Section 293.10  Definitions

 

The following definitions are used in this Part:

 

"Act" means the Fire Sprinkler Dormitory Act [110 ILCS 47].

 

"Applicant" means a post-secondary educational institution applying to OSFM and the Authority for a low-interest loan under the program.

 

"Authority" means the Illinois Finance Authority created by the Illinois Finance Authority Act [20 ILCS 3501] or its successor agency.

 

"Authority's Administrative Rules" means the Authority's administrative rules for the Fire Sprinkler Dormitory Revolving Loan Fund (74 Ill. Adm. Code 1100).

 

"Committee" means the Loan Application Review Committee established in Section 293.40 of this Part.

 

"Fire Sprinkler System" means a fire sprinkler system located in an existing or newly constructed dormitory or residence hall of a post-secondary educational institution that has received the permits, certifications and inspections required by federal, State and local law, rule, guideline or ordinance.

 

"Fund" means the Fire Sprinkler Dormitory Revolving Loan Fund.

 

"Low-Interest Loan" means a loan with a rate of interest to be charged under the program as determined by the Board of the Authority at the time of the loan approval, at a rate lower than current market rates.

 

"OSFM" means the Office of the Illinois State Fire Marshal.

 

"Post-Secondary Educational Institution" or "Institution" means an Illinois public or private college or university offering degrees and instruction above the high school level.  This term does not include:

 

any public or private college or university that does not provide on-campus housing for its students in dormitories or equivalent facilities that are owned, operated or maintained by the public or private college or university;

 

any public or private junior college or community college; or

 

any institution offering degrees and instruction that uses correspondence as its primary mode of student instruction.

 

"Program" means the Illinois Fire Sprinkler Dormitory Revolving Loan Program.

 

Section 293.20  Purpose and Qualifications

 

a)         OSFM and the Authority will jointly administer a program to provide low-interest loans to post-secondary educational institutions for the planning, purchasing, installing, upgrading, altering, modifying, fixing or repairing of a fire sprinkler system or fire sprinkler systems.

 

b)         OSFM will determine loan awards based on system needs, financial need and how recently the applicant has received a previous loan under this program, supplemented by recommendations from the Authority based on creditworthiness.  A loan for the purchase of fire sprinkler systems shall not exceed $1,000,000 in any single fiscal year to any post-secondary educational institution.

 

Section 293.30  Eligible Expenditures

 

Subject to the availability of funds, low-interest loans to post-secondary educational institutions will be available for the purpose of paying all or a portion of the costs associated with planning, purchasing, installing, upgrading, altering, modifying, fixing or repairing a fire sprinkler system.

 

Section 293.40  Loan Application Review Committee Criteria

 

The State Fire Marshal shall appoint a Loan Application Review Committee to determine, based on system needs, financial need, and how recently the applicant has received a previous loan under this program, which eligible post-secondary educational institution will be recommended to the Authority to receive a low-interest loan under this program.

 

a)         The Committee shall consist of the following seven members:

 

1)         The State Fire Marshal, as chair;

 

2)         One Fire Chief (from a community having a post-secondary educational institution within its protection area);

 

3)         One representative from the Associated Fire Fighters of Illinois;

 

4)         One representative from the Illinois Finance Authority, as vice chair;

 

5)         One member from the Illinois Fire Inspectors Association;

 

6)         One member from the Illinois Association of Fire Protection Districts; and

 

7)         One member representing the post-secondary educational institutions.

 

b)         No Committee member who has a pending application for a loan under this program shall participate in the review process in which that application is pending.  Any Committee member who has such a conflict shall notify the Fire Marshal of the conflict, so that the Fire Marshal can replace that Committee member for the relevant program application cycle as soon as possible.

 

c)         Members shall serve without salary, but may receive reimbursement for reasonable expenses from OSFM from appropriations for those purposes.

 

d)         All members shall have one vote, except for the State Fire Marshal, who shall only vote to break a tie.

 

e)         Members shall serve a term of four years. 

 

f)         Upon the expiration of a member's term of office, the State Fire Marshal shall reappoint that member, or appoint a successor who is a representative of the same interests with which his or her predecessor was identified.

