RACP Process Overview
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A flowchart that visualizes this overview is available by clicking here.
One of the many goals of the current administration has been to transform the way Redevelopment Assistance Capital Program (RACP) grants are awarded from the method that was used in the past. Through a transformative process, the current administration has created a transparent procedure to implement a merit-based evaluation and selection of projects.
This redesigned selection process will not only ensure public accountability but also maintain a rigorous monitoring, measurement, and reporting responsibility to the program. Given the size of the program, accountability is all the more necessary. As a result of the increasing debt service costs associated with the increase in the program from its initial $1.2 billion to the current $4.05 billion, the RACP program will be significantly reduced over the next several years. Consequently, up to approximately $125 million in RACP funding will be made available on a yearly basis to the potential recipients, beginning in calendar year 2012. The targeted level of new RACP funding to be released each fiscal year is approximately equal to the amount of commonwealth debt for RACP that is retired each year. As a result, the revised RACP funding levels will stabilize and gradually be reduced over time.
Since future funding will be lower than what was available in prior years, priorities will be shifted to focus on projects that are immediately ready to create family-sustaining jobs, on keeping our businesses in Pennsylvania, and on improving the overall quality of life of our citizens. In essence, we are concentrating on projects that can clearly demonstrate the capacity to generate substantial increases in employment, tax revenues, and other measures of economic activity.
Potential Candidates should note that a project is eligible for RACP funding only if that project has been itemized in an act—such as a Capital Budget Project Itemization Act—passed by the General Assembly and signed into law by the Governor in the Capital Facilities Debt Enabling Act. Candidates who have an authorized and eligible project will need to submit a Business Plan to the Office of the Budget. Please refer to the Business Plan Submission Process section of this website for more detailed information on eligibility, funding schedules, and submission requirements.
All submissions that pass an initial review of eligibility and completeness will be scored according to the five (5) sectors of project scoring methodology. For a complete detail of the five (5) sector scoring methodology, please see the Selection Criteria section of this website.
Once all the projects have been scored in accordance with the published criteria, the Office of the Budget will forward a complete listing of projects, corresponding scores, and summaries to the Selection Committee chaired by the Governor’s Office of the Budget. Said committee will then review and make selections for Grant Awards. The selection Committee's recommendations are subject to approval of the Governor.
The selection results will be posted to our website and all Candidates will be notified via individual correspondence whether or not the Business Plan submission has resulted into a Grant Award and the amount approved therein. An Award Letter shall serve as written notification authorizing the preparation and submission to the Office of the Budget of a formal and complete RACP Grant Application for the project.
If accepting the award, the applicant will have six (6) months to submit an application to the OB for the drafting of a RACP grant. For more detailed information on the process and submission of applications, please see the Application Procedures section of this website.
Once a Grant is drafted, it will be sent to the Grantee for signature and returned to OB for circulation through the commonwealth for execution. Upon execution of the Grant Agreement, the Grantee should work to satisfy all term and conditions of the grant. Once eligible construction costs have been incurred, the Grantee may start to submit Payment Requests. For more detailed information on the procedures for requesting grant funds, please see the Reimbursement Procedures section of this website.
Upon submission of a final payment request, the Grantee will be contacted for a close-out audit of the project. For more detailed information on this, please see the Legislatively-Mandated Close-Out Audit section of this website.