Rural Decentralized Water Systems (DWS) Program - FY 2025
Agency: | U.S. Department of Agriculture |
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CFDA: | 10.862 |
Federal FON: | RDRUS-25-DWS |
Office: | Rural Development (RD) Rural Utilities Service (RUS) Water and Environmental Programs |
Multipart Grant: | No |
Next Due: | 03/03/2025 (Application) |
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Solicitation Date: | 01/01/2025 |
Match Required: | Yes |
Match Type: | Cash |
Actual Funds: | $5,000,000 (Estimated) |
Summary:
The purpose of this program is to support projects in creating revolving loan funds that will help individuals with low to moderate incomes finance the costs of household water well systems and individually owned decentralized wastewater systems that they own or will own. Applicants should consider energy efficiency, resiliency, and water reuse technologies. Loans may be used to construct, refurbish, and service a household water well or decentralized wastewater system up to the point of entry to the residence. In certain circumstances where ground well water contamination is documented, funding may be used to complete work beyond the point of entry to the residence.
Ultimately, the program is intended to increase access to safe, reliable water and septic systems for households in rural areas. Projects must be located in rural areas and towns with populations of 50,000 or less, tribal lands in rural areas, or colonias.
Award recipients may make loans of up to $15,000 that will have a term of up to 20 years at a 1 percent annual interest rate. Where necessary, up to 50 percent of the awarded funds may be used as a grant.
Eligible loan recipients must meet the following criteria:
- Be individuals that are members of a household in which the combined household income of all members does not exceed 60 percent of the median non-metropolitan household income for the state or territory in which the individual resides
- Own and occupy the home being improved or be purchasing the home to occupy under a legally enforceable land purchase contract that is not in default by either the seller or the purchaser
Priorities for this program include:
- Creating more and better market opportunities: assisting rural communities recover economically through more and better market opportunities and through improved infrastructure
- Addressing climate change and environmental justice: reducing climate pollution, and increasing resilience to the impacts of climate change through economic support to rural communities
- Advancing racial justice, place-based equity, and opportunity: ensuring that all rural residents have equitable access to funding agency programs and benefits from projects funded by the funding agency
Eligibility Notes:
Eligible applicants are private, nonprofit entities that have:
- Expertise and experience promoting the safe, productive use of individually owned household water wells systems
- Legal authority to act as a lender
- Sufficient expertise and experience in lending activities
- Financial, technical, and managerial capacity to comply with relevant federal and state laws and regulations
Projects must be located in rural areas and towns with populations of 50,000 or less, tribal lands in rural areas, or colonias.
Prior awards cannot be renewed; however, previous award recipients are eligible to apply for new projects.
Non-tribal applicants proposing to serve households on tribal lands must submit a tribal resolution of support with their application from the tribe, or tribes, that have jurisdiction over those lands.
Additional consideration will be given to projects that benefit a Rural Partner's Network's (RPN's) community network. Refer to page 9 of the NOFA file for information regarding states where RPN community networks exist.
Previous award recipients include:
- Communities Unlimited (AR)
- Golden Triangle Research Conservation and Development (GA)
- Newcap, Inc. (WI)
- Southeast Rural Community Assistance Project, Inc. (VA)
- Water Well Trust, Inc. (NC)
Refer to the Award file for additional information about previous award recipients.
Eligible Applicants:
Non ProfitsTribal Organizations/Institutions
Application Notes:
Applications must be submitted by 11:59 p.m. ET on March 3, 2025.
Prior to application submission, applicants are encouraged to contact the program staff, using the information provided in the Contact section.
Applications must be submitted online at www.ecivis.com/grants.gov. Hard-copy, faxed, or emailed submissions will not be accepted.
Applications must include:
- SF 424
- SF 424A
- SF LLL
- RD 400-1
- Project proposal:
- Project summary
- Needs assessment
- Project goals and objectives
- Project narrative
- Work plan
- Budget and budget justification
- Evidence of legal existence
- List of board of directors and officers
- Documentation of tax-exempt status
- Audit
- Financial statements
- Other organizational documents (if applicable)
- Additional information, such as letters of support, resolutions, and policies (if applicable)
Application file names may not exceed 50 characters.
