SRF Frequently Asked Questions (FAQ)

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The Safe Drinking Water State Revolving Fund provides low interest loans, grants, and other assistance to public water systems for the purpose of infrastructure improvements to correct system deficiencies and improve water quality. Detailed information on the program can be found in the annual Intended Use Plan.

Disclaimer:
The FAQ below is provided for general informational purposes only and may not be complete or applicable to all situations. For a more detailed overview of the SDWSRF program, please consult the Intended Use Plan, statutes, and regulations. If you cannot find an answer to your question, feel free to contact either your local district office or the SDWSRF HQ office.



SDWSRF Funding Process

Here's a brief overview of the process that systems must follow in order to receive funding:

SDWSRF Funding Process


General FAQS

  • Who is eligible to apply for SDWSRF funding?
    Community water systems and non-community water systems operated by not-for-profit entities are generally eligible for funding.

  • What is eligible for SDWSRF funding?
    The SDWSRF program primarily supports construction of public water system facilities (sources, treatment, distribution, storage, and new meter installation). Funding is also available for planning activities including feasibility studies and final engineering design.

  • Is my system eligible for grant funding?
    Grant funding is always subject to the availability of funds, and you must meet both of the following criteria to potentially receive grant funding:
    1. Serve a disadvantaged or severely disadvantaged community
    2. Be a publicly-owned system or a not-for-profit water company (Mutual Water Company)
    While eligible severely disadvantaged systems can receive 100% grant funding, eligible disadvantaged systems can only receive up to 80% grant funding depending on an analysis of their loan affordability. SDWSRF will need to review a full application to perform the affordability analysis.

    Note:
    Water systems that receive 100% grant will be required to perform a water rate study.
    All public schools are automatically eligible for 100% grant.
    Privately-owned water systems (i.e. mobile home parks, churches, schools, etc.) cannot receive grant funds despite their income status. However, grant-eligible systems can potentially receive grant funding for consolidating a private system.

  • What is considered a disadvantaged community? A severely disadvantaged community?
    SDWSRF compares a system's median household income (MHI) to that of the statewide MHI. Systems with an MHI less than 80% of the statewide MHI are considered disadvantaged while systems with an MHI less than 60% of the statewide MHI are considered severely disadvantaged.

  • What are the SDWSRF loan terms?
    The interest rate for non-disadvantaged communities is 50% of California's general obligation bond rate with a maximum repayment term of 20 years. Any loan issued to a disadvantaged community will come with a zero percent interest rate. A disadvantaged community can request a repayment term of 30 years depending on loan affordability.

  • What is the maximum amount that can be funded by the SDWSRF? Is there a limit on my grant? (Per project, per water system)
    The SDWSRF program offers two types of project funding, planning and construction. Planning funding is limited at a maximum of $500,000 per project and can be offered as grant, loan, or a combination of both depending on eligibility. Construction funding is limited at $20M per project and $30M per system per year. However, an applicant may be awarded up to the full cost of a project in the form of a loan bearing interest at the established rate. Grant is limited to $3,000,000 per construction project per water system but the grant amount may be determined to be lower based on affordability. In addition, all funding are subject to funds availability.

  • Can I apply to get reimbursed on my ongoing construction project?
    No. Construction project applications would have to be reviewed and approved by SDWSRF program prior to starting construction to ensure that all applicable SDWSRF requirements are satisfied.

  • Can I get funding to re-finance a completed project?
    No, SDWSRF cannot fund refinancing of a completed project.


Universal Pre-Application (UPA)


Project Priority List (PPL)