(a) Prior to approval of the application submitted of an applicant, the board shall consider:
  (1) the needs of the area to be served by the project and the benefit of the project to the area in relation to the needs of other areas requiring state assistance in any manner and the benefits of those projects to the other areas;
  (2) the availability of revenue to the applicant from all sources for the ultimate repayment of the cost of the project, including all interest;
  (3) the relationship of the project to overall statewide needs;
  (4) the ability of the applicant to finance the project without state assistance; and
  (5) the regulatory efforts by the county in which the project is located to control the construction of subdivisions that lack basic utility services.
(b) After consideration of the factors identified in subsection (a) of this section, the board may pass a resolution approving the application of an eligible applicant if the board finds that:
  (1) the public interest requires state participation in the project; and
  (2) the revenue or taxes pledged by the political subdivision will be sufficient to meet all the obligations assumed by the political subdivision.
(c) The resolution approving the application of an eligible applicant may include any condition that the board deems appropriate including a requirement that the applicant adopt a water conservation plan in compliance with §363.15 of this title (relating to Required Water Conservation Plan).

Source Note: The provisions of this §363.1105 adopted to be effective May 11, 2004, 29 TexReg 4547