Positioning Projects for Government Grants
While there are some impending policy changes on the horizon, it doesn’t change the need for continued investment in our infrastructure and built environment.
To help defer development costs, here are some considerations to strategically position projects for government grants.
Community and Stakeholder Support: Successful grant applications often include evidence of community support. This can include buy-in from local governments, civic and community groups, businesses, and academic institutions. Letters of support or other documentation should be gathered early in the process.
Data Collection: Data analysis plays a vital role in supporting the project narrative and providing evidence for the potential economic impact of the project. Data can be drawn from public sources and third-party research, such as economic impact studies, to support grant applications. A strong cost/benefit analysis on the project is ideal.
Local Financial Commitment: Most federal grant programs require a local match, usually about 20% of the total funding request. Local matches can come from city or state contributions or from private sources.
Eligible Recipient: Only designated entities are eligible to apply for and manage federal funds. While some private organizations are eligible, federal discretionary programs often favor local governments.
Government Documentation/Programming: Projects are typically required to be formally documented or "programmed" into an official plan to receive federal funds.
Project Readiness: Projects with technical documentation, such as engineering and design, are considered more competitive for grant funding.
Amount of Funding Request: One strategic approach is to bundle multiple smaller projects to create a larger, more compelling request that can be more appealing to funders.
Storytelling: Craft a compelling community development narrative grounded in data. The narrative should illustrate how the project will benefit the community and enhance the lives of residents.
Property / Facility Ownership: Many federal grants require that the funded project be located on publicly owned property.
Equity and Justice (EJ40) Community Benefits Plans: Federal discretionary grant applicants must demonstrate how their project addresses Environmental Justice 40 (EJ40) requirements which ensures that 40% of the benefits from certain federal investments, including those related to climate change and clean water infrastructure, flow to disadvantaged communities.
Time Commitment: Securing government grants can be a time-intensive, multi-step process that involves meeting many requirements. While timelines vary, keep in mind that government grants may double a project’s development timeline.
More to come on those policy changes…