Please review the following important information before applying for a Residential Development Incentive grant, and refer to the BDC Small Grants Program Guidelines for more detailed information.

 Residential Development Incentive Grant Award (up to $5,000/unit)

The Downtown Residential Incentive Program assists with the development of quality residential uses in the upper levels of the buildings that reside within the downtown Municipal Service District (MSD). This program will be made available to developers of market rate residential units. Both for sale and rental projects will be eligible. Developers of new units designated as Class A are eligible. Owners who have Class C or B units and wish to upgrade them to Class A units are also eligible. The program offers a $3.50 per square foot subsidy for eligible projects, with a maximum grant amount of $5,000 per unit. Developers interested in larger projects (over 10 units) should seek other, incentive programs.

Qualified rehabilitation expenses include costs incurred within a structure. Window repairs are included in this definition. Qualified expenses can include subcontracted work for demolition or construction, interior systems upgrades and/or purchase of materials. Expenses that do not qualify include exterior renovations or the cost of acquisition or personal property. Grant monies will be paid upon proof of issuance of certificate of occupancy.

Any property owner of a building within the downtown Burlington Municipal Service District may apply for the Downtown Residential Incentive Program, subject to the following:

• The grant-funded portion of the project must be for the interior renovation of an existing building only.
• The proposed project must meet all applicable zoning requirements.
• All required permits (i.e., zoning, building, etc.) must have been obtained.
• The proposed project follows the Secretary of Interior Standards for Renovations of Historic Structures.

Funding Source & Availability

The grants in this funding cycle are matching grants that require a 50% match by the applicant and are structured as deferred loans, which means that if the improvements stay in place for a period of three years the interest-free loan becomes a grant. However, if the business or property closes or changes hands, the appropriately pro-rated portion of the loans becomes due to the BDC. Grant funding is awarded as a reimbursement for approved project work with invoices marked "PAID" provided to the BDC.

Grant Cycle Schedule

The BDC’s Grant Program is administered on a quarterly basis. Grant applications are due no later than midnight on the dates indicated below, in order to be considered for that quarter’s granting cycle. Additionally, applicants are required to have a pre-application meeting with BDC staff.

 Application Due Dates

• July 15
• October 1
• January 1
• April 1

Eligibility

Downtown Property and/or Business Owners located within the boundaries of the downtown Municipal Service District are eligible to apply for the BDC Small Grants Program. Please see the map below:

 INELIGIBLE COSTS

• Financing of existing debt, working capital, non-capital equipment, and inventory.
• Operation and maintenance costs:
• Office equipment (i.e., technology, computers, furniture, office supplies, etc.);
• Rent, utilities, including cable/internet service, or other recurring overhead costs;
• Salaries, personnel expenses;
• Emergency building repairs and routine maintenance;
• Artwork, including building murals.
• Soft costs (Soft Cost is a construction industry term but more specifically a contractor accounting term for an expense item that is not considered direct construction cost. Soft costs include architectural, engineering, financing, and legal fees, and other pre- and post-construction expenses).

Residential Development Incentive Program Requirements 

• Applicants are required to meet with BDC staff prior to making application to review their goals and plan for use of grant funds.
• A business plan, sources and uses statement and an operating pro-forma that indicates proposed sales prices of “for-sale” units or proposed rental rates of “for-lease” units must be submitted with each application. The plan must indicate unit and property amenities, marketing techniques, and expected absorption rates.
• A financial statement or proof from a lending source must accompany each application.
• Proof of insurance must accompany each application.
• Each application must also include the following:
  •  Photos of building’s existing condition. Include all relevant views and angles. I.e., if you are applying for an interior system grant, include photos of the interior of the building where the improvements will be made.
  • Sketches, drawings, architectural plans, Photoshop renderings or other similar visuals that will provide the BDC Grants Review Committee with sufficient information to evaluate the improvements being proposed.
  • Specifications and cost estimates for project activities. For sub-contracted work, include at least two quotes.
  • A sample board that shows proposed materials and finishes.
  • The Secretary of the Interior’s Standards for Rehabilitation will be used as guidelines for awarding project reimbursements.
  • All rehabilitation design proposals must meet with the code requirements of the City of Burlington.
  •  All projects should be completed within one (1) year of the date that the grant is awarded. Any extension beyond one (1) year must be requested by the owner and approved by the Burlington Downtown Corporation, or the funds may be rescinded.
  • Grant funds will be made available upon issuance of certificate of occupancy and final inspection of BDC staff.