Illinois Administrative Code
Title 14 - COMMERCE
Part 610 - PUBLIC INFRASTRUCTURE LOAN AND GRANT PROGRAMS
Subpart B - AFFORDABLE FINANCING OF PUBLIC INFRASTRUCTURE LOAN AND GRANT PROGRAM
Section 610.300 - Cooperative Agreements with State Intermediaries

Universal Citation: 14 IL Admin Code ยง 610.300

Current through Register Vol. 48, No. 38, September 20, 2024

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 projectsthat 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.

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