Skip to main content
Affordability Criteria

Affordability Criteria

A new Overburdened Application is required each fiscal year an applicant applies. Additionally, applicants applying for both CWSRF and DWSRF will be required to complete an application for each program as system and customer data may differ between wastewater/storm water and drinking water. 

 

 

View the SRF affordability criteria development page

SRF Affordability Criteria Definitions

Overburdened Municipal Systems:

An Overburdened municipal system is a municipal system in which all the following conditions are met:

  1. Users served by a proposed drinking water project, sewage treatment works project, or storm water treatment project are directly assessed for the costs of construction.
  2. The median household income of the area directly assessed the costs of the proposed drinking water, sewage treatment works project or storm water treatment project is below 80% of the statewide median annual household income for this state. 
  3. The municipality demonstrates at least one of the following:
  • The taxable value per capita of the area directly assessed the costs of the proposed project falls into the communities representing the lowest 20% of Michigan’s population within that category.
  • The annual user costs for the corresponding portion of the water system (sewage and storm water treatment or drinking water) exceed 1.5% of the median annual household income of the area directly assessed the costs of the proposed project.

Significantly Overburdened Municipal Systems:

A Significantly overburdened municipal system is a municipal system in which all the following conditions are met:

  1. Users served by a proposed drinking water project, sewage treatment works project, or storm water treatment project are directly assessed for the costs of construction.
  2. The municipal system demonstrates at least one of the following:
  • The median annual household income of the area directly assessed the costs of the proposed project is less than 125% of the federal poverty guidelines for a family of four in the 48 contiguous United States.
  • The taxable value per capita of the area directly assessed the costs of the proposed project falls into the communities representing the lowest 10% of Michigan’s population within that category. 

 

A municipal system which qualifies as a significantly overburdened municipal system would also be considered an overburdened municipal system. However, any potential benefits may only be applied under one designation or the other.

Contact

Mark Conradi, ConradiM@Michigan.gov