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Drinking Water Funding Program Details


2017 Funding Solicitation Information and Package Contents

NEW or CONTINUED for 2017

  1. Construction Loans: Deadline 4PM on April 1, 2016. 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.
  1. PER Requirement Revised: The requirement to have a Preliminary Engineering Report (PER) drafted and submitted with the construction application has been revised. 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 15th. Call the appropriate ODW Field Office to schedule your PEC as early as possible preferably before any project procurement.
  1. 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.
  1. Refinance Loans – Rates Near Historic Lows: Deadline 4PM on April 1, 2016. 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.
  1. 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 2016, 2015, 2014 and 90% in 2013.
  1. Project Requirements: Applicants should expect the following requirements will apply for SRF construction projects: Davis-Bacon Wages, American Iron and Steel, and EPA Site Signage.
  1. Waterline extension projects to serve failing private wells: VDH has revised the category from Acute to Public Health for these types of projects. VDH will limit grant funding to a maximum of $12,500 per residential connection.
  1. Planning and Design Grants (SRF & WSAG): Planning and Design grant applications for review and award will be accepted on a year-round basis. Priority will be given to Acute and Chronic Health needs. Additional projects will be considered based on the availability of funds. In an effort to increase owner participation and contain program costs, a local match is required for all projects that exceed $25,000. The minimum match to be provided will account for 20% of the additional project funds needed above the first $25,000 (cost share of 75% VDH and 25% local funds). Application deadlines are:
  • April 1, 2016 for round one, and
  • September 1, 2016 for round two.
  1. Capitalization Grant Amount: VDH expects approximately $15 million will be available to Virginia under the 2017 DWSRF Capitalization Grant. As a result, VDH intends to award at least $25 million in DWSRF construction projects.
  1. 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.

  1. Application Workshops –
    • Henrico - March 2, 2016
    • Suffolk Area - March 3, 2016
    • Culpeper - March 4, 2016
    • Danville - March 7, 2016
    • Abingdon - March 8, 2016
    • Lexington - March 9, 2016
  2. Announcement letter
  3. DWSRF program manual
  4. WSAG program manual
  5. Refinance loan application – PDF | Word
  6. Construction funds application – PDF | Word
  7. Instructions for completion of construction funds application
  8. Set-aside suggestion form – PDF | Word
  9. 1452K Source Water Protection Initiative application – PDF | Word
  10. Planning & Design grant application – PDF | Word
  11. Fact sheet MBE/WBE Requirements
  12. Certification Regarding Lobbying
  13. Building Financial Sustainability/Financial Health Indicators
  14. Construction Project Schedule
  15. Cash Flow Template

Last Updated: 12-30-2015

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