Federal Funding Sources for Small Community Wastewater Systems

The Community Development Block Grant (CDBG) program gives grants directly to states, which then allocate them to small cities and nonurban counties. Grants may be used for community and economic development activities, but are primarily used for housing rehabilitation, public infrastructure projects--e.g., wastewater and drinking water facilities--and economic development. Seventy (70) percent of grant funds must be used for activities that principally benefit low- and moderate-income persons.

Generally, fundable projects:

• benefit low- and moderate-income persons; or
• help correct or prevent public health and safety problems, slums, or blight.

• neighborhood revitalization projects that emphasize private housing rehabilitation;
  
• economic development projects that can expand employment; and
  
• water, sewer, and other public facilities projects that protect public health and reduce environmental risk.

• a public notice published in a general circulation newspaper; or
  
• a mass mailing to every eligible community in the state.

HUD has approximately 42 offices nationwide. See your local telephone directory. Local officials should contact their state agencies, then the appropriate HUD field agency.

Clearinghouse for more information:
1-800-998-9999, or visit the website below.
Web site: http://www.hud.gov/cpd/cdbg.html

Tel.: 202-708-1322,
Fax: 202-401-2044,

The Water and Waste Disposal (WWD) program provides both loans and grants to rural communities (with 10,000 people or fewer) for drinking water, wastewater, solid waste, and storm drainage projects. RUS also administers the "Water 2000" initiative to bring safe, affordable drinking water to all rural areas by the year 2000. These programs are administered locally by state and area rural development offices.

Funding covers such things as:
- construction;
- land acquisition;

• your project must be located in a rural area or town with 10,000 people or fewer;

• your community is unable to get credit elsewhere at reasonable rates and terms;
• your project is economically feasible;
• you have no outstanding judgment obtained by the United States in Federal Court; and
• you have the legal authority to construct, operate, and maintain the facility, and can obtain, give security for, and repay the loan.

• Fill out the simple form, SF-424, or "Application for Federal Assistance (Construction)" to outline the project and the Federal help needed.

• Get satisfactory review comments from the appropriate state agency (usually takes about 45 days).
• Submit supporting documents, as needed.
  
  Your local rural development office can tell you which state agency covers your project area and what supporting documents are needed.

Tel.: 202-720-9583

Fax: 202-690-0649

Web site: http://www.usda.gov/rus/water/

The Indian Health Service (IHS) Sanitation Facilities Construction (SFC) program keeps an inventory of sanitation needs in American Indian and Alaska Native (AI/AN) communities for use by IHS and Congress. The SFC program provides funding for projects serving eligible AI/AN homes. It also funds professional engineering services and technical assistance.

Typically, SFC projects are designed to:

• construct affordable sanitation facilities;
• provide safe drinking water supplies;
• provide adequate wastewater disposal; and
• provide solid waste disposal facilities.

• housing support projects, to assist new and like-new rehabilitated Indian housing;
• regular projects, to serve existing homes and communities; and
• special/emergency projects, to provide sanitation facilities for special studies and emergency situations (less than 1 percent of available funds).

The Economic Development Administration (EDA) provides grants to economically distressed areas for public works projects, including water and wastewater facilities.

• promote economic development;
• create long-term jobs; and/or
• benefit low-income persons or the long-term unemployed.

• help establish or expand industrial or commercial plants or facilities;
• help create additional long-term employment opportunities; and
• benefit the long-term unemployed/underemployed and those with low incomes.

• have an adequate share of local funds;
• evidence firm commitment and availability of matching funds;
• be capable of being started and completed in a timely manner; and
• be consistent with the Overall Economic Development Program (OEDP) for the area.

• states, cities, counties, and other political subdivisions;
• Indian tribes;
• the Federated States of Micronesia;
• the Republic of the Marshall Islands;

• commonwealths and territories of the United States; and
• private or public nonprofit organizations or associations representing a redevelopment area or a designated economic development center.

Corporations and associations organized for profit are not eligible.

• Call the economic development representative (EDR) at your state or regional EDA office.
• Fill out a brief proposal form obtained from the EDR, profiling your proposed project and the assistance needed.
• Await EDR review of project. Eligible projects go before a project review committee at the EDA regional office.

• If invited to apply, submit a formal application within 30 days.
  
