Chapter 6.6Water and Wastewater Loan and Grant Program

Section § 13486

Explanation

This law allows the state board to set up a program to fund various water-related projects if they have the money available. Specifically, it provides funds to extend or connect water lines to houses, pay connection fees, abandon or destroy old septic tanks and wells, fix old water wells, or install a water treatment system if the water is unsafe. The state board can create guidelines to manage this program, and they don't have to follow the usual government rulemaking process for these guidelines.

(a)CA Water Code § 13486(a) To the extent that funding is made available, the state board may establish a program in accordance with this chapter to provide funding as described in subdivision (a) of Section 13487.5 to eligible applicants for any of the following purposes:
(1)CA Water Code § 13486(a)(1) Extending or connecting service lines from a water or wastewater system to the point of entry into a residential structure.
(2)CA Water Code § 13486(a)(2) Paying reasonable charges or fees for connecting to a water or wastewater system.
(3)CA Water Code § 13486(a)(3) Paying costs to properly abandon or destroy septic tanks and water wells, as necessary, to protect health and safety as required by local or state law.
(4)CA Water Code § 13486(a)(4) Improving, rehabilitating, replacing, or repairing existing water wells, including associated equipment.
(5)CA Water Code § 13486(a)(5) Installing a water treatment system if the groundwater exceeds a primary or secondary drinking water standard, as defined in Section 116275 of the Health and Safety Code.
(b)CA Water Code § 13486(b) The state board may adopt any guidelines it determines are necessary to carry out the purposes of this chapter. A guideline adopted pursuant to this subdivision shall not be subject to the rulemaking requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
water system funding wastewater system connections septic tank destruction water well rehabilitation water treatment installation drinking water standards state board program health and safety protection local law compliance water line extension connection fees septic tank abandonment groundwater standards residential water connections
(Added by Stats. 2017, Ch. 438, Sec. 1. (AB 277) Effective January 1, 2018.)

Section § 13486.5

Explanation

This section defines two key terms related to water systems in California. A 'qualified nonprofit organization' is an organization that is experienced in helping disadvantaged communities with financial and technical support, must be allowed to operate in California, and must have tax-exempt status under federal law. A 'small water system' refers to a water system that provides piped water for human consumption to between two and 14 service connections and is not classified as a public water system.

(a)CA Water Code § 13486.5(a) As used in this chapter:
(1)CA Water Code § 13486.5(a)(1) “Qualified nonprofit organization” means an organization with experience in providing financial and technical assistance to disadvantaged communities that is qualified to operate in California and qualified for exempt status under Section 501(c)(3) of the Internal Revenue Code.
(2)CA Water Code § 13486.5(a)(2) “Small water system” means a system for the provision of piped water to the public for human consumption that serves at least two, but not more than 14, service connections and is not a public water system as defined in Section 116275 of the Health and Safety Code.
qualified nonprofit organization disadvantaged communities financial assistance technical assistance tax-exempt status 501(c)(3) Internal Revenue Code small water system piped water human consumption service connections non-public water system California operation community support water system regulations
(Added by Stats. 2017, Ch. 438, Sec. 1. (AB 277) Effective January 1, 2018.)

Section § 13487

Explanation

This law allows the state board to use an approved funding source to finance the program mentioned in this chapter. Additionally, the board must make reasonable efforts to get local funds to match state funding for the projects related to this program.

(a)CA Water Code § 13487(a) To fund the program authorized in this chapter, the state board may use a funding source that is authorized for and consistent with the purposes of this chapter.
(b)CA Water Code § 13487(b) The state board shall use reasonable and feasible efforts to secure local matching funds for the purposes of funding projects pursuant to this chapter.
state board funding matching local funds program financing funding source project funding local matching funds financing program secured funding state-funded projects local participation chapter program funding authorized funding sources funding efforts financial support for projects state and local cooperation
(Added by Stats. 2017, Ch. 438, Sec. 1. (AB 277) Effective January 1, 2018.)

Section § 13487.5

Explanation

Under this law, counties or qualified nonprofit organizations in California can apply for state grants to provide loans or grants to eligible people or projects in their area. If a nonprofit gets funding, it must be for a county that hasn't already received a grant for the same purpose. Once funded, these organizations must annually report on the number and types of loans and grants given, project costs, and the need for more funding.

The state can also advance funds to these organizations, and the usual state rules about such advances don't apply here.

