Section 610.10  Program Purpose

 

a)         The Business Development Public Infrastructure Loan and Grant Program (Program) of the Department of Commerce and Community Affairs (Department) provides financing assistance directly to local governments to develop public infrastructure needed to support economic development and the creation or retention of private sector job.  Funding is targeted toward communities which demonstrate that funding assistance is essential to initiate opportunities for attracting new commercial or industrial ventures or to support the expansion or retention of an existing company.

 

b)         The Department will finance approved infrastructure projects through grants or loans.  Grants will be authorized in those circumstances where it can be demonstrated that the locality's financial capacity will not generate the necessary revenues to pay the debt service on the cost of the public improvement.  Grants will also be authorized in those circumstances where the proposed infrastructure project is necessary to encourage large out of state firms to locate in Illinois or to encourage existing large companies to undertake substantial job expansion or retention projects.

 

(Source:  Amended at 18 Ill. Reg. 8398, effective May 23, 1994)

 

Section 610.20  Application Cycle

 

The Department will supply interested local governments with an application package upon request.  Applications under this Program will be accepted on an ongoing basis.

 

(Source:  Amended at 14 Ill. Reg. 19164, effective November 26, 1990)

 

Section 610.25  Application Documentation

 

The application must include documentation for the business associated with the proposed project as follows:

 

a)         History of the Company – a brief history of the business and past employment.

 

b)         Market Information – information on the company's products or services and identification of existing and potential major customers and competitors.

 

c)         Projected Employment Information – the total number of jobs to be created or retained, including type of jobs, wages, and hiring schedule for job creation/retention.

 

d)         Historic Financial Statement – historic financial statements for the past three years and interim statements dated no more than ninety days prior to application including:  

 

1)         Profit and Loss Statements;

 

2)         Balance Sheets;

 

3)         Cash Flow Statements; and

 

4)         Disclosure of Contingent Liabilities.

 

e)         Projected Financial Statements – projected three-year profit and loss statements and balance sheets and a one year monthly cash flow projection.

 

f)         Company Management – listing of those individuals who are responsible for the management of the company, their positions and responsibilities, and resumes of key senior individuals at the company location.

 

g)         Ownership – the company shall provide a detailed statement of ownership which shall include the percentage of ownership of all owners of the company.  Such statements shall clearly identify any ownership interest which amounts to 20% or more, any ownership interest of individuals who have a position of control in the company, and/or any interest which is guaranteeing any financial or contractual activities of the company.  For all such entities which meet any conditions of this subsection, a financial statement shall be provided.

 

h)         The Department shall waive the requirements of subsections (a), (b), (d), (e), (f) and (g) when:

 

1)         The company has provided a comprehensive business plan or company annual reports which address all of the requirements contained in Section 8-5(g) of the Act; and

 

2)         The company is publicly owned and traded; and

 

3)         The company's historic financial condition is deemed excellent, meeting industry standards in accordance with Section 610.30(b)(2).

 

(Source:  Amended at 14 Ill. Reg. 19164, effective November 26, 1990)

 

Section 610.30  Evaluation Process

 

The Department shall screen all applications to determine that all requirements of the application package have been addressed.  Complete applications will be reviewed and evaluated by Department staff. Applicants will be notified of deficiencies in applications and given an opportunity to correct such deficiencies through submission of additional documentation. This review and evaluation process will be completed within 45 days of the Department's receipt of a complete application.  Department staff will conduct a technical and financial evaluation of each application.

 

a)         Technical Evaluation Component – Each application will be reviewed to assure compliance with technical program requirements as specified in the Public Infrastructure Loan and Grant Program Act (Ill. Rev. Stat. 1991, ch. 127, par. 2708-1 et seq.) [30 ILCS 750/Art. 8] (Act).  The technical evaluation will address the following criteria:

 

1)         Evidence of Need for Public Participation – The application must demonstrate the need for public funds in the manner set forth in Section 8-5 of the Act, including identification of the essential need for public infrastructure in order to secure the private sector development, expansion, or retention; evidence that the project cannot be financed solely from local revenue sources or cannot be financed at an interest rate and term which makes the project viable; and an indication of the relationship of the proposed public infrastructure improvement to a local capital improvements plan (if applicable) or a documented need for the improvement.

 

2)         Project Implementation Readiness – The application must show that the Infrastructure Program is ready for implementation by providing a time schedule for the immediate project initiation; detailed engineering reports and cost estimates which demonstrate cost feasibility of the project; and a signed resolution of support from the local government.

