Rural Decentralized Water Systems Grant Program in Michigan

The Rural Decentralized Water Systems Grant Program helps qualified nonprofits and tribes create revolving funds to provide loans and sub-grants to low- and moderate-income rural residents. The primary goal of the program is to assist homeowners in financing the construction, refurbishment, or replacement of individually owned decentralized water and wastewater systems, including private drinking wells and septic systems.

To be eligible, applicants must be certified nonprofit organizations or recognized tribes with demonstrated capacity to administer revolving funds and deliver technical assistance to rural communities. Individual ultimate recipients must own and occupy the home being served, have a household income not exceeding 100 percent of the state nonmetropolitan median household income, and reside in an eligible rural area.

Projects are eligible if they directly address the construction, repair, or replacement of decentralized drinking water wells or wastewater systems that protect public health and the environment. Grant recipients must establish revolving funds providing loans with interest rates up to one percent and terms up to 20 years, or direct sub-grants where authorized.

Applicants must prepare and submit their applications electronically through Grants.gov or directly to the USDA Rural Development Michigan State Office. Applications require standard federal application forms, documentation of nonprofit or tribal status, a detailed narrative describing administrative capacity and community need, a proposed operating budget, and commitment letters for the required 10 percent non-federal matching funds.