OCS Encourages Linkages Between LIHWAP and CSBG Services

Federal dollars often can be spent more effectively through collaboration. This seems to be message that the Office of Community Services (OSC) within Department of Health and Human Services Administration for Children and Families wants to get across in a recent colleague letter sent to recipients of Low income Household Water Assistance Program (LIHWAP) funding, encouraging them to establish partnerships and linkages with other federal programs, such as the Community Services Block Grant (CSBG), to support low income household needs not funded through LIHWAP.

The American Rescue Plan Act of 2021 (Pub. L. 117-2) appropriated $500 million to under a new LIHWAP program to provide critical nationwide emergency support on behalf of low-income households so that these households are not forced to choose between paying for water services and other necessities like housing, food and medicine. Grant funds are intended to assist low-income households, particularly those with the lowest-incomes, that pay a high a high proportion of household income for drinking water and wastewater services. Payment may be made by providing funds to owners or operators of public water systems or wastewater treatment works address past due bills or reduce the amount of current payments for low-income households that pay a high proportion of household income for water services.

However, OCS recognizes that some households that receive a LIHWAP benefit will need to have minor plumbing needs addressed in order to effectively meet their water and wastewater needs. As such, OCS is encouraging LIHWAP grantees to leverage other available resources to support small infrastructure needs for families receiving a LIHWAP benefit, including CSBG funds and the Temporary Assistance for Needy Families Pandemic Emergency Assistance Fund.

CSBG provides financial support for services and activities that help to alleviate the causes and conditions of poverty for individuals with low income. Services may include employment, education, income and asset building services, housing, nutrition, emergency services and/or healthcare. Overall, CSBG is a flexible funding source, and its use is driven by a local community needs assessment. “If the local needs assessment shows that water and wastewater utility payment assistance, or related services, is a priority need, a CSBG eligible entity may decide to use CSBG for such purposes,” the letter states. “As such, OCS is encouraging state and local CSBG eligible entities to consider options to use supplemental Coronavirus Aid, Relief, and Economic Security Act (CARES Act) funding to help address household needs not addressed through LIHWAP.”

If a CSBG eligible entity has identified small-scale household plumbing repairs as a significant unmet need, CSBG funds may be coordinated with LIHWAP funds to address this need. Although CSBG funds may not be used for large-scale construction projects (such as full replacement of household plumbing systems), CSBG funds may be used to support a variety of small-scale repairs and household needs related to safe and affordable water, which are not directly addressed through LIHWAP.

Examples of coordination activities may include the following:

• coordinated intake, eligibility determination and benefit payments between LIHWAP, the Low-Income Home Energy Assistance Program (LIHEAP), and other utility assistance programs or rental assistance where possible;
• financial management assistance, including debt counseling, financial planning and asset-building efforts; and
• benefit assistance coordination to help households access other resources offered by the CSBG eligible entities or its community partners, including assistance with employment and training, rental payments, transportation, nutrition, and linkages to health and wellness services.

Join us for our following Thompson Grants events:
Thompson Grants Workshop: The American Rescue Plan Act | August 26, 2021
Thompson Grants Workshop: Reevaluating Your Policies & Procedures | September 14 - 15, 2021 |
Chicago, IL