Funds must benefit communities that are located within Historically Impoverished communities, as defined within this notice.

For technical assistance efforts, funds may be used to 1) Identify and evaluate solutions to water problems of associations in rural areas relating to source, storage, treatment,

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and/or distribution; 2) Identify and evaluate solutions to waste problems of associations in rural areas relating to collection, treatment, and/or disposal; 3) Prepare water and/or waste disposal loan/grant applications; 4) Provide technical assistance/training to association personnel that will improve the management, operation, and maintenance of water and waste facilities; 5) Identify options to enhance the long-term sustainability of rural water and waste systems, including operational practices, revenue enhancements, partnerships, consolidation, regionalization, or contract services; 6) Address the contamination of drinking water and surface water supplies by emerging contaminants, including per- and polyfluoroalkyl substances; and 7) Pay the expenses associated with providing the technical assistance and/or training authorized in this section.

Funding may also be used to pay for construction costs, including constructing, enlarging, extending, or otherwise improving wastewater facilities.

When a necessary part of the construction project, funding may be used to pay for:
(a) Reasonable fees and costs such as:
legal, engineering, administrative services, fiscal advisory, recording, environmental analyses and surveys, possible salvage or other mitigation measures, planning, establishing or acquiring rights; (b) Costs of acquiring interest in land; rights, leases, permits, rights-of-way; and other evidence of land or protection necessary for development of the facility; (c) Purchasing or renting equipment necessary to install, operate, maintain, extend, or protect facilities; (d) Cost of additional applicant labor and other expenses necessary to install and extend service; (e) The cost for connecting the user to the main service line; and (f) Initial operating expenses, for a period ordinarily not exceeding one year when the applicant is unable to pay such expenses and adequate documentation is provided related to long-term sustainability.Funds may not be used to:
1) fund political or lobbying activities; 2) pay for work already completed; 3) purchase real estate or vehicles, improve or renovate office space, or repair and maintain privately owned property; 4) construct or furnish a building; 5) intervene in the Federal regulatory or adjudicatory proceedings; 6) sue the Federal Government or any other government entities; 7) pay for any other costs that are not allowable under 2 CFR part 200, as adopted by USDA through 2 CFR part 400; 8) make contributions or donations to others; 9) fund projects that duplicate technical assistance given to implement action plans under the National Forest Dependent Rural Communities Economic Diversification Act of 1990(7 U.S.C 6613).

Applicants cannot receive both grants made under this part and grants that the Forest Service makes to implement the action plans for five continuous years from the date of grant approval by the Forest Services; 10) to pay an outstanding judgment obtained by the United States in a Federal Court (other than in the United States Tax Court), which has been recorded.

An applicant will be ineligible to receive a grant until the judgment is paid in full or otherwise satisfied; and 11) any project that creates a conflict of interest of an appearance of a conflict of interest.