(a) The funds available for projects eligible for financial assistance from the Economically Distressed Areas Program Account under this subchapter shall be determined by the board.
(b) The board may provide financial assistance from the Economically Distressed Areas Program Account in the amount and manner provided in §363.508 of this title (relating to Calculation of Financial Assistance) for costs necessary to provide water or sewer services for the activities as defined in Texas Water Code §17.001(8), including:
  (1) preliminary planning, including contingencies as determined by the board, to determine the feasibility of a water supply project or wastewater treatment works;
  (2) engineering, architectural, legal, title, fiscal, or economic investigations or studies, surveys, designs, plans, working drawings, specifications, procedures, or other necessary actions;
  (3) the expense of any acquisition, condemnation or other legal proceedings associated with real property acquisitions;
  (4) construction including erecting, building, acquiring, altering, remodeling, improving, acquiring or extending a water supply project or water services, treatment works or sewer services or facilities;
  (5) asset management planning; and
  (6) the inspection or supervision of any of the items listed herein.
(c) A full application for construction funding only shall include all the requirements in §363.505 of this title (relating to Required Information for Full Applications) as well as a facility plan that includes all of the facility engineering data, studies, and analysis and any other relevant data or information as may be requested by the board or the executive administrator.
(d) The grant agreement may contain provisions for the board to retain a minimum of 5% of the progress payments otherwise due to the applicant until the funded deliverable, as defined in the grant agreement, is substantially complete and is authorized by the executive administrator.
(e) The board shall set the terms of the financial assistance provided under subsection (b) of this section, and such terms may be extended at the sole discretion of the board.

Source Note: The provisions of this §363.506 adopted to be effective May 1, 2022, 47 TexReg 2550