PROGRAM DESCRIPTION: Funds are for community water, sewer, storm sewer and solid waste systems.
TYPE OF ASSISTANCE: Funding is by loans and grants.
ELIGIBILITY REQUIREMENTS: Applicants are public bodies (city, township, county or special district), Indian tribes, cooperatives or other non-profit organizations. Service area must be under 10,000 in population. Applicant must be unable to borrow money elsewhere at rates and terms to make the project affordable. Grants may be available if the median household income of the borrower is at or below the statewide non metropolitian median household income (per 1990 Federal Census), and if needed to reduce annual costs of the system to what similar communities are paying.
INTEREST RATE: Loan interest rate depends upon the median household income of the borrower. The rate can be as low as 4.5%, and will usually be no higher than commercial bond rates.
TERMS AND COLLATERAL: Loan term is up to 40 years. Security is usually a general obligation bond for a public body and a note and deed of trust for others.
CONTACT: Applications are made at Rural Development Area offices.
For assistance, please contact the Area Office which serves the area you are interested in, or Bill Hobbs, Program Director. Mr. Hobbs can be reached at 919-873-2063 or by email:email@example.com.
Please send any comments or suggestions to:
Revised on: August 2011