice to Proceed.
(d) Outlay reports. Applicants shall submit outlay
reports supported by detailed invoices for incurred costs as the project
progresses in accordance with the project schedule. Applicants shall
submit outlay reports, in a form determined by the executive administrator,
as follows:
(1) for financial assistance for planning, acquisition,
and design, quarterly; and
(2) for financial assistance for construction, monthly.
(e) Consistency for project schedules and outlays.
The executive administrator shall require that projects proceed in
accordance with approved project schedules as closely as possible,
and that outlays are submitted as required in subsection (d) of this
section.
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