Economically Distressed Areas Grant Program

Economically Distressed Areas Grant Program

Status: ACTIVE
Funder: Texas Water Development Board (TWDB)
Last Updated: June 11, 2025

Summary

The Economically Distressed Areas Grant Program (EDAP) offers vital financial support through grants and loans for essential water and wastewater infrastructure in economically distressed regions of Texas. This initiative aims to enhance water service availability and ensure compliance with state standards. Eligible applicants include political subdivisions and nonprofit water supply corporations, enabling them to undertake crucial projects that improve community health and safety. With a commitment of over $839 million, EDAP is poised to address pressing water needs across the state.

Overview

Economically Distressed Areas Program (EDAP) The EDAP provides financial assistance in the form of grants and loans for water and wastewater projects in economically distressed areas where service is unavailable or is inadequate to meet state standards. Projects must be located in counties that are enforcing adopted Model Subdivision Rules. Through Fiscal Year 2020, the program has committed approximately $839 million for projects across Texas. In November 2019, Texas voters approved a proposition authorizing the TWDB to issue additional general obligation bonds in an amount not to exceed $200 million for EDAP projects. Individual bond issuances are dependent on biennial legislative appropriations. The TWDB is also currently working to implement other changes to the EDAP program resulting from the 86th Legislative Session and anticipates accepting applications for financial assistance after all changes are finalized. 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. 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 and enforce 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 percent of the median state household income. What types of projects can I use the loan funding for? EDAP assistance may be utilized for: planning;land acquisition;design, andconstruction of first-time service or improvements to water supply and wastewater collection and treatment works Does EDAP provide both grants and loans? Yes. A typical EDAP funding commitment includes both a grant and a loan. The ratio is determined by a calculation that considers the median household income for the proposed project area and the political subdivision’s ability to repay the financial assistance. A public health nuisance determination from the Texas Department of State Health Services is required for grant funding greater than 50 percent. How does TWDB determine which projects receive funding? The TWDB originally funded EDAP projects on a first-come, first-served basis; however, for State Fiscal Year 2018, the TWDB used a prioritization process to identify projects to be funded from the final $53 million in bonding authority. Legislation passed in 2019 will require formal prioritization criteria for projects in areas that address public health and safety and for projects in areas under enforcement actions. How much funding is available? Constitutional bonding authority is the primary mechanism for EDAP funding. In November 2019, Texas voters approved a proposition authorizing the TWDB to issue additional general obligation bonds in an amount not to exceed $200 million for EDAP projects. What other changes have been made recently to EDAP? Other significant changes include the following: Political subdivisions are required to show they are enforcing Model Subdivision Rules;Additional application requirements for proposed water quality enhancement projects;The TWDB will develop and implement a formal prioritization system for EDAP applications;The total amount of grants may not exceed 70 percent of EDAP’s total amount of financial assistance at any time;The TWDB is allowed to use EDAP bond proceeds to support public-private partnerships; andNew program reporting requirements will be established.

Eligibility

You can learn more about this opportunity by visiting the funder's website. Eligible ApplicantsPolitical subdivisionsNonprofit water supply corporationsEligible ProjectsPlanning, design, acquisition, and construction for first-time service or improvements to water supply or wastewater collection and treatment worksProgram RequirementsProgram funding dependent upon legislative appropriationsWater supply projects must be consistent with the current state water planService area median household income can be no greater than 75% of statewide median household incomeClear documentation of system inadequaciesResidential subdivision served by the project must have been established prior to June 1, 2005 County and/or city adopted and enforced Model Subdivision RulesApplication and maintenance of authorized agent designation for regulating onsite waste disposal facilitiesApplication or possession of Certificate of Convenience and Necessity (if required by Chapter 13 of the Water Code)Segmented project fundingAdoption of a water conservation and drought contingency plan (for entities receiving assistance greater than $500,000)U.S. Iron and Steel requirementsReview of legislative requirements regarding water loss threshold limits