Payments from the DWSELF may be made to DWSELF loan recipients under the

Payments from the DWSELF may be made to DWSELF loan recipients under the following conditions: 3.5.1.1 Payments may be requested by and may be made only to loan recipients, in accordance with the DWSELF loan agreement and the loan recipient's contracts for eligible and allowable services and construction/repair for work performed within the project scope and budget period. 3.5.1.2 Excluding the payment requests for the administration fee, payments may be requested no more often than on a monthly basis, except as required by state law. Payment requests can not include costs incurred during two different state fiscal years, therefore two payment requests may be submitted in July: one for costs incurred through June 30th and a second for costs incurred after June 30th. 3.5.1.3 The loan recipient must deduct from all DWSELF payment requests the amount of funds provided or to be provided from all other state and federal agency funding sources for allowable DWSELF project costs. 3.5.1.4 Payment requests must be submitted by the loan recipient to the Department staff and must include the following: 1. DWSELF payment request form; 2. Invoices for all allowable costs for which payment is requested, except that invoices need not be submitted for any administration fee included in the loan agreement; and 3. Any other documents required by the loan agreement; 3.5.1.5 The timing of DWSELF payments will be as follows, provided the loan recipient is in compliance with the requirements of this regulation and all provisions of the DWSELF loan agreement. 1. Payment for the administration fee must be the first payment request submitted and will be paid to the appropriate Department administration fund. 2. Payments for design and construction phase services may be requested and paid based upon incurred allowable costs. Such requested payment amounts are subject to verification by the Department staff. No more than 85% of the total planning/design and construction phase services contract amounts will be paid until submission of: the determination of construction completion by the loan recipient; performance of the final construction observation by Department staff; submission of the final pay request; submission of approvable summary change orders on all construction contracts; submission of record drawings on all construction contracts, if applicable; submission of the certification from a registered engineer that the project has been constructed substantially in accordance with the approved plans, specifications, and contract documents; submission of loan recipient's resolution of acceptance of each construction/repair contract; submission final construction phase services contract amendments, if any; and compliance with all other applicable provisions of the DWSELF loan agreement. Upon completion of these actions, the remainder of the planning/design and construction phase services contract amounts may be requested and paid. 3. Payments for allowable construction/repair work may be requested and paid based upon in-place work or delivered materials and equipment as specified in the construction/repair contract, and as supported by invoices and verified as accurate by the registered engineer, if applicable, and the loan recipient, less any retainage. Such requested payment amounts are subject to verification by the Department staff. 4. Payments for eligible land may be requested and paid immediately after loan agreement execution, provided the Department has approved the purchase price prior to loan award and proof of the purchase price has been submitted with the payment request. Within 30 days after purchase of the loan eligible real property, clear title certification forms from both the loan recipient and the title counsel must be submitted to the Department. 3.5.1.6 Any payments made to the loan recipient which are at any time determined by Department staff to be for costs not in accordance with the DWSELF loan agreement, for ineligible or unallowable costs, or for costs related to waste, fraud, abuse or illegal acts under state or federal law, must be repaid to the DWSELF fund within 30 days of such notification by the Department staff. Interest may be charged on such delinquent repayments after expiration of the 30-day period at a rate of ten (10) percent per annum, compounded monthly. Alternatively, the Department staff may withhold such amounts from subsequent payment requests.