R317-101-10. Design Advance

  A. A Design Advance can only be made to a political subdivision which demonstrates a financial hardship.

  B. A Design Advance is made to a political subdivision with the intent to provide interim financial assistance for the completion of the project design until the long-term project financing can be secured. Once the long-term project financing has been secured, the Project Design Advance must be expeditiously repaid to the Board.

  C. The applicant must demonstrate that all funds necessary to complete the project design will be available prior to commencing the design effort. The Design Advance will be deposited with these other funds into a supervised escrow account at the time the grant agreement between the applicant and Board is executed.

  D. Failure on the part of the recipient of a Design Advance to implement the construction project may result in the Board seeking repayment of the Advance on such terms and conditions as it determines.

  E. The recipient of a Design Advance must first receive written approval for any cost increases or changes to the scope of work.