1. (a) The Board may provide principal forgiveness for financial assistance in accordance with 33 U.S.C. §1383(i) or federal appropriations acts:

   1. (1) for an entity that meets the affordability criteria established in this chapter and in the IUP for a Disadvantaged Community;

   2. (2) to implement a process, material, technique, or technology:

      1. (A) to address water-efficiency goals;
      2. (B) to address energy-efficiency goals;
      3. (C) to mitigate stormwater runoff; and/or
      4. (D) to encourage sustainable project planning, design, and construction; or
   3. (3) for any other eligible activity as detailed in the Intended Use Plan.
2. (b) Total amount of principal forgiveness. The total amount of principal forgiveness may not exceed the percentages established by federal law or by the capitalization grant.

Source Note:The provisions of this §375.18 adopted to be effective September 8, 2010, 35 TexReg 8126; amended to be effective July 4, 2016, 41 TexReg 4853; amended to be effective March 18, 2019, 44 TexReg 1445.