Household Water Well System Grant Program

To make grants to private, nonprofit organizations to finance the construction, refurbishing and servicing of individually-owned household water well systems in rural areas for individuals with low or moderate income.

Agency - Department of Agriculture

Established in 1862, the Department of Agriculture serves all Americans through anti-hunger efforts, stewardship of nearly 200 million acres of national forest and rangelands, and through product safety and conservation efforts. The USDA opens markets for American farmers and ranchers and provides food for needy people around the world.

Office - Consult your local telephone directory for Rural Development local number.

If no listing, get in touch with the appropriate Rural Development State Office listed in Appendix IV of the Catalog.

Relevant Nonprofit Program Categories

Program Accomplishments

In Fiscal Year 2007, it is estimated that at least three grants totaling $990,000 will be made. At least three grants will be awarded in Fiscal Year 2008.

Uses and Use Restrictions

Grant funds will be used to establish and maintain a revolving loan fund to provide loans to eligible individuals to construct, refurbish, and service individually-owned household water well systems.

Eligible individuals must own or will own the household water well systems.

Funds may be used to pay administrative expenses associated with providing the loans.

Grant funds may not be used to pay (1) administrative expenses exceeding 10 percent of the loans made during the calendar year; (2) administrative expenses incurred before the Rural Utilities Service executes a grant agreement; (3) delinquent debt owed to the Federal Government.

Eligibility Requirements

Applicant Eligibility

An applicant must be a private organization, organized as a non-profit corporation.

The applicant must have the legal capacity and authority to perform the obligations of the grant.

The applicant must have sufficient expertise and experience in lending activities and promoting the safe and productive use of individually-owned household water well systems and ground water.

Beneficiary Eligibility

An individual in a household in which the combined income of all household members (for the most recent 12 months) does not exceed 100 percent of the median non-metropolitan household income for the State or territory in which the individual resides.


Evidence of legal capacity, economic feasibility, ability to administer and service a revolving loan fund, commitment and sources of financial resources the organization controls.

Aplication and Award Process

Preapplication Coordination

The standard application forms furnished by the Federal agency and required by OMB Circular No.


This program is excluded from coverage under E.O.


Application Procedures

The Water and Environmental Programs of the USDA Rural Utilities Service administers the program. Application Form SF-424 is filed at the National Office in Washington, DC, from which assistance may be obtained. This program is subject to the provisions of OMB Circular No. A-110.

Award Procedures

The Water and Environmental Programs staff in Washington, DC, will review and process the application. Following completion of application processing requirements and grant approval, funds are made available to the applicant.


As published in the FEDERAL REGISTER in a Notice of Availability of Funding.


Consolidated Farm and Rural Development Act, as amended, Section 306E, Public Law 107-171, 7 U.S.C. 1926e.

Range of Approval/Disapproval Time

From 30 to 90 days.


If an application is rejected, the reasons for rejection are stated fully. The applicant may request a review of this decision at the RUS National level.


Not applicable.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula. Applicants are encouraged to provide matching funds to receive scoring priorities.

Length and Time Phasing of Assistance

A time limitation is not specified for the RUS grant funds. Funds will be awarded when all RUS requirements are met and the project can be completed on a timely basis.

Post Assistance Requirements


Periodic reports are to be made to the RUS servicing official.


Periodic audits should be made as part of the recipient's system of financial management and internal control to meet terms and conditions of the grants and other agreements. Audits should be completed in accordance with the requirements of OMB Circular No. A-133, Audits of States, Local Governments, and Nonprofit Organizations or RUS requirements, whichever apply.


Records and accounts are required to reflect the project operations.

Financial Information

Account Identification



(Grants) FY 07 $990,000; FY 08 $990,000; and FY 09 est not reported.

Range and Average of Financial Assistance

$200,000 to $500,000.

Regulations, Guidelines, and Literature

7 CFR 1776, Household Water Well System Grant Program; The Household Water Well System Program: 2004 Grant Application Guide.

Information Contacts

Regional or Local Office

Consult your local telephone directory for Rural Development local number. If no listing, get in touch with the appropriate Rural Development State Office listed in Appendix IV of the Catalog.

Headquarters Office

Assistant Administrator, Water and Environmental Programs, Rural Utilities Service, Department of Agriculture, Washington, DC 20250. Telephone: (202) 690-2670.

Criteria for Selecting Proposals

RUS assistance for grant projects will be directed toward truly rural areas and rural communities. Considerations for available funds emphasize such criteria as; population, low income, unemployment; health and sanitary problems. RUS financed facilities will not be inconsistent with any development plans of the State, multi-jurisdictional area, county, or municipality in which the proposed project is located.

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