§1926c — Title 7 Agriculture | U.S. Code

Summary

The Secretary must make or back loans and give grants to rural water groups, cooperatives, public agencies, and federally recognized Indian tribes to build or fix water systems, drainage or waste disposal systems, and related community facilities when a community faces serious health risks because many people lack affordable, adequate water or waste services. Money can go only to projects that mostly serve residents of counties where per‑person income is no more than 70% of the U.S. average (per the Department of Commerce) and where the unemployment rate is at least 125% of the national average (per the Bureau of Labor Statistics), or to rural areas that were officially called colonias as of October 1, 1989. The program must give priority to serving colonias and to people who live in them. The Secretary must also make or back loans and give grants directly to people in those communities to extend lines, hook homes up, or put in plumbing. Those loans cannot charge more interest than the Federal Financing Bank rate for similar loans when made, and must be paid back over the expected life of the water or waste system. Loans to people can be made directly or through the local water provider under rules the Secretary sets. A “cooperative” here means one formed to build or run water or waste systems. Each fiscal year, up to $30,000,000 is authorized for grants, $30,000,000 for loans, and an extra $20,000,000 in grants for Indian tribes; groups eligible for grants under section 1926d cannot get money from that $20,000,000 tribal pool. The Secretary was required to issue interim rules, asking for public comments, within 30 days after October 28, 1992.

Title 7, §1926c

Agriculture — Source: USLM XML via OLRC

(a)(1)The Secretary shall make or insure loans and make grants to rural water supply corporations, cooperatives, or similar entities, Indian tribes on Federal and State reservations and other federally recognized Indian tribes, and public agencies, to provide for the conservation, development, use, and control of water (including the extension or improvement of existing water supply systems), and the installation or improvement of drainage or waste disposal facilities and essential community facilities including necessary related equipment. Such loans and grants shall be available only to provide such water and waste facilities and services to communities whose residents face significant health risks, as determined by the Secretary, due to the fact that a significant proportion of the community’s residents do not have access to, or are not served by, adequate affordable—

(A)water supply systems; or

(B)waste disposal facilities.

(2)(A)Loans and grants under paragraph (1) shall be made only if the loan or grant funds will be used primarily to provide water or waste services, or both, to residents of a county—

(i)the per capita income of the residents of which is not more than 70 percent of the national average per capita income, as determined by the Department of Commerce; and

(ii)the unemployment rate of the residents of which is not less than 125 percent of the national average unemployment rate, as determined by the Bureau of Labor Statistics.

(B)Notwithstanding subparagraph (A), loans and grants under paragraph (1) may also be made if the loan or grant funds will be used primarily to provide water or waste services, or both, to residents of a rural area that was recognized as a colonia as of October 1, 1989.

(b)(1)The Secretary shall make or insure loans and make grants to individuals who reside in a community described in subsection (a)(1) for the purpose of extending water supply and waste disposal systems, connecting the systems to the residences of the individuals, or installing plumbing and fixtures within the residences of the individuals to facilitate the use of the water supply and waste disposal systems. Such loans shall be at a rate of interest no greater than the Federal Financing Bank rate on loans of a similar term at the time such loans are made. The repayment of such loans shall be amortized over the expected life of the water supply or waste disposal system to which the residence of the borrower will be connected.

(2)Loans and grants to individuals under paragraph (1) shall be made—

(A)directly to such individuals by the Secretary; or

(B)to such individuals through the rural water supply corporation, cooperative, or similar entity, or public agency, providing such water supply or waste disposal services, pursuant to regulations issued by the Secretary.

(c)The Secretary shall give preference in the awarding of loans and grants—

(1)under subsection (a) to rural water supply corporations, cooperatives, or similar entities, or public agencies, that propose to provide water supply or waste disposal services to the residents of those rural subdivisions commonly referred to as colonias, that are characterized by substandard housing, inadequate roads and drainage, and a lack of adequate water or waste facilities; and

(2)under subsection (b) to individuals who reside in a rural subdivision commonly referred to as a colonia, that is characterized by substandard housing, inadequate roads and drainage, and a lack of adequate water or waste facilities.

(d)For purposes of this section, the term “cooperative” means a cooperative formed specifically for the purpose of the installation, expansion, improvement, or operation of water supply or waste disposal facilities or systems.

(e)(1)Subject to paragraph (2), there are authorized to be appropriated—

(A)for grants under this section, $30,000,000 for each fiscal year;

(B)for loans under this section, $30,000,000 for each fiscal year; and

(C)in addition to grants provided under subparagraph (A), for grants under this section to benefit Indian tribes (as defined in section 5304 of title 25), $20,000,000 for each fiscal year.

(2)An entity eligible to receive funding through a grant made under section 1926d of this title shall not be eligible for a grant from funds made available under paragraph (1)(C).

(f)Not later than 30 days after October 28, 1992, the Secretary shall issue interim final regulations, with a request for public comments, implementing this section.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2002—Subsec. (e). Pub. L. 107–171 added subsec. (e) and struck out heading and text of former subsec. (e). Text read as follows: “There are authorized to be appropriated— “(1) for grants under this section, $30,000,000 for each fiscal year; and “(2) for loans under this section, $30,000,000 for each fiscal year.” 1992—Subsec. (a)(2). Pub. L. 102–554 amended par. (2) generally. Prior to amendment, par. (2) read as follows: “(2) Certain counties targeted.—Loans and grants under paragraph (1) shall be made only if the loan or grant funds will be used primarily to provide water or waste services, or both, to residents of a county— “(A) the per capita income of the residents of which is not more than 70 percent of the national average per capita income, as determined by the Department of Commerce; and “(B) the unemployment rate of the residents of which is not less than 125 percent of the national average unemployment rate, as determined by the Bureau of Labor Statistics.” Subsec. (b)(1). Pub. L. 102–552, § 516(l), substituted “, connecting the systems to the residences of the individuals, or installing plumbing and fixtures within the residences of the individuals to facilitate the use of the water supply and waste disposal systems” for “or connecting such systems to the residences of such individuals”. Subsec. (f). Pub. L. 102–552, § 516(m), added subsec. (f). 1991—Subsec. (a)(2). Pub. L. 102–237 realigned margins of subpars. (A) and (B).

Statutory Notes and Related Subsidiaries

Effective Date

of 1991 AmendmentAmendment by Pub. L. 102–237 effective as if included in the provision of the Food, Agriculture, Conservation, and Trade Act of 1990, Pub. L. 101–624, to which the amendment relates, see section 1101(b)(6) of Pub. L. 102–237, set out as a note under section 1421 of this title.

§1926c Water and Waste Facility Loans and Grants to Alleviate Health Risks