 

3)         Project Impact – The application must clearly demonstrate a positive project impact consisting of an increase in employment or the retention of jobs and evidence that jobs created/retained will generate additional wealth for the community (e.g., final goods or services produced are sold in markets outside Illinois or final goods or services produced and sold locally substitute for those imported from outside the State) – some preference will be given to these types of jobs.

 

b)         Financial Evaluation Component – The Department will conduct a financial analysis of each application received.  The financial evaluation will include an analysis of the local government and the company undertaking the business project.

 

1)         Analysis of Local Government – The Department's local government financial analysis will review alternative funding sources available to and pursued by the applicant, such as general obligation or revenue bonds, federal grant programs, tax increment financing, or special service area tax proceeds and user-charges; a determination of the financial health of the governmental unit based on the most recent audit of governmental funds including current tax rates, outstanding debt structure, utility user charges (if applicable to the project); and the community's ability to pay a portion of the costs for the infrastructure improvement.

 

2)         Analysis of the Business – The firm's financial statements, including the annual balance sheets and profit and loss statements, for the past three years, as well as the most recent ninety days and a three year projected balance sheet and profit and loss statement, as well as a one year monthly cash flow statement.  A comprehensive business plan or company annual reports may be submitted in lieu of the aforementioned material.  These statements will be reviewed through a standard credit analysis which will determine the:  liquidity and debt coverage of the project; ability of the company to manage debt; business trends; and projected earnings.  This data will be compared to similar data for companies in the same industry using the 1988 (no later amendments or editions included) "RMA Annual Statement Studies" published by Robert Morris Associates, P.O. Box 8500, S-1140, Philadelphia, PA 19178) or comparable source which more closely matches the applicant's business operation if the applicant's industry is evaluated by such sources.  This standard credit analysis will determine the financial stability of the company in accordance with Section 8-5(g) of the Act.

 

(Source:  Amended at 18 Ill. Reg. 8398, effective May 23, 1994)

 

Section 610.40  Selection for Funding

 

a)         For any application which meets criteria of Section 610.30, Department staff will then conduct a field visit evaluation to verify information in the application, leading to the final funding decision.  The field visits will analyze application characteristics, which include:

 

1)         an assessment of the projects in terms of job creation, in relation to the value of the loan/grant and types of jobs preferred as described in Section 610.30(a)(3);

 

2)         a verification of submitted application information; and

 

3)         past performance of the applicant under previous Departmental programs, if applicable (e.g., success in previous projects and the level of compliance with previous grant agreements).

 

b)         Applications which best meet the objectives of the program and demonstrate the greatest potential for job creation will receive loan or grant funds, until all available funds are expended.  The Department will provide program funds in the form of a grant only when it can be demonstrated that the locality's financial capability will not generate the necessary revenues to pay the debt service on the cost of the public improvement described in the application.  Grants will also be authorized in those circumstances where the proposed Infrastructure project is necessary to encourage large out-of-state firms to locate in Illinois or to encourage existing large companies to undertake job expansion or retention projects.

 

(Source:  Amended at 14 Ill. Reg. 19164, effective November 26, 1990)

 

Section 610.50  Funding Limitations

 

The Business Development Public Infrastructure Loan and Grant Program helps to fund public infrastructure projects.  There is no maximum amount of Department funds which may be invested in any one project.  However, loan and grant amounts will be commensurate with the number of jobs created or retained.

 

(Source:  Amended at 18 Ill. Reg. 8398, effective May 23, 1994)

 

Section 610.60  Administrative Requirements

 

a)         Loan Terms – Infrastructure project loans will be at a fixed, low or no interest rate for a term not to exceed 10 years.  However, in extenuating circumstances (e.g., based on the infrastructure improvement's useful life and the local government's financial capacity to repay the loan) a longer term, up to twenty years, will be considered.  The loan term and amortization schedule will be flexible, according to not only the life expectancy of the proposed infrastructure improvement, but also the repayment capacity (based upon a review of the local government's last year's audit) of the local government.  Installments shall be due and payable to the Department according to a negotiated amortization schedule. All payments shall be applied first to interest and then to principal.

 

b)         Reporting – The Recipient (applicant receiving grant/loan) will provide, at least annually, information and reports required by the Department (e.g. reports on job creation/retention; financial statement of assets, liabilities, and net worth).

