(a) Grant. The commission may award a grant of up to 90% of the eligible project costs. If federal funds are used on the project, the commission may participate by funding up to 50% of the sponsor's share of the project costs eligible for federal funding. A sponsor's share shall be remitted in cash for planning and construction projects, unless an exception is granted by the director. If an exception is granted, the value of any eligible in-kind contributions, as shall be determined by the division, may be included as part of the sponsor's share. For property acquisition projects, the sponsor shall initially bear all costs of property acquisition and shall be reimbursed by state and/or federal funds in the appropriate granted percentages for the eligible approved costs after division approval of all necessary documentation provided by the sponsor. The director may grant an exception for property acquisition projects to allow cash remittance from the sponsor for the property acquisition costs.
(b) Loans. The commission may make a loan of up to 90% of the cost of a project. All loans shall bear an interest rate of at least 3.0% per annum and have a term of not longer than 20 years. Loans shall be made in lieu of grants whenever feasible, and, in particular, in lieu of grants for revenue-producing improvements.
(c) Amount. The amount of a grant or loan made by the state at one location may be limited by the commission.
(d) Exceptions. The director may grant exceptions provided under subsection (a) of this section if he or she determines such action to be in the best interest of the state to ensure adequate local financial participation.

Source Note: The provisions of this §30.206 adopted to be effective September 27, 1990, 15 TexReg 5366; transferred effective September 1, 1993, as published in the Texas Register August 27, 1993, 18 TexReg 5768; amended to be effective May 24, 1995, 20 TexReg 3575.