FAQs
Expand each topic heading to view questions and answers pertaining to that topic.
Applying for Funds
PENNVEST offers the Homeowner Sewage Program. This program is being administered in conjunction with the Pennsylvania Housing Finance Agency (PHFA) and participating local lenders. This program offers low-interest loan financing for individual homeowners to repair or replace their malfunctioning on-lot system, first time connections to public sewer systems, and sewer lateral repairs/replacements. This must be the homeowner’s primary residence. As part of the application process, the local sewage enforcement officer and municipal officials must sign off on the improvements. For on-lot system repairs the municipal officials must certify that no public sewers will be extended near the home within the next five years.
PENNVEST has multiple sources of state and federal funds. These funds are all managed online under the PENNVEST Portal. Completing an online application makes your project eligible for consideration of Growing Greener grant funding. These grant resources are worked into the application review process in order to provide supplemental grant funding to needy projects based upon the community’s ability to repay a loan and resulting residential user fees.
PENNVEST is prohibited from funding costs associated with the Act 537 Plan. Engineering or design costs not related to Act 537 planning are eligible for reimbursement and can be incorporated into the PENNVEST project.
The typical repayment is based upon a standard amortization of repayment of principal and interest over a 20-year period. In limited cases, the term may be extended beyond 20 years, not more than 30 years, if needed to keep the user fees in line with other similar systems. The construction period is added to this term in order to allow for an interest-only period; principal and interest repayments begin after final inspection. In those situations where the life of the project is less than 20 years, PENNVEST may shorten the term of the loan accordingly.
The maximum interest rates are based upon a formula outlined in the PENNVEST legislation (Act 16 – 1988). They are calculated on a sliding scale, depending upon the particular county’s unemployment rate, the statewide unemployment rate, and the interest rate being charged on the most current state bond issue. In no case will the maximum interest rate charged to project sponsors exceed 75% of the cost of funds to the Commonwealth. If the resulting residential user fee is determined to be higher than similar systems' user rates, we can reduce the interest rate to as low as 1%, and perhaps work some grant funding in the project in order to keep the user fees in line with similar systems.
No separate application is needed to be considered for a grant as part of the potential funding package. Each application is reviewed and a financial capability analysis is performed based upon the system’s financial statements and the socio-economic factors of the users. If grant funding is needed to help keep the resulting residential user fees in line with similar systems' user rates, the staff will consider including some grant funding as part of the funding package.
The first step in the PENNVEST application process is to participate in a Planning Consultation meeting. This meeting includes the project sponsor and their engineer, PENNVEST and the Department of Environmental Protection (DEP) regional staff, as well as local planning representatives. This meeting allows an opportunity for the project sponsor to describe their situation and the potential project. DEP staff will go over the technical aspects of the project, and describe the ranking process and any requirements, permits, and time frames relating to their review. The PENNVEST Project Specialist will go over the financial application submittal and review process and provide an estimate of the potential funding package, based upon certain information that will be provided by the project sponsor.
Eligible applicants can be either be private or public owner and/or operator of a drinking water, wastewater, or stormwater system with a project to construct a new system or improvements necessary to correct public health, environmental, compliance, or safety deficiencies.
Post-Settlement Requirements
All PENNVEST projects must be on the Automatic Clearing House system (ACH). Any banking change will affect the account that has been used to disburse and collect funds that are owed to PENNVEST. If you require a change to your ACH Banking information, please use the ACH Change Form.
The required audit to be submitted to PENNVEST on an annual basis is indicated in the Borrowers Loan Agreement with PENNVEST. Generally, the Financial Statement/Audit is the report prepared by your independent public accounting firm prepared in accordance with generally accepted governmental accounting principles and practices. It must be in a satisfactory form and certified as true and correct by the chief financial officer of the Borrower. The form of audit that you submitted with your PENNVEST project application will be required through maturity of the loan.
If you are a municipality, an audited copy of the report to the Department of Economic and Community Development (DCED) may be submitted in place of an audited financial statement.
If you are an authority whose loan has been guaranteed by one or more municipalities, an audited financial statement of the authority AND a DCED report for the municipality, or municipalities, is required.
If you are a private entity, a tax return is required.
The submittal of the Borrower’s annual Financial Statement is a requirement of the PENNVEST Loan Agreement. PENNVEST will provide the financial statements to their outside financial consultants to review. This statement is a way for PENNVEST to monitor the Borrower’s financial health. PENNVEST uses your Financial Statement as a tool to monitor your financial health and can make determinations and/or recommendations before your entity experiences serious problems. These statements reveal information about the borrower that otherwise may not be disclosed.
Generally, your Financial Statement is due six (6) months after the end of the borrowing entity’s fiscal year. For example, if your fiscal year end is December 31, your Financial Statement is due on or before May 31 of the following year. If your fiscal year end is June 30, your statement is due by November 30 of the same year. You must submit your Financial Statements annually until the loan is paid in full.
If your PENNVEST Loan number begins with a seven (“7”) or eight (“8”), it’s recommended that your auditor request in their audit confirmation how much in federal funding was disbursed to your project during the year of the audit.
Borrowers are subject to the Single Audit if they expend $750,000 in federal funding, per fiscal year. For more information regarding the Single Audit , view the link below.