 

c)         Termination of Grant/Loans – Grants/loans shall be terminated for the following reasons:  

 

1)         Termination due to Loss of Funding – In the absence of state funding for a grant year, all grants/loans for that year will be terminated in full.  In the event of a partial loss of state funding, the Department will make proportionate cuts to all Recipients.  In the event the Department suffers such a loss of funding in full or part, the Department will give the Recipient written notice setting forth the effective date of full or partial termination, or if a change in funding is required setting forth the change in funding and changes in the approved budget.

 

2)         Termination for Cause

 

A)        If the Department determines that the Recipient has failed to comply with the terms and conditions of the grant/loan, the Department shall terminate the grant/loan in whole, or in part, at any time before the date of completion.  Circumstances which will result in the termination of a grant/loan include, but are not necessarily limited to the following:  consistent failure to submit required reports; failure to maintain required records; failure to protect inventory; misuse of equipment purchased with grant/loan funds; evidence of fraud and abuse; consistent failure to meet performance standards and failure to resolve points of the agreement (i.e., narrative, number to be served).  These circumstances are explained in the grant/loan agreement.

 

B)        The Department shall promptly notify the Recipient in writing of the determination to terminate, the reasons for such termination, and the effective date of the termination.  Payments made to the Recipient or recoveries by the Department shall be made in accordance with legal rights and liabilities explained in the grant/loan agreement.

 

3)         Termination by Agreement – The Department and the Recipient shall terminate the grant/loan in whole, or in part, when the Department and the Recipient agree that the continuation of the program objectives would not produce beneficial results commensurate with the future expenditures of funds.  The Department and the Recipient shall agree upon termination conditions, including the effective date and, in the case of partial termination, the portion to be terminated.  Recipient shall not incur new obligations for the terminated portion after the effective date, and shall cancel as many outstanding obligations as possible.  The Department shall allow full credit to the Recipient for the Department's share of the noncancellable obligations, properly incurred by the Recipient prior to termination.

 

d)         Events of Default – The entire unpaid principal of the loan, and the interest then accrued thereon, shall become and be immediately due and payable upon the written demand of the Department, without any other notice or demand of any kind or any presentment of protest, if any one of the following events (hereafter an "event of default") shall occur and be continuing at the time of such demand, whether voluntarily or involuntarily, or without limitation, occurring or brought about by operation of law or pursuant to or in compliance with any judgment, decree or order of any court or any order, rules or regulations of any administrative or governmental body, provided, however that such sum shall not be then payable if Recipient's payments have been deferred.  The Department will make deferrals based upon case by case review of the Recipient's financial statements and projections (see Section 610.25(d) and (e)) to determine if the Recipient will be able to make payments at a future date.

 

1)         Non-Payment of Loan – If the Recipient shall fail to make payment when due of any installment of principal on the loan, or interest accrued thereon and if the failure to make payment shall remain unremedied for fifteen (15) days.

 

2)         Non-Payment of Other Indebtedness – If default shall be made in the payment when due of any installment of principal or of interest on any of the Recipient's other indebtedness (any creditor the Recipient owes) and if such default shall remain unremedied for (15) days.

 

3)         Incorrect Representation or Warranty – If any representation or warranty contained in, or made in connection with the execution and delivery of, the loan agreement, or in any certificate furnished pursuant hereto, shall prove to have been incorrect.

 

4)         Default in Covenants – If the Recipient shall default in the performance of any other term, covenant or agreement contained in the loan agreement, and such default shall continue unremedied for thirty (30) days after either:  

 

A)        it becomes known to an executive officer of the Recipient; or

 

B)        written notice thereof shall have been given to the Recipient by the Department.

 

5)         Voluntary Insolvency – If the Recipient shall cease to pay its debts as they mature or shall voluntarily file a petition seeking reorganization of, or the appointment of a receiver, trustee, or liquidation of its assets or to effect a repayment plan with creditors, or shall be adjudicated bankrupt, or shall make a voluntary assignment for the benefit of creditors.

 

6)         Involuntary Insolvency – If an involuntary petition shall be filed against the Recipient under any bankruptcy or insolvency law or seeking the reorganization of or the appointment of any receiver, trustee or liquidator for the Recipient, or the property of the Recipient, or a writ or warrant of attachment shall be issued against the property of the Recipient and such petition shall not be dismissed, or such writ or warrant of attachment shall not be released or bonded within thirty (30) days after filing or levy.

