SECTION 363.510. Terms of Financial Assistance

(a) The board shall determine the amount and form of financial assistance and the amount and form of repayment, if applicable. The board shall establish repayment based on the political subdivision's ability to repay the financial assistance and shall consider:

(1) rates, fees, and charges that the average customer to be served by the project will be able to pay;

(2) sources of funding available to the political subdivision from federal and private funds and from other state funds;

(3) any local funds available from the political subdivision if the economically distressed area to be served by the board's financial assistance is within the boundary of the political subdivision;

(4) the just, fair, and reasonable charges for water and wastewater service as provided in the Texas Water Code;

(5) the ability of the board to maximize the portion of financial assistance for which repayment is required based on the political subdivision's ability to repay the assistance, as provided by board rule; and

(6) the limit on the total amount of financial assistance that does not require repayment pursuant to Texas Water Code §17.933.

(b) The board shall determine the method of evidence of debt.

(c) If the board determines non-performance of the terms of the grant by the political subdivision, the board may require reimbursement of all or part of the funds provided by grant assistance or impose sanctions such as prohibition of further board financial assistance.

Source Note: The provisions of this §363.510 adopted to be effective May 1, 2022, 47 TexReg 2550