Applicants for a loan and applicants for a grant under the Act for the construction of a proposed project, and applicants for a grant under the Act for the construction of initial water supply and sanitary facilities, shall also file with the Department an application in writing which shall contain a specific request for each type of assistance applied for in a specified amount. Such application may be in the form of a letter and shall be accompanied by twenty-five (25) copies of a feasibility report on the applicant's proposed project and by a resolution by the governing body of the applicant adopting the feasibility report and specifically authorizing the filing of the application by a designated representative who is to represent the applicant until final action is taken by the Department on the application. Feasibility reports shall be prepared at the expense of the applicant, under the direction of a licensed civil engineer, except that where an applicant for a loan for an irrigation distribution system project or a municipal distribution system project has no engineer, the feasibility report may be prepared by or under the direction of, the county surveyor, road commissioner or comparable officer of a county in which the applicant is located, in whole or part. Applicants shall obtain a determination from the Department before filing an application whether feasibility reports shall include reports prepared by financial consultants, economists, recreation planners, or by consultants in other special fields. Supporting material with respect to the ability of a public agency to repay a loan and with respect to the reasonable ability of the public agency to finance all or part of the proposed project from other sources may be supplied by the county assessor or the county engineer.

In addition to the above, applications for loans for irrigation or municipal distribution system projects which involve extreme hardship which jeopardizes the public health, safety or welfare shall describe, generally, such extreme hardship existing with respect to the water supply, the financial and economic conditions existing in the area, and the proposed project, and shall be accompanied by: