Rural Utilities Programs Water

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Rural Utilities Programs Water Waste
Loans/Grants
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Rural Development Organization
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Erie
Susquehanna
Warren
McKean
Tioga
Bradford
Potter
Wayne
1
Crawford
Wyoming
Sullivan
Elk
Forest
Lackawanna
Cameron
Pike
Lycoming
Venango
Mercer
Luzerne
Clinton
3
Clarion
Monroe
Columbia
Jefferson
Lawrence
Montour
Clearfield
Union
Carbon
Butler
Centre
Northampton
Armstrong
Snyder
Northumberland
Schuylkill
Beaver
Indiana
Lehigh
Mifflin
2
Juniata
Berks
Allegheny
Bucks
Blair
Huntingdon
Cambria
Dauphin
Perry
Lebanon
Montgomery
Westmoreland
Washington
4
Cumberland
Washington
Lancaster
Chester
Bedford
Fayette
Philadelphia
Fulton
Greene
Somerset
York
Adams
Franklin
Delaware
Pennsylvania Rural Development

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Rural Utilities (RUS)

• Rural Telecommunications Loans Grants
  Guarantees
• Rural Electric Loans Loan Guarantees
• Distance Learning Medical Link Grants
• Water Waste Disposal Loans Grants
• http//www.rurdev.usda.gov/rus

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RUS Water and Waste Programs

• Water Waste Disposal Loans/Grants
• Technical Assistance Training Grants
• Solid Waste Management Grants
• Rural Water Circuit Rider Technical Assistance
• Pennsylvania Rural Water Association (PRWA)
• Resources for Communities and People (RCAP
  Solutions)

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RUS - Eligibility Criteria

• Public Entities - townships, boroughs,
  non-profit associations.
• Rural areas - any area not in a city or town with
  a population in excess of 10,000 inhabitants. ANY
  TOWNSHIP
• Be unable to obtain credit elsewhere

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RUS - Eligibility Criteria (Continued)

• Have the legal capacity to borrow and repay the
  loan, pledge security, own and operate the
  proposed system
• Be financially sound and able to manage the
  facility effectively.

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Predevelopment Planning Grants

• Medium Household Income must be less than 80 of
  Pennsylvanias MHI
• Maximum Amount - 15,000
• RUS must fund the project

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Authorized Loan/Grant Purposes

• Construct, repair, improve, expand, or otherwise
  modify rural WATER supply

and distribution lines including distribution
lines, hydrants, pumping stations, water tanks
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Authorized Loan/Grant Purposes

• Acquire water
• supply or
• water rights
• (i.e. wells,
• reservoirs)

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Authorized Loan/Grant Purposes

• Construct, repair, expand, improve or otherwise
  modify WASTE collection, pumping, treatment, or
  other disposal facilities

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Authorized Loan/Grant Purposes

• Construct, repair,
  improve, expand, or
  otherwise modify
  STORM WATER systems

• including storm sewer
  
  
  
  
  collection lines,
  
  
  
  
  retention ponds,
  
  
  
  
  culverts, wetlands

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Authorized Loan/Grant Purposes

• Related soft costs
• (e.g. engineering, legal,
• ROWs, land acquisition,
• interest, OM
• expenses)

Refinancing, if financially feasible and as a
small portion (lt50) of a project.

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Loan Rates

• Interest Rates are dependent upon Median
• Household Income - rates are set quarterly.
• For April June 2005 based on 2000 Census
• 4.5 - Poverty Line - 0 to 33,832 with Health
  Sanitary Hazards
• 4.375 - Intermediate - 0 to 33,832
• 4.375 - Intermediate - 33,833 to 42,291
• 4.25 - Market - 42,292 or greater
• http//www.usda.gov/rus/water/docs/int-rate.txt

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Loan/Grant Terms

• Loan term of 40 years
• Grants awarded to meet target user rates
• to maximum eligibility based on MHI
• 75 - 0 to 33,832
• 45 - 33,383 to 42,291
• 0 - 41,292 or greater
• 2000 MHI
• http//factfinder.census.gov/servlet/BasicFactsSer
  vlet

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Loan/Grant Terms

• Joint funding with other sources
• (i.e. PENNVEST, CDBG, PA DCED,
• ARC, ACOE 313, etc.)
• Security will be a lien on
• revenue - Financing
• Statement filed with the
• Secretary of State

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Joint Planning Meetings

• PA DEP
• PENNVEST
• RUS
• Others
• CDBG
• PA DCED
• ACOE

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General Requirements

• Security will be a lien on revenue
• Public Notices and Public Meeting
• Environmental Review
• RUS concurrence for all contracts and Agreements
  for Professional Services

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General Requirements (Contd.)

• RUS review of project scope, design and
• costs
• Legal Bond Counsel Services
• Interim Financing Requirements
• Reserve Requirements
• Graduation - refinance with conventional
• funds

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Application Process

• Initial Application and Eligibility Determination
• Full Application and Planning Stage
• Loan Approval and Obligation of Funds
• Design Stage/Bidding and Award of Contract
• Construction Phase
• Closing
• Servicing

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Opportunities with RUS

• Longest fixed rate term available
• Availability of grants-up to 45 or 75
• (subject to Federal allocation)
• Commitment prior to authorizing design
• No fees for RUS services
• RUSs commitment to customer service
• No pre-payment penalties
• Fast payment during construction

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Considerations with RUS

• RUS review of project scope, design,
• and costs in addition to DEPs approval
• Mitigation measures to protect
• farmland, wetlands and floodplains
• Interim financing if loan gt 500K
• PRWA Interim Program cuts interest cost
• 10 Reserve Fund when no guarantee
• Funding delays if grant is needed

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GUARANTEED LOANS

• Same purpose as the regular water sewer program
• Applicants are not eligible for grant
• Guarantees will not exceed 90 of the loss of
  interest and principal on loan
• Oversight and servicing by the lender and
  therefore much less involvement by the
  government.

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RUSs Goals

• Provide loan and grant funds for water,
  wastewater, and stormwater projects serving the
  most financially needy communities.
• Construct facilities which are modest in
• size, design, and cost.
• Provide financial assistance which results in
  reasonable user costs for rural residents, rural
  businesses, and other rural users.

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End Result - Your Project!
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Visit Our Website
www.rurdev.usda.gov/pa