§ 1942.356 - Applicant eligibility and priority.

(a) Eligibility. Applicant eligibility shall be determined in accordance with § 1942.17 (b), (b)(1), (b)(2) and (b)(4) of subpart A of part 1942 of this chapter. Grants shall not be made in connection with any project unless the project:

(1) Will serve a rural area which, if such project is carried out, is not likely to decline in population below that for which the project was designed.

(2) Is designed and constructed so that adequate capacity will or can be made available to serve the present population of the area to the extent feasible and to serve the reasonably foreseeable growth needs of the area to the extent practicable. Water systems should have sufficient capacity to provide for reasonable fire protection to the extent practicable.

(3) Is necessary for orderly community development and consistent with a comprehensive community water, waste disposal, or other development plan of the rural area.

(b) Applicant priorities. Priority for grant funds will be given to applicants and projects in accordance with § 1942.17(c) of subpart A of part 1942 of this chapter.