Economically Distressed Areas Program (EDAP)

EDAP Program Information Sheet

1. What can the program do for you?

The Economically Distressed Areas Program (EDAP) provides financial assistance to provide water and wastewater services to economically distressed areas where services do not exist or systems do not meet minimum state standards.

2. Who can borrow?

Eligible applicants for the EDAP include cities, counties, water districts, nonprofit water supply corporations, and all other political subdivisions.  The city or county where the project is located must adopt Model Subdivision Rules for the regulation of subdivisions prior to application for financial assistance.  Projects must also be located in an economically distressed area where the median household income that is not greater than 75% of the median state household income.  (See Special Requirements below)

3. What types of projects can I use the loan funding for?

Financial assistance from the EDAP can be utilized for:

  • planning,
  • land acquisition,
  • design, and
  • construction of first-time service or improvements to water supply and wastewater collection and treat-ment works
4. Are loans and grants offered?

Yes, the EDAP program provides financial assistance in the form of a grant or a combination grant/loan depending on the project’s phase (planning, acquisition and design (PAD) or construction).  Applicants seeking funding for the PAD phase can obtain 50% - 100% of the financial assistance in the form of a grant.  Applicants seeking funding for the construction phase of a project may obtain a combination grant/loan.  The amount of the loan is determined by a grant-to-loan calculation which is based on either the applicant's existing capital component or on regional benchmarks.

State law requires a determination of an existing health and safety nuisance issued by the Texas Department of State Health Services for grant funding greater than 50% from the EDAP.  Board staff will process request for nuisance surveys for EDAP applicants once eligibility determinations have been made.

Current interest rates are available.

5. What project components can I receive funding to complete?

The EDAP provides planning, acquisition, design (PAD) and construction phase funding for projects that have been determined eligible for the program.  Funding is available in a two (or more) phase application process.  PAD phase activities must be completed, and approved by Board staff, prior to consideration of an application for construction phase funding.

6. How much funding is available?

The 82nd Texas legislature provided $50 million for the EDAP program during the 2012-2013 biennium.  The TWDB will work with an applicant to establish a financial assistance plan for planning, design, acquisition, and construction.  TWDB staff will also work with the applicant to help secure joint funding by the EDAP and other financial assistance programs available through the TWDB and other state and federal agencies.

For up to date funding availability, please contact Mireya Loewe at (512) 475-0590.

7. When can I apply?

The first step in the application process is to schedule a pre-application conference with TWDB staff.  The purpose of the conference is to discuss the proposed project and receive any needed guidance and assistance.  Requesting a pre-application conference does not in any way obligate an applicant to continue the process.

Second, the applicant will complete a financial assistance application for planning, acquisition, and design for the proposed project.  An application for financial assistance for project construction funding requires all planning, acquisition, and design to be completed and approved by TWDB staff.

8. What are the Conditions of Financial Assistance?

For detailed information of the Conditions of Financial Assistance

9. Where can I find more information regarding the financial assistance application?

Interested applicants will need to complete a financial assistance application for agency review and Board approval.  For more information, contact Mireya Loewe at (512) 475-0590.

Special Requirements?

Financial assistance provided through the EDAP requires compliance with applicable rules, policies, and statutes including:

  • Projects must be located in economically distressed areas and meet characteristics including:
    • Median household income less than 75% of the median state household income,
    • Present facilities are inadequate to meet residents' minimal needs,
    • Financial resources are inadequate to provide water supply or sewer services to satisfy minimal needs, and
    • The area was an established residential subdivi¬sion as of June 1, 2005.
  • The city or county where the project is located must adopt model Subdivision Rules for regulating subdivisions prior to applying for financial assistance.  These rules must be consistent with the model rules adopted by the TWDB,
  • The applicant must apply for and maintain a designation by the Texas Commission on Environmental Quality as an authorized agent for regulating onsite waste disposal facilities,
  • The county must also prepare a map that shows where different types of on-site sewage disposal systems are appropriate,
  • The applicant, or its designee, must be capable of maintaining and operating the completed system.  The applicant is responsible for securing any necessary water permits or rights, wastewater discharge permits, and any other required licenses, and
  • If the applicant is required under Chapter 13 of the Water Code to have a Certificate of Convenience and Necessity (CCN) in order to provide service to the proposed project area then to be considered for EDAP funds, the applicant must have or be applying for the CCN.

Loan Process

Application Process