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
  • construction of first-time service or improvements to water supply and wastewater collection and treatment 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 TWDB, prior to consideration of an application for construction phase funding.

6. How much funding is available?

The 84th Texas Legislature provided $50 million for the EDAP program during the 2016-2017 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.

7. When can I apply?

The first step in the application process is to schedule a pre-application conference with your Regional Project Implementation Team. 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

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
    • The area was an established residential subdivision 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
  • 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
  • Water supply projects must be consistent with the current TWDB State Water Plan
  • Entities receiving assistance greater than $500,000 must adopt a water conservation and drought contingency plan
  • U.S. Iron and Steel Manufactured Goods requirements
  • Review of legislative requirements regarding water loss threshold limits

Loan Process

Application Process

Where Can I Get More Information?

In order to provide you with a single point of contact at the Texas Water Development Board (TWDB), our project implementation staff is organized into six regional project implementation teams. Each team is led by a manager that serves as the primary point of contact for both our existing and future customers. For assistance with the application or any questions related to your project, please contact your Regional Project Implementation Team.