I was able to figure this out. I removed the location part of the script and altered the path in the script. Couple of tweaks to my inheritance and it's exactly what i needed. Glad i came to the Netapp site to understand some things.
#Load Active Directory Module
Import-Module activedirectory
$csv = Import-Csv C:\Scripts\Users.csv
ForEach($line in $csv)
{
$Name = $line.Name;
$Path = "\\OCC01FS011\~$Name";
$colRights = [System.Security.AccessControl.FileSystemRights]"DeleteSubdirectoriesAndFiles, Delete, ReadAndExecute"
$InheritanceFlag = [System.Security.AccessControl.InheritanceFlags]::ContainerInherit -bor [System.Security.AccessControl.InheritanceFlags]::ObjectInherit
$PropagationFlag = [System.Security.AccessControl.PropagationFlags]::None
$objType =[System.Security.AccessControl.AccessControlType]::Allow
#$flags = [Security.AccessControl.InheritanceFlags]($InheritanceFlag::ContainerInherit -bor $InheritanceFlag::ObjectInherit)
$objACL = Get-ACL $Path
#$objUser = New-Object System.Security.Principal.NTAccount("na\$name")
#$objUser = New-Object Security.AccessControl.FileSystemAccessRule ((New-Object System.Security.Principal.NTAccount("na\$name")),$colRights, $InheritanceFlag, $PropagationFlag, $objType)
$objACE = New-Object Security.AccessControl.FileSystemAccessRule `
("na\$Name", $colRights, $InheritanceFlag, $PropagationFlag, $objType)
$objACL.SetAccessRule($objACE)
Set-ACL $Path $objACL
}