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Funding Amounts

$1 million has been allocated for the Water and Sewer Infrastructure Grant program in 2024. Communities can receive up to $2,000 per beneficiary up to $650,000 (<5,000 population) and $800,000 (>5,000). Administrative costs are limited to $25,000.

Qualifying Projects

This program funds water and sewer infrastructure projects. Eligible expenses include:

• Improvement to water and sewer infrastructure.
• Engineering costs related to these projects.
• Administration costs for grant funds.

Selection Criteria

Grant applications are evaluated for funding based on project need, readiness, impact, sustainability and matching funds source and availability.

Key considerations include:

• Demonstrating that alternative solutions were examined to address the facility need.
• At or above the current state average for water or sewer rates. City water rate – $38.00. Rural water district rate – $50.00. Sewer rate – $30.00
• At least 51% of all program participants must meet LMI (low-to-moderate income) requirements – which is at or below 80% of the Average Median Income for the county in which the family resigns.
• Communities who have not been awarded a CDBG Grant in the annual competition within the last five years in Housing, Community Facilities, or Water and Sewer will receive 10 bonus points on their application rating.
• 10 bonus points will be awarded if at least 10% of local match comes from other private sources such as foundations (not bonds or state and federal agencies).
• Download grant guidelines for more information on program requirements.