 

g)         The State Fire Marshal may, at any time, remove any of the respective appointees for inefficiency or neglect of duty in office.  In such instances, the State Fire Marshal shall fill the vacancy for the remainder of the unexpired term by appointing a member who is a representative of the same interests with which his or her predecessor was identified.  Upon the death or incapacity of a member, the State Fire Marshal shall fill the vacancy for the remainder of the unexpired term by appointing a member who is a representative of the same interests with which his or her predecessor was identified.

 

h)         Appointments shall be made to geographically represent the State.

 

i)          As determined by the State Fire Marshal, the Committee shall meet and organize within ten days after the appointment of its members and, at that meeting, shall select a recording secretary.

 

j)          Meetings of the Committee shall occur as deemed necessary by the State Fire Marshal, at a date, time and place to be fixed by the Committee (or by the State Fire Marshal, should he or she call for the meeting) and at such additional times as the Committee deems necessary for the consideration of loan applications, reviews or appeals and the transaction of any other business as properly may come before it.

 

k)         A quorum shall be five members in attendance.  Electronic attendance, as permitted by the Open Meetings Act [5 ILCS 120], may be permitted once a quorum is physically present either at the location set for the meeting or via video conference.

 

Section 293.50  Application Procedure and Content

 

a)         Subject to the availability of funds, OSFM will post application forms for low-interest loans under this program on the OSFM website.  Each application form provided shall identify the information applicants must include in their loan requests and shall require that the loan application be returned to OSFM no later than the late date specified in the application form.  Applications shall be returned to the Office of the Illinois State Fire Marshal, Attention:  Fire Sprinkler Dormitory Revolving Loan Program, 1035 Stevenson Drive, Springfield , Illinois 62703-4259.  Applications will be reviewed as provided in this Part and subject to the funding criteria and credit review process outlined in 74 Ill. Adm. Code 1100.1017.

 

b)         Each loan application shall include the following components:

 

1)         A completed application form supplied by OSFM and signed by the duly authorized administrators of the post-secondary educational institution.

 

2)         Information on the dormitory or dormitories or residence hall or halls for which the loan is being sought and whether the funding is for a new fire sprinkler system or for repairs, alterations, modification or upgrades to an existing fire sprinkler system. The estimated costs associated with planning, purchasing, installing, upgrading, altering, modifying, fixing or repairing a fire sprinkler system must also be included.

 

3)         Contact information for personnel able to provide additional information if necessary.

 

4)         Policies and procedures related to the expenditures (if any), as established by the institution.

 

5)         Budget information, including copies of the three most recent audits (and/or income and expense reports) for the institution, as well as information on the source of loan repayment funds.  If repayment plans are based on charitable contributions (i.e., alumni fundraisers), the applicant must provide a history of amounts raised in prior years.

 

6)         Other certifications and assurances OSFM and/or the Authority may require.  Such requirements will be explicitly requested in the loan application.

 

7)         All other information as requested on the loan application form and in the program guidance section of the application.

 

c)         Applications received by OSFM shall be logged in as received and assigned an application number.

 

d)         Applications shall be assessed by blind review, meaning the Committee shall not see the name, address or any specific information that identifies the institution.  The Committee shall review and rank the applications based on information provided in the loan application and based upon system needs, financial need and how recently the applicant has received a previous loan under this program.

 

e)         After the Committee's review and ranking of applications subject to the criteria in Section 293.60, loan dollar amounts will be assigned to the loan applications up to the maximum amount of funding available either for loans under this program or to the individual applicant in the then-current fiscal year.  Approval of an application by the Committee shall not constitute any form of commitment or guarantee that the proposed loan will be made.

 

f)         Those loan applications recommended for approval shall be forwarded to the Authority for review under its guidelines of funding criteria and creditworthiness.  The Authority, after completion of its review, will promptly notify the Committee as to which loan applications it will approve.

 

Section 293.60  Loan Application Review Committee Criteria

 

a)         Institutions receiving a loan in previous loan application cycles will not be considered until all applicants who have never received a loan but are requesting a loan have been considered.

 

b)         The institutions will be order-ranked based on:

 

1)         system needs;

 

2)         financial need; and

 

3)         how recently the applicant has received a previous loan under this program.

 

c)         The Committee will review the ranked applications and assign a point value (0-5, with 5 being the greatest) based on need.  Criteria for evaluating need include:

 

1)         Information on the dormitory or residence hall for which the loan is being sought.

