OCS DCL-2024-03 OCS Releases the Water Utility Affordability Survey Report

Office of Community Services (OCS)

Dear Colleague Letter

DCL#: ACF-OCS-DCL-2024-03

DATE: March 21, 2024

TO: OCS Grant Recipients, Stakeholders, and Partners

SUBJECT: OCS Releases the Water Utility Affordability Survey Report

ATTACHMENT(S): Water Utility Affordability Survey

Dear Colleagues,

The purpose of this Dear Colleague Letter (DCL) is to notify Low Income Household Water Assistance Program (LIHWAP) and Rural Community Development (RCD) grant recipients and stakeholders about the Water Utility Affordability Survey Report being released by the Office of Community Services (OCS). Conducted in the spring and summer of 2023, the survey collected information from water and wastewater utilities across the United States about arrears, disconnections, fees, rates, and other utility information. The survey was intended to fill a gap in current knowledge related to these indicators on a national scale and to help LIHWAP grant recipients learn more about how they can best assist households in their service areas. 1,822 responses were included in analyses, coming from 49 states, the District of Columbia, 12 tribally-owned utilities, and one territory.

During World Water Week in August 2023, OCS shared the LIHWAP Utility Survey Fact Sheet (PDF) with key findings from the survey. This full report provides more context around those findings as well as additional qualitative and quantitative data, analyses, interpretation, and next steps.

Report Findings at a Glance

To date, this is the largest survey conducted in the country that documents rates, arrears, disconnections, and fees in one dataset. Readers will have an opportunity to see that water affordability may present through high customer debt or through low arrears and high rates of disconnection policies. The report also examines differences experienced between urban, rural, and tribal utilities. For example, the survey finds that on average, 20% of households are in debt to their water utility, and for tribal communities that increases to 32% of households. The findings within the report illustrate the financial strain experienced by utilities of all sizes and locations in covering ongoing maintenance and infrastructure costs.

Other areas of note from the survey include:

• For households at 75% of the federal poverty level, up to 40% of their monthly income is spent on water and sewer bills.
• The average household debt per utility is $285, but among tribally-owned utilities, the average household debt is $502.
• States with the highest average debt per household have significantly lower rates of disconnection than states with the lowest average household debt for their water utility.

OCS encourages grant recipients and stakeholders to review the executive summary and the full report.

Grant recipients and stakeholders are also encouraged to review the following resources for more information on water and wastewater needs and the impact of LIHWAP and RCD:

• The LIHWAP Data Dashboard , which visually tracks, analyzes, and displays key quarterly performance indicators
• The RCD Information and Data Dashboard , which includes information and data on water access, quality, and environmental burdens, as well as data on how RCD grant recipients are working to address these issues for small, rural communities
• The LIHWAP Implementation and Impact Report , which documents the need for water assistance throughout the U.S. and the impact of the first-ever water assistance program

OCS truly appreciates the support of grant recipients and stakeholders who helped amplify the survey. We are also appreciative of the participation of utility vendors from across the county. Thank you for taking the time to provide thoughtful responses which have resulted in data that can be utilized to understand water affordability, especially for vulnerable households.

Thank you for your attention to these matters. OCS looks forward to continuing to provide high-quality services to OCS partners.

/s/
Dr. Lanikque Howard
Director
Office of Community Services