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Transforming Rural Water and Sewer Communities: Unlock the Potential of the Texas Water Development Fund (DFund) Loan Program

Living in a rural water and sewer community means playing various roles to ensure the wellbeing of your neighbors. This responsibility also involves learning about different ways to enhance the quality of life for everyone around you. One such avenue is through funding programs, such as the Texas Water Development Fund (DFund) Loan Program, that can help improve water and wastewater infrastructure. Here are the key things you need to know about the DFund and how it can be beneficial for your community. 

Understanding the DFund Loan Program

The DFund is a state-funded loan program that provides funding for various water supply, treatment, and wastewater projects. The program doesn’t receive federal subsidies and is therefore free from federal crosscutters, enabling the processing of multiple components in a single loan. For instance, a single loan application can include funding for both water and wastewater components.

Texas Water Development Fund (DFund)

Who Can Apply?

DFund is available for all political subdivisions of the state and nonprofit water supply corporations. These include cities, counties, districts, and river authorities. This broad eligibility allows more rural communities to access funding and develop their water and sewer systems.

What Projects Are Eligible?

DFund can be used to finance a range of water supply, wastewater, and flood control projects. This includes the planning, design, and construction of wells, water treatment plants, distribution and transmission lines, storage reservoirs and tanks, sewer treatment plants, and collection systems, among others.

Let’s say your community needs a new water tank. The DFund can help fund its construction. Or, if your sewer treatment plant requires an upgrade, the DFund could finance that too. It’s a versatile program that can be tailored to your community’s specific needs.

DFund Loan Process

Loan Availability and Process

While the DFund doesn’t offer grants due to statutory limitations, it does provide loans at rates dependent on market conditions. These rates are designed to cover the TWDB’s costs while still providing reasonable rates for customers.

The DFund also provides a pre-design funding option, which can help communities get a head start on planning and environmental studies for their project.

You can apply at any time, with the first step being scheduling a pre-application conference with your Regional Project Implementation Team.

What Are the Requirements? 

To apply, the water supply project needs to align with the current TWDB State Water Plan. Moreover, entities receiving assistance greater than $500,000 must adopt a water conservation and drought contingency plan. 

A Real-Life Impact 

With this program, rural communities have the opportunity to enhance their water and sewer infrastructure substantially. For instance, a small town might use the DFund to upgrade its water treatment plant, resulting in cleaner, safer water for its residents. Another community might fund a new collection system, reducing the risk of untreated sewage entering local bodies of water. 

The DFund Loan Program opens doors for improvement, enhancement, and transformation within our rural water and sewer communities. By understanding and utilizing this resource, we can ensure our communities continue to thrive for generations to come. 

For further information, reach out to your Regional Project Implementation Team at the Texas Water Development Board (TWDB). Their guidance will be invaluable as you navigate the process of applying for and utilizing the DFund Loan Program to better your community.