April 29, 2019

 

The amount withheld until final documentation is received from the borrower on State Revolving Fund (SRF) construction loans will change in the next state fiscal year. Currently all projects, regardless of the loan amount, are subject to a $5,000 withholding per loan. Beginning in the SFY 2020, all loans executed on or after July 1, 2019, will fall under the new withholding structure:

 

5% of the total construction cost per contractor will be withheld per project* for a total of:

 $10,000 minimum withholding per project

$50,000 maximum withholding per project

 *Per project refers to the combined total of all loans, revenue or general obligation loans, taken for a single project. Phased projects that execute separate loans for each subsequent phase will be subject to the withholding structure above for each phase of the project.

 

The funds will be held until the SRF required closeout documents are received by the Iowa Finance Authority, less $5,000**. In addition to the final disbursement requisition, the following closeout documentation must be provided to the Iowa Finance Authority to finalize the SRF loan:

 1. Three sets of any signed & certified change orders not previously approved by DNR must be submitted to DNR for review and approval

2. Each contractor’s signed Final Pay Request showing no retainage

3. Written Notice of Works in Operation and Owner Acceptance & Certification of Project Completion Form

4. Final Disadvantaged Business Enterprise (DBE) Report

5. Final Davis-Bacon Compliance Report

6. Final Project Close Out: American Iron and Steel Self Certification

 **The final $5,000 will be released once DNR notifies IFA that the final inspection approval has been issued.

 

Questions about withholding can be addressed to SRF Finance Officers at 1-800-432-7230.