Drinking Water Funding Program Details

Funding Solicitation Information and Package Contents


  1. Workshop by Webcast: VDH will offer a funding informational meeting via webcast. The workshop will be recorded for future play back.  The time and date for the webcast is 1PM on February 20.   The sign-up link is provided on the bottom of this webpage.
  2. Construction Loans: Deadline 4PM on April 1. Applications should apply for all infrastructure projects they are considering over the next four or five year period. VDH is in a position to fund large capital improvement projects (upwards of $10 million). Very large projects may need to be phased. The typical loan has an interest rate ranging from 1.5% to 2.5% with a 20-year term and 2.3% to 3.0% for a 30-year term.
  3. Small Construction Projects: VDH reserves the right to limit 100% PF small construction projects to one per waterworks owner once every three years.
  4. Lead Service Line (LSL) Replacement Program: Deadline 4PM on April 1. In an effort to accelerate the removal of lead exposure to drinking water the DWSRF Program has made funding available for the complete removal of the public and/or private portion of the LSLs. In conjunction with other available funds this program intends to provide up to $5,000 dollars as grant funds (of which up to $500 may be eligible as an admin fee) for each service line replaced on the homeowners side of the meter.   The LSL includes pipe entry into the structure (up to and including a shut off valve) but excludes the premise plumbing.
  5. PER Requirement Revised:  The requirement to have a Preliminary Engineering Report (PER) drafted and submitted with the construction application was revised in 2017.  The submission (or waiver) of the PER may be made a condition of the award.  VDH believes this will allow greater flexibility in the Program and may allow the funding of the PER as part of the construction award.  A Preliminary Engineering Conference (PEC) is required.  VDH expects the PEC to be scheduled before February 15.  Call the appropriate ODW Field Office to schedule your PEC as early as possible preferably before any project procurement.
  6. Design Build: In an effort to better serve our waterworks owners the DWSRF Program has made revisions to accommodate Design Build and other alternative project delivery methods. If you are interested please contact the DWSRF Director or Supervisor as early as possible to ensure you will meet our procurement requirements for the Design Build team.
  7. Refinance Loans; Rates Near Historic Lows: Deadline 4PM on April 1. Given the extremely low interest rates VDH is encouraging publically-owned systems to consider refinancing local debt obligations related to drinking water infrastructure where construction was started and debt was incurred after July 1, 1993.   The typical loan has an interest rate ranging from 1.5% to 2.5% with a 20-year term however; a 30-year term may be available for disadvantaged.  A separate application form has been developed for loan refinance applications.  See the application for qualifications.
  8. Improved Funding Chances: All waterworks owners with eligible projects are encouraged to apply. VDH’s Program was able to offer funding to all eligible construction projects with completed applications in state fiscal years 2018, 2017, 2016, 2015, and 2014.
  9. Planning and Design Funds : Planning and Design Fund applications will be accepted on a year-round basis. Priority will be given to Acute and Chronic Health needs and additional projects will be considered based on the availability of funds. Applications for eligible projects that are received early in the year and not funded will be held until on or about September 1 when all applications that have not previously been selected for funding will be reconsidered. The maximum award for the 2018 funding cycle is $35,000 and no local match is required. All Planning and Design Funded projects must be completed within 15 months from the offer execution date.
  10. Capitalization Grant Amount: VDH expects approximately $15 million will be available to Virginia under the DWSRF Capitalization Grant. As a result, VDH intends to award at least $25 million in DWSRF construction projects.
  11. Building Financial Sustainability: One DWSRF Program Requirements is for waterworks to build long-term financial sustainability and have adequate financial capacity for additional debt for needed projects. As part of the application process VDH recommends all owners use the attached guidance information to evaluate the current financial health of their waterworks, to evaluate their ability to accept new debt, and to affect changes needed to grow revenues.  As a condition of funding VDH reserves the right to require the implementation of rate changes including but not limited to annual rate increases in an effort to build long-term financial sustainability at the waterworks.  To build waterworks financial capacity VDH intends to offer reduced interest rates (up to 25 bps) for recipients that commit to compound annual rate increases of at least 2% a year for five years as long as any additional funds generated are for the use of the waterworks.
  12. Disadvantaged Criteria Revised: In 2017, VDH revised the Disadvantaged community criteria to increase access to 30-year loan funds.  Under this revision VDH will consider target user rates based upon 1% of Median Household Income (MHI) in comparison to average monthly rates.  The Target User Rate equals 1.00% of the MHI. This revision applies to construction and refinance loans. Previous criteria for disadvantaged communities will remain in place for principal forgiveness offers.
  13. Readiness to Proceed and Timely Use of Funds: To promote readiness to proceed and timely use of funds VDH intends to offer reduced interest rates of up to 25 bps for recipients that can close loans within 12 months of the standard award date. The standard award date is the date that the majority of ODW award letters are mailed.
  14. Projects in the EVGMA only: To conserve water in the Eastern Virginia Groundwater Management Area (EVGMA) created pursuant to the EVGMA of 1992, VDH reserves the right to give precedence to water projects that do not involve withdrawal of groundwater from the coastal plain aquifer over those projects that do withdraw groundwater in the EVGMA. VDH will only apply this evaluation to any equally ranked projects when both are located in the EVGMA.


Workshop by Webcast:  VDH will offer a funding informational meeting via webcast at 1PM on February 20.  The workshop will be recorded and made available for future play back as a convenience to those who are unable to attend the live session.  If you plan to join the webcast, click the SIGN UP button (below) to register.  We will send an email with instructions to connect the day of the event.

2018 Workshop Slides

Contact Roy.Soto@vdh.virginia.gov to get a copy of the recorded webcast.


  1. Funding Announcement letter


  1. DWSRF Program Design Manual
  2. WSAG Program Guidelines

APPLICATIONSPlease note application review deadline above.

  1. Refinance Loan Application PDF | Word
  2. Construction Funds Application PDF | Word
  3. Construction Funds Application Instructions
  4. 1452K Source Water Protection Initiative Application PDF | Word
  5. Planning & Design Fund Application PDF | Word
  6. Planning & Design Fund Application Instructions


  1. Program Comment & Set-aside Suggestion Form
  2. Construction Project Schedule Excel | Word
  3. Cash Flow Template
  4. Resources Available
  5. Example Resolution
  6. Income Survey Template
  7. Factsheet MBE/WBE Requirements
  8. Certification Regarding Lobbying
  9. Building Financial Sustainability/Financial Health Indicators