§ 1926c. — Water and waste facility loans and grants to alleviate health risks.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC1926c]
TITLE 7--AGRICULTURE
CHAPTER 50--AGRICULTURAL CREDIT
SUBCHAPTER I--REAL ESTATE LOANS
Sec. 1926c. Water and waste facility loans and grants to
alleviate health risks
(a) Loans and grants to persons other than individuals
(1) In general
The Secretary shall make or insure loans and make grants to
rural water supply corporations, cooperatives, or similar entities,
Indian tribes on Federal and State reservations and other federally
recognized Indian tribes, and public agencies, to provide for the
conservation, development, use, and control of water (including the
extension or improvement of existing water supply systems), and the
installation or improvement of drainage or waste disposal facilities
and essential community facilities including necessary related
equipment. Such loans and grants shall be available only to provide
such water and waste facilities and services to communities whose
residents face significant health risks, as determined by the
Secretary, due to the fact that a significant proportion of the
community's residents do not have access to, or are not served by,
adequate affordable--
(A) water supply systems; or
(B) waste disposal facilities.
(2) Certain areas targeted
(A) In general
Loans and grants under paragraph (1) shall be made only if
the loan or grant funds will be used primarily to provide water
or waste services, or both, to residents of a county--
(i) the per capita income of the residents of which is
not more than 70 percent of the national average per capita
income, as determined by the Department of Commerce; and
(ii) the unemployment rate of the residents of which is
not less than 125 percent of the national average
unemployment rate, as determined by the Bureau of Labor
Statistics.
(B) Exception
Notwithstanding subparagraph (A), loans and grants under
paragraph (1) may also be made if the loan or grant funds will
be used primarily to provide water or waste services, or both,
to residents of a rural area that was recognized as a colonia as
of October 1, 1989.
(b) Loans and grants to individuals
(1) In general
The Secretary shall make or insure loans and make grants to
individuals who reside in a community described in subsection (a)(1)
of this section for the purpose of extending water supply and waste
disposal systems, connecting the systems to the residences of the
individuals, or installing plumbing and fixtures within the
residences of the individuals to facilitate the use of the water
supply and waste disposal systems. Such loans shall be at a rate of
interest no greater than the Federal Financing Bank rate on loans of
a similar term at the time such loans are made. The repayment of
such loans shall be amortized over the expected life of the water
supply or waste disposal system to which the residence of the
borrower will be connected.
(2) Manner in which loans and grants are to be made
Loans and grants to individuals under paragraph (1) shall be
made--
(A) directly to such individuals by the Secretary; or
(B) to such individuals through the rural water supply
corporation, cooperative, or similar entity, or public agency,
providing such water supply or waste disposal services, pursuant
to regulations issued by the Secretary.
(c) Preference
The Secretary shall give preference in the awarding of loans and
grants--
(1) under subsection (a) of this section to rural water supply
corporations, cooperatives, or similar entities, or public agencies,
that propose to provide water supply or waste disposal services to
the residents of those rural subdivisions commonly referred to as
colonias, that are characterized by substandard housing, inadequate
roads and drainage, and a lack of adequate water or waste
facilities; and
(2) under subsection (b) of this section to individuals who
reside in a rural subdivision commonly referred to as a colonia,
that is characterized by substandard housing, inadequate roads and
drainage, and a lack of adequate water or waste facilities.
(d) ``Cooperative'' defined
For purposes of this section, the term ``cooperative'' means a
cooperative formed specifically for the purpose of the installation,
expansion, improvement, or operation of water supply or waste disposal
facilities or systems.
(e) Authorization of appropriations
(1) In general
Subject to paragraph (2), there are authorized to be
appropriated--
(A) for grants under this section, $30,000,000 for each
fiscal year;
(B) for loans under this section, $30,000,000 for each
fiscal year; and
(C) in addition to grants provided under subparagraph (A),
for grants under this section to benefit Indian tribes (as
defined in section 450b of title 25), $20,000,000 for each
fiscal year.
(2) Exception
An entity eligible to receive funding through a grant made under
section 1926d of this title shall not be eligible for a grant from
funds made available under paragraph (1)(C).
(f) Regulations
Not later than 30 days after October 28, 1992, the Secretary shall
issue interim final regulations, with a request for public comments,
implementing this section.
(Pub. L. 87-128, title III, Sec. 306C, as added Pub. L. 101-624, title
XXIII, Sec. 2327, Nov. 28, 1990, 104 Stat. 4015; amended Pub. L. 102-
237, title VII, Sec. 701(b), Dec. 13, 1991, 105 Stat. 1879; Pub. L. 102-
552, title V, Sec. 516(l), (m), Oct. 28, 1992, 106 Stat. 4139; Pub. L.
102-554, Sec. 24, Oct. 28, 1992, 106 Stat. 4161; Pub. L. 107-171, title
VI, Sec. 6010, May 13, 2002, 116 Stat. 357.)
Amendments
2002--Subsec. (e). Pub. L. 107-171 added subsec. (e) and struck out
heading and text of former subsec. (e). Text read as follows: ``There
are authorized to be appropriated--
``(1) for grants under this section, $30,000,000 for each fiscal
year; and
``(2) for loans under this section, $30,000,000 for each fiscal
year.''
1992--Subsec. (a)(2). Pub. L. 102-554 amended par. (2) generally.
Prior to amendment, par. (2) read as follows: ``(2) Certain counties
targeted.--Loans and grants under paragraph (1) shall be made only if
the loan or grant funds will be used primarily to provide water or waste
services, or both, to residents of a county--
``(A) the per capita income of the residents of which is not
more than 70 percent of the national average per capita income, as
determined by the Department of Commerce; and
``(B) the unemployment rate of the residents of which is not
less than 125 percent of the national average unemployment rate, as
determined by the Bureau of Labor Statistics.''
Subsec. (b)(1). Pub. L. 102-552, Sec. 516(l), substituted ``,
connecting the systems to the residences of the individuals, or
installing plumbing and fixtures within the residences of the
individuals to facilitate the use of the water supply and waste disposal
systems'' for ``or connecting such systems to the residences of such
individuals''.
Subsec. (f). Pub. L. 102-552, Sec. 516(m), added subsec. (f).
1991--Subsec. (a)(2). Pub. L. 102-237 realigned margins of subpars.
(A) and (B).
Effective Date of 1991 Amendment
Amendment by Pub. L. 102-237 effective as if included in the
provision of the Food, Agriculture, Conservation, and Trade Act of 1990,
Pub. L. 101-624, to which the amendment relates, see section 1101(b)(6)
of Pub. L. 102-237, set out as a note under section 1421 of this title.
Section Referred to in Other Sections
This section is referred to in sections 917, 6942 of this title;
title 8 section 1611.
