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Drinking Water Funding Program Details

Click Here for FY2016 Funding Workshop Presentation PDF

2016 Funding Solicitation Information and Package Contents

NEW or CONTINUED for 2016

  1. Construction and Refinance Loans: VDH will conduct one round of evaluations for applications postmarked/received by 4PM on April 1, 2015. Applications received after the deadline may be considered for funding if additional funds become available. Eligible applications may be retained in an applicant pool.
  1. Refinance loans: 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. A separate application form has been developed for loan refinance applications.
  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. Application deadlines are:
  • April 1, 2015 for round one, and
  • September 1, 2015 for round two.
  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 2015, 2014 and 90% in 2013.
  1. Project Requirements: Applicants should expect the following requirements will apply for SRF construction projects:
  • Davis-Bacon Wage,
  • 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. Disadvantaged criteria: VDH is revising the target user rate criteria and adding a financial stress indicator criterion to build long-term financial sustainability at the waterworks. The target rate will be from 1.0% of median household income (MHI) to 1.25% of MHI.
  1. Administration Fee: VDH is revising the terms of its administration fee to promote program sustainability and reduce the reliance on Set Aside funds. VDH is increasing the administration fee portion from 0.5% to 1.5% of the interest applied and adding an origination fee of $6,000 on eligible loan projects that can be added to the principal of the loan.
  1. Capitalization Grant Amount: VDH expects approximately $15 million will be available to Virginia under the 2016 DWSRF Capitalization Grant. As a result, VDH intends to award approximately $24 million in DWSRF construction projects.

Program Documentation

Solicitation Package Contents

Workshop Announcement Letters

Click Here for FY2016 Funding Workshop Presentation PDF


Drinking Water State Revolving Fund Program

Water Supply Assistance Grant Program


Refinance pdf | doc  

Construction pdf | doc

Instructions for Completion of Construction Fund Application

Construction Project Schedule (xls)

Cash Flow Templates (xls)



Planning and Design Grant pdf | doc

1452K Source Water Protection Initiative pdf | doc

Public Comment and Set-Aside Suggestion Form pdf | doc

Other Factsheets/Forms

MBE/WBE Requirements

Income Survey Form

Certification Regarding Lobbying

Resources Request Form

Last Updated: 03-20-2015

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