The following are required in order to submit an application:
- Unique Entity Identifier (UEI) number
- SAM (System for Award Management) registration
Applicants may obtain a UEI number and verify or renew SAM registration status at www.ecivis.com/sam.
Applications will be evaluated using the following criteria:
- Degree of expertise and experience in promoting the safe and productive use of an individually owned household water well system, wastewater treatment system, and groundwater (30 points)
- Degree of expertise and successful experience in making and servicing loans to individuals (20 points)
- Percentage of matching contributions (20 points)
- Extent to which the work plan demonstrates a well-thought-out, comprehensive approach to accomplishing the objectives of this program; clearly defines who will be served by the project; and appears likely to be sustainable (20 points)
- Extent to which goals and objectives are clearly defined, tied to the need as defined in the needs assessment, and are measurable (10 points)
- Lowest ratio of projected administrative expenses to loans advanced (10 points)
- Administrator’s discretion (10 points):
- Creating more and better market opportunities
- Advancing racial justice, place-based equity, and opportunity
- Addressing climate change and environmental justice
Refer to pages 9-10 of the NOFA file for additional information regarding the program's priority considerations and application evaluation criteria.
Refer to the NOFA and Guide files for additional application information.
Match Required: | Yes |
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Match Type: | Cash |
Actual Funds: | $5,000,000 (Estimated) |
Match Notes:
Applicants must provide at least 10 percent of project costs via cash contributions. Applicants that provide more than the minimum required match will be awarded additional points based on the match percentage during the application evaluation process, as detailed on page 11 of the Guide file. Matching funds may originate with the applicant or a third party.
Matching requirements only apply to awards funds that are then used as revolving funds, and do not apply to subawards.
In-kind contributions may not be used as match.
Funding Notes:
An estimated $5 million is available to support awards through this program.
Funding will be provided on a reimbursement basis.
Awards are anticipated to be announced on September 30, 2025.
The project period will begin on October 1, 2025, and end on September 30, 2026.
Administrative expenses incurred in any calendar year are limited to 10 percent of the total amount of the DWS loans made by the applicant during the same period. Applicants that propose lower ratios of project administrative expenses to loans advanced will be awarded additional points during the application evaluation process.
Funds may not be used for expenses incurred in developing applications or pre-award administrative expenses.
For FY 2024, six awards were issued through this program. Refer to the Award file for details.
Contacts:
Lola Maratita
Community Programs Specialist
(615) 714-8883
Water-RD@usda.gov
Dolores.Maratita@usda.gov
Agency Address
United States Department of Agriculture (USDA)
Rural Development (RD)
Rural Utilities Service (RUS)
STOP 1510, Rm. 4121-S
1400 Independence Ave., SW
Washington, D.C. 20250-1510
Contact Notes:
Questions should be directed to Lola Maratita, or to the appropriate state office of the funding agency listed online at www.rd.usda.gov.
Applications must be submitted online at www.ecivis.com/grants.gov.
The agency address provided is for reference purposes only.
Files:
NOFA File: US4964_NOFA_FY2025.pdf (312.4 Kb)Guide File: US4964_Guide_FY2025.pdf (236.4 Kb)
Award File: US4964_Award_FY2025.pdf (179.6 Kb)
Other Pre-Award File: US4964_Overview_FY2025.pdf (153.9 Kb)
Other Pre-Award File: US4964_FactSheet_FY2025.pdf (160.8 Kb)
Other Pre-Award File: US4964_ProgramRules_FY2025.pdf (87.6 Kb)
File Notes:
The NOFA file contains the full solicitation for this program. The Guide file contains additional program information and detailed application instructions. The Overview file contains general program information. The FactSheet file contains a brief description of the program. The ProgramRules file contains the federal rules that govern this program. The Award file contains information on previous award recipients.
Grant Keywords
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Community DevelopmentHealth, Prevention/Treatment
Rural Issues
Human Services
Wastewater
Water Supply/Quality