| (a) The board may provide financial assistance from the Water Loan Assistance Fund to a political subdivision for a water supply or sewer service project that provides adequate water or sewer service to an economically distressed area. (b) The board may provide financial assistance by grants for up to 90% of the amount of the financial assistance requested in the application to: (1) plan, design, or construct a new water or sewer service system in an economically distressed area, including land costs or replacement of septic systems; (2) plan, design, or construct improvements to an existing water or sewer service system in an economically distressed area, including land costs or replacement of septic systems; (3) purchase or consolidate water or sewer service systems that results in providing adequate water or sewer service to an economically distressed area; (4) reduce the interest rates on loans to finance a project identified in paragraphs (1), (2), or (3) of this subsection, provided however that the loan is not from the board or other state agency; or (5) reduce or eliminate outstanding indebtedness of the project area if the effect assists in obtaining financial assistance for a project identified in paragraphs (1), (2), or (3) of this subsection, provided however that the indebtedness is not from the board or other state agency. (c) The board may provide the financial assistance through a written agreement executed by the executive administrator and the designated representative of the political subdivision. |
