Rural Decentralized Water Systems Grant Program

To make grants to private, nonprofit organizations to finance the construction, refurbishing and servicing of individually-owned household water well and/or wastewater systems in rural areas for individuals with low or moderate income.

An applicant must be a private organization, organized as a non-profit corporation. The applicant must have the legal capacity and authority to perform the obligations of the grant. The applicant must have sufficient expertise and experience in lending activities and promoting the safe and productive use of individually-owned household water well systems and ground water.

An individual in a household in which the combined income of all household members (for the most recent 12 months) does not exceed 100 percent of the median non-metropolitan household income for the State or territory in which the individual resides. Beneficiary must own home, or be purchasing home under land purchase contract, and must occupy home. Home must be in a rural area.

Evidence of legal capacity, economic feasibility, ability to administer and service a revolving loan fund, commitment and sources of financial resources the organization controls.

Grant funds will be used by eligible entities to establish and maintain a revolving loan fund to provide loans to eligible individuals to construct, refurbish, and service individually-owned household water well and/or wastewater systems. Eligible individuals must own or will own the household water well or individual wastewater system. Loans will be made at a fixed rate of one-percent with a twenty year term. The maximum amount per loan is $11,000. Funds may be used to pay administrative expenses associated with providing the loans. Grant funds may not be used to pay (1) administrative expenses exceeding 10 percent of the loans made during the calendar year; (2) administrative expenses incurred before the Rural Utilities Service executes a grant agreement; (3) delinquent debt owed to the Federal Government; (4) costs of home plumbing system.

A time limitation is not specified; however, priority will be given to applicants whose time frame for completion of the grant project is 12 months or less.

Applications include the criteria specified within 7 CFR 1776.

RUS assistance for grant projects will be directed toward truly rural areas and rural communities. Considerations for available funds emphasize such criteria as population, low income, unemployment; health and sanitary problems. RUS financed facilities will not be inconsistent with any development plans of the State, multi-jurisdictional area, county, or municipality in which the proposed project is located.

The Water and Environmental Programs staff in Washington, DC, will review and process the application. Following completion of application processing requirements and grant approval, funds are made available to the applicant on a reimbursement basis.

Dependent upon funding availability and the completeness of the application. From 60 to 120 days following the submission deadline.

An application determined ineligible may request a review of this decision with the National Appeals Division of USDA in accordance with USDA regulations at 7 CFR 11.