 

2)         Whether the funding is for a new fire sprinkler system or for repairs, alterations, modification or upgrades to an existing fire sprinkler system.

 

d)         If the institution does not demonstrate that there is sufficient annual revenue to permit the applicant to repay the loan under the terms required, either the Committee or Authority may deny the application for lack of ability to pay.

 

Section 293.70  Appeal Process

 

a)         Institutions whose loans were denied by the Committee or the Authority shall be notified via First Class Mail by OSFM.

 

b)         Notice of denial shall be deemed received on the date of mailing.  The institution has 30 calendar days from that date to forward to the Committee a Request for Reconsideration.

 

c)         The Request for Reconsideration shall be sent to the Office of the Illinois State Fire Marshal, Attention: Fire Sprinkler Dormitory Revolving Loan Program, 1035 Stevenson Drive, Springfield, Illinois 62703-4259.

 

d)         The Request for Reconsideration may be accompanied by supporting documents and information not previously considered by the Committee or Authority.  The Committee or, if appropriate, the Authority shall review the Request for Reconsideration.  A denial of the Request for Reconsideration shall be final.  While a Request for Reconsideration is pending, the application that is the subject of the Request for Reconsideration shall be deemed complete for the purposes of this Part.

 

Section 293.80  Repayment Procedures

 

a)         The maturity date of the loans shall be determined by OSFM and the Authority, but shall not exceed 20 years.

 

b)         The rate of interest to be charged under the program will be determined by the Authority at the time of the loan approval, at a rate lower than current market rates.

 

c)         Payments of principal and interest on the loan shall be made according to the schedule determined by OSFM and the Authority.

 

1)         The Authority will provide invoices to loan recipients for these payments.  Checks shall be made payable to the "Illinois Finance Authority – Fire Sprinkler Dormitory Revolving Loan Fund" and mailed to the Illinois Finance Authority, Fire Sprinkler Dormitory Loan Program, Two Prudential Plaza, 180 North Stetson, Suite 2555, Chicago IL 60601.

 

2)         Payments not received within 15 calendar days after the due date shall be assessed a penalty of five percent of the payment due; however, the late payment penalty will be waived when the postmark date on the envelope used to submit the payment is five days or more before the end of the 15-day grace period.

 

d)         A post-secondary educational institution may prepay the balance due on the loan in its entirety, or a portion of the balance, on any scheduled payment date, provided that the post-secondary educational institution first contacts the Authority to determine the total amount of the principal and interest due at that time.

 

Section 293.90  Terms and Conditions of Loan Agreement

 

An approved loan application with OSFM and the Authority is subject to the following terms:

 

a)         Loan proceeds under this program shall be used exclusively for the purposes listed in Section 293.30 and shall be expended in accordance with the approved application and the applicant's policies and procedures related to the expenditures.

 

b)         Orders for payment will be submitted to the Office of the Comptroller by the Authority.

 

c)         Loan proceeds shall be spent no later than six months following the receipt of the loan.

 

d)         Use of loan proceeds shall be accounted for in accordance with standard accounting practices.  Loan recipients shall submit to OSFM a report detailing and accounting for how the loan proceeds were spent.  This expenditure report, to be submitted on a form supplied by OSFM, shall attach invoices and other documentation necessary to prove payment and shall be due no later than nine months following receipt of the loan.

 

e)         In the event that the loan proceeds are not expended in the manner approved, the recipient, upon written notification from the Authority, shall be required to submit, by the next payment due date, payment of the outstanding principal and interest of the loan.

 

f)         Loan proceeds shall be included in the institution's budget.

 

g)         In the event of default that is not cured within 90 calendar days, the Authority shall notify the Office of the Comptroller to deduct the amount owed from any payments from other State agencies, and the institution shall be ineligible for additional loans until good standing has been restored.  In addition, OSFM and/or the Authority may avail itself of all remedies, rights and provisions of law applicable in the circumstances, and the failure to exercise or exert any rights or remedies provided by law may not be raised as defense by the institution in default.

 

h)         The institution agrees to pay the Authority a processing fee of up to $5,000, upon approval of the loan, separate from the loan proceeds, to defray the costs of the loan to the Authority.