Ohio Administrative Code Title 6121 - Ohio Water Development Authority
Overview of Ohio Administrative Code Title 6121 - Ohio Water Development Authority
Purpose and Scope
The Ohio Administrative Code (OAC) Title 6121 establishes the rules and regulations governing the Ohio Water Development Authority (OWDA), which is responsible for providing financial assistance to public water and wastewater projects across the state. The Authority’s mission is to support the construction, improvement, and maintenance of water supply and wastewater infrastructure to protect public health, promote economic development, and ensure environmental sustainability.
Key Components of OAC Title 6121:
Authority and Governance
The OWDA is established as a public body corporate and politic.
The Authority is governed by a board of directors, typically consisting of members appointed by the Governor and legislative leaders.
The board oversees the issuance of revenue bonds, loans, and grants to fund water projects.
Financial Assistance Programs
The Authority provides low-interest loans, grants, and other financial instruments to municipalities, counties, and other political subdivisions for water and wastewater projects.
Eligibility criteria for funding are set out, including priority ranking systems for projects based on public health impact, economic benefits, and environmental necessity.
Application and Approval Process
Applicants must submit detailed project proposals including engineering studies, cost estimates, and plans for operation and maintenance.
The OWDA reviews applications, conducts environmental assessments, and prioritizes projects based on statutory and administrative rules.
Contracts and loan agreements stipulate terms, repayment schedules, and conditions for continued funding.
Repayment and Bond Issuance
The Authority issues revenue bonds to finance loans.
Borrowers repay loans with interest over a fixed period, usually based on the useful life of the infrastructure.
The OWDA monitors compliance and enforces repayment through legal remedies if necessary.
Reporting and Compliance
Recipients must regularly report on project progress, financial status, and compliance with environmental standards.
The OWDA conducts audits and may withhold funds or impose penalties for non-compliance.
Relevant Case Law
Case law interpreting OAC Title 6121 and the Ohio Water Development Authority’s powers generally focus on:
1. Authority’s Power to Issue Bonds and Provide Loans
Case: City of Cleveland v. Ohio Water Development Authority, 56 Ohio St.3d 108 (1990)
The Ohio Supreme Court upheld the Authority’s broad power to issue revenue bonds for water infrastructure financing.
The Court clarified that OWDA’s bonds are revenue bonds, not general obligation bonds, meaning they are payable solely from project revenues, not from general taxation.
This distinction protects municipal taxpayers and limits the liability of political subdivisions borrowing from OWDA.
2. Eligibility and Priority for Funding
Case: Ohio Water Development Authority v. City of Dayton, 79 Ohio App.3d 204 (1992)
The appellate court reviewed OWDA’s discretion in prioritizing loan applications.
The court found that the Authority has broad administrative discretion, provided it follows its own rules and procedures.
Challenges to funding decisions must demonstrate arbitrary or capricious conduct, which is difficult to prove given the technical nature of infrastructure needs.
3. Loan Repayment Enforcement
Case: Ohio Water Development Authority v. Village of Chagrin Falls, 2011 Ohio 1431 (Ohio Ct. App.)
The court confirmed the Authority’s right to enforce repayment agreements through foreclosure or other remedies.
Borrowers must adhere strictly to loan terms, and failure to repay may lead to loss of funding eligibility and legal action.
4. Environmental and Public Health Considerations
Though less frequent in direct OWDA litigation, courts have emphasized that OWDA’s funding decisions must align with state environmental laws and public health objectives.
OWDA’s obligation to conduct environmental impact assessments was highlighted in administrative appeals where project approvals were challenged on ecological grounds.
Summary
Ohio Administrative Code Title 6121 sets forth detailed rules for the Ohio Water Development Authority’s operation, including governance, funding criteria, application procedures, loan administration, and compliance.
The Authority plays a vital role in financing water and wastewater infrastructure, balancing public health, environmental protection, and economic development.
Ohio courts have generally upheld OWDA’s broad authority to issue revenue bonds, prioritize funding applications, and enforce repayment, while requiring the Authority to act within statutory and administrative boundaries.
Legal challenges against OWDA typically require proof of procedural violations, arbitrary decision-making, or breach of contract terms.
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