  Following a regional office compliance and feasibility review, the regional director will notify you of any award. Review of processable applications usually takes 30 days. Award decisions usually occur within 60 days after applications are received. Incomplete applications are returned.

Refer to your local telephone directory for the Economic Development Administration state or regional offices in your area. Telephone numbers are listed below:

Philadelphia, Pa.   215-597-1072/
                    1082/8733
Atlanta, Ga.        404-730-3012
Denver, Colo.       303-844-5452/
                    4033
Seattle, Wash.      206-220-7702
Austin, Tex.        412-916-5824/
                    5217
Chicago, Ill.       312-353-8143

Tel.: 202-482-5265
Fax: 202-482-3742

Internet or e-mail: Mcilwain@doe.gov

EPA's Clean Water State Revolving Fund (CWSRF) program provides grants to states (and Puerto Rico) to capitalize state loan funds. States provide a 20-percent match. Each state SRF then makes low-interest loans to communities, individuals, and others for high-priority water-quality management activities. As money is paid back into the revolving fund, new loans are made to help others maintain their water quality.

This federal-state partnership gives states the flexibility to fund their highest priority projects to improve water quality.

• agricultural, rural, and urban runoff control;

• estuary improvement practices;
• wet-weather flow control, including storm water and combined sewer overflows; and
• alternative treatment technologies.

To receive funding, a project must be included in a state's intended use plan, in which the state outlines the projects to be funded.

For an SRF program representative in your state, call the telephone number, or contact the e-mail address or web site below.
Tel.: 202-260-2268
Fax: 202-260-1827
E-mail: comments.web@epa.gov
Web site: http://www.epa.gov/owm/cwfinance/cwsrf/contacts.htm
(list of state SRF contacts); or
http://www.epa.gov/owm
(for more information about the Clean Water SRF)

EPA's Drinking Water State Revolving Fund (DWSRF) program provides states with grants to capitalize their loan funds. States provide a 20-percent match. Each state then gives loans or technical assistance to communities, individuals, and others for high-priority projects designed to meet Safe Drinking Water Act (SDWA) requirements and protect public health.

Eligible activities, under federal guidelines, are:

• projects to consolidate water supplies or restructure systems;

• planning and design costs; and
• projects to replace or upgrade aging infrastructure.

Any system receiving a loan must also show it has the technical, financial, and management capacity to operate over the long term.

Smaller, more financially strapped systems, such as mobile home parks or homeowners associations,

• states can use up to 30 percent of their capitalization grant for that year to provide loan subsidies to "disadvantaged" communities, which they define; and
• states can also set aside up to 2 percent of the grant for technical assistance to small communities.

To apply for a DWSRF program grant, states must submit EPA's standard application for non-construction grant

For an SRF program representative in your state, call the telephone number or visit the web site below.
Tel.: 202-260-5557
Fax: 202-260-0732
Web site: http://www.epa.gov/owm/cwfinance/cwsrf/contacts.htm
(list of state SRF contacts)

EPA developed the Hardship Grants program to help small, disadvantaged rural communities address their wastewater treatment needs. States identify eligible projects and may commit a portion of their grants for technical assistance. Designed to complement the CWSRF loan program, this new program will distribute funds based on:

• the number of rural communities lacking access to centralized water treatment; and

• the rural per capita income in each state.

EPA will award grants from a $50 million funding pool to the states, Puerto Rico, and U.S. territories. They, in turn, will provide hardship assistance to small communities.

• the planning, design, and construction of publicly owned treatment works; or

• the planning, design, and construction of alternative wastewater services, such as on-site treatment systems--including septic.

States may also use hardship assistance to provide training, technical assistance, and educational programs on the operation and maintenance of wastewater treatment systems.

• the community is rural;
• the community has no access to centralized wastewater treatment or collection systems, or needs improvements to on-site wastewater treatment systems;

• the proposed project will improve public health or reduce environmental risk;
• the community's per capita income rate is less than 80 percent of the national average; and
• the community's unemployment rate exceeds the national average by one percentage point or more.

• State-specific and national hardship grants program guidelines;

• application information for the Clean Water SRF and hardship grants programs; and
• information about how the proposed project may be added to your state's Clean Water SRF intended use plan.

