CA AB277

Authorizes the State Water Resources Control Board to establish the Water and Wastewater Loan and Grant Program to provide funding for drinking water and wastewater treatment projects, subject to available funding.

Counties or qualified nonprofit organizations may apply for grants to award loans or grants to eligible applicants for purposes including extending service lines, paying connection fees, abandoning septic tanks, improving water wells, and installing water treatment systems.

Eligible loan applicants must have household income at or below 120 percent of statewide median household income, own their residence or small water system, be unable to obtain private financing, and demonstrate ability to repay; loans carry a maximum 3 percent interest rate and 10-30 year repayment terms.

Eligible grant applicants must meet the same income and ownership requirements as loan applicants; grant recipients must repay the full grant amount if they sell or transfer ownership of the property within five years of the grant agreement.

Counties and nonprofit organizations receiving funding must annually report to the state board on the number and types of loans and grants awarded, project costs, and demand for additional funding.