DRAFT

Burden

Principal Forgiveness

Low

Moderate-Low

15% 20% 25% 30%

Moderate

Moderate-High

High

In the example above, a community with a Household Burden Indicator of 6.90% and Poverty Prevalence Indicator of 22%, would fall in the “Moderate-Low Burden” classification. This would correspond to an additional 15% of loan forgiveness toward their project.

Water Costs as a Percent of Income at Lowest Quintile

<= 20%

> 20% and <= 35%

> 35%

> 10%

Moderate-High Burden Moderate-Low Burden

Moderate-High Burden

High Burden

7% to 10%

Moderate Burden

Moderate-High Burden Moderate-High Burden

< 7%

Low Burden

Moderate-Low Burden

Priority Projects for Loan Forgiveness In this first year of BIL funding, the Iowa SRF Program will prioritize loan forgiveness for eligible projects that address unmet needs of our communities, that will assist communities in meeting compliance requirements and that will address health and safety issues. The following list of priority projects was developed in coordination with the regulatory authorities of the DNR and the most recent Clean Watersheds Needs Survey (CWNS) results (2012). These projects are equally weighted to receive the maximum percent of loan forgiveness available to assign to priority projects.

% Loan Forgiveness

Priority Projects for BIL CWSRF General Supplemental Loan Forgiveness: • Sewer Collection System Rehabilitation includes gravity sewers, relief sewers, pumping stations, force mains, SSO correction and CSO correction • Lagoons Advanced Treatment (Ammonia, E. coli) includes CDL optimization, sludge removal and equipment replacement

30%

30% 30% 30%

• Advanced Treatment WWTPs (Ammonia, E. coli, Nutrients) • Aging Infrastructure WWTPs includes expansion of existing secondary treatment

• Consolidation/Regionalization includes unsewered communities

30%

If a single SRF project includes more than one priority project type, the loan forgiveness award will be based on the primary purpose of the project. Loan forgiveness will be applied to the portions of the project that meet priority project criteria. Types of Financing and Interest Rates Construction Loans are offered with 20-year terms. An extended term loan is available up to 30 years, based on the average life of the project components. The interest rates for construction loans made from the CWSRF BIL General Supplemental Fund are as follows: