In the near future rural homeowners will be able to apply for a low-interest loan to help cover the costs of replacing or repairing their well or treating their water.The Foundation for Affordable Drinking Water, a nonprofit organization, administers low-interest loans to rural well water users, based on need, to ensure they have a safe drinking water supply. The foundation is an affiliate of the National Groundwater Association, also a nonprofit organization advocating responsible development, use and management of groundwater resources.The U.S. Department of Agriculture will fund $1 million dollars, of which 90 percent will be dispersed as loans; the remaining funds will cover administrative costs. The maximum loan amount is $8,000, with a low interest rate of 1 percent.The savings speak for the program. For example, the cost of a replacement well to a depth to 300 feet is about $3,700. And if a new pump is needed, another $1,600 is added, brining the total cost to about $5,300. At 1 percent interest over 20 years, the monthly payment would total $24.37. The total interest paid would add up to about $550.The foundation will disperse the funds over one year, which begins when the contract with the Department of Agriculture is final. Paul Humes, director of lending for the foundation, said the contract should be signed in about 30 days, at which time they will be able to accept applications.Applicants will be considered on a first-come, first-funded basis provided they meet the eligibility criteria. However, Humes said the process may eventually be “refined to prioritize applicants according to need.”Eligible applicants must live in a rural area, using their home as the principle residence. Household income can not exceed the “median non-metropolitan household income limits”. For example, in Colorado, income for a family of three could not exceed $48,510.Applicants also need to provide two years of federal income tax returns and two months of previous earnings and bank account statements, and another requirement is a squeaky clean financial history: no bills going to collection in the last 12 months, no outstanding judgments or liens and no bankruptcy in the last three years, to name a few.The loan program is intended for existing homeowners with serious problems with their well, water supply or water quality. The loan does not include the cost of hooking up to a public water supply, or cisterns, springs, ponds or locating water using a dowser or water witch. The funds can be applied to a “dry hole” (when a well is drilled but water is not found) payment, provided the water is eventually located and drilled. The loan does cover the abandonment costs of the well that is being replaced.The loan is justified by need based on an assessment by a certified well contractor. If the cost exceeds the $8,000 cap, the homeowner will be responsible to cover the excess expenses. The foundation encourages homeowners to negotiate and obtain multiple bids.The work must be completed following the application approval. “We are very sensitive to emergencies and in these situations (pump failure), the application will be processed as quickly as possible, perhaps as early as three to five days,” Humes said.Just about all failure associated with a well would likely be covered, including a collapsed well casing, insufficient production, bad wires or a failed pump. Because the goal is a safe drinking water supply, water quality costs will also be covered if it poses a health risk. Local health agency regulations will be the initial guidelines.Well water quality for private well owners is not regulated at either the federal or state level and only minimally at the local level. More than 100 contaminates related to drinking water standards are regulated by the U.S. Environmental Protection Agency. But the regulations apply to community systems, not individual wells. At the local level, the county health department requires testing for Coliform when a home is sold. Coliform represents a broad range of bacteria, including bacteria (fecal coliform) from septic systems – a primary concern.Humes acknowledged the shortfall in regulatory guidelines for drinking water quality for individual well owners. “Applications will be evaluated on a case by case basis and if a health risk is present, treatment options would be covered,” he said. The object, he added, is that the funding is provided to those whose water is unfit to drink unless it is treated, which eliminates those who are annoyed with taste or hard water.Colorado is one of 20 states eligible for the low-interest loans.If necessary, the foundation will provide a list of local contractors available to assess the wells in any given area. For a list of the contractors, the eligibility requirements and guidelines and forms, visit www.NGWA.org and select Foundation for Affordable Drinking Water.
