**UNITED STATES DEPARTMENT OF AGRICULTURE**

**Rural Utilities Service**

**U. S. Department of Agriculture**

**Rural Utilities Service**

**1400 Independence Avenue SW**

**STOP 1570**

**Washington, DC 20250**

**PROCEDURE NOTICE**

**EFFECTIVE DATE: 03/02/1998 NOTICE NO: WW-9**

  -----------------------------------------------------------------------
  **NOTICE**

  **The RUS Staff Instruction and Bulletins issued through this Procedure
  Notice are available from the Water Programs home page, which can be
  accessed at \"http://www.usda.gov/rus/water/\".**
  -----------------------------------------------------------------------

  --------------------------------- -------------------------------------
  **RUS STAFF INSTRUCTION**         

                                    

  RUS Staff Instruction 1777-1      This Staff Instruction is being
                                    issued to replace Staff Instruction
                                    4284-E-1, which was the previous
                                    number for the 306C Instructions.
                                    Guidance has been added for
                                    designating the geographic area for
                                    approval of Section 306C Loans and
                                    Grants in Colonias.
  --------------------------------- -------------------------------------

UNITED STATES DEPARTMENT OF AGRICULTURE

Rural Utilities Service

## STAFF INSTRUCTION 1777-1

**SUBJECT: [Section 306C WWD Loans and Grants]{.underline}**

**TO**: Selected State Directors, Arizona, California, New Mexico and
Texas, Rural Development

**ATTENTION**: Program Managers for Water and Waste Loans and Grants

**EFFECTIVE DATE**: March 2, 1998

**EXPIRATION DATE**: March 2, 2002

**OFFICE OF PRIMARY INTEREST**: Assistant Administrator, Water and
Environmental Programs

**PREVIOUS INSTRUCTIONS**: Replaces RUS Staff Instruction 4284-E-1

**FILING INSTRUCTIONS**: File behind RUS Instruction 1777

**PURPOSE**: To provide guidance in funding Colonias projects.

![](media/image1.emf){width="4.417361111111111in"
height="1.0319444444444446in"}

RUS Staff Instruction 1777-1

Page 1

**1. Geographic Area Designation**

The legislation for the 306C program describes the area of consideration
to be in Colonias, but does not give a distance from the border as does
some other legislation. The appropriation language states the funds must
be used to benefit Colonias "along the United States/Mexican border."
The State Directors of the four States along the US/Mexican border will
determine the qualifying counties in their State, notify their field
staff, and send a copy of the notification to the National Office.

In the spirit of "along" the border and to stay within the areas
described by other Federal Programs, designate whole counties where the
largest portion of the county is within 150 miles of the border. The
individual Colonias still have to meet all other qualifications. If only
some of the counties within the 150 mile area are designated and a
county is later designated, the State Director will notify his/her field
staff of the revised list and send a copy to the National Office.

**2. Loans and Grants to Individuals**

2.1 [Bathroom Size]{.underline}: RUS Instruction 1777, paragraph 1777.21
(b)(5), limits construction and/or partitioning off a portion of the
dwelling for a bathroom to 48 square feet. The installation of a water
heater within the 48 square feet allowed for the bathroom area may not
be large enough to accommodate normal bathroom facilities and fixtures.
When it is necessary to install a water heater (which is not considered
a normal bathroom fixture), sufficient space may be added to the
bathroom area to house the water heater.

2.2 [Number of Contractors]{.underline}: The first sentence of RUS
Bulletin 1777-1, F 4, states: "The system may contract with the
individuals to do the work or arrange for the improvements to be
installed by a contractor\...." The term "contractor" may be interpreted
to be one contractor per individual homeowner, not necessarily one
contractor to complete all improvements and installations for all
homeowners.

The intent of the sentence is: "The system may contract with the
individuals to do their own improvements or allow the individuals to
arrange for the improvements to be installed by a contractor
satisfactory to the system and the individuals."