[Code of Federal Regulations]

[Title 33, Volume 3]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 33CFR241.6]



[Page 341-342]

 

                TITLE 33--NAVIGATION AND NAVIGABLE WATERS

 

 CHAPTER II--CORPS OF ENGINEERS, DEPARTMENT OF THE ARMY, DEPARTMENT OF 

                                 DEFENSE

 

PART 241_FLOOD CONTROL COST-SHARING REQUIREMENTS UNDER THE ABILITY TO 

PAY PROVISION--Table of Contents

 

Sec.  241.6  Deferred payments for certain qualifying projects.



    (a) Whenever a project's Eligibility Factor exceeds zero, the 

project sponsor will be permitted to defer a portion of its share of 

flood control costs. The maximum allowable amount deferred equals the 

total non-Federal share less (for structural projects) five percent of 

total project costs and less (for all projects) any amounts for LERRD 

paid for or acquired by the sponsor prior to the time the PCA is signed. 

If for example, the non-Federal share of a structural project = 35.0 

percent (after the ability to pay adjustment, if any) of which 10 

percent is LERRD already paid for by the local sponsor, the maximum 

allowable amount to be deferred = 20 percent of project flood control 

costs (35 less the 5 percent cash requirements, less the 10 percent 

LERRD already acquired). Deferred payments at the option of the sponsor 

will be allowed regardless of the outcome of the benefits test described 

in Sec.  241.5(a) whenever the Eligibility Factor exceeds zero.

    (b) When EF = 1, the project sponsor may defer as much as 

the maximum allowable amount as described in Sec.  241.6(a).



[[Page 342]]



    (c) When 0 < EF < 1, the sponsor may defer a fraction of the maximum 

allowable amount described in Sec.  241.6(a), where the fraction equals 

the Eligibility Factor expressed to three decimal places. Continuing the 

example described in Sec.  241.6(a), if EF = .712, total allowed 

deferral equals .712 x 20 percent = 14.2 percent of total project costs.

    (d) The deferred payment can be made in equal installments over any 

period of time selected by the non-Federal sponsor, provided that all 

repayments are made between the end of construction and thirty years 

thereafter. The amount repaid shall include interest during the 

repayment period as well as interest for the appropriate portion of the 

construction period for any amounts deferred prior to the end of 

construction. The rate of interest shall be determined in accordance 

with the provisions of section 106 of Pub. L. 99-662, 33 U.S.C. 2216.



[54 FR 40581, Oct. 2, 1989, as amended at 60 FR 5134, Jan. 26, 1995]