California Department of Transportation
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Airport Credits, Grants, & Loans

State Dollars for Your Airport
Gwyn Reese (916) 654-4718

ball Annual Credit Grant UPDATE

Annual Credit Grants will be provided to eligible public use, public-owned airports at the $10,000 per year rate as in past years. Annual Credit Grant Certifications (DOA-07) and Disbursement Requests (DOA-09) forms for Fiscal Year 2008-09 will be sent to airports in August 2008. Disbursement requests received will be processed in October 2008. These forms are also available on this website at the end of the page.

Airport Improvement Program (AIP) UPDATE

The AIP Match Rate for Fiscal Year 2008-09 is anticipated to stay at 2.5% whether or not the FAA changes their rate from 95% to 90%. Funding is available to match FAA grants.

Once you receive the FAA grant, you may apply to the State for matching funds.  Grants are processed in the order received, pending funding availability.  Depending upon the number of grant applications received, processing time can range between 2 weeks to several months.  Please allow adequate processing time before issuing a notice to proceed date to your contractor.

Your AIP Matching application package must include:

  • DOA 12 “State Matching Grant for FAA Airport Improvement Program – Application (on our website)
  • Local government approval for the state matching grant
  • FAA grant agreement with FAA and sponsor signatures
  • CEQA documentation
  • Sketch of project location and dimensions

Submit your application and documentation to:

California Department of Transportation
Division of Aeronautics – MS#40
P.O. Box 942874
Sacramento, CA  94274-0001

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PAYMENT REQUEST

To request an AIP Matching Grant payment, please provide, for each payment, a copy of the FAA Form 271 (form used to request payment from the FAA) and proof of subsequent payment (such as the bank statement showing the electronic deposit) and a cover letter. State the grant number, progress or final pay, and the amount requested. Highlighting the dollar amounts on the Form 271 and the bank statement expedites the payment process.

Scroll to the end of this page for a sample payment request.

FINANCIAL ASSISTANCE

State Grant Programs:

The Division administers three state aid programs for airports. The sole funding source for these grants is excise tax revenues on general aviation (GA) gasoline (18¢ per gallon) and for jet fuel (2¢ per gallon).

  • Airport Improvement Program (AIP) Matching funds assist General Aviation (GA) airports in meeting the local match for federal Airport Improvement Program (AIP) grants. The state grant is 2.5% of the AIP amount. Eligible projects must benefit GA and be included in the Capitol Improvement Program (CIP) element of the California Aviation System Plan.
  • The Annual Credit provides a $10,000 per year entitlement to eligible publicly-owned, public-use airports (@149) for expenditure at the sponsor’s discretion.
  • Acquisition and Development (A&D) grants are for eligible projects subject to programming and allocation by the CTC. An airport land use commission (ALUC) can receive funding to either prepare or update a comprehensive land use plan (CLUP).
  • A new methodology for selecting projects using a simplified priority list and fund allocations which will more equitably distribute grants, was approved by the CTC in February 2004.

Local Airport Loan Program

Local Airport Loan Account
The Local Airport Loan Account is a revolving fund that was initiated with seed money from the Aeronautics Account. As principal and interest payments are returned to the Loan Account, additional loans can be provided to airports.

Sponsor Eligibility
The airport must be owned by an eligible public agency (e.g., a city, county or airport district). The sponsor must:

  • Ensure that the airport is open to the public without restriction.
  • Have a valid State permit for the airport.
  • Adopt rules that give it sufficient control over the operation of the airport.
  • Have height restrictions around the airport which are adequate to ensure that operations can be conducted without any hazardous obstructions.
  • Certify eligibility with a form (DOA-0007) that is provided by the Department

Uses and Restrictions
Loans are available for revenue generating projects such as hangers and fueling facilities. Loans can be made for airport development projects also. Finally, loans can be made to assist the sponsor with the local match For an AIP Project.  “Land banking”, automobile access roads, automobile parking areas, and facilities to accommodate airlines, however, are not eligible for a State loan.

For a revenue-producing project, a separate account must be established to receive income from the project. Expenses for maintaining the project may be paid from this separate account, but revenues received must be held in trust in an amount equal to one year's repaying of the loan.

No limit on the size of a loan has been established in either law or regulation. The Department determines the amount for each individual loan in accordance with the feasibility of the project and the sponsor’s financial status. Economic feasibility is an especially strong factor in the approval of loans for revenue-generating projects such as hangars and fueling facilities. A checklist for demonstrating economic feasibility is on the 2nd page of the Revenue Generating Loan Application form (DOA-0020).

Funding Level
Funding depends upon the available balance in the Local Airport Loan Account.

Matching Requirement
No local match is required for a loan.

Funding Cycle
Loans may be requested from the Department at any time using the appropriate form (DOA-0019 for matching loans, DOA-0020 for revenue-generating projects, and DOA-0013 for airport development). Loan applications are reviewed by the Department. Then, the applications are presented at periodic public hearings that the Department conducts. A matching loan may be requested when the sponsor transmits its grant application to the FAA, but the loan will not be paid by the State until the AIP grant has been accepted by the sponsor.

Pay-back Requirements
A pay-back schedule is included in each Loan Agreement. Generally, the term of a loan will vary between 8 and 17 years depending upon the amount of the loan. Larger loans have a longer pay-back period. Loans may be repaid early without penalty. Simple interest is charged on the outstanding balance of the loan’s principal. The interest rate is based upon the State bond sale that occurs before the Department prepares the Loan Agreement.

Interest Rate as of March 2008 is 5.2190 percent.

Loans are subject to State audit. Records that substantiate the expenditure of loan monies should be retained until three years after the retirement of the loan. Funds may have to be repaid by the sponsor if an audit finds that tate law or generally accepted accounting principles have been violated.

Print the Word document below for additional information:

 

  Program Information & Forms  
Summary of Grants & Loans
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Eligible Projects for Annual Credit Grant Funding
DOA-0007 (CAAP Certification)
DOA-0009 (CAAP Annual Credits)
DOA-0010 (Aquisition & Development Application)

Aquisition & Development - Sample Resolution

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DOA-0012 (State AIP Matching Application)

AIP - Sample Resolution

Sample AIP - Payment Request

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DOA-0013 (Airport Development Loan Application)
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DOA-0019 Matching Funds Loan Application)
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DOA-0020 (Revenue Generating Loan Application and
                   Checklist for Economic Feasibility)

Revenue Generating Loan - Sample Resolution

Fiscal Regulations
State Dollars for Your Airport

arrow Organization Chart
arrow Functional Organization Chart

For more information about grants and loans, call, write or e-mail:
California Department of Transportation
Division of Aeronautics MS #40
PO Box 942874
Sacramento CA 94274-0001
phone: 916/654-4718
fax: 916/653-9531
e-mail: Gwyn. Reese@dot.ca.gov