Current through Register Vol. 49, No. 2, February 2024
Authorized by
Public
Law 105-394 -Title III, of the
Assistive Technology Act of 1998
SUMMARY
This rule establishes standards for the provision of a statewide
low-interest loan program providing financing to eligible persons for
purchasing assistive technology equipment and services.
1.
Definitions
A. "ADFA" stands for the Arkansas Development
Finance Authority.
B. "AFP" stands
for Arkansas Assistive Technology Alternative Financing Program.
C. "Applicant" stands for any individual that
submits an application.
D. "ARS"
stands for Arkansas Rehabilitation Services.
E. "Assistive Technology/Adaptive Equipment"
stands for any item, off the shelf, modified or customized, that is used to
increase, maintain, or provide a greater level of functioning in one or more of
the major life activities of the individual with a disability.
F. "Assistive Technology Services" means
services that directly assists the individual with selecting, purchasing, or
learning to use assistive technology equipment. Such services include:
1. The evaluation of the assistive technology
needs of an individual with a disability, including a functional evaluation of
the impact of the provision of appropriate assistive technology and appropriate
services to the individual in the customary environment of the
individual;
2. Services consisting
of purchasing or otherwise providing for the acquisition of assistive
technology equipment by individuals with disabilities;
3. Services consisting of selecting,
designing, fitting, customizing, adapting, applying, maintaining, repairing, or
replacing assistive technology equipment;
4. Training, assessment, or technical
assistance for an individual with disabilities, or, where appropriate, the
family members, guardians, advocates, or authorized representatives of such an
individual.
G.
"Borrower" is defined as a resident of Arkansas with a disability, and their
family members, guardians, advocates, or authorized representatives who are
residents of Arkansas and intends to use the loan to purchase assistive
technology or services on behalf of an Arkansas resident with a disability.
That person must have demonstrated:
(a) that
the loan will be used to acquire assistive technology or other equipment
designed to help one or more persons with disabilities to improve their
independence, or become more productive members of the community, and
(b) the ability to repay the
loan.
H. "Committee"
stands for the Technology Equipment Revolving Loan Fund Committee.
I. "Disability" stands for any physical or
mental impairment that substantially limits one or more major life
activities.
J. "Individual" stands
for any person with a disability who will benefit from the assistive technology
or person who is a family member or primary care giver to the individual with a
disability.
K. "Insurable Property"
means assistive technology equipment purchased having a value of at least
$2500.00, and property modified having a value of $2500.00 prior to or after
the modification.
L. "Interagency
Agreement" is a document, which outlines the responsibilities of Arkansas
Rehabilitation Services to administer the Alternative Loan Program and Arkansas
Development Finance Authority's responsibilities to manage the Loan
Funds.
M. "Loan" stands for funds
disbursed from the Arkansas Assistive
Technology Alternative Financing Program Loan Fund account for
the purchase of assistive technology equipment or services and associated
costs.
N. "Loan Fund" means
the Arkansas Assistive Technology Alternative Financing Program Loan Fund
including lendable monies, interest accrued and other funds available for
ADFA's administrative costs.
O.
"Program" stands for the Arkansas Assistive Technology Alternative Financing
Program.
P. "Resident" is a person
domiciled within the State of Arkansas at the time of application.
2.
Administration
A. ARS and the Committee shall have the
authority to administer the provision of Title III Alternative Financing
Programs of the Assistive Technology Act of 1998.
B. The Committee will develop the AFP
guidelines and procedures in collaboration with ADFA and ARS. ARS will
designate staff to coordinate the Committee's efforts and other administrative
functions necessary for the conduct of the Program. The ARS designated staff
will be responsible for but not limited to:
1) the coordination, development and
promulgation of rules and procedures;
2) application intake.
3) the certification of disability;
4) the determination of the
appropriateness of the equipment or service requested; and,
5) the coordination of marketing and
reporting activities. ARS staff will serve as a liaison to the Committee and
ADFA.
C. The Committee
will approve and authorize a contract and Interagency Agreement to be
established between ADFA and ARS that will delineate ARS' responsibility to
administer the Program and ADFA's responsibilities to manage AFP Loan
Funds.
3.
Loan
Fund Administration
A. All Loan Fund
administration will be handled by ADFA. ADFA will evaluate loan applications
for creditworthiness, approve, and service the loan until it is paid in
full.
B. ADFA shall maintain a
separate permanent account for the AFP Loan Funds.
C. The Loan Fund Account shall be maintained
in an interest bearing account with all interest remaining in the
Account.
D. The loan fund shall
maintain a minimum balance to be determined by the committee. The balance will
serve as a financing reserve. Authorization to expend funds from the reserves
must be granted by the Committee.
E. ADFA will invest the Loan Fund as provided
by the Assistive Technology Act and the Investment Policy developed by ARS, the
Committee, and ADFA.
