The Kansas Rural Water Finance Authority (KRWFA) is a Kansas corporation created through an inter-governmental agreement in 1987, pursuant to Kansas Statutes Annotated 12-2901. The Kansas Rural Water Association endorsed the creation of the Authority. This action was promoted by the Discount Purchase Program, an activity that the Reagan Administration initiated to reduce federal debt. The Discount Purchase Program resulted in the sale of a major portion of the old Farmers Home Administration loans for rural water districts. KRWA led an effort that gained systems the right to purchase their loans at the same discount that was being promoted to Wall Street investors. KRWFA assisted hundreds of rural water districts in analyzing the potential purchase of their loans from FmHA at that time; KRWFA negotiated funding for 16 systems in 1988 and 1989 under the Discount Purchase Program.
In 1997, the State of Kansas, through the Kansas Department of Health & Environment, entered into a contract with KRWFA to provide financial advisory services to the Kansas Public Water Supply Loan Fund. KRWFA conducts a financial review of all applicants to the State Loan Fund and makes recommendations as to the adequacy of the water rates, etc. The rural water districts and those small towns that required reporting assistance to participate in the Loan Fund, the KRWFA, entered into an agreement with those borrowers to provide financial oversight to those borrowers during the life of their loan. The result is that small and rural water systems are well served as this oversight provides assurance on debt repayment. Systems, in turn, receive the same interest rate as the large, rated municipalities that participate in the State Revolving Loan Fund.
The Kansas Department of Health and Environment canceled its contract with the Kansas Rural Water Finance Authority effective July 1, 2017. KDHE has decided to have its own staff provide assistance to potential borrowers by phone. Non-rated borrowers (RWDs) and small towns that need "reporting assistance" will be required to submit their quarterly financial reports to the KDHE. RWDs and small towns that have existing FIAC reporting requirements as of June 30, 2017 will continue to submit those reports to the Kansas Rural Water Finance Authority. No onsite technical assistance will be available to applicants by the Kansas Rural Water Finance Authority as has been provided by the Public Water Supply Loan Fund since its inception in 1997.