16851_Authority_Aug_2023

municipalauthorities.org | 45 ONCE IN A GENERATION OPPORTUNITY TO SEEK FUNDING! By Robert H. Boos, Executive Director, Pennsylvania Infrastructure Investment Authority The Pennsylvania Infrastructure Invest- ment Authority’s (PENNVEST) enabling legislation was adopted in 1988 and created an agency operating under a Board of Directors to provide low inter- est loan and grant financing to support clean water infrastructure projects within the Commonwealth of Penn- sylvania (Commonwealth) through the State Revolving Fund (SRF). The program was initially anticipated to be a 20-year program that would invest $2 billion. Since that time, the program has grown significantly. Funding for projects originates from a combination of state funds approved by voters, Growing Greener, Marcel- lus Legacy funds, federal grants to PENNVEST from the Environmental Protection Agency (EPA) and recycled loan repayments from previous PEN- NVEST funding awards. PENNVEST provides low-interest loans and grants for new construction or for improvements to publicly or privately owned drinking water, storm water or sewage treatment facilities, as well as non-point source pollution prevention best management practices which includes green infrastructure, MS4 systems and agricultural operations. PENNVEST also provides loan fund- ing to remediate brownfields sites, as well as loan funding to individual homeowners for repair or replace- ment of their malfunctioning on-lot septic system, first time connection to a public sewer collection system or lateral repair. Projects have been funded all across the Commonwealth. There are ap- proved projects in all 67 counties. PENNVEST is the only State Revolving Financing program in the country that receives and processes applications electronically through our electronic portal onto disbursement and finally to project close out. All documents are handled cradle to grave including settlement within the portal and utiliz- es electronic signatures. Recently, the application process has been updated and modernized to improve efficien- cies for borrowers. There has been a lot of positive feedback on the im- provements to the application process from attendees at the information exchange sessions recently held by PENNVEST across the Commonwealth. To remain in the forefront to improve ease of access to financing and the PENVNEST programs, PENNVEST provides assistance to applicants with regional project specialists to facilitate the application process. A frequently asked question involves how funding determinations are made Continued on page 54. Currently, in its 35 th year, PEN- NVEST has offered financing in excess of $11.4 billion comprising 4,659 projects to improve the public health, safety, and environ- ment for communities and citizens of the Commonwealth. for loans and grants. PENNVEST con- ducts a financial analysis to determine the interest rates and the length of the repayment period on any loan, as well as whether any grant funding might be awarded for the project. If the financial analysis reveals hardship considera- tions grant funding may be applied. Currently, the interest rates for PENN- VEST financing falls within 1.000% and 2.179% for 20 years. The difference in the PENNVEST interest rate and the market rate is like getting a grant every year for 20 years. Not many programs can make that argument. It is a once in a generation opportu- nity to seek funding. The program continues to operate with a project budget of $1 billion per year in loans, grants, and guarantees and expects to continue operating at this funding level for the foreseeable future. All projects that have been technically and administratively ready to move forward have been approved by the Board of Directors for the last few years. No projects have been deferred relating to funding levels. PENNVEST Board Meetings are competitive so there is never any guarantees as the number of projects and requested dollars can vary from meeting to meeting, however, generally speaking right now is a great time to apply. To facilitate the timely award of funds, the Board of Directors meets quarter- ly throughout the year.