F. ADFA shall
report periodically, as outlined in the procedures, to the Committee and ARS
regarding the balance and activities of the Loan Fund; and shall provide the
required Department of Education data collection information.
G. The Loan Fund shall grow interest on
investments, appropriations, and loan payments. All interest income will be
retained in the Loan Fund.
4.
ELIGIBILITY
A. Applicants must be a resident of Arkansas
with a disability, or a family member, guardian, advocate, or authorized
representative who is a resident of Arkansas who intends to use the loan to
purchase assistive technology on behalf of an individual with a physical or
mental impairment that substantially limits one or more major life activity.
When the impairment is temporary, the Committee will determine eligibility on a
case-by-case basis.
B. Supporting
documentation required by ARS and ADFA must be provided.
C. ADFA may determine an applicant is
ineligible for the program when the applicant has defaulted on a previous loan
made through the program, or violates any provisions of the program, or ceases
to meet the requirement of these rules or any standards or policies established
by the Committee.
D. An applicant
who has previously been rejected for a Loan from the AFP may not reapply unless
the new application is a significant change from the denied application as
determined by ARS staff.
E. Loans
shall not be made for the purpose of re-financing any existing loan.
5.
APPEALS PROCESS
A. If ADFA denies an application, the
applicant may make a request for reconsideration of the application to ADFA
within the timeframe outlined in the procedures to the Committee.
B. Initial appeal requests should be made in
writing to ADFA, directed to the address provided in the denial
letter.
C. If the situation is not
resolved to the applicant's satisfaction, the applicant has the right to appeal
to the Committee. Within 20 business days of receiving ADFA's final response to
the initial appeal, the applicant may submit a request to ARS to have the
matter reviewed by the Committee. The request must be in writing or appropriate
alternative format, with all supporting information attached to the
request.
D. The Committee may hear
appeals during any regularly scheduled Committee meeting or call a special
meeting of the Committee for such purpose.
E. Designated ARS staff and ADFA will
participate in the meeting. The Committee may approve the hearing to be held by
teleconference. When the hearing is conducted by teleconference, at least one
Committee member will participate in person.
F. The Committee will:
1. Hear clarification of information already
submitted;
2. Provide the applicant
an opportunity to be heard;
3.
Inform the applicant of its decision at the meeting or within the timeframe
outlined in the procedures.
G. By a formal vote, the Committee has the
authority to support the appeal of the applicant, offer an alternative to the
applicant such as approval for a lesser amount, approval with other conditions,
or turn down the appeal. No Committee member may participate in a vote on an
application where that member has a direct or indirect financial
interest.
H. The decision of the
Committee will be final.
6.
Loan Fund Sub-Committee
Action .
A. The Committee may authorize
a sub-committee to take action for the AFP program. A quorum of at least 3
active Loan Fund SubCommittee (LFS-C) members shall be necessary for LFS-C
action.
B. No LFS-C or Committee
member may participate in a vote on an application where that member has a
direct or indirect financial interest in the outcome of the vote.
C. ADFA may request to have the Committee
review applications when unusual circumstances exist. ADFA shall provide to the
Committee information regarding the circumstances of the application.
7.
Loan Terms and
Conditions
A. Loans shall be made in an
amount that is reasonable to acquire the assistive technological equipment and
services, as shown by materials submitted with the applications. In no event
shall the total loan amount to an applicant exceed $50,000. Terms shall not
exceed 20 years.
B. The Committee
shall establish the loan interest rate parameters. Interest rates in effect at
the time an application is received by ADFA are fixed for the term of the
loan.
C. ARS or ADFA may inspect
equipment or review proposed services or modifications to be performed to
assure they meet assistive technology requirements.
D. ADFA will file appropriate documents on
behalf of ARS to take a security interest in items purchased or modified with
AFP funds through such methods as deeds of trust, liens on titled vehicles, and
UCC filings for all collateral.
E.
Borrowers will request permission from the Committee and notify ADFA if
collateral will be relocated and registered in a state other than Arkansas.
Appropriate UCC filings will be conducted for the additional state at the
borrowers expense.
F. When a loan
in excess of $5,000 is to be used for home modifications, the ADFA shall
require two bids from licensed contractors before distribution of funds. The
contractors must be regularly doing business in the home construction field,
must identify a fixed, firm price, and provide turnkey service.
G. ADFA or the Committee may require
additional information on all loans secured by mortgages on real
property.
H. There will be no
prepayment penalty on AFP Loans.
I.
A loan is delinquent and in default upon the occurrence of any event as defined
in the loan documents.
J. Borrowers
will be assessed late payment and insufficient check fees as established by the
committee.
K. Borrowers shall be
referred to a credit counseling service should their loan fall 60 days
delinquent.
