Community Development Block Grants (CBDG) Water / Wastewater

The Community Development Block Grant (CDBG) Water and Wastewater Program is administered by the Missouri Department of Economic Development (DED), specifically through its Business and Community Solutions Division. The program provides financial assistance to local governments for essential public infrastructure improvements related to water treatment and distribution, as well as sewer treatment and collection. The initiative supports the development of publicly owned systems and aims to enhance public health, environmental quality, and economic development, particularly in low- and moderate-income (LMI) communities. The primary objective of this grant program is to fund construction activities for water and wastewater infrastructure that directly benefit residential areas, with at least 51% of those served being LMI individuals or households. Although improvements related to fire flow can be included, associated costs must be covered by the community. Operation and maintenance costs are explicitly ineligible for funding. Projects must be accompanied by a preliminary engineering report and demonstrate alignment with eligibility criteria and state priorities, such as having adequate rate structures for maintenance and capital improvements. Applications for the program are accepted year-round but require an invitation to apply after completing the Missouri Water and Wastewater Review Committee (MWWRC) process. This involves submitting a preliminary proposal and engineering report for interagency review, with the committee comprising members from the USDA Rural Development, the Missouri Department of Natural Resources, and the CDBG program. The maximum allowable grant request is $750,000 or $5,000 per household benefiting from the project. For communities with fewer than 100 families benefitting, the grant maximum is the lesser of $750,000 or $7,500 per family. Eligibility for the grant is limited to non-entitlement units of general local government in Missouri, which includes incorporated cities, counties, and villages that do not participate in HUD's entitlement program. Sub-applicants such as public water or sewer districts and nonprofit organizations must partner with an eligible local government sponsor. Additional eligibility requirements include being current on audits and having no unresolved grants awarded before March 15, 2018, that are still open as of March 2020. The application process is extensive and includes multiple stages, such as conducting a needs assessment, public hearing, environmental review, and assembling a complete budget package. A minimum score of 65 points is required for an application to be considered for funding, with selection criteria based on need, impact, local effort, past efforts, and regulatory compliance. Contact information for the grant includes the email mocdbg@ded.mo.gov and phone number (573) 751-3600. Applications must be submitted both electronically and in hard copy to the DED office in Jefferson City. There are no fixed application open or close dates due to the rolling nature of the program, but applicants should account for the time needed for MWWRC review and environmental compliance. Applications must also include support letters from state legislators and detailed documentation such as engineering reports, rate schedules, and intergovernmental agreements. While funding is competitive and contingent on scoring, successful applicants may receive support not only for construction but also for pre-award environmental review if procurement standards are met.

Begin environmental review early; follow procurement guidance closely to make pre-award costs eligible.