 

7)         Judgments – If any final judgment for the payment of money that is not fully covered by liability insurance shall be rendered against the Recipient, and within thirty (30) days, shall not be discharged, or an appeal therefrom taken and execution thereon effectively stayed pending such appeal, and, if such judgment be affirmed on such appeal, the same shall not be discharged within thirty (30) days.

 

e)         Notice of Default – The Recipient agrees to give written notice to the Department of any event, within 15 days after the event, which constitutes an event of default as specified in Section 610.60(d).

 

f)         Monitoring and Evaluation – Recipients must permit any agent authorized by the Department, upon presentation of credentials to, in accordance with the constitutional limitation on administrative searches, have full access to and the right to examine any documents, papers, and records of the Recipient involving transactions related to a grant/loan from the Department.

 

g)         Audits

 

1)         The Recipient shall be responsible for having an audit of all grant/loan records and such audit must be performed by an independent certified public accountant, licensed by authority of the State of Illinois in accordance with the Illinois Public Accounting Act (Ill. Rev. Stat. 1991, ch. 111, pars. 5500.01 et seq.) [225 ILCS 450].  The audit must be conducted in accordance with generally accepted auditing standards adopted by the American Institute of Certified Public Accountants (AICPA) (office located at 1211 Avenue of Americas, New York, N.Y. 10036-8775) (1989, with no later amendments or editions).

 

2)         The Recipient may secure an independent audit of its grant/loan in the same manner as it secures its regular audits, provided it provides for maximum open and free competition.  The audit should be conducted as part of the Recipient's normal annual audit or, when the ending period of the audit covers the expenditure of all loan funds, bi-annual audit.

 

3)         The Recipient shall work cooperatively with the audit firm selected; actively work with both the audit firm and the Department to resolve any and all audit findings; and work cooperatively with the Department's staff in preparing for, conducting, and resolving audits.

 

4)         Any Recipient receiving a grant will provide the Department with 3 copies of its annual audit which addresses Department grant(s).  In instances where the grant period or term does not coincide with the Recipient's fiscal year, two fiscal audit reports shall be forwarded to the Department.  Any Recipient receiving a loan will provide the Department with 3 copies of its audit which addresses funds expended under the Department's loan, within thirty days of its publication.

 

5)         The Department reserves the right to conduct special audits, including but not limited to an agency-wide audit, at any time during normal working hours of funds expended under Department grants/loans.

 

6)         Any independent public accounting firm that provides consultant services to a Recipient is prohibited from conducting an audit of that Recipient for the period during which services were rendered.

 

h)         Complaint Process – In the event of a Recipient complaint, the Department will follow the procedures outlined in 47 Ill. Adm. Code 10 (Review and Appeal Procedures).

 

i)          Interest on Grant Funds – In accordance with Section 10 of the Illinois Grant Funds Recovery Act (Ill. Rev. Stat. 1991, ch. 127, par. 2310) [30 ILCS 705/10], all interest earned on funds held by the Recipient under the grant shall become part of the grant when earned.  Any interest earned under the grant, and not expended as grant principal during the term of the grant, shall be returned to the Department.

 

j)          Nondiscrimination – The Recipient shall refrain from unlawful discrimination in employment and undertake affirmative action to assure equality of employment opportunity and eliminate the effects of past discrimination in accordance with the Illinois Human Rights Act (Ill. Rev. Stat. 1991, ch. 68, pars. 1-101 et seq.) [775 ILCS 5].

 

k)         Financial Management Standards – The Recipient's financial management system shall be structured under the Accounting Standards of the Financial Accounting Standards Board of the AICPA (September 19, 1987, no later amendments or editions included) to maintain control and accountability over grant/loan funds.

 

l)          Maintenance and Insurance of Property

 

1)         The Recipient shall at all times maintain the property provided as security for the loan in such condition and repair that the Department's security will be adequately protected.

 

2)         The Recipient shall maintain, during the term of the loan, adequate (at least covering the amount of the loan) hazard (e.g., tornado, hail, acts of God) insurance policies, covering fire and extended coverage for all such other hazards and issued by an insurance company authorized to do business in the State of Illinois with loss payee clauses in favor of the Department.

 

3)         The Recipient shall, if at any time during the life of the loan the Recipient's property is declared to be within a flood hazard area, purchase federal flood insurance if available.  Such insurance shall be equal to the amount of the loan.

