265—46.3(16) Administration.

1. 46.3(1)  The authority will notify successful applicants in writing of an approved application for financial assistance. The terms of the financial assistance may be negotiated by the authority and shall be included in a written agreement with the recipient. The agreement may include any other term that the authority deems necessary or convenient for the efficient administration of the program. All eligible costs shall be documented to the satisfaction of the authority before financial assistance may be disbursed. Recipients shall pay a loan initiation fee to the authority upon loan closing. The fee may be up to 2 percent of the full loan commitment amount, not to exceed $100,000.
2. 46.3(2)  The recipient shall maintain records that document all costs associated with the project. The recipient shall provide access to these records to the authority, the auditor of the state of Iowa, or their agents or designees upon request. The recipient shall retain such records and documents for a period of three years from the date of the final disbursement of financial assistance.
3. 46.3(3)  The recipient shall provide the authority or its agents or designees access to the project site on request to verify that the financial assistance is being used for the purpose intended and that the construction work meets applicable state and federal requirements, and that the project is being operated and maintained as designed.
4. 46.3(4)  The recipient’s accounting procedures shall conform to generally accepted government accounting standards.

5. 46.3(5)  All loans made by the authority to finance projects under the program shall meet the following requirements:

   1. a. Repayment must begin within 30 days after project completion or by the date specified in the loan agreement;
   2. b. A loan term cannot exceed 20 years; and
   3. c. A recipient may prepay a loan at any time with no penalty.

6. 46.3(6)  Loans made by the authority to municipalities shall meet the following additional requirements:

   1. a. The recipient shall provide an enforceability opinion of counsel in a form acceptable to the authority; and
   2. b. The loan shall be secured by a first lien upon the dedicated source of repayment that may rank on a parity basis with other obligations or, with the approval of the director, may be subordinate in right of payment to one or more of the recipient’s other outstanding revenue obligations.
7. 46.3(7)  Noncompliance. The authority may, for cause, find that a recipient is not in compliance with the requirements of the program. Remedies for noncompliance may include penalties up to and including withholding of or return of financial assistance. Findings of noncompliance may include but are not limited to the use of financial assistance for activities not described in the application for the grant; failure to begin construction within one year of execution of a loan agreement; or failure to comply with any applicable state or federal rules, regulations, or laws.

[ARC 9823C, IAB 12/10/25, effective 1/14/26]