(a) The board may use the funds for financial assistance to eligible political subdivisions as follows:
  (1) to make a loan to an eligible political subdivision at or below market interest rates for a flood project;
  (2) to make a grant or loan at or below market interest rates to an eligible political subdivision for a flood project to serve an area outside of a metropolitan statistical area in order to ensure that the flood project is implemented;
  (3) to make a loan at or below market interest rates for planning and design costs, permitting costs, and other costs associated with state or federal regulatory activities with respect to a flood project;
  (4) to make a grant to an eligible political subdivision to provide matching funds to enable the eligible political subdivision to participate in a federal program for a flood project;
  (5) to make a grant to an eligible political subdivision for a flood project if the board determines that the eligible political subdivision does not have the ability to repay a loan;
  (6) to meet matching requirements for projects funded partially by federal money; and
  (7) to make a loan to an eligible political subdivision below market interest rates and under flexible repayment terms, including a line of credit or loan obligation with early repayment terms, to provide financing for the local share of a federally authorized ship channel improvement project.
(b) The board may also use the fund to make transfers to the research and planning fund created under Texas Water Code Section 15.402, which may be used to provide money for flood control planning, as described in Texas Water Code Chapter 15, Subchapter F and 31 Texas Administrative Code Chapter 355.
(c) The board reserves the right to limit the amount of funding available to an individual entity.

Source Note: The provisions of this §363.405 adopted to be effective April 5, 2020, 45 TexReg 2196