Amendments to Chapter 62-503, F.A.C., are proposed to clarify administrative procedures, delete unnecessary or redundant language, better define allowable and unallowable costs, restructure the priority system, and to improve the methodology for calculating the financing rate. Changes to the project priority system are being proposed so that projects addressing the Department’s core mission will receive the highest priority. These revisions would align the program’s priority system with the priorities of other Department programs. Changes in the financing rate formula will generally increase the base financing rate slightly, especially at current market rates, however the financing rate reductions proposed for implemented asset management plans, innovative/alternative projects, and new federal requirements for construction projects will frequently result in a net decrease in the financing rate for the average sponsor. The proposed changes will, however, result in an increase in financing rates during times when the bond market rates are somewhat higher that the current rate. This change was requested by the Division of Bond Finance to protect the AAA bond rating the program currently receives. The degree to which a sponsor is financially disadvantaged will remain the primary factor in determining the amount of the subsidy. The allowance for planning and design activities is being deleted and replaced with planning and design loans which will be reimbursed based on invoiced costs. Also, the requirements for an acceptable asset management plan and qualifications for innovative/alternative projects are being incorporated to define what is expected to qualify for the financing rate incentives.