Water and Waste Disposal Systems for Rural Communities - ARRA

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Program Accomplishments

Not Applicable.

Uses and Use Restrictions

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: a poverty rate that is 60 percent of market rate when the loan is required to meet health or sanitary standards and the median household income of the service area is below the higher of the poverty line or 80 percent of the statewide nonmetropolitan median household income; an intermediate rate that is 80 of market rate if the median household income of the service area is not more than 100 percent of the nonmetropolitan median household income of the State; and a market rate for those applicants that do not qualify for the poverty rate or the intermediate rate.

The law authorizing the program allows a maximum repayment period of 40 years.

However, the repayment period cannot exceed the useful life of the facilities financed or any statutory limitation on the applicant s borrowing authority.

The law authorizing the program allows a maximum repayment period of 40 years.

However, the repayment period cannot exceed the useful life of the facilities financed or any statutory limitation on the applicant s borrowing authority.

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Eligibility Requirements

Applicant Eligibility

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.

Facilities shall primarily serve rural residents and rural businesses.

The service area shall not include any area in any city or town having a population in excess of 10,000 inhabitants according to the latest decennial census of the United States.

Plans and specifications must be developed to comply with State and local health and pollution regulations and other requirements.

Grants are made only when necessary to reduce the average annual benefited user charges to a reasonable level.

Normally, grants are considered only when the debt service portion of the cost to grant eligible users exceeds the following percentages of median household incomes (MHI) for the applicant service area: 0.5 percent when the MHI of the service area is below the poverty line or below 80 percent (whichever is higher) of the State"s non-metropolitan household income (NMHI); 1.0 percent when the NMHI of the service area exceeds the 0.5 percent requirement but is not more than 100 percent of the State"s NMHI; no RUS grant funds will be used in any project when the MHI of the service area is above the poverty line and more than 100 percent of the State"s NMHI.

The RUS grant may not exceed 75 percent of the eligible project development cost when the MHI of the service area is below the poverty line or below 80 percent (whichever is higher) of the State"s NMHI and the project is necessary to alleviate a health or sanitary problem; 45 percent when the MHI of the service area exceeds the 75 percent requirements, but is not more than 100 percent of the State"s NMHI.

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

Farmers, ranchers, rural residents, rural businesses and other users in eligible applicant areas.

Credentials/Documentation

Evidence of legal capacity, economic feasibility and financial responsibility relative to the activity for which assistance is requested. Costs will be determined in accordance with OMB Circular No. A-87 for State and local governments and OMB Circular No. A-122 for nonprofit organizations. OMB Circular No. A-87 applies to this program.

Aplication and Award Process

Preapplication Coordination

The standard application forms furnished by the Federal agency and required by OMB Circular No.

A¬102 must be used for this program.

An environmental assessment is required for this program.

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.

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

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 Procedures

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

Sep 28, 2009 to Sep 30, 2010

Authorization

Consolidated Farm and Rural Development Act, as amended, Section 306, Public Law 92-419, 7 U.S.C. 1926.

Range of Approval/Disapproval Time

From 60 to 90 days.

Appeals

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

Not Applicable.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula.
Matching requirements are not applicable to this program.
MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

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. Funds may be advanced on an as needed basis by the RUS to cover expenses for a 30-day period. 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

Reports

See Section 1512 of The American Recovery and Reinvestment Act of 2009.

See Section 1512 of The American Recovery and Reinvestment Act of 2009.

Progress reports are not applicable.

See Section 1512 of The American Recovery and Reinvestment Act of 2009.

Performance monitoring is not applicable.

Audits

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

Records and accounts are required to reflect the operations of the facility.

Financial Information

Account Identification

12-0400-0-1-452 - ARRA; 12-0400-0-1-452 - ARRA.

Obigations

(Direct Loans) FY 09 $884,193,114; FY 10 est $1,274,000,000; FY 11 est $0. (Project Grants) FY 09 $554,556,697; FY 10 est $505,538,000; FY 11 est $0

Range and Average of Financial Assistance

No Data Available.

Regulations, Guidelines, and Literature

7 CFR 1780, Water and Waste Loans and Grants.

Information Contacts

Regional or Local Office

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

Assistant Administrator, Water and Environmental Programs, Department of Agriculture, Rural Utilities Service, Water and Environmental Programs, 1400 Independence Ave., SW, Stop 1548, Washington, District of Columbia 20250 Phone: (202) 690-2670.

Criteria for Selecting Proposals

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.