H2O PA – Flood Control Projects

The H2O PA Flood Control Program is administered by the Commonwealth Financing Authority under the Pennsylvania Department of Community and Economic Development. Established through the H2O PA Act of 2008, the program is designed to support infrastructure investments that mitigate flood risks across the Commonwealth. The program provides financial assistance in the form of grants for projects that improve, construct, or rehabilitate flood control systems, with the goal of protecting communities, businesses, and public assets from recurring flood damage. It reflects a broader statewide commitment to environmental resilience, infrastructure modernization, and public safety. The primary objective of the program is to fund projects that address significant flood hazards and demonstrate measurable benefits in reducing damage and improving community resilience. Eligible projects include construction or rehabilitation of flood control systems such as levees, floodwalls, detention dams, and channel improvements. Non-structural measures may also be supported when they contribute to flood mitigation. Projects must demonstrate a clear need, including documented history of flooding and economic justification based on cost-benefit analysis comparing project costs to anticipated reductions in flood damage. Funding may be used for a range of project-related costs including construction, engineering and design, inspections, permitting, and administrative expenses within specified limits. Design and engineering costs are capped at 10 percent of the grant award, while administrative costs may not exceed 2 percent. Contingency costs are limited to 5 percent of construction costs. Certain expenses are explicitly ineligible, including financing fees, interest, lobbying, fines, and costs incurred prior to grant approval. Applicants are also responsible for providing easements, rights-of-way, and ongoing operation and maintenance of completed projects, indicating a form of cost-sharing through in-kind contributions and long-term responsibilities. Eligible applicants include the Commonwealth of Pennsylvania, independent state agencies, municipalities such as cities and counties, and municipal authorities. The program requires that applicants demonstrate readiness, including securing necessary permits and ensuring alignment with local planning documents. Applications must include extensive technical documentation such as engineering feasibility studies, cost estimates, construction drawings, and proof of permits. Additional requirements include documentation of matching funds commitments, land acquisition details, and formal resolutions from governing bodies authorizing the application. The application process requires submission through the Department of Community and Economic Development’s Electronic Single Application system. Applicants must complete the online submission, upload all required supplemental materials, and submit physical copies to the agency. A non-refundable application fee of 100 dollars is required prior to submission. Applications are reviewed competitively based on criteria such as the number of beneficiaries, severity of flood risk, cost-effectiveness, project readiness, and compliance with regulatory requirements. Evaluation of applications is conducted by the Commonwealth Financing Authority in coordination with relevant state agencies. Projects are assessed on their ability to mitigate severe flooding, benefit multiple municipalities, and demonstrate readiness for construction. Additional considerations include compliance with environmental regulations, alignment with local planning efforts, and the applicant’s financial capacity to complete the project. Successful applicants receive a grant agreement and must execute it within 45 days to secure funding. The program does not specify fixed application cycles in the provided guidelines, but operates based on available funding rounds. Grant awards range up to 20 million dollars per project, with a minimum project cost threshold of 500,000 dollars. Funding may be structured as single-year or multi-year grants. Following approval, recipients must adhere to strict reporting, recordkeeping, and compliance requirements, including adherence to prevailing wage laws and nondiscrimination policies. Program inquiries are directed to the Department of Community and Economic Development, which provides contact information for technical and administrative support.

Focus on demonstrating severe flood risk, cost-effectiveness, and project readiness with complete engineering documentation