New Jersey Discharger - V3N3

	Vol. 3 No. 3 Winter 1995
A Newsletter About New Jersey's Water Quality Programs

Wastewater financing eligible costs expanded

The table below provides a quick reference to the wastewater financing rule changes that became effective September 5, 1995 (see New Jersey Discharger, June 1995), and apply to all projects that have received financial assisstance under the Wastewater Treatment Financing Program, the Fund Trust Program, and the Pinelands Infrastructure Trust Financing Program.

Note: Adopted rule changes allow the New Jersey Wastewater Treatment Trust to finance the local share of projects funded through the Pinelands Infrastructure Trust. Adopted rule changes are applicable to all projects not closed out.

If you have any questions regarding the impact of these amendments on your wastewater project, please contact Stanley Cach, Chief, Bureau of Engineering North at (609) 292- 6894 or George Goldy, Chief, Bureau of Engineering South at (609) 984-6840, as applicable. For general issues regarding the rule readoption with amendments, please contact Theresa Fenton, Chief, Bureau of Program Development and Technical Services, at (609) 292-3859.

Category Old Rules New Rules

Administrative Expenses Limited to 1% of Building Line Item Limited to 3% of Building Line Item and now includes:

cost of construction related permits
Bond Counsel and Financial Advisor Fees
other incidental closing costs

Engineering Expenses Limited to 12% of Building Line Item No longer limited to 12% of Building Line Item, however, Professional Services Affidavit is required.

Building Expenses Costs associated with house connections were unallowable Costs associated with house connections will be allowable when owned, operated, and maintained by the Loan Recipient.

Contingency Line Item Loan Contingency was unallowable Contingency will be allowable limited to 5% of Building Line Item.

Planning and/or Design Allowance P& D Allowance varied from 4.8% to 14.5% of Building Line Item.
Design Allowance varied from 3.4 % to 8.6 % of Building Line Item. P& D Allowance varies from 5.0% to 27.5% of Building Line Item.
Design Allowance varies from 3.6% to 16.3% of Building Line Item.

Preaward Approval Limited to top 100 projects on approved priority list. All projects listed on the Priority List are eligible with prior DEP approval.

Category	Old Rules	New Rules
Administrative Expenses	Limited to 1% of Building Line Item	Limited to 3% of Building Line Item and now includes: cost of construction related permits Bond Counsel and Financial Advisor Fees other incidental closing costs
Engineering Expenses	Limited to 12% of Building Line Item	No longer limited to 12% of Building Line Item, however, Professional Services Affidavit is required.
Building Expenses	Costs associated with house connections were unallowable	Costs associated with house connections will be allowable when owned, operated, and maintained by the Loan Recipient.
Contingency Line Item	Loan Contingency was unallowable	Contingency will be allowable limited to 5% of Building Line Item.
Planning and/or Design Allowance	P& D Allowance varied from 4.8% to 14.5% of Building Line Item. Design Allowance varied from 3.4 % to 8.6 % of Building Line Item.	P& D Allowance varies from 5.0% to 27.5% of Building Line Item. Design Allowance varies from 3.6% to 16.3% of Building Line Item.
Preaward Approval	Limited to top 100 projects on approved priority list.	All projects listed on the Priority List are eligible with prior DEP approval.

Articles appearing in the New Jersey Discharger may be reprinted provided source credit is given.
Tom Cosmas converted the original text into this HTML and is willing to accept most of the blame for any typo errors.
Last revision 4/15/96