L. Borrowers will have
a major role in selecting the technology to be purchased. The applicant, with
assistance from ARS, should identify more than one manufacturer or source for
the technology, unless only one company supplies the product. The applicant
must know the cost from each source and what is included in the cost. The
applicant must demonstrate awareness of what training and maintenance is
available for the technology.
M.
Successful loan applicants shall agree to participate in follow-up surveys
conducted by the ARS staff to determine the borrower's satisfaction.
N. Loans will not be provided for terms that
exceed the amortized value or the general life expectancy of the
equipment.
8.
Covenants of Borrower
The borrower will agree to the following terms and conditions in
the loan documentation:
A. The
borrower shall comply with all applicable code, planning, zoning, sanitary,
building and environmental laws, ordinances and regulations of the federal,
state, and local governments.
B.
The borrower agrees not to convey, lease or transfer any collateral for the
loan without the prior written consent of ARS and ADFA.
C. The borrower will pay, when due, all taxes
or charges assessed against any collateral and shall provide proof of payment
to ADFA.
D. The borrower will keep
insured to the satisfaction of the Committee all insurable property securing
the loan and will maintain the collateral in good condition and repair. ARS
shall be named as an additional insured, and will provide proof of insurance to
ADFA.
E. The borrower will repay
any advances or expenses of ADFA necessary to protect the collateral or enforce
the rights of ARS against the borrower or the collateral.
F. The borrower will not materially alter or
relocate collateral without the prior written approval of and notification to
ADFA. ADFA will provide notification to the Committee.
G. The borrower will comply with such other
covenants as the Committee may impose or establish.
9.
Payment of Loan Proceeds.
A. ADFA will disburse loan funds directly to
the provider of equipment or service.
B. ADFA, the Committee, and ARS will require
an invoice, statement or other documents for all items purchased with loan
proceeds.
10.
Waiver of Rules
The Committee may waive any requirement of this rule, except to
the extent that it is mandated by
Public
Law 105-394, Title III of the Assistive Technology
Act of 1998, in cases where the deviation from the rule is insubstantial and is
not contrary to the purposes of the Program.
11.
Loan Administration.
A. All loan servicing and administration will
be the responsibility of ADFA and or it assignee.
B. ADFA shall prepare all loan documentation,
after the loan application has been submitted and approved. ADFA will complete
all loan closings.
C. ADFA will
service the loans according to the Interagency Agreement including borrower
notification of collection timeframes, and remedies on default.
D. If the borrower fails to cure default
within 30 days, ADFA shall take all appropriate action provided under law and
the loan documents. In determining the appropriate action, ADFA shall consider:
1. The likelihood that the loan will be
repaid if loan terms are modified and approved.
2. The impact of enforcement and collection
on the borrower.
3. The
recommendation of the Committee.
E. ADFA may review requests from borrowers to
modify the terms of loan repayments, and submit the request to the Committee
State approved policy and procedures. Positive and negative credit history may
be reported to appropriate credit bureaus.
F. With an acceptable reason for non-payment,
the Committee may consider the request for modification of loan terms or
conditions. Reasons that may be viewed as acceptable include, but are not
limited to:
1. Medical/physical
change
2. Compounding
disability
3. Change in employment
status
4. Injury on the
job
5. Family expenses that were
unexpected
G. ADFA will
demonstrate a process of reasonable and timely interventions with the intent of
keeping the loan active. Should the Committee believe that repayment is not
possible and the reasons are seen as unacceptable, the Committee may authorize
ADFA to reclaim the equipment or discharge the debt in accordance with the
State of Arkansas debt abatement procedures. In the event the borrower dies and
there is not a viable option to pay off the loan, the Committee may discharge
the debt and donate the equipment to an ARS assistive technology
program.
H. ADFA shall prepare and
provide periodic at least quarterly reports to the Committee and ARS detailing
all activities, including cost expenditures and reimbursements associated with
the AFP program.
I. ADFA will apply
payments or other monies received on loans, not in default first to accrued
interest, second to principal, then to late charges.
J. In order to protect the integrity of the
Loan Fund, the AFP may charge such administration, servicing and document
preparation fees as seems reasonable, and as approved by the
Committee.
K. Borrowers may repay
current interest and outstanding balance, and accelerate payments without
penalty.
12.
Confidentiality
ARS and ADFA are responsible for complying with the legal
requirements to protect the confidential nature of information in individual
files, including all individual identifying information contained in reports,
lists, and other paper or electronic documents, and for prohibiting
unauthorized access to them. In accordance with federal and state regulation,
the state will safeguard the confidentiality of all personal information
pursuant to
34C.F.R §
361.38 and the Federal Privacy Act,
5U.S.C.A. §
552A.
Individual's information will be released in only four
situations:
1) when authorized in
writing by the individual,
2) in
response to a valid subpoena or court order,
3) when directly connected with the
individual's rehabilitation, or
4)
in certain emergency and investigative circumstances that pose an immediate
threat to the safety of the individual or others.