RACP Application Procedures
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Once the Governor has approved projects that have been recommended by the Selection Committee, award notification letters are mailed to successful Candidates, thus beginning the application process.
Candidates that accept the award must submit a formal RACP application for their project to OB within six (6) months of the date of the award letter.
The Application Handbook and other necessary information/forms are available at the Handbooks & Forms section of this website.
The Applicant (prospective Grantee) and/or Sub-applicant (prospective Sub-grantee) will begin assembling the 22 tabs of documentation required for the grant application. OB personnel are available to assist the Applicant throughout the application process. At application submission time, the applicant must be able to demonstrate that at least 50% of the required non-state funds necessary to complete the project are secured.
An award recipient (Applicant) that is not an eligible Grantee for a RACP award MUST obtain an eligible entity to "sponsor" their project. In these cases, the recipient entity will be the Sub-Applicant to the award and the Grantee will serve as a "pass through" entity for purposes of the RACP Grant. The Applicant will submit the application, special conditions, and reimbursements requests to OB, and also sign all documents including the Grant Agreement, while; typically, the Sub-Applicant will be the one providing such information to the Applicant. The types of entities that are eligible to be a Grantee to a RACP grant are limited statutorily. Eligible Grantees must be either:
- A redevelopment authority.
- An industrial development authority.
- A general purpose unit of local government (county or municipality).
- A local development district that has an agreement with a general purpose unit of local government under which the unit assumes ultimate responsibility for debt incurred to obtain the non-state financial participation.
- A public authority established pursuant to the laws of this commonwealth.
- An industrial development agency:
(i) which has been certified as an industrial development agency by the Pennsylvania Industrial Development Authority Board under the act of May 17, 1956 (1955 P.L.1609, No.537), known as the Pennsylvania Industrial Development Authority Act;
(ii) which is itself or which is acting through a wholly owned subsidiary that is exempt from Federal taxation under section 501(c)(3) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)).
The project must submit one (1) hard copy Application and two (2) electronic PDF versions on two (2) separate compact discs (CDs) to:
C/O RACP Application
Redevelopment Assistance Capital Program
Office of the Budget
18th Floor, Harristown 2
333 Market Street
Harrisburg, PA 17101-2210
Once the OB is in receipt of the grant application, a preliminary review is conducted and a state-hired Consultant is engaged to conduct a thorough review of the application. The state will notify the Applicant of the selected Consultant via written notification. The consultant will then contact the Applicant and/or Sub-Applicant to schedule an initial application review meeting.
After the application review meetings are concluded [typically two (2) meetings], the consultant prepares a written report for the OB that is used to prepare the Grant Agreement.
The commonwealth then issues a preliminary Grant Agreement between the Commonwealth of Pennsylvania and the Grantee/Applicant for the project, which is sent to the Grantee for signature (normally via email). Once it is returned to OB, it is forwarded to the appropriate agencies within the commonwealth administration for validation and execution [five (5) commonwealth signatures]. A fully executed copy of the Grant Agreement will be provided to the Grantee.
Each Grant Agreement contains a list of Special Conditions (Appendix B), which are required application components that were not available by the time the Grant Agreement was drafted. Examples of special conditions to the Grant Agreement may include: updated cash flow forecasts, copies of permits, proof of bidding, construction contracts, etc.
Once the Grant Agreement is fully executed, the recipient will have a maximum of six (6) months to meet the terms and special conditions of the Grant Agreement and begin construction of the project. All special conditions must be satisfied before any grant funds can be disbursed to the Grantee.
When construction is about to commence or has already commenced, the project is strongly encouraged to contact the OB to request a facilitation meeting with OB personnel to review the specific procedures for submitting a reimbursement request.