(a) The legislature finds that, due to public health and sanitation concerns, it is in the public interest to use funds in the economically distressed areas account to provide financial assistance for the costs associated with the initial connection to public water supply and sanitary sewer systems of residences that otherwise benefit from financial assistance.
(b) A political subdivision may use financial assistance to pay:
(1) the costs of connecting a residence to a public water supply system constructed with financial assistance;
(2) the costs of installing yard water service connections;
(3) the costs of installing indoor plumbing facilities and fixtures;
(4) the costs of connecting a residence to a sanitary sewer system constructed with financial assistance;
(5) necessary connection and permit fees; and
(6) necessary costs related to the design of plumbing improvements described by this subsection.

(c) Assistance under this section shall only be provided to residents who demonstrate an inability to pay for the improvements described in Subsection (b) in accordance with board rules. If the board determines that a resident to whom assistance has been provided is ineligible to receive the assistance, the board may seek reimbursement from the resident. The board shall adopt rules to implement the provisions of this section.