 

4)         The Recipient shall maintain liability and worker's compensation insurance.  The Recipient shall provide written notice to the Department of any public hearing or meeting before any administrative or other public agency which may, in any manner, affect the chattel, personal property or real estate securing the loan.

 

(Source:  Amended at 18 Ill. Reg. 8398, effective May 23, 1994)

 

Section 610.100  Program Purpose

 

a)         The Affordable Financing of Public Infrastructure Loan and Grant Program provides affordable financing of public infrastructure in the form of loans and grants to, or on behalf of, local governments, local public entities, medical facilities, and public health clinics from appropriations from the Public Infrastructure Construction Revolving Loan Fund for the purpose of assisting with the financing, or application and access to financing, of a community's public infrastructure necessary to health, safety, and economic development. Funds are available either directly from DCCA enumerated in Section 610.400 or through the designated intermediaries enumerated in Section 610.300(b).

 

b)         The Department may provide credit enhancement loans and grants to State public infrastructure financing intermediaries on behalf of local governments, local public entities, local medical facilities, and local public health clinics.  The funds may be used for the purpose of leveraging access to other sources of financing available from the intermediary.  Grants may be used to establish loss reserve funds or purchase letters of credit and other forms of credit enhancement to facilitate financing of public infrastructure projects. Loss reserves shall be established in conformance with 30 ILCS 8/10(f).

 

(Source:  Added at 18 Ill. Reg. 8398, effective May 23, 1994)

 

Section 610.200  Definitions

 

"Affordable Financing" shall mean access to a financing rate equivalent to that of an "A" rated borrower.

 

"Application" shall mean a request for program funds including the required forms and attachments.

 

"Department" shall mean the Illinois Department of Commerce and Community Affairs.

 

"Grant" shall mean funds which require no repayment to be used by a qualified applicant.

 

"Local Government" shall mean any unit of local government as defined in Article VII, Section 1 of the 1970 Illinois Constitution.

 

"Local Public Entity" shall mean any entity as defined by Section 1-206 of the Local Governmental and Governmental Employees Tort Immunity Act [745 ILCS 10/1-206].

 

"Medical Facility" shall include a hospital, infirmary, clinic, dispensary, mental institution or similar facility.

 

"Public Health Clinic" means an outpatient clinic conducted by a locally based not-for-profit corporation, or by any local board of health whose health department is recognized by, and has a designation status established by, the Illinois Department of Public Health.

 

"Public Infrastructure," for the purposes of the Affordable Financing of Public Infrastructure Loan and Grant Program, shall mean capital acquisitions, construction, and improvements to other local facilities and sites, and associated permanent furnishings and equipment that are a necessary precondition for projects necessary to further the development potential of the community.

 

"Qualified Applicants," for the purpose of the Affordable Financing of Public Infrastructure Loan and Grant Program, shall mean local governments, local public entities, medical facilities, and public health clinics.

 

"Resource Leveraging" shall mean a financial contribution which includes other sources of private and public financing (e.g., Economic Development Administration, Environmental Protection Agency, Farmers Home Administration). Costs incurred prior to the date of grant award will not be considered as resource leveraging.

 

(Source:  Added at 18 Ill. Reg. 8398, effective May 23, 1994)

 

Section 610.300  Cooperative Agreements with State Intermediaries

 

a)         The Department is authorized to enter into cooperative agreements with other State government public infrastructure financing entities for the purpose of reliance upon their application, credit review, security, and loan closing procedures for individual small project loans. [30 ILCS 750/8-10(b)] Small Project Affordable Financing of Public Infrastructure loans may be provided under the following conditions:

 

1)         As the sole financing source when the Department has determined that no other affordable financing source is available for projects that are necessary to local community health, safety and economic development; or

 

2)         As partial project financing in satisfaction of other financing source match requirements, to finance feasibility study and other project development costs necessary to accessing other financing, and to otherwise service financing gaps necessary to project feasibility. [30 ILCS 750/8-10(b)]

 

b)         The State governmental public infrastructure financing intermediaries with which the Department may enter into interagency agreements are the State executive agencies including the Illinois Environmental Protection Agency and the Illinois Department of Public Health and any body politic created under State statute including the Illinois Rural Bond Bank and the Illinois Development Finance Authority.

