Low-Income Households Water Assistance Program (LIHWAP)

What is LIHWAP?

*Please note that the LIHWAP program has ended as of March 30, 2024 and THDA is no longer accepting applications*

THDA requested then LIHWAP six-month extension for both funding sources CAA and/or ARPA grant award. The extension allowed additional time to complete program activities and did not include additional funding. The six-month No Cost Extension extended the obligation deadline for LIHWAP funds from September 30, 2023, to March 31, 2024.

The LIHWAP obligation and liquidation deadlines also apply to LIHWAP funding. Therefore, local agencies cannot obligate funding on behalf of eligible households and can no longer enroll households after the obligation deadline.

The Low-Income Household Water Assistance Program (LIHWAP) is a federally funded grant program created by the Consolidated Appropriations Act, 2021 (Public Law No: 116-260) and the American Rescue Plan of 2021. The program aims to assist low-income households with water and wastewater bills.

Tennessee Housing Development Agency received over $25 million to administer LIHWAP across the state. In Tennessee, the LIHWAP is administered through a network of 19 local agencies that reach all 95 counties.

The purpose of the LIHWAP funds is to restore or prevent disconnections of water services to eligible households, by providing funds directly to the utility company, operators of public water systems or treatment works, to bring the household’s account current and help reduce the water and wastewater burden by assisting with current bills. LIHWAP is a one-time assistance that serves three priority groups:

THDA LIHWAP provides relief assistance to three priority groups:

• Households with pending disconnections or disconnected water services and/or wastewater services, or
• Households with a past due bill for water services and/or wastewater services, or
• Households who are at risk of falling behind on their water services and/or wastewater services

LIHWAP assistance does not go directly to the client or applicant; rather direct payments are made through the LIWEAP agency to the local utility company or energy supplier.