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Water and Waste Disposal Systems for Rural Communities

Number: 10.760
Agency: Department of Agriculture
Office: Rural Utilities Service

Program Information 

Program Number/Title (010):
10.760 Water and Waste Disposal Systems for Rural Communities
Federal Agency (030):
Rural Utilities Service, Department of Agriculture
Authorization (040):
Consolidated Farm and Rural Development Act, as amended, Section 306, Public Law 92-419, 7 U.S.C. 1926.
Objectives (050):
To provide basic human amenities, alleviate health hazards and promote the orderly growth of the rural areas of the nation by meeting the need for new and improved rural water and waste disposal facilities.
Types of Assistance (060):
DIRECT LOANS; GUARANTEED/INSURED LOANS; PROJECT GRANTS
Uses and Use Restrictions (070):
Funds may be used for the installation, repair, improvement, or expansion of a rural water facility including distribution lines, well pumping facilities and costs related thereto, and the installation, repair, improvement, or expansion of a rural waste disposal facility including the collection, and treatment of sanitary, storm, and solid wastes. Grant funds may not be used to pay: interest on loans, operation and maintenance costs, or acqusition or refinancing of an existing system. No maximum loan amount is established by statute. The maximum term on all loans is 40 years. However, no repayment period will exceed any statutory limitation or the organization's borrowing authority or the useful life of the improvement or facility to be financed. There are currently three interest rates for direct loans: (1) a poverty rate that is 60 percent of the market rate, (2) an intermediate rate that is 80 percent of the market rate, and (3) a market rate. The poverty interest rate will not exceed 5 percent per year. The poverty rate may apply when the loan is required to meet health or sanitary standards and the median household income (MHI) of the service area is below the poverty line or 80 percent of the statewide nonmetropolitan MHI, whichever is greater. The intermediate rate applies when the MHI of the service area is not more than 100 percent of the statewide nonmetropolitan MHI, and the poverty rate does not apply. The market rate applies when neither the poverty rate nor intermediate rate is applicable. The interest rate on guaranteed loans is negotiable between the applicant and the lender.
Eligibility Requirements (080)
Applicant Eligibility (081):
Municipalities, counties, other political subdivisions of a State such as districts and authorities, associations, cooperatives, corporations operated on a not-for-profit basis, Indian tribes on Federal and State reservations and other Federally recognized Indian tribes. The applicant must: (1) be unable to finance the proposed project from its own resources or through commercial credit at reasonable rates and terms; and (2) have the legal authority necessary for constructing, operating, and maintaining the proposed facility or service, and for obtaining, giving security for, and repaying the proposed loan. Assistance is authorized for eligible applicants in rural areas of the United States, Puerto Rico, the Virgin Islands, Guam, Commonwealth of Northern Mariana Islands, American Samoa, and to the extent the Secretary determines feasible and appropriate, the Trust Territory of the Pacific Islands.
Beneficiary Eligibility (082):
Farmers, ranchers, rural residents, rural businesses and other users in eligible applicant areas.
Credentials/Documentation (083):
Evidence of legal capacity, economic feasibility and financial responsibility relative to the activity for which assistance is requested. OMB Circular No. A-87 applies to this program.
Application and Award Process (090)
Preapplication Coordination (091):
Preapplication coordination is required. An environmental impact statement is required for this program. An environmental impact assessment is required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.
Application Procedures (092):
OMB Circular No. A-102 applies to this program. OMB Circular No. A-110 applies to this program. USDA Rural Development (RD) offices administer the program on the local level. Application Form SF-424 is filed at the local RD Office from which assistance may be obtained. This program is subject to the provisions of OMB Circular No. A-110.
Award Procedure (093):
After the application has been reviewed at the local level, it is forwarded to the RD State Director for review and processing instructions. Following completion of application processing requirements and loan/grant approval, funds are made available to the applicant.
Deadlines (094):
Not Applicable.
Range of Approval/Disapproval Time (095):
From 60 to 90 days. From 30 to 90 days.
Appeals (096):
If an application is rejected, the reasons for rejection are fully stated. The applicant may request a review of this decision at the RD or RUS National level.
Renewals (097):
Not Applicable.
Assistance Consideration (100)
Formula and Matching Requirements (101):
This program has no statutory formula.
This program has no matching requirements. This program has no statutory formula. This program has no matching requirements. This program has no statutory formula. Funds are allocated to States based upon rural population, number of households in poverty, and unemployment. This program has no matching requirements. MOE requirements are not applicable to this program.
MOE requirements are not applicable to this program.
Length and Time Phasing of Assistance (102):
A time limitation is not specified for the use of RUS loan or grant funds. Funds will be awarded when all RUS requirements are met and the project can be completed on a timely basis. See the following for information on how assistance is awarded/released: Funds may be advanced on an as needed basis by the RUS to cover expenses for a 30-day period.
Post Assistance Requirements (110)
Reports (111):
Program reports are not applicable. Cash reports are not applicable. Progress reports are not applicable. Expenditure reports are not applicable. Performance monitoring is not applicable.
Audits (112):
In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.
Records (113):
Records and accounts are required to reflect the operations of the facility.
Financial Information (120)
Obligations (122):
(Direct Loans) FY 12 $944,174,984; FY 13 est $994,186,542; and FY 14 est $1,200,000. (Guaranteed/Insured Loans) FY 12 $8,293,784; FY 13 est $138,190,078; and FY 14 est $246,800. (Project Grants) FY 12 $361,558,092; FY 13 est $324,957,669; and FY 14 est $246,800
Range and Average of Financial Assistance (123):
(Direct Loans) $25,000 to $9,500,000; $1,525,479; (Grants) $4,450 to $8,000,000; $794,593.
Program Accomplishments (130):
Not Applicable.
Regulations, Guidelines, and Literature (140):
7 CFR 1780, Water and Waste Loans and Grants, 7 CFR 1779, Water and Waste Disposal Program Guaranteed Loans.
Information Contacts (150)
Regional or Local Office (151) :
See Regional Agency Offices. Consult your local telephone directory for Rural Development local number. If no listing, get in touch with the appropriate Rural Development State Office listed in Appendix IV of the Catalog.
Headquarters Office (152):
Assistant Administrator, Water and Environmental Programs, Rural Utilities Service, 1400 Independence Ave., SW, Stop 1548, Washington, District of Columbia 20250 Phone: (202) 690-2670.
Website Address (153):
http://www.rurdev.usda.gov/UWEP_HomePage.html
Examples of Funded Projects (170):
Fiscal Year 2013: No Current Data Available Fiscal Year 2014: No Current Data Available Fiscal Year 2015: No Current Data Available
Criteria for Selecting Proposals (180):
In selecting applications for funding, the agency cooperates with appropriate State agencies. RUS assistance for water and waste disposal projects will be directed toward truly rural areas and rural communities. Considerations for available funds emphasize such criteria as: Population; low income unemployment; and 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.