CCDBG Water and Sewer Fund

The Community Development Block Grant Water and Sewer Fund makes approximately $13 million in federal Community Development Block Grant funds available annually to eligible cities and counties through the State of Iowa. The competitive program supports community development and critical public infrastructure needs related to water and sewer systems. Projects may address drinking water sources, water distribution, wastewater collection and treatment, and related public critical infrastructure. Communities may apply for a maximum award of $500,000. Eligible applicants are all incorporated cities and all counties in the State of Iowa except those designated as HUD entitlement areas. To qualify for funding, at least 51 percent of the residents served by the proposed project must be low- to moderate-income beneficiaries. For purposes of the CDBG program, low and moderate income means persons with incomes at or below 80 percent of area median income as defined by the U.S. Department of Housing and Urban Development. Current income levels are available through the Iowa Economic Development Authority CDBG program guidance website. No matching or cost-share requirement is stated in the provided opportunity information. Applicants should account for applicable federal compliance requirements when developing project scopes and budgets. CDBG contracts may be subject to federal audit requirements under 2 CFR 200. Recipients expending $750,000 or more in federal funds during a fiscal year must have a single or program-specific audit as applicable. Organization-wide audit costs may be paid with CDBG funds in proportion to the federal funds included in the audit, while the total cost of an eligible project audit may be paid with CDBG funds. Communities are advised to consult their accountants regarding audit applicability and requirements. Construction projects may also be subject to the Davis-Bacon Act and related laws and regulations. The Davis-Bacon Act applies to contracts for construction, alteration, or repairs in excess of $2,000 that involve CDBG funds, and project cost estimates should reflect compliance. Projects involving acquisition or relocation must follow applicable requirements under the Uniform Relocation Assistance and Real Property Acquisition Policies Act and HUD Handbook 1378. Federally funded activities are also subject to Section 106 historic preservation review. IEDA conducts this review and may consult with the State Historical Preservation Office and other agencies, groups, or individuals. Applicants developing projects involving property that may have historical significance are encouraged to contact IEDA early in project development. Environmental approval is required before project funds are committed or choice-limiting activities begin. No HUD or non-HUD funds may be committed to the project until the applicant has secured environmental approval from the State as provided under 24 CFR Part 58. Pending that approval, grant recipients and other participants, including contractors and subcontractors, may not undertake activities that could limit reasonable alternatives. Examples identified by the program include real property acquisition, competitive sealed bidding, leasing, rehabilitation, repair, demolition, conversion, and new construction. Applicants should therefore incorporate applicable environmental, historic preservation, labor, acquisition, relocation, and audit requirements into project planning and cost estimates. Applications are submitted through WebGrants. Existing WebGrants users may log in to apply, while applicants that are not registered must register for an account. Applications are accepted and reviewed on a semi-quarterly basis during the first and second quarters identified by the program for each calendar year. For 2026, the first application round opened March 18, 2026 and closed May 22, 2026. The second round opened July 1, 2026 and has a final application deadline of September 1, 2026 at 11:59 PM. Awards are typically announced within 60 days after an application round closes. The posted award announcement date for the current opportunity is October 15, 2026, and the stated project period is October 15, 2026 through May 22, 2029. The opportunity is expressly identified as recurring. The listed Program Officer is Chad Sands, who may be reached at 515-348-6208. For information specifically concerning the Water and Sewer program and its applicable requirements, applicants may contact CDBG@IowaEDA.com or 515-348-6241. Questions concerning Section 106 review and compliance may be directed to IEDA at 515-348-6205. Applicants should ensure that the proposed project satisfies the 51 percent low- to moderate-income beneficiary threshold, accurately budgets for applicable federal compliance obligations, and does not begin prohibited project activities before receiving the required environmental approval.

Confirm that at least 51 percent of residents served by the project meet the low- to moderate-income requirement; budget for applicable audit and Davis-Bacon compliance costs; account for acquisition relocation and historic preservation requirements when applicable; do not commit HUD or non-HUD funds or undertake choice-limiting activities before State environmental approval