New Mexico Environment Department Construction Programs Bureau Assisting communities to develop sustainable and secure water, wastewater and solid waste infrastructure

Rural Infrastructure Program (RIP)

History

The Rural Infrastructure Act (Chapter 75, Article 1 NMSA 1978) created the Rural Infrastructure Revolving Loan Program (RIP) in 1988. The purpose of the RIP is to provide financial assistance to eligible local authorities for the construction or modification of water supply, wastewater, and solid waste facilities.

Click the following link to view the New Mexico Administrative Code regulations that govern RIP:

NMAC 20.7.2.1 Rural Water Supply, Wastewater and Solid Waste Infrastructure

Type of Funds

Because the funds are state monies, the application and approval process is streamlined, allowing the funds to be available within six to eight weeks. The maximum loan per entity is $2,000,000 per year. Grant funding may be available on a limited basis.

Loan Interest

The base interest rate is 2.375%, with a repayment schedule of up to 20 years. The first payment is not due until one year after the completion of the project.

Who and What Projects Are Eligible

Any incorporated City, Town, Village, Mutual Domestic Water Consumers Association (MDWCA) or Water and Sanitation Districts with a population of less than twenty thousand or a county that serves a population of less than two hundred thousand.

These types of projects can be financed through RIP:

Eligible water, wastewater and solid waste
Water pipelines
New sewer interceptors and collectors
Infiltration/inflow correction
Water and sewer system rehabilitation
Treatment plant improvements
Non-point source projects (i.e. septic tanks)
Cost of water rights acquisition
Eligible solid waste facilities including collection, disposal, storage and recycling
Engineering studies and design
Project inspection
Easement and right-of-way
Project legal costs
Purchase of equipment
Pollution Control

RIP Annual Report

Click the following link to go to the Rural Infrastructure Loan Program (RIP) Documents and Forms page to view or download the latest

RIP Annual Report

Funding Cycle

Applications are accepted throughout the year. Loan funds can be made available for projects within six to eight weeks upon submission of complete application.

Click the following link to go to the Rural Infrastructure Program Documents and Forms page to view or download the RIP Application