Senate Bill 15-121 in 2015 authorized the Authority to fund eligible PNP public water systems through the DWRF. 

As of January 1, 2024, the Board approved conversion planning grants in the amount of $25,000 to encourage and ease the financial burden of PNPs converting to a local government. 

Effective as of January 1, 2026:

Planning and PNA

• A funding alternatives analysis will be required to be submitted as part of the Project Needs Assessment (“PNA”) review process. Prospective PNP borrowers must complete and submit the provided form with their PNA submittal and must provide comparison of costs that shows the impact on a per ratepayer basis with at least one alternate funding source, or one funding mechanism (governmental formation) versus the costs and impacts to ratepayers/lot owners of coming through as a PNP.

• The funding alternatives analysis and its results are required to be presented at the SRF-required public meeting.

Loan Application

• At least one year of full audited financial statements will be required to be submitted prior to loan application, and then the annual full audit requirement continues for the life of the loan.

• Bond counsel must already be engaged and will be required to attest that they have reviewed the items listed below and that the borrower will be able to meet the PNP program requirements and will be ready to execute a loan in a timely manner after loan application and potential approval.

            -Bylaws, covenants, articles of incorporation, requirements for voter authorization of debt, water rights, and board member make up (we require a minimum of 3 directors).

Approved Loan

• Maximum individual loan limit for non-AVC PNP loans of $1.5 million.

• Maximum annual (calendar year) lending limit of $5 million combined for non-AVC PNPs. PNPs that will be connected into the AVC will be exempt from the maximum annual lending dollar amount limit of PNP loans per year. This exception applies only to those projects that enhance or benefit the AVC.

• PNP upfront admin fee of 1% of the total loan request (built into the loan repayment schedule).

• Higher interest rates for all tiers of PNP loans, current rates are below but may change in December.

-Standard Private-Non-Profits (PNPs)

3.75% (20yr);

4.00% (30yr)

-DAC 1 PNPs

3.25% (20yr);

3.50% (30yr)

-DAC 2 PNPs

2.50% (20yr);

2.75% (30yr)