Local unit water infrastructure fund.

Establishes the local unit water infrastructure fund (fund) to provide grants, loans, and other financial assistance to counties, cities, and towns for projects to: (1) repair, replace, or increase the capacity of water infrastructure; or (2) replace lead water service lines; in community water systems. Requires the Indiana finance authority (authority) to administer the fund. Provides that the fund consists of appropriations from the state general fund and money from other sources. Requires the authority to adopt guidelines to establish criteria for the making of grants and the providing of loans and other financial assistance from the fund. Provides that an application for a grant, a loan, or other financial assistance must be accompanied by all supporting materials required by the authority. Requires a local unit that applies for a grant, a loan, or other financial assistance to develop an asset management program for its community water system. Authorizes the authority to establish a maximum amount that one county, city, or town may receive as a grant. Requires the authority, if possible, to allocate at least 50% of the total amount of grants to counties having a population of less than 50,000 and cities and towns located in counties having a population of less than 50,000. Authorizes the authority to make the award of a grant conditional upon the local unit contributing a local match of funds to be combined with the grant, but imposes an upper limit on the amount of a matching grant that can be required of a county, city, or town falling within certain population parameters. Requires the authority to establish the interest rate or interest rate parameters for each loan from the fund, and allows the authority to take into account certain factors in setting interest rates or interest rate parameters. Provides that the authority may require a local unit that receives a loan to enter into a binding financial assistance agreement. Requires a biennial report on grants awarded and loans and other financial assistance provided from the fund.