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Downtown Development Districts (DDD) Rebate Program

Grants to Delaware Nonprofits, For-Profits, Homeowners, and
Tenants for Real Property Investments in Eligible Districts

Agency Type:

State

Funding Source:

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Delaware State Housing Authority (DSHA)

Deadline Date:

01/16/20 For Large Projects (4:00 PM); Small Project Lite-Reservation and Small Project DDD Rebate applications are accepted on a rolling basis.

Description:

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Grants to Delaware nonprofit organizations, businesses, for-profit developers, tenants, homeowners, and property owners to make property investments in designated downtown districts. Funding is intended to support qualified real property investments in industrial, commercial, residential, and mixed-use buildings and facilities. Eligible districts include Dover, Seaford, Wilmington, Georgetown, Harrington, Laurel, Milford, Smyrna, Clayton, Delaware City, Middletown, and City of New Castle.

The Downtown Development Districts Act was created to leverage state resources in a limited number of designated areas in Delaware’s cities and towns to:

  • Spur private capital investment;
  • Stimulate job growth and improve the commercial vitality of our cities and towns; and
  • Help build a stable community of long-term residents in our downtowns and other neighborhoods.

Under this Act, funding was allocated through the General Assembly to DSHA for the purpose of establishing and administering the DDD Rebate Program. Investors who make Qualified Real Property Investments (QRPI) to buildings or facilities may apply to DSHA for a DDD Rebate.

To be Eligible to Apply for a DDD Rebate

  • The QRPI must be made within the boundary of a designated DDD.
  • The QRPI must be made in conformance with the approved District plan.
  • The QRPI must be in excess of the required Minimum Qualified Investment Threshold (MQIT).
  • The QRPI must be made after the date the real property location is officially incorporated within the boundary of a designated District.
  • The Investor must meet site control requirements (e.g. legal title, sales agreement, or owner's consent).

Funding is available for the following types of projects: Small Project Set-Aside or for Large Project Set-Aside.

Eligible Expenses:

  • Capital investments necessary for the rehabilitation, expansion, or new construction of a commercial, industrial, residential (single and multi-family), or mixed-use building or facility located within the boundary of a District.
  • Only expenses that are properly chargeable to a capital account and incurred after the date the real property is officially incorporated within the boundary of a designated District are eligible for rebate consideration.
  • Eligible costs are generally referred to as “hard costs” and are associated with the building structure. This includes labor and materials required to construct the building envelope and the building interior.
  • Limited costs associated with site improvements, as defined in Appendix B of the program guidelines.
  • Limited costs associated with appliances and equipment used for commercial business activities, as defined in Appendix B of the program guidelines.
  • Demolition of a building (only when replaced with a new building).

DSHA considers several factors when determining eligibility of expenses for projects and reserves the right to determine final eligibility. Factors considered, but not limited to:

  • Project type: Commercial, industrial, residential or mixed use;
  • Eligible activity: New construction or rehabilitation of an existing building;
  • End-use of the building; and
  • Total amount of the investment.

For more details about eligible expenses, see http://www.destatehousing.com/Developers/developermedia/ddd_guidelines.pdf#page=7.


GrantWatch ID#:

GrantWatch ID#: 180722

Estimated Size of Grant:

Small Project Set-Aside:
Minimum Qualified Investment Threshold (MQIT): $ 25,000
Maximum Award: $70,000 per building or facility

Large Project Set-Aside:
Minimum Qualified Investment Threshold (MQIT): $ 350,000
Maximum Award: $1,500,000 per building or facility

Term of Contract:

Small Project Lite-Reservation: Project Timeline/Building Permit. Applicants must demonstrate:
- Evidence the project is ready to commence and able to be completed within 12 months of the Lite-Reservation date.
- Detailed timeline of project. Construction activity must commence within 60 days of the Lite-Reservation date.

Large Project Set-Aside: Applicants must demonstrate project’s ability to be 15% substantially commenced within one (1) year from date of Reservation. DSHA will verify at the one-year benchmark that at least 15% of all heavy construction activity has been completed. Applicants must provide a detailed timeline that demonstrates the project’s ability to meet the following Reservation deadlines:
- Ownership of property within 120 days of Reservation date, if applicable;
- Substantially commence within 12 months from Reservation date; and
- Complete project within 3 years from Reservation date.

Additional Eligibility Criteria:

Eligible Investors include property owners (occupant or non-occupant), tenants, for-profit developers, nonprofit organizations, businesses, and homeowners.
- Federal, state and local governments are not eligible to apply. Additionally, real property owned by federal, state or local government, in any form, is not eligible for DDD funding.
- Investors that make a QRPI in association with a Low-Income Housing Tax Credit (LIHTC)
project may apply for DDD funding after receiving a preliminary LIHTC allocation.
- Investors must meet minimum threshold requirements to apply.

To apply under the Large Project Set-Aside an Investor must have a minimum of $350,000 in Qualified Real Property Investment (QRPI), and now with the removal of the $25,000 deductible the full QRPI will be eligible for rebate consideration. Investors making a QRPI of $25,000 to $350,000 may apply under the Small Project Set-Aside.

The QRPI is defined as the amount that is properly chargeable to a capital account for eligible improvements to rehabilitate, expand or construct depreciable real property placed in service within a District.

Ineligible Activities and Expenses: http://www.destatehousing.com/Developers/developermedia/ddd_guidelines.pdf#page=8.

Pre-Application Information:

Application Deadlines:

- Large Project Reservation Applications: Due January 16, 2020 by no later than 4:00 p.m.
- Small Project Rebate Applications: Accepted on a rolling basis, subject to funding availability.

The District Pool is allocated based on the populations of each District. For a full breakdown, see http://www.destatehousing.com/Developers/developermedia/ddd_guidelines.pdf#page=6.

Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.

For questions or application assistance, contact:

Penny Pierson, Community Development Manager
E-mail: Penny@destatehousing.com
Phone: (302) 739-4263, ext. 246
Direct: (302) 739-0246

Tunisha Scott, Community Development Analyst I
E-mail: Tunisha@destatehousing.com
Phone: (302) 739-4263, ext. 221
Direct: (302) 739-0221

URL for Full Text (RFP):

Geographic Focus:

USA: Delaware: The Downtown Development Districts of Dover, Seaford, Wilmington, Georgetown, Harrington, Laurel, Milford, Smyrna, Clayton, Delaware City, Middletown, and City of New Castle