FINANCING WASTEWATER AND WATER
INFASTRUCTURE PROJECTS

​Welcome to the Funding and Support Hub. Whether you're upgrading a home system or developing community-scale infrastructure, you'll find a range of resources below to help you explore funding opportunities for water and wastewater projects across Hawaiʻi.

Individual Financing Opportunities

Resources for homeowners, tenant's and lessee's seeking support for cesspool upgrades, septic systems, or household water access.

  • ​Council for Native Hawaiian Advancement (CNHA) Loan Fund ​→ CNHA facilitates a $9 million dollar Loan Fund providing low interest access to loan capital.​​

    • Applicable to only those of Native Hawaiian descent.

    • Hawaiian Homestead Construction Renovation Loan ranges from $35,000 to $500,000. 

    • Home Repair Loan ranges from $10,000 to $35,000.

    • Funds can be utilized to upgrade wastewater and water access systems.

    Contact:
    Chris Kuaiwa
    ​info@hawaiiancouncil.org
    (808) 529-1620

  • In March 2023, the DOH launched a program that aims to help support the financial burden of low- and moderate-income property owners in converting, upgrading, or connecting their cesspools to a more environmentally friendly wastewater management system.

    Due to the limited amount of applicants that can take part in the pilot program and the long waitlist, the DOH is no longer receiving applications for the grant program. WAI advocated for the renewal of this program under Act 153 during the 2024 Legislative Session- however the bill did not pass. WAI is working hard to develop a new bill for the next session in hopes that the legislature will fund the program again next year.

    Under this program, eligible recipients can receive up to $20,000 in reimbursements for their conversion or connection costs incurred. The total grant program is $5 million, which will be allocated on a first-come, first-served basis, subject to funding availability. The priority of an application will be determined by its submission date.

    ELIGIBILITY

    To be eligible for this grant, applicants must:

    A) Be an owner of real property or a Department of Hawaiian Homelands (DHHL) lessee

    B) Have the subject cesspool located in either a priority level 1 or 2 using DOH’s map. Note: Properties within a highlighted red zone are eligible to apply.

    C) Meet the household income requirements outlined within the attached document. 

    APPLICATION REQUIREMENTS

    If you meet all the eligibility criteria, complete and submit an application to any DOH office, but if mailing, application must be sent to: Department of Health Wastewater Branch on Oahu.

    Address: State of Hawaiʻi, Wastewater Branch, 2827 Waimano Home Road, Ste 207, Pearl City, Hawaiʻi  96782

    APPLICATION PROCESS

    The Department staff will review and process the application, then notify the applicant roughly a month after receiving as to whether or not they are eligible to receive the grant.

    If your application is accepted, you will be required to submit the following documents within 9 months of receiving grant qualification letter:

    1) Design plans prepared by a licensed engineer 2) Engineers final construction inspection report 3) Copy of Approval-to-use letter of Wastewater System 4) Receipts of payments made to the licensed engineer or contractor 

    WAI is really excited about this opportunity that will support homeowners with the conversion of cesspools and provide assistance to those in greatest need. Check out our 1 pager here.

    APPLY HERE

    • Provides loans and grants to low-income homeowners in rural areas for necessary repairs, including those related to water and waste disposal systems

    • Also known as Section 504 Home Repair Program

    • Apply via the USDA website

    • More details on this info sheet

    • Please contact info@waicleanwater.org for questions or assistance

  • Veterans Affairs Home Loans
    • Provided by private lenders. VA guarantees a portion of the loan, for veterans
    • VA accepts cesspool conversions for lending purposes in Hawaiʻi

  • 502 & 504 Single Family Housing: 

    Direct Loan Program
    • Income restrictions
    • Online Assessment tool

    Repair Loans & Grants
    • 62 years or older
    • Low-income only 
    • 20 year loan 
    • $40k max with 1% interest rate
    • Grants up to $10k

    Eligible area - unshaded (see map above)
    • www.rd.usda.gov/programs-services
    • WAI can assist with application

    USDA Rural Decentralized Water System Grant Program (DWS):
    • Grant funds for non-profits to establish a Revolving Loan Fund for cesspool conversions
    • Loan terms: 1% fixed interest rate, 20-year maximum term, $15,000 maximum loan per household
    • Eligibility: All of Maui

    USDA Water & Waste Disposal Loan & Grant Program
    • Funding for clean and reliable drinking water, sewage disposal, solid waste disposal, and stormwater drainage
    • Eligible areas: Rural areas and towns with populations of 10,000 or fewer

Community Funding Opportunities

For communities, counties, utilities, or local organizations working on public or shared water or wastewater projects.

  • Hawaii State Revolving Funds → Provides low-interest loans to county and state agencies for water pollution control projects. The CWSRF was created as a financial assistance program for a wide range of water infrastructure projects. States have the flexibility to fund a range of projects that address their highest priority water quality need. Using a combination of federal and state funds, state CWSRF programs provide loans to eligible recipients to:

  • Drinking Water State Revolving Funds → The State of Hawaii, Drinking Water State Revolving Fund program was established by the 1997 State Legislature as the result of the 1996 Federal amendments to the Safe Drinking Water Act. This program currently provides low interest loans to Hawaii’s regulated water systems for the construction of drinking water infrastructure projects. These projects help achieve or maintain compliance with drinking water standards, protect public health and the environment.

