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3 <br /> and provided a total funding pool of $500, 000. The <br /> temporary rules specified that the funding should be <br /> divided equally among the total number of lots of all <br /> applicants. The rules also limited funding to any project <br /> to no more than fifty percent of its total project cost and <br /> no more than $1500 per lot. <br /> There are a maximum of 420 lots in ten subdivisions <br /> (assuming only former Northstate Utility systems will be <br /> applying) which could be eligible for grant funding under <br /> the temporary rules. If the $500, 000 were evenly divided <br /> among all of these lots, each lot would be funded at <br /> approximately $1200 and Piney Mountain' s total share would <br /> be approximately $71,000. However, the eligible <br /> subdivision in Mecklenburg County is not expected to apply <br /> for funds. In addition, all of the lots in the Wake County <br /> subdivisions may not be eligible for funding as unoccupied <br /> lots were not included within the boundaries of the newly <br /> created sewer districts. Unless Wake and Mecklenburg <br /> Counties are able to respond quickly to the new temporary <br /> rules, it appears that Piney Mountain may receive the full <br /> $1500 per lot for a total funding of approximately $89, 000 . <br /> There is currently no indication as to when these grant <br /> funds will be made available. The time frame for the <br /> temporary application review period, which extends through <br /> 31 December 1994 , indicates that funds may not be available <br /> until after the first of the year. As the remaining life- <br /> span of the existing Piney Mountain treatment system is <br /> questionable, the home owners are hoping to have the pump <br /> station project under construction before then. If <br /> construction is begun prior to the award of the grants, <br /> the Piney Mountain project can retain its grant eligibility <br /> by meeting all eligibility requirements. <br /> The Piney Mountain home owners have been seeking an <br /> extension of the County' s commitment to meet grant <br /> requirements involving system ownership and involvement in <br /> the construction process. At its August 23rd meeting, the <br /> BOCC indicated its willingness to extend the County' s <br /> commitment to seek grant funding under one condition: the <br /> County must be able to identify and minimize any potential <br /> liability accruing from its role in the ownership and <br /> construction of the new Piney Mountain system. County <br /> staff have determined that the County' s potential liability <br /> lies in two areas: a) financial responsibility for costs <br /> which grant funding will not fully repay; and <br /> b) responsibility for dealing with failures of the existing <br /> nitrification fields and individual step systems. To <br /> address these issues, the County Attorney has revised the <br /> existing Piney Mountain agreements. <br /> In the original agreements, addressing the problems of the <br /> individual STEP systems was considered to be an integral <br /> part of the overall project. The home owners were required <br /> to deposit with the County one hundred percent of the costs <br /> for the entire project, including the step systems, prior <br />