Links To Helpful Resources
If your town is thinking about forming a new water or sewer district, it can be confusing to know where to start. This webpage contains a list of links and resources for communities considering forming a new district.
What You Can Expect
District formation goes beyond working with a lawyer or engineer. Before you can get started on forming a new district, your community must have prior compliance with the State Environmental Quality Review Act (SEQR).
Procurement Standards
As you start the district formation process, consider procurement requirements right from the start. Following the NYS Environmental Facilities Cooperation’s Architectural/Engineering Services Procurement guidelines before you request bids for a Map, Plan, Report (MPR) is vital if you wish to apply for NYS EFC funding later on.
Avenues for District Formation
For New York State towns, the district formation process can be started in two different ways:
- Property owner petition (Town Law Article 12)
- Town board initiated procedure (Town Law Article 12-A)
Financial Support for District Formation and Infrastructure Projects
District formation involves costs such as legal fees, public outreach, and Map, Plan, Report preparation. Financial support is available, but many funding options require district formation as a prerequisite and recommend prioritizing it before seeking project financing. Below are funding opportunities that may support costs associated with district formation and eligible infrastructure projects.
US Department of Agriculture, Rural Development (USDA RD)
- Water & Waste Disposal Predevelopment Planning Grants: Funds available to support district formation. Supports eligible low-income communities as they plan and develop applications for proposed USDA RD water or waste disposal projects.
- Water & Waste Disposal Loan & Grant Program: Limited. Funding may be available for legal and engineering fees related to drinking water or wastewater sourcing, collection, treatment, storage, distribution and disposal.
New York Department of State (NY DOS)
- Local Government Efficiency (LGE) Grants: Requires two or more local government entities apply for funding assistance to plan for and implement shared service agreements for cost savings. Eligible uses include legal and consultant services; capital improvements and equipment; and transitional personnel costs not to exceed three years.
North Border Regional Commission
- Planning Grants: Funds available for NBRC Counties in the NBRC Service Area. Includes planning grants for water and sewer (up to $500,000 match).
New York State Office of Community Renewal (NYS OCR)
- Community Development Block Grant (CDBG): Funds available to support community planning initiatives, including preliminary engineering for water, sewer, and stormwater.
New York State Environmental Facilities Corporation (NYS EFC)
- Wastewater Infrastructure Engineering Planning Grants: Provides funding for preparation of an Engineering Report following the EFC/DEC Engineering Report Outline. The Engineering Report may be used in conjunction with a Map, Plan, and Report as part of the district formation or extension.
- Intermunicipal Grants (IMG) and Water Infrastructure Improvement (WIIA): Fund the construction, replacement, or repair of water and wastewater infrastructure projects. IMG is intended for joint projects between municipalities. Engineering and legal costs, including those costs related to district formation, are eligible for these grants. The grant must be used towards the overall projects, not just for district formation. EFC considers formation of a district to be a sign of readiness, and in awarding grants prioritizes projects with formed districts over those still in the formation process.
Relevant Rules & Regulations
- If district formation involves incurring debt, approval from the State Comptroller is needed.
- Notice of Public Hearing Requirements
- Town Law Article 7 – Permissive referendum in NYS enables residents to vote on town board decisions, typically through a petition though it can occur without one.
- Town Law Article 12 – Discusses district formation through property owner petition.
- Town Law Article 12-A – Discusses district formation through a town board-initiated procedure.
- Town Law Chapter 62, Article 12, Section 198 – “Powers of town boards with respect to improvement districts.”
- Town Law Chapter 62, Article 12, Section 193 – “Notice of hearing on petition; cost to typical property; definitions.”
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