Voluntary Tax Incentive Contribution Agreement

(VTICA) Application Overview

VTICA SUMMARY:

The Voluntary Tax Incentive Contribution Agreement (VTICA) is a program in Cincinnati that contributes 15% of the value of tax incentives of the developers who are in contract with the City. The money is used for affordable housing and community improvements in neighborhoods outside of downtown and Over-the-Rhine. For downtown and Over-the-Rhine properties, the payment funds the Streetcar. The amount of money individual neighborhoods receive is based on how many new developments come to that neighborhood and how many get tax breaks with a VTICA.

The purpose of VTICA funds is to improve the quality of life and encourage intra-community organization(s) collaboration within a neighborhood. Under the current ordinance, the VTICA funding must be used within the neighborhood for which the funding was collected and cannot be combined and shared with other neighborhoods. (See Section 8 of Ordinance 275 - 2017).

Required information to submit is listed at the end of this application, however, please read through the eligibility requirements to prevent your application from being rendered ineligible and rejected.

NEIGHBORHOOD ELIGIBILITY:

VTICA funding is available according to the development projects taking place within a neighborhood, and thus the availability of funding per community varies.

1. Neighborhood VTICA Threshold: For this process, each neighborhood should have at least $10,000 of VTICA funds collected by HomeBase Cincinnati from their respective neighborhood development projects to be eligible to apply for VTICA funding. HomeBase, in collaboration with Invest in Neighborhoods and CNBDU, will inform a neighborhood's community organizations when this threshold is reached.

2. Types of Eligible Projects: Eligible projects fall into three kinds:

a. Project support/management,

b. Operational support, and

c. Community engagement.

And include, but are not limited to, community real estate and development projects, community engagement projects, operational support for a nonprofit community based organization, and community beautification projects.

3. City Approval: If the amount requested exceeds $50,000 then additional approval from the City Council is required.

ORGANIZATIONAL ELIGIBILITY:

Any business association, community council, community development corporation, or community based organization housed within a neighborhood that intends to apply for their neighborhood's VTICA funding, must meet the following criteria.

(The following is informational, at the end of this application is the section that provides space for writing and attachments and lists out each required item).

1. Nonprofit Status: Applying organizations must be a registered 501(c)(3), or if not a 501(c)(3), the organization's registered State of Ohio non-profit status for the state of Ohio. Provide either:

a. IRS determination letter, if a 501(c)(3), or

b. Proof of active status as a non-profit in the State of Ohio - Certificate of Continuing Existence

 2. Neighborhood Improvement Proof: The organization submitting an application must demonstrate that some portion of its purpose / mission is to promote the quality of life and growth of a neighborhood. Evidence of such purpose may be shown in any one or more of the following ways:

a. in the language of the entity's formation documents;

b. in the language of the entity's governing documents;

c. Board resolution or Board Minutes.

d. By providing minutes of meetings (including sign-in sheets of meetings, if available) of the entity that show evidence of the purpose; or

e. Any other documentation of the entity that shows evidence of the purpose that are a formal part of the organization. 

3. Members or Staff: The organization must provide the following;

a.Current staff, officers, or volunteer members and their positions / or titles, whichever is applicable to the formation of your organization.

b. List of Board Members

c. Organization's Total Operating Budget and Proposed Budget for the applicable Project.

d. List of Leveraged Funding Sources

4. Neighborhood Organization Collaboration: Proof of cross community organization collaboration or support for the project; i.e. communications with or letters of support from community council, business associations, community development corporations, and/or other relevant community based organizations

ELIGIBLE PROJECT TYPES:

Neighborhood organization(s) can apply for VTICA for the betterment of their neighborhood through the following options.

1. Operational Support:

a. i.e. utility bills, renting space, general operating expenses, paid staff, etc

2. Implementation Projects:

a. i.e. Acquisition costs, paid staff, external consultants, project materials, or other project costs, park improvements, pedestrian safety, etc.

3. Community Engagement:

a. i.e. anything that brings the community together around a goal, such as murals, streetscape improvements, recreation, arts, placemaking, social events, etc

Necessary Information to Submit Listed Below:

REQUIRED ATTACHMENTS: 

Proposal will not be considered if any of the following documents are missing.

1. Organization's nonprofit status, as described above under Organization Eligibility. 

2. Organization's proof of mission or purpose of dedication to neighborhood improvement as described above.

3. Organization's members/volunteers, staff, or and board officers with titles and emails as described above.

4. Organization's operating budget. (If an organization is volunteer based, please calculate the total value of donated goods and services and/or volunteer hours you expect to be included in this project, and an example of volunteer hours from a previous project.

5. Proposed project's budget or proforma (Example budget template, please download and use if needed: Budget Template)

Additional Acceptable Attachments (not required):

1. Letters of support from community organizations within the neighborhood.

2. Letters of support from cross-neighborhood organizations, if applicable.

3. Additional documentation in support of this project you feel the application committee should see.