A political subdivision that gets a plumbing assistance loan must run a program to make low-interest plumbing improvement loans, may use loan proceeds for listed plumbing-related costs, must repay the assistance loan from loan repayments when available, and must use reasonable efforts to collect payments.
Sec. 15.736. POLITICAL SUBDIVISION PLUMBING IMPROVEMENT LOAN PROGRAM ADMINISTRATION; PLUMBING ASSISTANCE LOAN REPAYMENT. (a) A political subdivision that receives a plumbing assistance loan shall establish and administer a program to make plumbing improvement loans to individuals at an interest rate lower than the current market rate, including charging no interest. (b) A political subdivision may use the proceeds from a plumbing assistance loan to make a plumbing improvement loan to be used to pay: (1) costs to connect a residence to a water distribution system; (2) costs to provide yard service connections; (3) costs to provide a residence with indoor plumbing facilities and fixtures; (4) costs of connecting a residence to a sewer collection system or of providing a residence with a suitable on-site wastewater disposal system for the residence to meet applicable county or municipal code requirements; (5) costs of building improvements or correction of building deficiencies necessary to allow plumbing to be installed in a residence; (6) necessary connection fees and permit fees; or (7) necessary costs of design related to plumbing improvements. (c) The political subdivision shall repay its plumbing assistance loan from the money it receives as repayment of plumbing improvement loans it has made. To the extent the political subdivision is unable to collect the payments on its plumbing improvement loans made from the proceeds of a plumbing assistance loan, the political subdivision is not obligated to repay a plumbing assistance loan. (d) A political subdivision shall use all reasonable means to collect payments on plumbing improvement loans. The board may bring a mandamus action in a district court in Travis County or may use any other legal means to compel a political subdivision to take action to collect plumbing improvement loan payments. Added by Acts 1991, 72nd Leg., ch. 294, Sec. 6, eff. June 7, 1991.