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State Revolving Fund - Overburdened Community Definition and Scoring Criteria Development

Recently enacted Public Act 132 of 2022 changes the term “disadvantaged” community to “overburdened community,” adds the new term “significantly overburdened community,” and requires the Department of Environment, Great Lakes, and Energy (EGLE) to update the definition with input from stakeholders and the public. In addition, the legislation requires EGLE to develop new scoring criteria to prioritize projects for both the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund programs. Stakeholder meetings were held on August 10 and 17 to discuss draft proposals both for the definitions of “overburdened community” and “significantly overburdened community” and the scoring criteria. You will find recordings of those meetings along with the meeting presentations below.

Contact

Kimber Frantz
FrantzK@Michigan.gov

  • Proposed new definition (draft):

    1. “Overburdened community” means a municipality in which all of the following conditions are met:
      1. Users within the area served by a proposed sewage treatment works project or stormwater treatment project are directly assessed for the costs of construction.
      2. The median household income of the area served by a proposed drinking water, sewage treatment works project or stormwater treatment project does not exceed 100% of the statewide median annual household income for this state.
      3. The municipality demonstrates at least one of the following:
        1. The taxable value per capita of the area served by a project falls into the communities representing the lowest 20% of Michigan’s population within that category. (In 2021, the value is $22,920 per capita)
        2. The median annual household income of the area served by the proposed project is less than the most recently published statewide median annual household income for this state, and annual user costs for the corresponding portion of the water system (sewage and stormwater treatment, or drinking water) exceed 1% of the median annual household income of the area served by the proposed sewage treatment works project or stormwater treatment project.
    2. A community which qualifies as a significantly overburdened committee would also be considered an overburdened community. However, any potential benefits may only be claimed under one designation or the other.
  • Proposed new definition (draft):

    1. Users within the area served by a proposed drinking water, sewage treatment works project or stormwater treatment project are directly assessed for the costs of construction.
    2.  The municipality demonstrates at least one of the following:
      1. The median annual household income of the area served by a proposed project is less than 125% of the federal poverty guidelines for a family of four in the 48 contiguous United States. In determining the median annual household income of the area served by the proposed sewage treatment works project or stormwater treatment project under this sub-paragraph, the municipality shall utilize the most recently published statistics from the United States Census Bureau, updated to reflect current dollars, for the community that most closely approximates the area being served by the project. As used in this sub-paragraph, “federal poverty guidelines” means the poverty guidelines published annually in the Federal Register by the United States Department of Health and Human Services under its authority to revise the poverty line under 42 U.S.C. 9902. (For 2022, the 125% level would be an annual household income of less than $34,687.)
      2. The taxable value per capita of the area served by a project falls into the communities representing the lowest 10% of Michigan’s population within that category. (In 2021, that value is less than $15,170 per capita.)

Meeting Materials