Water And Waste Disposal Grant Program:
![]()
PURPOSE
The Water and
Waste Disposal Grant Program provides funds for water, sanitary sewage, solid
waste disposal, and waste water facilities for rural communities in
ELIGIBILITY
Public Bodies
Non-Profit Organizations
Federal & State Recognized Indian Tribes
Utility districts located in rural areas, cities, and towns with populations of 10,000 or less
FUND USE
Initial operating expenses
Purchase of necessary equipment
Pay cost of land acquisition, rights-of-way, permits, etc.
Pay interest on loan until facility is self-supporting (up to three years)
Pay professional fees (legal and engineering) for project development
Other costs related to building, operating, and maintaining rural water, waste, & treatment facilities
Construct, enlarge, extend, or otherwise improve water or waste disposal facilities
Refinancing
existing debts if debts, (1) are secondary part of loan amount (less than 50% of
the total loan), (2) were incurred for facility or service currently being
financed, (3) no new arrangements are
made with present creditors to extend or modify the terms of existing debts
TERMS OF REPAYMENT
Maximum repayment period – 40 years
RESTRICTIONS
Grants are considered only after an affordable maximum loan amount with reasonable user rates is determined by Rural Development
Grant applicants
are considered for grant assistance when the debt service portion of the average
annual user cost (for users in the service area) exceeds: (1) 0.5% when the Median Household Income (MHI) of the
service area is below the poverty line or below 80% (whichever is higher) of the
state non-metropolitan median household income OR (2) 1% when the MHI of the service area exceeds the 0.5%
requirement but is not more than
100% of the state non-metropolitan median household income
Grants will not be made in excess of the following percentages (whichever is higher) of the eligible project development costs: 75% when the MHI of the service area is below the poverty line or below 80% of the state non-metropolitan median household income and the project is necessary to alleviate a health or sanitary problem OR 45% when the MHI of the service area exceeds the 75% requirement but is not more than 100% of the statewide non-metropolitan median household income
Rural areas, towns, & cities maximum population – 10,000 or less
APPLY TODAY
To get started
building your future today, contact your Local Area Office
to fill out an application packet and begin the approval process.