Financial and Construction Assistance Program

The Virginia Department of Health Office of Drinking Water administers the Financial and Construction Assistance Program as part of the broader Drinking Water State Revolving Fund program. This program is designed to support drinking water infrastructure improvements across the state, with a particular emphasis on addressing public health concerns, regulatory compliance, and long-term system sustainability. The Construction Grant component is specifically targeted toward waterworks that meet disadvantaged community criteria, allowing these systems to receive grant funding in addition to or instead of traditional loan financing. The primary purpose of the Construction Grant is to fund capital improvement projects that improve drinking water quality, ensure compliance with the Safe Drinking Water Act, and address acute or chronic public health risks. Eligible projects may include waterline replacements, treatment system upgrades, storage improvements, and other infrastructure necessary to maintain safe and reliable drinking water systems. The program prioritizes projects that directly address health-based violations or compliance issues, with additional consideration given to affordability and system capacity. Funding under the Construction Grant is not universally available to all applicants but is reserved for waterworks that qualify as disadvantaged based on criteria such as median household income or water rate burden. Specifically, systems serving populations with median household incomes at or below 80 percent of the state median, or those with water rates exceeding established affordability thresholds, may be considered eligible for grant assistance. The program may combine grants with low-interest loans, depending on project needs and financial capacity. Applications for construction funding must follow a structured submission process that includes completion of the official Application for Construction Funds, along with extensive supporting documentation. Applicants are required to submit a Preliminary Engineering Report that has been approved or formally waived by the Office of Drinking Water prior to submission. In addition, a Preliminary Engineering Conference may be required and must be completed in advance of the application deadline. Applicants must also provide documentation of financial audits, project schedules, engineering details, and evidence of compliance or health-related issues being addressed. The application deadline for the current funding cycle is August 7, 2026, with all submissions required to meet specific timing requirements based on delivery method. Applications may be submitted electronically via email or physically via mail or hand delivery. Although applications are accepted year-round, only those received by the deadline will be considered in the annual evaluation round. The program evaluates all eligible applications at one time per year using criteria such as public health impact, readiness to proceed, affordability, and system sustainability. Funding decisions are based on a competitive evaluation process outlined in the Program Design Manual, and selected projects may receive funding through a combination of sources, including the Drinking Water State Revolving Fund and other state or federal allocations. The anticipated total funding available for construction-related projects is approximately fifteen million dollars, although final amounts depend on federal allocations. Applicants are encouraged to plan for multi-year infrastructure needs and may submit projects covering several years of anticipated improvements. Program oversight and communication are managed by the Office of Drinking Water, with designated staff available to assist applicants throughout the process. Key contacts include program leadership and project officers who can provide guidance on eligibility, application requirements, and compliance expectations. Overall, the Construction Grant serves as a critical funding mechanism for disadvantaged communities seeking to improve drinking water infrastructure while maintaining affordability for residents.

Prioritize completion of required engineering reports and audits before applying; ensure project readiness milestones are met; clearly document public health or compliance issues; demonstrate disadvantaged status through income or rate data