Regional or local office:

For the name and phone number of the hardship grants coordinator in your state, contact the e-mail address or visit the web site below.

srfinfo@epamail.epa.gov

Website: http://www.epa.gov/owm

The Clean Water Indian Set-Aside Grant program is designed to assist Indian tribes and Alaska Native villages in planning, designing, and building wastewater systems. EPA

and the Indian Health Service (IHS) are working together to administer the program. This partnership makes the most out of the technical resources of both agencies.

Grants can pay for land that will be an integral part of the treatment process or ultimately used for disposing of treatment residues. Grant funds may not be used to operate and maintain the wastewater facility.

• federally recognized Indian tribes with control over reservation lands;

• Alaska Native villages; and
• tribes on former reservations in Oklahoma.

All necessary application information may be found in the EPA 1989 Guidelines and Requirements for Applying for Grants from the Indian Set-Aside Program document and in its 1995 Addendum. Contact the EPA regional or IHS area office serving your tribal area for help in filling out forms and in clarifying project requirements.

Note: A companion Indian set-aside program for drinking water is currently under development. You may contact your regional coordinator for more information.

The name and phone number of your Regional Indian Set-Aside Coordinator is listed below.

EPA Region I
(Conn., Maine, Mass., N.H., R.I. Vt.)
Debbie Kerr: 617-565-4886

EPA Region II
(N.J., N.Y.)
Muhammad Hatim: 212-637-3855

EPA Region IV
(Ala., Ga., Fla., Miss., N.C., S.C., Tenn., Ky.)
Walter Hunter: 404-562-9477

EPA Region V
(Ill., Ind., Ohio, Mich., Minn., Wis.)
Charles Pycha: 312-886-0259

EPA Region VI
(Ariz., La., Okla., Tex., N.M.)
Gene Wossum: 214-665-7173

EPA Region VII
(Iowa, Kans., Mo., Nebr.)
Gerald Gutekunst: 913-551-7484

EPA Region VIII
(Colo., Utah, Wyo., Mont., N.D., S.D.)
Terry Griffith: 303-312-6153

EPA Region IX
(Ariz., Calif., Nev.)
Loretta Vanegas: 415-744-1946

EPA Region X
(Alaska, Idaho, Oreg., Wash.)
Judy Fey: 206-553-1302

Tel.: 202-260-7255
Fax: 202-260-0116
Web site: http://www.epa.gov/owm/mab/indian/cwisa.htm

Note: Two other federal programs have set-aside funding for colonias assistance, including water and wastewater facilities. Please refer to the specific program descriptions found in this brochure for:

• U.S. Department of Housing and Urban Development--Community Development Block Grant Program
• U.S. Department of Agriculture, Rural Utilities Service--Water and Waste Disposal Program.

The Colonias Wastewater Assistance program provides grants to states along the U.S.-Mexico border to design and build wastewater treatment facilities for "colonias." These are low-income, unincorporated border communities

Individual states administer these programs and match EPA funds.

To date, funds have been provided only to Texas and New Mexico.

• wastewater facility planning, design, and construction for colonias located within 62 miles of the U.S.-Mexico border;

• indoor plumbing improvements; and
• household connections to water and sewer facilities for low-income residents.

• be located in Texas or New Mexico, within 62 miles of the Mexico border;
• meet income and other economic criteria established by the state;

• be unincorporated;
• exist before the adoption of colonia land use legislation; and
• lack basic services, such as water, sanitation, roads, and code-approved housing.

New Mexico Environment Department
Haywood Martin
505-827-2809

Tel.:214-665-7110\

Tel.: 202-260-5841
Fax: 202-260-0116

The Appalachian Regional Commission (ARC) offers grants in designated Appalachian regions within the following 13 States: Alabama, Georgia, Kentucky, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.

The grants are intended to create jobs and promote private sector initiative by funding water and sewer facilities. Assistance is limited to 50 percent of total project costs, except for distressed counties, where the limit is 80 percent.

• be of high priority in the state's Appalachian development plan;
• be related to economic or community development; or
• address residential needs in extremely poor counties.

ARC can provide supplemental grants in 94 designated distressed counties to help meet local match requirements for federal funding.

• Obtain an application form from the federal agency sponsoring the grant-in-aid program being assisted. The form is required by OMB Circular No. A-102.
• Submit the application to the state member of the ARC for approval. Include a transmittal letter signed by the state member, and an executed ARC Form 1.

See your local telephone directory for your Appalachian State office, or visit the website below.

Web site: http://www.arc.gov

Tel.: 202-884-7700
Fax: 202-884-7691