 

c)         The governmental public infrastructure financing intermediaries may use the funds provided by the Department to provide small project loans which may not exceed $100,000 in principal amount.  The repayment period for small project loans shall not exceed 10 years.  The small project loans may be provided to local governments, local public entities, medical facilities and public health clinics for the purpose of making affordable the financing of "Public Infrastructure" as defined by 30 ILCS 750/8-2.

 

d)         The cooperative agreements between the Department and the intermediaries shall contain a section that specifies the eligible uses, qualified applicants and responsibilities in implementing the infrastructure assistance funds by each intermediary.  The cooperative agreements between the Department and the intermediaries may be modified or supplemented by written agreement of both parties.  The agreements may be terminated by either party with 30 days written notice.

 

e)         Repayments of principal and interest on loans made by the intermediaries from the infrastructure assistance funds provided by the Department to qualified applicants and any funds collected due to default or failure to comply with the terms or conditions of a loan made under this program and any excess loss reserve funds (any funds not utilized by the trustee for payment of realized losses, fees and other costs in administering the loss reserve trust fund) shall be paid into the Public Infrastructure Construction Loan Revolving Fund.

 

f)         If applicable, the intermediaries may charge qualified loan applicants reasonable and customary fees.

 

g)         The intermediaries shall develop a set of operating procedures and documents which will be provided to the Department before funds are to be made available to the intermediaries.  The operating procedures, at a minimum, shall contain the following:

 

1)         Certification by the intermediary that the proposed project meets the requirements of the Affordable Financing of Public Infrastructure Act.

 

2)         Documentation of sufficiency of tax or revenue source to service debt. A financial feasibility report from an independent accountant or analyst should be provided.

 

3)         Procedure for disbursement of funds to the grantee.

 

h)         The documents, at a minimum, shall contain the following:

 

1)         A preliminary and/or final application, including necessary financial information.

 

2)         Applicable closing documents, i.e., loan agreements, debt authorization ordinance and security agreement, including intercept agreement as appropriate.

 

i)          The intermediaries receiving funds from the Department shall submit quarterly progress reports to the Department in the manner prescribed by the Department.

 

(Source:  Amended at 20 Ill. Reg. 1179, effective January 5, 1996)

 

Section 610.400  Direct Grants and Loans

 

a)         The Department is authorized to provide small project affordable financing of public infrastructure grants and loans to local governments, local public entities, local medical facilities, and public health clinics of up to 25% of the project costs where the Department has determined that affordable financing is available for the balance of the project cost, but not for the amount to be subject to the small project affordable financing of public infrastructure grant or loan.  No small project grant or loan shall exceed $100,000. [30 ILCS 750/8-10(d)]

 

b)         The Department is authorized to make small project loans which may not exceed $100,000 in principal.  The repayment period for small project loans shall not exceed 10 years.

 

(Source:  Amended at 20 Ill. Reg. 1179, effective January 5, 1996)

 

Section 610.500  Application Cycle and Criteria for Grants and Loans

 

a)         Application Availability

 

1)         Applications for direct grant and loan assistance from the Department will be openly available if sufficient monies are allocated for the program. Upon request, the Department will supply potential applicants with an application package if sufficient monies are allocated for the program.

 

2)         Qualified applicants may apply for grant and loan assistance under this program.  Such applicants must submit an application on forms provided by the Department.  A standard application form will be used statewide.

 

b)         Program Application – Applications for grant and loan assistance from the Department must address the following items:

 

1)         Written certification by the applicant that an essential need exists for the public infrastructure financing in order to secure a health, safety or economic development project within the community.

 

2)         The applicant's financing capability and its ability to pay for, or secure the payment of, part or all of the proposed public infrastructure improvements, and the local government's tax effort, as shown by local tax rates relative to other local governments of the same type in the State. However, if the applicant is a not-for-profit medical facility or public health clinic, the applicant need not address the local government's tax effort.

 

3)         Local financing mechanisms available to help pay for the costs of the public infrastructure project, including, but not limited to, local revenue bonds, special service area tax proceeds, local user charges, or applicable federal loans or grants.

 

4)         The proposed public infrastructure improvements described in detail which shows their relationship to existing public property and capital improvement plans, as well as the pending health, safety or economic development project.

 

5)         Certification that the project is a health, safety or economic development project.

 

6)         The applicant's readiness to implement the project by providing a time schedule for project initiation; cost estimates which demonstrate the cost feasibility of the project; and a signed resolution of support from the organization's governing body.

