Drinking Water State Revolving Loan Fund (DWSRF)
Project Guide For ALL Projects
For a copy of the most recent DWSRF Maine Municipal Bond Bank loan application, contact the MMBB at (800) 821-1113. Staff at the MMBB, RCAP and MRWA are available to help you if you have questions about the application or your particular financial situation. The DWSRF "Estimated Project Cost" form can be obtained from your DWSRF Project Manager or from the DWP website Download Documents page. A completed copy of it must be submitted to the DWP when you submit your loan application to the MMBB and DWP.
The MMBB will need to verify that you have sufficient revenues to meet the debt obligations of a DWSRF loan.
A project account must be established which must be maintained separate from your other accounts. Loan proceeds shall be deposited into the project account from which you shall make payments for services received for your DWSRF project. You will also need to have an annual audit prepared by a certified or licensed public accountant during the term of the loan. A copy of each audit must be provided to the MMBB.
If the Public Utilities Commission regulates your system, you must obtain approval of Issuance of Securities from them prior to being able to enter into a loan agreement for financial assistance from the DWSRF Program. Applications for rate increases that are required to meet the debt obligations of DWSRF financing must be approved, under certain conditions at least applied for, prior to your entering into a loan agreement.
Your system may receive subsidy assistance in the form of principal forgiveness if it qualifies as a Disadvantaged Community System. The Program is restricted as to how it can give Disadvantaged Community System assistance. The restrictions are explained in the most recent Intended Use Plan (IUP). Once you have been determined to be a system eligible for DWSRF financial assistance you must submit information so that the Program can determine the amount of principal forgiveness for which you are eligible. You may qualify for an extended loan term or reduced interest rate even if you are not eligible for principal forgiveness. The additional information required to make the determination includes the following:
- The median household income (MHI) of the year-round residential customers served by your system. If the MHI is below $37,240 (average median household income, non-metropolitan Maine, 2000 U.S. Census) your system qualifies as a Disadvantaged Community System and may be eligible for additional assistance. The MHI data for your system may come from the most recent U.S. Census or from an independent income survey of the residential water customers in your system’s service area, whichever is the most current. MRWA and RCAP are familiar with the requirements of a DWSRF income survey and are available to help you complete the survey.
- The present annual residential water rate charged for the quarterly usage of 2,000 cubic feet.
- Percent of total revenues attributable to residential users.
- Debt obligations due to concurrent loans.
Using these numbers and the estimated project cost, the Program can determine the amount of disadvantage assistance for which you qualify. This is usually performed at the time that you submit a loan application. An estimated determination can be made earlier in the process if all the necessary information is provided. The process used is explained in greater detail in the most recent IUP.
The Program will assign your project(s) a project number(s) at the time your application is received by the MMBB and DWP. You or your engineer should call the Program to get this number. It will be required on all correspondence to the Program regarding your project including all payment requisitions.