Rural Water Assistance Fund

From Texas Water Development Board (TWDB)

To lead the state's efforts in ensuring a secure water future for Texas

Type of Support

Overview

The Rural Water Assistance Fund (RWAF) Program is focused on providing small, rural water utilities with low-cost, long-term financing for water and wastewater projects. It is aimed at water supply corporations or projects that are ineligible for tax-exempt financing, supporting a wide range of activities including the improvement or construction of water-related infrastructure and water quality enhancements. Eligible borrowers include nonprofit water supply corporations, districts, and municipalities serving small populations, as well as counties with no large urban areas. The fund offers loans with tax-exempt equivalent interest rates and long-term finance options, with a specific intent to support planning, design, and construction phases of water supply, treatment, and quality enhancement projects. Only loans are available through the RWAF, with benefits such as a maximum 40-year maturity on loans and the exemption from sales tax for nonprofit water supply corporations on projects financed by the program.

Eligibility

Organization's Location
USA
Program Location
TX
Organization Type
Rural political subdivisions
Nonprofit water supply corporations
Districts
Municipalities serving a population of 10,000 or less
Counties in which no urban area has a population exceeding 50,000
Other
  • May partner with a federal or state agency or another rural political subdivision
  • Projects include planning, design, acquisition, and construction of water, wastewater, or consolidation and regionalization projects
  • Requires preliminary engineering feasibility, preliminary environmental review, water conservation plans, and resolution of financial conditions before loan closing
  • Entities or projects ineligible for tax-exempt funds may receive funding with taxable or AMT proceeds, adhering to U.S. Tax Code requirements
  • Projects must align with the current TWDB State Water Plan
  • Recipients of assistance over $500,000 must adopt water conservation and drought contingency plans
  • Must meet U.S. Iron and Steel Manufactured Goods requirements
  • Must review legislative requirements regarding water loss threshold limits
not specified

Submission

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