Economically Distressed Areas Program (EDAP)
Due to anticipated demand for EDAP funds exceeding the program’s remaining available funding capacity, the TWDB is implementing a prioritization process for the allocation of funds. All eligible applications received before the July 18, 2018 application deadline and subsequently deemed complete from entities with unfunded EDAP construction needs are being prioritized according to their readiness to proceed with construction phase activities. Criteria are based on documented progress through the categories of work outlined in WRD-023A, EDAP Facility Engineering Plan Scope of Services, and the completion of project acquisition and design.
Remaining bonding authority is estimated at approximately $53.5 million. The Executive Administrator is recommending that each project may receive no more than 25% from the remaining capacity, or $13,375,000. For this purpose, a “project” is defined as the Planning activities that describe a water or wastewater infrastructure need and identify the solution, plus the subsequent Acquisition, Design, and/or Construction activities undertaken to complete the project scope as defined in the Planning phase.
The chart below sets forth the proposed prioritization criteria and the points that may be received if the project meets the requirements of a scoring factor:
|Planning – Categories A, B, and C are completed||1 Point|
|Planning – Category D has been completed and the facility engineering plan has been approved by TWDB by the application due date||1 Point|
|Design has been completed (including all plans and specifications and acquisitions have been completed) and submitted along with the application before the application due date||1 Point|
|All acquisitions for the project have been completed (or are not required for the project) and evidence is submitted with the application||1 Point|
|Maximum Possible||4 Points|
Tiebreaker: Lowest Cost per Residential Connection
For More Information:
- EDAP Prioritization Board Memo
- Financial Assistance Application (Online Application Available!)
- Regional Project Development Teams
Frequently Asked Questions
1. What if the funding needs for my project exceed the per-project award level of $13,375,000?
When possible, projects may be phased to accommodate EDAP funding availability. Projects eligible for EDAP may also be eligible for financing through other TWDB financing programs, which offer below-market interest rates and limited principal forgiveness opportunities. TWDB staff can provide information such as cost-savings comparisons to help you develop the funding plan to complete your project. Popular EDAP alternatives that provide significant cost savings compared to open market financing include:
Applicants should include in the project budget using form TWDB-1201 the entire amount of funds needed for the project. Applicants should include in one column of the project budget the amounts needed by activity up to the limit of $13,375,000. In one or more separate columns of the project budget include the additional activities and amounts that are needed for the entire project. The application should include a description of the anticipated sources of the additional funds, which may include other TWDB financial assistance programs such as the Clean or Drinking Water State Revolving Funds.
2. Does the timing of my application submittal by the July 18 deadline make any difference?
No, applications will not be considered in the order received.
3. My project area does not have a nuisance determination from the Texas Department of State Health Services (necessary for > 50% grant commitment from EDAP), but I do have a similar determination from my local health official. Is this acceptable?
Only determinations made by the Texas Department of State Health Services will qualify a project to receive greater than 50% of its funding commitment in the form of a grant.
4. May entities that completed some or all of the Planning, Acquisition or Design (PAD) phases for an EDAP-eligible project using sources other than TWDB EDAP funds submit an application for the construction phase?
Yes, applicants seeking assistance for projects that completed their PAD phases using other non-EDAP funding sources may submit an application. The application must provide information that demonstrates the current PAD status based on the categories in TWDB’s EDAP Facility Engineering Plan Scope of Services, WRD-023A, as well as the current status of the project’s acquisition and design phases.
5. When would I be required to close on any EDAP financing?
The TWDB anticipates selling bonds to finance this assistance and due to the timing involved in the issuance of the TWDB bonds, EDAP recipients will need to close on the EDAP funds shortly after the TWDB's bond closing in winter 2018–19. Applicants whose projects are being funded from multiple sources must have all project funding in place before executing a TWDB Financing Agreement.
6. What is the current anticipated timeline for the EDAP application review, prioritization, and associated bond sale of remaining funds?
The current anticipated timeline is shown below:
|Begin Accepting Applications||5/7/2018|
|Application Due Date||7/18/2018|
|Establish funds available||Summer 2018|
|Prioritization complete||Summer 2018|
|Board Meeting: Consider Commitments||Summer/Fall 2018|
|TWDB's EDAP Bond Pricing||Winter 2018-19|
|TWDB's EDAP Bond Closing||Winter 2018-19|
|Recipient's Closing||By the deadline established in TWDB's commitment|
General Program Information
1. What can the program do for you?
The Economically Distressed Areas Program (EDAP) provides financial assistance for projects serving economically distressed areas where water or sewer services do not exist or systems do not meet minimum state standards.
2. Who can borrow?
Eligible EDAP applicants 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 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?
EDAP assistance may be utilized for:
- land acquisition;
- design, and
- construction of first-time service or improvements to water supply and wastewater collection and treatment works
4. How much funding is available?
Constitutional bonding authority is the primary mechanism for EDAP funding, and this solicitation for projects represents the last of the authority. The current EDAP bonding authority is estimated at approximately $53.5 million, which will be allocated using an objective prioritization process based on applications received by July 18, 2018. The Executive Administrator is recommending that no project may receive a commitment for greater than 25% of the remaining authority, or $13,375,000. The current application due date, prioritization system, and per-project award cap apply only to the program’s current remaining capacity.
5. When can I apply?
Applications open May 7, 2018, and are due July 18, 2018.
6. What are the Conditions of Financial Assistance?
EDAP financial assistance requires compliance with applicable rules, policies, and statutes including:
Projects must be located in economically distressed areas with 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
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.