    DWSRF Hawai'i Specific Information:

  • The Water Infrastructure Finance and Innovation Act →  Established a federal credit program administered by EPA for eligible water and wastewater infrastructure projects. WIFIA and the WIFIA implementation rule outline the eligibility and other requirements for prospective borrowers.

    Eligible borrowers are:

    • Local, state, and tribal government entities

    • Partnerships and joint ventures

    • Corporations and trusts

    • Clean Water and Drinking Water State Revolving Fund (SRF) programs

    Important Program Features

    • $20 million: Minimum project size for large communities.

    • $5 million: Minimum project size for small communities (population of 25,000 or less).

    • 49 percent: Maximum portion of eligible project costs that WIFIA can fund.

    • Total federal assistance may not exceed 80 percent of a project’s eligible costs.

    • 35 years: Maximum final maturity date from substantial completion.

    • 5 years: Maximum time that repayment may be deferred after substantial completion of the project.

    • Interest rate will be equal to or greater than the U.S. Treasury rate of a similar maturity at the date of closing.

    • Projects must be creditworthy and have a dedicated source of revenue.


    Contact:
    Karen Fligger
    Email: wifia@epa.gov
    ​Phone: 202-564-2992

  • Water & Waste Disposal Loan & Grant Program in Hawaii and Western Pacific | Rural Development → This USDA program provides funding for clean and reliable drinking water systems, sanitary sewage disposal, sanitary solid waste disposal, and storm water drainage to households and businesses in eligible rural areas.
    ​
    Areas that may be served include:

    Types of funding: 

    • Long-term, low-interest loans

    • If funds are available, a grant may be combined with a loan if necessary to keep user costs reasonable.

    Contact:
    State Offices | Rural Development 
    ​Chris Kanazawa, State Director
    154 Waianuenue Ave. Suite 311
    Hilo, HI 96720
    Phone: (808) 933-8380​​

  • ​Community Development Block Grant (CDBG) → These funds may be utilized to address a wide variety of community needs, including construction or renovation of various infrastructure projects such as water & wastewater. The funds must be used for activities that either benefit low- and moderate-income persons or address community development needs that have a particular urgency.​

    • Funding amounts vary based on demand and the projects that apply.


    Contact:

    ​​U.S. Department of Housing and Urban Development (HUD) 1132 Bishop Street Suite 1400 Honolulu, HI, 96813

  • ​U.S. Department of Agriculture (USDA) – Emergency Community Water Assistance Grants (ECWAG) →
    Helps rural communities respond to emergencies affecting drinking water quality or availability.
    Funding available year-round, as long as appropriations exist.

    • Grants up to $150,000 for repairs and $1,000,000 for new water sources.

    • Eligible for rural areas with populations of 10,000 or fewer.

    • Homeowners, Public bodies, and nonprofits may apply.

    • Covers emergencies like drought, contamination, or natural disasters impacting drinking water

  • Rural Decentralized Water Systems Grant → This helps qualified nonprofits and communities create a revolving loan fund to increase access to clean, reliable water and septic systems for households in eligible rural areas.  Grant funds may be used to help a nonprofit create a revolving loan fund for eligible individuals who own and occupy a home in an eligible rural area. The fund may be used to construct, refurbish, or service individually-owned household water well and septic systems.

    • 1% fixed interest rate

    •  20-year maximum term

    • $15,000 maximum loan per household.

  • Public Works and Economic Adjustments Assistance Programs → Supports infrastructure and economic development projects that drive regional growth, job creation, and resilience through grant funding.

    • ​Eligible projects include construction or improvement of public infrastructure such as water and wastewater systems, roads.

    • Focuses on communities experiencing economic distress, including those impacted by natural disasters, job losses, or persistent poverty.

    • Public Works Program emphasizes physical infrastructure to attract or expand businesses and create jobs.

    • Economic Adjustment Assistance (EAA) offers flexible funding to help communities plan and implement strategies for economic resilience.

    • Eligible applicants include nonprofits, counties, municipalities, and institutions of higher education.

    • Matching funds typically required (generally 20–50%, but can be lower in distressed areas).

    • Projects must align with a regionally approved Comprehensive Economic Development Strategy (CEDS).

    • Rolling application cycle with no specific deadline; funding decisions made on a continuing basis.

Community Technical Support

Need help navigating water or wastewater challenges in your community? 

Check out these organizations offering technical support to local residents, organizations, and small utilities. Whether you're facing infrastructure issues and need assistance exploring funding options these organizations can help direct you.

  • ​Rural Community Assistance Partnership → Free technical assistance for rural communities: project planning, funding applications, operator training.

  • Environmental Finance Center Network​→ Helps small utilities, communities and nonprofits navigate funding and build financial capacity.

    The Environmental Finance Center Network (EFCN) is a university- and non-profit-based organization creating innovative solutions to the difficult how-to-pay issues of environmental protection and environmental infrastructure. The EFCN works collectively and independently (as individual Environmental Finance Centers) to address these issues across the entire U.S, including the 5 territories and the Navajo Nation. The EFCN aims to assist public and private sectors through training, direct professional assistance, production of durable resources, and innovative policy ideas. 

  • Hawaiian Islands Environmental Finance Center → Provides technical assistance and information on funding opportunities for water infrastructure projects.​ They are currently running programs like the Rural Community Development Program and WaterSMART Cooperative Watershed Management Program.​