NR 162.43(3)(3)Project interest rate calculation. The department shall calculate the project interest rate according to s. NR 162.10 (2).
NR 162.43 NoteNote: Section NR 162.10 (1) (b) does not apply to projects subsidized under this subchapter.
NR 162.43(4)(4)Calculation of interest rate subsidy.
NR 162.43(4)(a)(a) Only that portion of the recipient’s BCPL loan that is used for a scored project is eligible for interest rate subsidy.
NR 162.43(4)(b)(b) The maximum amount of project costs eligible for interest rate subsidy is the total eligible costs of the scored project multiplied by the parallel cost percentage as determined under the applicable requirements of s. NR 162.04 (1) (c).
NR 162.43(4)(c)(c) The interest rate subsidy shall be based on the market interest rate in effect at the time the interest rate subsidy agreement is executed.
NR 162.43(4)(d)(d) The department shall calculate the interest rate subsidy as follows:
NR 162.43(4)(d)1.1. Loan ratio = Eligible principal / Loan principal
Where:
Loan ratio . . . is the percentage of the BCPL loan principal that is eligible for interest rate subsidy.
Eligible principal . . . is the lesser of the BCPL loan amount eligible for interest rate subsidy under par. (a) or the CWFP project costs eligible for subsidy under par. (b).
Loan principal . . . is the original total BCPL loan amount.
NR 162.43(4)(d)2.2. Interest ratio = (Interest rate – Project rate) / Interest rate
Where:
Interest ratio . . . is the interest rate subsidy as a percentage applicable interest rate, before adjusting for the eligible share of BCPL loan principal.
Interest rate . . . is the lesser of the market interest rate or the interest rate on the BCPL loan.
Project rate . . . is the project interest rate calculated under s. NR 162.10 (2) (b).
NR 162.43(4)(d)3.3. Subsidy ratio = Interest ratio * Loan ratio.
NR 162.43(4)(d)4.4. Annual interest rate subsidy = Interest charged on BCPL loan * Subsidy ratio.
Where:
Annual interest rate subsidy . . . is the dollar amount of the subsidy provided to the municipal recipient in a given year, based on the interest amount billed to the municipality that year for the BCPL loan.
Interest charged on BCPL loan . . . is the amount of interest charged by the BCPL for the applicable loan in a given year.
Subsidy ratio . . . is the subsidy ratio calculated in subd. 3., which is the percentage to be applied to interest charged on a BCPL loan in a given year to calculate the appropriate amount of interest rate subsidy to provide the municipality in that year. The subsidy ratio shall not be less than zero percent or greater than 100 percent.
NR 162.43 NoteNote: DOA annually calculates the interest rate subsidy amount for each CWFP interest rate subsidy agreement still in effect. The amount provided to the municipality in a given year is based on information supplied by the BCPL regarding the amount of interest charged during that year on each outstanding BCPL loan associated with a CWFP interest rate subsidy agreement. The BCPL determines the type of municipal obligation that is required for the repayment of its loan.
NR 162.43 HistoryHistory: CR 22-045: cr. Register October 2023 No. 814, eff. 11-1-23.
NR 162.44NR 162.44Interest rate subsidy agreement conditions.
NR 162.44(1)(1)Comply with laws. The interest rate subsidy agreement shall require the recipient and the treatment works or BMP to comply with all pertinent requirements of federal, state, and local laws and regulations and outstanding CWFP and safe drinking water loan program financial assistance agreements.
NR 162.44(2)(2)Recipient requirements. The interest rate subsidy agreement shall require the recipient to do all of the following:
NR 162.44(2)(a)(a) Access. Provide department representatives access to the project, including construction activities, whenever it is in preparation or progress. The recipient shall allow department representatives access to records of contractors and subcontractors that are pertinent to the project for the purpose of making inspections, examinations, excerpts, copies, and transcriptions. The recipient shall also allow DOA access to records for audits.