(a)CA Water Code § 13487.5(a) A county or qualified nonprofit organization may apply to the state board for a grant to award loans or grants, or both, to eligible applicants in the county in accordance with this chapter. The state board may award a grant to a qualified nonprofit organization only for a county that has not been awarded a grant pursuant to this subdivision.
(b)CA Water Code § 13487.5(b) A county or qualified nonprofit organization that receives funding pursuant to this chapter shall annually provide the following information to the state board:
(1)CA Water Code § 13487.5(b)(1) The number of loans and grants awarded.
(2)CA Water Code § 13487.5(b)(2) The types of projects funded.
(3)CA Water Code § 13487.5(b)(3) Project costs.
(4)CA Water Code § 13487.5(b)(4) Whether there is demand for additional funding.
(c)CA Water Code § 13487.5(c) The state board may advance funds pursuant to an agreement with a county or qualified nonprofit organization in accordance with this chapter. Section 11019 of the Government Code does not apply to an advance made pursuant to this subdivision.
county grants nonprofit organization funding eligible applicants project funding annual reporting requirements advance fund agreement project costs demand for funding grant application process State Water Resources Control Board funding for loans nonprofit annual report state board grants qualified nonprofit county project funding
(Added by Stats. 2017, Ch. 438, Sec. 1. (AB 277) Effective January 1, 2018.)

Section § 13488

Explanation

To qualify for a loan, applicants must have an income at or below 120% of the state's median, own the property, be unable to get private loans, and show they can repay the loan possibly with a cosigner's help. Loans must be secured with collateral like a mortgage and repaid in 10-30 years with an interest rate up to 3%. Borrowers must keep homeowner's insurance. Counties can partner with private financial institutions to manage these loans.

(a)CA Water Code § 13488(a) An eligible applicant for a loan shall meet all of the following criteria:
(1)CA Water Code § 13488(a)(1) Have a household income at or below 120 percent of the statewide median household income or, for a small water system, serve households with a median household income at or below 120 percent of the statewide median household income.
(2)CA Water Code § 13488(a)(2) Have an ownership interest in the residence or small water system.
(3)CA Water Code § 13488(a)(3) Be unable to obtain financial assistance at reasonable terms and conditions from private lenders and lack the resources to undertake these improvements.
(4)CA Water Code § 13488(a)(4) Demonstrate an ability to repay the loan. This requirement may be satisfied by having another party join the application as a cosigner.
(b)CA Water Code § 13488(b) Any loan provided shall be secured by appropriate collateral, which may include a mortgage on the residence and shall be repaid within 10 to 30 years in accordance with terms established by the state board. The interest rate on the loan shall not exceed 3 percent. Throughout the useful life of the improvement, a loan recipient shall furnish evidence of and continually maintain homeowner’s insurance on the security residence to protect the state’s interest in the residence.
(c)CA Water Code § 13488(c) The county may enter into a contract with a private financial institution to provide loans consistent with the purposes of this chapter.
eligible applicants household income criteria loan securement collateral mortgage repayment terms interest rate statewide median income financial assistance cosigner homeowner's insurance requirement small water system property ownership private lenders state board terms county contracts with financial institutions
(Added by Stats. 2017, Ch. 438, Sec. 1. (AB 277) Effective January 1, 2018.)

Section § 13489

Explanation

This law explains who qualifies for a specific type of grant and the conditions involved. To be eligible, applicants must have a household income no more than 120% of the statewide median, own the property or water system they're applying for, and be unable to get financial help from private lenders on fair terms. If the grant recipient sells or transfers their property or water system within five years of the grant being issued, they must repay the grant in full.

(a)CA Water Code § 13489(a) An eligible applicant for a grant shall meet all of the following criteria:
(1)CA Water Code § 13489(a)(1) Have a household income at or below 120 percent of the statewide median household income or, for a small water system, serve households with a median household income at or below 120 percent of the statewide median household income.
(2)CA Water Code § 13489(a)(2) Have an ownership interest in the residence or small water system.
(3)CA Water Code § 13489(a)(3) Be unable to obtain financial assistance at reasonable terms and conditions from private lenders and lack the resources to undertake these improvements.
(b)CA Water Code § 13489(b) A grant recipient shall repay to the county or qualified nonprofit organization the grant amount in full if that recipient sells or transfers ownership of the residence or small water system less than five years from the date that the grant agreement was signed.
grant eligibility household income statewide median income small water system ownership interest financial assistance private lenders reasonable terms grant repayment sale or transfer residence ownership income criteria property transfer repayment grant agreement conditions nonprofit organization
(Added by Stats. 2017, Ch. 438, Sec. 1. (AB 277) Effective January 1, 2018.)