Lead Service Line Replacement (LSLR) Loans
A new administrative rule, 35 Illinois Administrative Code Part 663, was adopted which will govern the procedures for issuing loans for Lead Service Line Replacement activities from the Public Water Supply Loan Program (PWSLP).
Lead Service Line Replacement (LSLR) projects apply for funding just like they would for traditional drinking water projects through the PWSLP, with the exception of a NEW LSLR Funding Nomination Form.
A new LSLR Funding Nomination Form must be submitted annually prior to March 31. Projects which have achieved Planning Approval by March 31 will be scored and ranked for priority in accordance with 35 Illinois Administrative Code Part 663.
All LSLR loans will have an interest rate of 0% and a loan term of 30 years. Projects in an area classified as a disadvantaged community may choose to have a loan term of up to 40 years. (See Part 663 for definition of a disadvantaged community)
Principal Forgiveness is a possibility for projects which score the highest and are considered located in an area classified as a disadvantaged community.
Projects will be scored and ranked based upon demographic data for the census tract(s) where the lead service line replacements will occur.
Instructions for identifying census tract(s) where LSLR will occur can be found within the LSLR Funding Nomination Form.
LSLR PWSLP funding capacity, reservation of funds and funding caps will be available annually in the PWSLP Intended Use Plan posted on the SRF Loan Postings page in July.