Low Income Household Water Assistance Program

The objective of the Low Income Household Water Assistance program is to meet unprecedented water services needs that arose during the COVID-19 pandemic. This program is meant to be an emergency program that provides quick intervention to help the pe

These awards will assist low-income households, particularly those that pay a high proportion of household income for drinking water and wastewater services, by providing funds to owners or operators of public water systems or treatment works to reduce arrearages of and rates charged to eligible households.

LIHWAP is closely modeled after the Low Income Home Energy Assistance Program (LIHEAP) therefore LIHWAP recipients administer LIHWAP benefits through many of the same mechanisms that are used to provide LIHEAP benefits to households. As a result, LIHWAP eligibility is limited to states, territories and tribes that implemented LIHEAP during FY 2021.

Households with incomes up to the greater of 150 percent of the federal poverty guidelines (FPG) or 60 percent of the estimated State median income (SMI) are eligible for benefits. Recipients may establish lower income eligibility levels, but they may not set the limit below 110 percent of FPG.

Funds are awarded to States, eligible Tribes and Tribal Organizations, and Territories, which then make payments directly to owners and operators of public water systems or treatment works to reduce rates and arrearages for eligible, low-income households to meet costs for drinking water and wastewater. Benefit payments will be determined from applications submitted by eligible households. Recipients must ensure that benefits are made according to the following priority groups: (1) households with disconnected water/wastewater services, (2) households facing an imminent disconnection of water/wastewater services, (3) households with current bill amounts due (no arrearages). Benefit payments must be made to the household's water or wastewater provider (utility company)-not directly to the household.

Low Income Household Water Assistance Program: Consolidated Appropriations Act, 2021 funds must be awarded by September 30, 2021. Consolidated Appropriations Act, 2021 funds and American Rescue Plan funds must be obligated by recipients by September 30, 2023. Recipients must expend/liquidate the funds by December 31, 2023. Recipients who request and are approved for a no-cost extension may obligate funds until March 31, 2024, and expend/liquidate funds by June 30, 2024. . Initial deadlines were established in LIHWAP DCL-2021-05 and no-cost extension deadlines were established in LIHWAP AT-2023-07 for applicable recipients.

Eligible applicants will be required to sign LIHWAP Terms and Conditions prior to award. Eligible applicants must submit a LIHWAP Implementation Plan to ACF by August 9, 2021, or a later date if ACF agrees in writing to an extension.

The governor's office within each state and U.S. territory and the chief executives of tribes that currently receives LIHEAP awards must identify a responsible governmental official, who will be empowered by the governor to submit a recipient Plan and to sign any required certifications and the Terms and Conditions.

Criteria pertinent to LIHWAP are announced in an Action Transmittal to eligible entities, see for example: https://www.acf.hhs.gov/ocs/policy-guidance/lihwap-2021-09-model-plan-final-fy2021

Award amounts are determined based on a formula calculation described in the appropriation legislation. For example, there is a 3% set aside for all tribal recipients and the distribution among tribal recipients relates to estimates of income eligible households and housing costs in each tribal recipient service area. There is also a set-aside and methodology for all five territories which mirrors the LIHEAP distribution. State award amounts are based on estimates of the percentage of households with incomes at or below 150% of the Federal Poverty Guidelines and the percentage of households that spend more than 30% of their monthly income on housing costs. ACF receives, reviews and accepts applicant Plans and related documents. ACF calculates the funding amount and issues an electronic Notice of Award (NOA) letter to each recipient. A total of two NOAs will be issued to each recipient, one NOA for each funding source (P.L. 116-260 and P.L. 117-2).

Total award amounts were communicated in writing to recipients beginning May 28, 2021, along with the release of 15% of each NOA for administrative costs. Access to the remaining funds in the Payment Management System (PMS) was provided upon acceptance of the recipient's LIHWAP Implementation Plan.

There is no appeal process for unsuccessful applicants. For existing recipients, appeals in regards to disputes may take place in accordance with 45 CFR Part 16, subject to the limitations of the Appendix A.