1. (a) After the executive administrator determines the amount of funds available for water system improvements for a fiscal year and assigns all reserves, the remaining funds will be applied to the list of projects designated to receive funding in the intended use plan. Projects will be listed in priority ranking order with funds required and totaled. Except for projects for disadvantaged communities, projects having either identical combined rating factor scores, including rating scores of zero, will be listed in order of population, with projects for systems serving smaller populations listed above projects for systems serving larger populations. To the extent eligible applicants are available, a minimum of 15% of the funds will be made available to small communities (systems serving populations less than 10,000).
2. (b) After projects are ranked and project costs totaled, a line will be drawn not to exceed the available funds. Project costs will be based on cost estimates, acceptable to the executive administrator, contained in the intended use plan solicitation described in §371.20 of this title (relating to Intended Use Plan) used to establish the project list.
3. (c) In the event that the small community projects above the funding line do not equal 15% of the funds available, the executive administrator may bypass projects for systems serving populations of 10,000 or greater to include additional small community projects above the funding line. Bypass of large community systems is used only to ensure that a minimum of 15% of total funds available is made available to small community systems.
4. (d) After the funding line is drawn, the executive administrator shall notify in writing all potential applicants above the funding line of the availability of funds and will invite the submittal of applications.
5. (e) Applicants must submit applications for assistance, as defined, within four months of being invited to submit.
6. (f) If, after seven months from the date of invitation to submit applications, all available funds are not committed, the executive administrator will return any applications which have not received a commitment and move all projects for which no applications, incomplete applications or complete applications were submitted to the bottom of the prioritized list, where they will be placed in priority order.
7. (g) Following the re-ranking of the list a line will again be drawn not to exceed the amount of remaining funds available in accordance with subsections (b) and (c) of this section.
8. (h) After the funding line is re-drawn, the executive administrator shall notify, in writing, all potential applicants of the availability of funds and will invite the submittal of applications.
9. (i) Applicants must submit applications for assistance, as defined, within four months of being invited to submit.
10. (j) If, after seven months from the second date of invitation to submit applications, the remaining funds are not committed the executive administrator will return any applications which have not received a commitment. Any funds remaining that exceed the amount needed to fund complete applications will be made available for the next fiscal year.
11. (k) If, at any time during either seven month period of availability of funds, a potential applicant above the funding line submits written notification that it does not intend to submit an application or if additional funds become available for assistance, the line may be moved downward in priority order to accommodate projects which would utilize the funds that would otherwise not be committed during the particular seven month period. The executive administrator will notify such additional potential applicants in writing and will invite the submittal of applications. Potential applicants receiving such notice will be given four months to submit an application and seven months from the date of notification to receive a loan commitment.
12. (l) Applications for assistance may be submitted at any time within four months after notification by the executive administrator of the availability of funds and will be funded on a first come, first served basis. Funds shall be committed to a project designated to receive assistance upon board approval of the application.
13. (m) Notwithstanding the provisions of subsections (f), (j), and (k) of this section, the executive administrator may request additional information regarding any portion of the application for funding after an application has been submitted without affecting the priority rating status of the application.

Source Note:The provisions of this §371.21 adopted to be effective March 18, 1997, 22 TexReg 2502; amended to be effective August 6, 1997, 22 TexReg 7057; amended to be effective September 10, 1997, 22 TexReg 9004; amended to be effective March 11, 1998, 23 TexReg 2396; amended to be effective October 8, 1998, 23 TexReg 10042; amended to be effective January 6, 1999, 24 TexReg 163; amended to be effective December 8, 1999, 24 TexReg 10886; amended to be effective September 5, 2000, 25 TexReg 8738.