State Transportation Assistance Revolving Fund

PURPOSE: This rule contains procedures and provisions to provide financial assistance for eligible nonhighway transportation projects to any political subdivision of the state or to any other person or entity involved in transportation projects serving a public purpose. (1) Definitions. (A) Commission. The Missouri Highways and Transportation Commission. (B) Department. The Missouri Department of Transportation. (2) Eligibility. (A) Applicability. This rule applies to any political subdivision of Missouri or to any public or private not-for-profit organization or entity involved in transportation projects serving a public purpose other than highways as described in subsection (2)(B) of this rule. (B) Projects. The funds in the State Transportation Assistance Revolving (STAR) Fund are to be allocated for the following: 1. Facilities for transportation by air, water, rail, or mass transit; 2. Vehicles for the transportation of elderly or handicapped persons; or 3. Rolling stock for transit purposes. (C) Costs. 1. Eligible costs. Applicants can request monetary assistance in the planning, acquisition, development, and construction of the projects described in subsection (2)(B) of this rule. 2. Ineligible costs. No funds provided by this section shall be used for the payment of the operating expenses of such transportation facilities or for the construction or maintenance of state highways. (3) Financial Assistance Amounts. The total amount of funds available for eligible projects under this rule will be determined annually by the commission, subsequent to appropriations by the state legislature. (4) Application for Financial Assistance. (A) An applicant submits its completed application on a form provided by the commission, which includes the application fee, to the department’s Financial Services Director. The application, dated March 1, 2018, is incorporated herein by reference and made a part of this rule as published by the department, PO Box 270, Jefferson City, MO 65102. This rule does not incorporate any subsequent amendments or additions to the application. A copy of the application can be acquired from the Missouri Department of Transportation, PO Box 270, Jefferson City, MO 65102 or online at http://www.modot.org/partnershipdevelopment/application.htm. (B) The application will provide precise project details and funding information that will be incorporated into the loan agreement. (C) Unfunded Applications. 1. Refunds of application fees. Application fees charged on applications that are not approved for funding will be retained by the commission. There are no refunds of application fees. 2. Resubmittal of unfunded applications. A. Applicants may resubmit an application or a revised application. B. There will be no fee for resubmission of an unrevised application. C. Adjustments for inflation in project costs/financing is not considered a revision. (5) Application Review and Evaluation. (A) The department evaluates each proposal that requests a loan from the STAR Fund to determine eligibility and completeness under section 226.191, RSMo and this rule. (B) The evaluation criteria includes the following criteria: 1. Public benefit; 2. Transportation need; 3. Economic benefit; 4. Financial feasibility; 5. Noncommission financial contribution; and 6. Timeliness of repayment. (C) If the application is complete and the department determines the project is eligible for a loan, the department then evaluates and determines whether the applicant sponsoring the project has the ability to repay a loan issued under this rule. (D) If more than one (1) project has been submitted, the department then ranks the applications in order of each application’s evaluation score. (E) The department then presents the application, or applications, to the department’s cost share committee. The cost share committee reviews and then either approves, denies, or requests additional information for each STAR loan application. (F) If the cost share committee approves the loan, the loan is then presented to the commission for final approval or disapproval to issue the loan. If there is more than one (1) application, the applications to be submitted to the commission will not exceed the amount of funds available to finance the applications. (6) Loan Awards. All applicants will be notified of the outcome of the review process. Funded applications receive a letter of loan commitment, followed by a loan agreement upon loan closing. The loan conditions and repayment terms are dependent on the credit worthiness of the applicant and will be set out in the loan agreement. (7) Accountability. Upon approval of financial assistance through this rule, the following items will be addressed in the loan agreement: accounting practices; insurance; and inspections. AUTHORITY: section 226.191, RSMo 2016.* Emergency rule filed July 14, 1997, effective July 24, 1997, expired Feb. 26, 1998. Original rule filed July 14, 1997, effective Jan. 30, 1998. Amended: Filed April 6, 2018, effective Nov. 30, 2018. *Original authority: 226.191, RSMo 1996.