Funds available under this program are intended to be used as a last resort measure to assist regional and local governmental agencies in solving water supply system inadequacies, when it can be demonstrated that the applicant has insufficient or limited financial capability to proceed with necessary construction projects. Financial assistance is limited to State and local governmental entities. Eligible project costs are determined by the Department using principles set forth in Regulation .05 of this chapter. The Department shall use a project priority system in determining which projects will receive financial assistance. Financial assistance may only be provided up to a maximum of 87-1/2 percent of the eligible costs of the project. Project applications shall consist of a pre-application and final application, including documentation of need and such other information as may be required by the Department. A water facility construction permit, as required by the Environment Article, §9-204, Annotated Code of Maryland, shall be required before the Board of Public Works' consideration of financial assistance for construction of the project. The proposed project is subject to State Clearinghouse review procedures. The applicant shall follow all local bidding requirements. When local bidding requirements do not exist, bidding procedures satisfactory to the Board of Public Works shall be followed. A governmental entity receiving financial assistance under this chapter may not award a contract on a “cost-plus” basis. Any project for which State financial assistance is granted shall comply with all applicable State Law. The documents listed below are incorporated by reference. Each is available for public inspection at the appropriate office in each county, and in Baltimore City. The documents are: Allegany County Comprehensive Water and Sewerage Plan; Anne Arundel County Comprehensive Water and Sewerage Plan; Baltimore County Comprehensive Water and Sewerage Plan; Calvert County Comprehensive Water and Sewerage Plan; Caroline County Comprehensive Water and Sewerage Plan; Carroll County Comprehensive Water and Sewerage Plan; Cecil County Comprehensive Water and Sewerage Plan; Charles County Comprehensive Water and Sewerage Plan; Dorchester County Comprehensive Water and Sewerage Plan; Frederick County Comprehensive Water and Sewerage Plan; Garrett County Comprehensive Water and Sewerage Plan; Harford County Comprehensive Water and Sewerage Plan; Howard County Comprehensive Water and Sewerage Plan; Kent County Comprehensive Water and Sewerage Plan; Montgomery County Comprehensive Water and Sewerage Plan; Prince George's County Comprehensive Water and Sewerage Plan; Queen Anne's County Comprehensive Water and Sewerage Plan; St. Mary's County Comprehensive Water and Sewerage Plan; Somerset County Comprehensive Water and Sewerage Plan; Talbot County Comprehensive Water and Sewerage Plan; Washington County Comprehensive Water and Sewerage Plan; Wicomico County Comprehensive Water and Sewerage Plan; Worcester County Comprehensive Water and Sewerage Plan; Baltimore City Comprehensive Water and Sewerage Plan. Before the award of State financial assistance for construction, the need for facility construction or improvement shall be identified, and a project to meet that need shall be contained in the approved County Comprehensive Water and Sewerage Plan. The Department may also require a public hearing on the project, in addition to the public hearing required pursuant to adoption of the county water and sewerage plan. A water appropriation and use permit, as required by Natural Resources Article, §8-811, Annotated Code of Maryland, shall be required before the Board of Public Work's approval of financial assistance for construction of the project. Financial assistance may be approved by the Board of Public Works for community associations if the assistance is passed through a governmental entity. In these cases, a governmental entity shall be the responsible applicant. The Department shall require that the community association be incorporated and be responsible for financial and ownership requirements as are found necessary to assure continued, efficient, and effective operation of the system. The governmental entity shall agree to act as the agent for the community association in applying for financial assistance and shall be jointly responsible for complying with the terms of the grant or loan agreement.