Funds Disburesement and Loan Payments
If a payment request was submitted immediately after closing, the Automated Clearing House (ACH) system may not have been put in place at your bank. Every ACH account must be pre-tested with a $0 dollar amount before any real funds are electronically transferred. This process usually takes a month from the time PENNVEST receives the ACH information and the account is set up.
Your loan or grant payment or disbursement will be electronically sent to your bank via the Automated Clearing House (ACH) program. All projects are required to participate in the ACH program.
Loan and grant funds are disbursed in proportion with each payment request.
PENNVEST typically processes payments, with money out the door within 21 working days, provided all the information sent with the payment request is correct and included. The first payment request may take longer if there are outstanding Items from loan closing that prohibit the disbursement of funds.
Interest billings are based on the amount of money that was disbursed to the project. You will receive an interest invoice from the PENNVEST Comptroller’s Office each time you receive a disbursement of loan funds. For example, if funds are disbursed to you monthly, you will receive a new invoice each month. If you do not receive a disbursement in a particular month there will be no new invoice. In this case, check the prior month's invoice. You may make a copy of the previous month’s interest invoice and submit it for reimbursement because interest payments during construction are, or may be, capitalized into the loan. You will find a notification of the amount due each month following the disbursement month on each invoice until there is another disbursement and a new invoice. Once your loan is Interim of Final Amortized you will make the same payment each month.
As some disbursements are sent electronically, you will need to check with your individual bank to know when the funds have been deposited. Presently, a letter is sent to the principle borrower indicating that a payment has been processed. You can begin checking about two (2) to three (3) weeks after submission of a payment request; however, you should keep in mind that it typically takes 21 working days to receive payment after PENNVEST receives a payment request.
As part of your loan closing documents, an amortization date is established. If you have not drawn down all your loan funds and proceeded through all the closeout steps by this date, your loan will be Interim Amortized. The monthly payment amount includes principal and interest and is calculated on the full loan amount for the amortization term. However, when your payment is posted to your account, the interest is calculated on the outstanding principal balance to date and not the full amount of the loan. You can continue to submit payment requests after Interim Amortization; however, you will not be allowed to capitalize any additional interest following Interim Amortization. Once you have drawn down all your loan funds, you must notify PENNVEST that you have submitted your final payment request. When you have completed all the closeout steps, the loan will be Final Amortized based on the actual amount drawn down.
Once the project is in a Final Amortized stage, you will receive a new amortization schedule that includes principal and interest payments for the repayment term. Payments will be applied in accordance with the final amortization schedule until the loan in paid-in-full.
The closeout steps necessary to Final Amortize your loan are:
- Construction is 100% complete
- A Final payment request (so marked) has been submitted to PENNVEST
- All Change Orders have been submitted and approved or disapproved
- The Department of Environmental Protection has completed and approved a final inspection of the project
- A Continuing Education Plan is in place and current
- All Financial Statements and Workouts have been submitted
Upon completion of these steps the Holdback will be released (disbursed), any unused funds released, a final monthly payment amount calculated, and a Final Amortization schedule issued. Your loan is now Final Amortized.
When you were issued a LONP, a requirement was to submit a status report monthly. PENNVEST needs to monitor the progress of your project both from a construction and a financial point of view. Once certain benchmarks have been reached, PENNVEST must initiate certain actions. These reports ensure that when money is needed by any project, we will be able to provide it.
You need to advise PENNVEST that construction is 100% complete and that you have submitted your Final payment request. Be sure all Change Orders have been submitted for approval/disapproval. All Financial Statements should have been submitted and your Continuing Education Plan submitted and current.
It is necessary for PENNVEST to close out all loans. PENNVEST was probably never notified the project was 100% complete and that there were no more payment requests to be submitted. You will need to contact your entity's attorney or engineer if there is no other employee who is aware of the PENNVEST funded project. You can always contact us at PENNVEST and we will work with you.
There are several reasons that a payment request can be delayed in being processed. Payment requests cannot be processed until all loan closing documents have been submitted and approved. When the PENNVEST legal staff notifies the finance staff that all documents have been received, the payment is processed. Additional time may be necessary to process the payment if there are errors or omissions in the payment request such as a correct authorized signature. In most cases, you will be notified of what you need to do for the payment request to proceed.
The PENNVEST Comptroller’s Office is responsible for conducting two type of audits: Construction or Financial. Each year, a random selection of PENNVEST borrowers is designated for audit. However, PENNVEST may request that an audit be conducted.
These audits may occur at any time during construction or soon after.
Managing Your Personal Account Information
No. You are the only one who can change your personal access account information, including password, contact information, and email address.
PENNVEST is one of the many state agencies and authorities that utilize the PA Keystone Login account management system for its online services. Your first and last name, email address, and phone number come from your PA Keystone Login registration. To update this information, you need to log into the PA Keystone Login portal.
Using your PA Keystone Login Username and Password, log into the PA Keystone Login Portal. At the “Welcome” page select “Edit Account”. You will be prompted to answer your 3 security questions. Once the “Update User Profile” page loads, you can edit your personal information.
Note: CWOPA users cannot update their account information here.
Using the PENNVEST Website
Submit a question via the Contact Us form below.
You should receive an adequate response within 2-3 business days. Most responses will be received immediately or within the same day.