California Department of Transportation
 

SHA Loan Program

Authorizes the CTC to loan SHA funds to public entities on a 'first-come, first-served' basis for STIP eligible projects. The loan program is to be administered by the CTC and is triggered whenever the SHA cash balance exceeds $400 million.

Eligible projects include STIP-eligible projects included in an adopted regional transportation plan. Total project costs must exceed $10 million, except in smaller counties. Maximum single loans cannot exceed 50% of a county's regional-choice STIP allocation, nor exceed $100 million. Total outstanding loans may not exceed $500 million at any time. The maximum loan term remains 4 years, with repayment to be made in cash from non-state sources. Projects funded under this program must be under construction not later than 6 months after the loan funds are transmitted or, upon notice, the loan must be repaid with interest. Defaulted loans are to be recovered from a county's next STIP allocation, plus a 5% penalty; defaulting counties are ineligible for RIP programming until loans are repaid in full. Interest on the loans is now set at the Pooled Money Investment Account rate. Implementing guidelines are to be proposed by the CTC no later than 120 days after the effective date of the bill and the loan program is to begin operation not later than 180 days after the bill's effective date.

This page last updated January 15, 2003