RURAL DEVELOPMENT WATER & WASTE PROGRAMS

WATER AND WASTE FACILITIES

• WATER SYSTEMS OR COMPONENTS OF WATER SYSTEMS

• SEWER SYSTEMS OR COMPONENTS OF SEWER SYSTEMS

• SOLID WASTE SITES AND EQUIPMENT NEEDED TO CONSTRUCT & MANAGE SITE

WHO MAY APPLY?• PUBLIC BODIES:

• CITIES OR BOROUGHS• AUTHORITIES (LIKE A PORT AUTHORITY)• SPECIAL SERVICE DISTRICTS• OTHER POLITICAL SUBDIVISION OF A STATE

• NON-PROFIT CORPORATIONS• NATIVE AMERICAN TRIBES • POPULATION LIMITS:

• W&W: POPULATION OF 10,000 OR LESS

PRE-PLANNING AND DEVELOPMENT GRANTS

USDA/RD IS ALLOWED TO MAKE GRANTS FOR PRE-PLANNING AND DEVELOPMENT TO PAY FOR THE PREPARATION OF THE ENVIRONMENTAL REPORT, PRELIMINARY ENGINEERING REPORT AND DESIGN.

IN THE LOWER 48, THESE GRANTS ARE LIMITED TO $25,000. ALASKA MUST ASK FOR EXCEPTIONS IF A GREATER AMOUNT IS NEEDED.

GUARANTEED LOAN PROGRAMS

• Applicant makes application with bank. • Interest rate and term are negotiated with lender. • Rural Development Guarantees 80% of Lender’s

Loan. • Water and Waste: MAY Guarantee up to 90%,

Guarantee Fee is 1% of guaranteed amount.

DIRECT LOAN PROGRAM• RURAL DEVELOPMENT PROVIDES THE

FUNDING.• INTEREST RATES ARE TYPICALLY 4.125 TO

5.5% BUT UNDER CERTAIN CONDITIONS HAVE BEEN AS LOW AS 2.75% (RATES DETERMINED BY MEDIAN HOUSEHOLD INCOME OF COMMUNITY)

• TERM OF LOAN: UP TO 40 YEARS OR THE LIFE OF THE FACILITY, WHICHEVER IS LESS.

GRANTS• RURAL DEVELOPMENT CAN PROVIDE 45% TO 75%

OF TOTAL PROJECT COSTS. • AMOUNT OF GRANT IS DETERMINED BY MEDIAN

HOUSEHOLD INCOME OF COMMUNITY AND SIMILAR SYSTEMS USER RATES.

• MUST BE UNABLE TO REPAY A LOAN.• MUST PROVIDE MATCHING FUNDS. REQUIRED

MATCH MAY BE FEDERAL.

HOW MAY FUNDS BE USED ?

• PURCHASE, CONSTRUCT, ENLARGE, OR IMPROVE A FACILITY. FOR EXAMPLE, TO BUILD,ENLARGE OR IMPROVE A WASTE OR WATER SYSTEM OR A SOLID WASTE FACILITY

• PURCHASING EQUIPMENT NECESSARY TO CONSTRUCT, OPERATE AND MAINTAIN A FACILITY ( FOR EXAMPLE, BALERS, INCINERATORS, BACKHOES, BULLDOZERS ETC.

• RECYCLING EQUIPMENT

HOW MAY FUNDS BE USED ?

LOAN FUNDS ONLY• INTEREST on RD LOANS UNTIL THE

FACILITY IS SELF-SUPPORTING, TYPICALLY FIRST YEAR.

• INITIAL OPERATING EXPENSES FOR FIRST YEAR.

SECURITY FOR LOANS

• BONDS (G0 AND REVENUE)• REAL PROPERTY, APPRAISAL AT

DISCRETION OF RD• ASSIGNMENT OF INCOME (LEASES, FEE

INCOME, USER CHARGES.• ASSURED INCOME (HISTORICALLY

RECEIVED--GRANTS, ETC.)

PARTNERS• DENALI

COMMISSION• ALASKA NATIVE

TRIBAL HEALTH CONSORTIUM

• INDIAN HEALTH SERVICE

• DOT

• HUD, ICDBG & CDBG, NAHASDA

• DEPARTMENT OF ENVIRONMENTAL CONSERVATION

• UTILITIES• PRIVATE

FOUNDATIONS

More Partners• Bureau of Indian Affairs• Department of

Community and Economic Development

• Private Lenders• Regional Health

Corporations

• Bond Banks• Housing Authorities• Economic Development

Administration• State of Alaska• Environmental Protection

Agency• Administration for Native

Americans

Construction MethodsFORCE ACCOUNTFORCE ACCOUNT

CONTRACTEDCONTRACTED

Key Elements of Community Projects

• Community Based--Result of Community Plan, Community actively involved in design and location.

• Projects should have input from all stakeholders.

• Community “Ownership” of project.

• Sufficient funding to ensure completion of the project .

• Meets community needs.

LOAN AND GRANT APPLICATIONS

• SUBMITTED TO RURAL DEVELOPMENT ALASKA ANYTIME. (except for TAT/SWM)

• PRE-APPLICATION PROCESS TO DETERMINE ELIGIBILITY.

• APPLICATION PROCESS, NOT GRANT WRITING.• HEALTH/SAFETY PROJECTS PRIORITIZED.• STATE HAS APPROVAL AUTHORITY UP TO $5,000,000.

TECHNICAL ASSISTANCE• TAT GRANTS

TO IDENTIFY SOLUTIONS TO WATER AND WASTE DISPOSAL PROBLEMS IN RURAL AREAS, IMPROVE O&M ON EXISTING SYSTEMS. PRIVATE NON-PROFITS ONLY

• SOLID WASTE MANAGEMENT GRANTS TO ELIMINATE POLLUTION OF WATER RESOURCES, IMPROVE PLANNING AND MANAGEMENT OF SOLID WASTE SITES. PRIVATE NON-PROFITS AND PUBLIC BODIES 7 CFR 1775

Applications Accepted October 1-December 31st.

INTERNET RESOURCES FOR WATER AND WASTE

• The 1780 and 1775 Regulations can be found at: http://www.rurdev.usda.gov/RegulationsAndGuidance.html. Click on “Regulations” under Rural Utilities Service, Select 1780 or 1775.

• RUS Bulletin 1794A-602 can be found at the same site. Click on “Bulletins”, then Water & Environmental. Select B 1794A-602. This bulletin addresses the format for the environmental report for Water and Waste Programs.

• Preliminary Engineering Report Guides can be found on the same page as the Environmental Bulletin. Select B 1780-2 for Water, B 1780-3 for Wastewater and B 1780-4 for Solid Waste.