[Code of Federal Regulations]
[Title 7, Volume 11]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1777.21]

[Page 1001]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1777--SECTION 306C WWD LOANS AND GRANTS--Table of Contents
 
Sec. 1777.21  Use of funds.

    (a) Applicant. Funds may be used to:
    (1) Construct, enlarge, extend, or otherwise improve community water 
and/or waste disposal systems. Otherwise improve would include extending 
service lines to and/or connecting residence's plumbing to the system.
    (2) Make loans and grants to individuals for extending service lines 
to and/or connecting residences to the applicant's system. The approval 
official must determine that this is a practical and economical method 
of connecting individuals to the community water and/or waste disposal 
system. Loan funds can only be used for loans, and grant funds can only 
be used for grants.
    (3) Make improvements to individual's residence when needed to allow 
use of the water and/or waste disposal system.
    (4) Grants can be made up to 100 percent of eligible project costs.
    (b) Individuals. Funds may be used to:
    (1) Extend service lines to residence.
    (2) Connect service lines to residence's plumbing.
    (3) Pay reasonable charges or fees for connecting to a community 
water and/or waste disposal system.
    (4) Pay for necessary installation of plumbing and related fixtures 
within dwellings lacking such facilities. This is limited to one 
bathtub, sink, commode, kitchen sink, water heater, and outside spigot.
    (5) Construction and/or partitioning off a portion of dwelling for a 
bathroom, not to exceed 4.6 square meters (48 square feet) in size.
    (6) Pay reasonable costs for closing abandoned septic tanks and 
water wells when necessary to protect the health and safety of 
recipients of a grant in paragraphs (b)(1) or (b)(2) of this section and 
is required by local or State law.