Introduction
Basic infrastructure is a necessity for economic growth. Many of our Kentucky communities do not have the basic water, sewer, solid waste facilities and other infrastructure that they need for their citizens. This is due in large part to the high costs of these services. The Kentucky Infrastructure Authority (KIA) was created in 1988 to provide the mechanism for funding construction of local public works projects. KIA is continually growing and expanding its services. Through the various programs currently offered, KIA has become the answer for local financing needs.
Financial Assistance Overview
Funds A & F, The State Revolving Funds:
In 1989, KRS Chapter 224A and 200 KAR 17:050 were enacted to begin a new financial program for construction of wastewater projects. Construction grant program funds were no longer available from the U.S. Environmental Protection Agency (EPA) for new projects, and financial assistance was still greatly needed for communities to comply with the Clean Water Act. Following the creation of the Clean Water State Revolving Fund (CWSRF), in 1997, the Drinking Water State Revolving Fund (DWSRF) was created to help communities comply with the mandates of the Safe Drinking Water Act. The EPA has been funding both the CWSRF and the DWSRF in the form of annual capitalization grants to the state each year.
The CWSRF, also referred to as Fund A, is a 20 or 30 year loan program for planning, design and construction of wastewater infrastructure projects, storm water projects and nonpoint source projects. Fund A also provides assistance to small communities in financing the preliminary costs prior to construction, commonly referred to as a Planning and Design loan. Planning and Design loans have a 5 year term and are set at the standard interest rate, and may be rolled into a subsequent construction loan.
Similarly, the DWSRF, referred to as Fund F, is a 20 or 30 year loan program to help communities construct drinking water infrastructure projects such as water treatment plants, waterline replacements, water storage tanks, pumps, and extensions. Fund F also offers Planning and Design loans for large projects.
To be considered eligible to receive a CWSRF or DWSRF loan, a project must be identified on Kentucky's annual Intended Use Plan/Project Priority List (IUP/PPL), which is prepared each spring and published by the Kentucky Infrastructure Authority (KIA).
Fund B:
Also known as the Infrastructure Revolving Fund, was established in 1989 under 200 KAR 17:010 and provides for the construction or acquisition of infrastructure projects (both water and wastewater) through low-interest state funded loans. The interest rate structure mirrors those of the SRF programs. Fund B projects are funded on a case-by-case basis, first come, first served.
Fund C:
The Fund C loan program makes loans from accumulated program assets with the capability to issue bonds to increase program capacity. The interest rate is set each year at the start of the SFY and often differs from the standard SRF rates. Similar to Fund B, projects are funded on a case-by-case basis, first come, first served.
FY 2025 KIA Program Overview