1. (1) The department may approve a DWSRF loan for a project that will not serve a disadvantaged community:

   1. (a) That partially or fully forgives the principal amount of the loan; or
   2. (b) At an interest rate at or below market interest rates for a maximum of 20 years from project completion.

2. (2) The department may approve a DWSRF loan for a project that will serve a disadvantaged community:

   1. (a) That partially or fully forgives the principal amount of the loan; or
   2. (b) At an interest rate set at or below market interest rates for up to 30 years, as long as the DWSRF loan does not exceed the useful life of the project.
3. (3) A project is considered complete when the department approves the construction completion report.
4. (4) The borrower shall begin repaying the principal and interest no later than one year after the project is complete.

5. (5) The department shall:

   1. (a) Set terms that secure repayment of the debt and maintain a financially sound DWSRF program in perpetuity; and
   2. (b) Publish specific rates and contract terms in the annual application package.

[Statutory Authority: RCW 70A.125.160, Federal Safe Drinking Water Act. WSR 24-16-058, s 246-296-050, filed 7/31/24, effective 8/31/24. Statutory Authority: RCW 70.119A.170 as amended by 2016 c 111. WSR 16-14-086, § 246-296-050, filed 7/5/16, effective 8/5/16. Statutory Authority: RCW 70.119A.170. WSR 16-06-100, § 246-296-050, filed 3/1/16, effective 4/1/16. Statutory Authority: RCW 70.119A.170 and Federal Safe Drinking Water Act, H.R. 1452. WSR 12-01-077, § 246-296-050, filed 12/19/11, effective 2/1/12. Statutory Authority: RCW 70.119A.170. WSR 01-21-137, § 246-296-050, filed 10/24/01, effective 11/24/01.]