 

(Source:  Amended at 20 Ill. Reg. 1179, effective January 5, 1996)

 

Section 610.600  Evaluation Process

 

a)         Department staff will screen all applications to determine that all application requirements of the direct loan and grant application package have been addressed.  Applications will be reviewed in accordance with Department review criteria listed in subsection (b) below.

 

b)         A request for grant and loan assistance will be evaluated in accordance with the requirements of this Part.  The review and evaluation of applications will take no more than 45 working days after the Department's receipt of a completed application, with financial assistance awards being announced at the end of that period.

 

1)         Applications that address economic development will be evaluated on the basis of:

 

A)        The extent of economic need to be addressed by the project;

 

B)        Time schedule for project initiation, etc., indicating the level of project readiness;

 

C)        The merits of the proposed work plan and consistency of proposed activities with requirements of the Act;

 

D)        The level of economic development results expected (e.g., jobs created or retained, private funds leveraged, etc., or other significant development benefits or impacts); and

 

E)        The financial capability of the applicant to finance the infrastructure improvements from other sources.

 

2)         Applications that address public health and safety issues will be evaluated on the basis of:

 

A)        Documentation that a threat to the health and safety of the community exists, i.e., a deficiency exists in a community facility, and that the project alleviates the identified threat to public health or safety;

 

B)        Time schedule for project initiation, etc., indicating the level of project readiness;

 

C)        Financial capability of the applicant to finance the infrastructure improvements from other sources;

 

D)        The merits of the proposed work plan and consistency of the proposed activities with the requirements of the Act; and

 

E)        The financial capability of the applicant to finance the infrastructure improvements from other sources.

 

c)         Upon selection, the Department will notify applicants of the amount of grant or loan assistance being awarded.  The Department will issue an award letter and will issue an agreement for signature by the applicant.  The Department may limit the amount of time such grant or loan funds will be available for use by the applicant.

 

(Source:  Added at 18 Ill. Reg. 8398, effective May 23, 1994)

 

Section 610.700  Selection for Funding for Direct Grants and Loans

 

Department staff will conduct an evaluation of each application submitted. Applicants that best meet the objectives of the Act through satisfaction of the evaluation criteria specified in Section 610.600 will be funded until all available grant or loan financing is expended.  The amount of grant or loan financing made available by the Department will be based upon the extent to which the applicant provides evidence of economic development benefit to the community or reduces a threat to public health or safety.

 

(Source:  Added at 18 Ill. Reg. 8398, effective May 23, 1994)

 

Section 610.800  Funding Limitations

 

a)         The Department shall not exceed $5,000,000 in total small project loan balances outstanding at any time.

 

b)         The Department shall not award more than $500,000 per fiscal year in small project grants.

 

c)         The Department shall not award an amount of credit enhancement loans and grants which, combined with the total of outstanding affordable financing of public infrastructure credit enhancement loans, exceeds $1,000,000 at any time.

 

d)         Loss reserve fund trusts funded from funding reserve grants shall not exceed 25% of the total public infrastructure financing issued by the State public infrastructure financing intermediary intended to be subject to the loss reserve fund.  The Department shall not in total award Affordable Financing of Public Infrastructure grants for loss reserves in excess of $1,000,000.

 

(Source:  Added at 18 Ill. Reg. 8398, effective May 23, 1994)

 

Section 610.900  Administrative Requirements

 

Affordable Financing of Public Infrastructure grants and loans awarded by the Department are subject to the following conditions:

 

a)         Direct financial assistance through the loans or grants must be used for the purposes specified in Section 8-10 of the Act.

 

b)         On Affordable Financing of Public Infrastructure loans, the Department shall determine the interest rate, if any, that the loans shall bear.  The Department shall set the terms and conditions for repayment of the loans.  The repayment period of loans shall not exceed 20 years except for the small project loans specified in Section 610.300(c), which shall not exceed 10 years.

 

c)         Repayments of principal and interest on loans made and any funds collected because of a default or failure to comply with the terms or conditions of a loan under this program shall be paid into the Public Infrastructure Construction Loan Revolving Fund.

 

d)         The Department may take whatever actions are necessary or appropriate to protect the State's interest in the event of a default, foreclosure or noncompliance with the terms and conditions of the loans or grants provided under this Act, including the power to sell, dispose, lease, or rent, upon terms and conditions deemed to be appropriate by the Department, real or personal property that the Department may receive as a result thereof.

 

(Source:  Amended at 20 Ill. Reg. 1179, effective January 5, 1996)