DHCD Project Restore FY23 Grant Proposal

A sample application will be posted to https://dhcd.maryland.gov/Pages/ProjectRestore/default.aspx no later than June 20, 2022. Applicants are encouraged to review the application, prepare answers, and gather required documents in advance of the July 7 opening of the on-line application.

In addition to basic information about the business, such as the type of business, description of business operations, location of business, etc., the following attachments will be required in the on-line application for an application to be considered complete.

• Online verification of registration from the Maryland State Department of Assessments and Taxation for the applicant, landlord and property owner.

• Maryland State Department of Assessments and Taxation Real Property online verification of owner of vacant property

• Applicant’s signed and dated IRS W-9 Request for Taxpayer Identification Number and Certification

• Signed and dated by both applicant and landlord a lease or letter of intent to lease and occupy the vacant space. NOTE: If awarded funds, the applicant must provide a signed leased agreement prior to executing a grant agreement and receiving any funds

• If applying for the Business Operations Grant, existing businesses must provide proof of sales and use tax paid in CY2021 and CY2022 to date; new businesses must provide information on anticipated sales and use tax to be paid beginning January 1, 2023.

Property Assistance Grant:

Property Assistance Grant can be used within one year as follows:

(a) if the business, including a nonprofit, is leasing vacant space the funds can be used for rent and cover the 12-month period from the date rent payments begin per the lease,

(b) if the business, including a nonprofit, owns the building then funds can be used for mortgage payments and the 12-month period begins at the date the award agreement is executed or

(c) if the business, including a nonprofit, owns the building and there is no mortgage the funds can be used for property improvements. If the funds are used for property improvements applicant must submit vendor cost estimates for improvements and improvements must be made within 12 months from the date the award agreement is executed.

Grant amounts may be reduced relative to requests if demand exceeds available funding.

Business Operations Grant:

Business Operations Grant award amounts will be based estimated sales and use tax to be paid by the business in CY2023 and CY2024 if applicable. Awarded funds must be used for capital and/or operating costs associated with business operations in the vacant space.

Grant payments will be based on actual sales and use tax paid to the state beginning January 1, 2023, up to $250,000 for up to two calendar years, if applicable. Payments will be made to the business on a quarterly basis, after the Comptroller’s Office has received the sales and use tax submitted to them by the business.

 

For Business Operations Grant the award term of 1 year or 2 calendar years will be determined based on the location of the vacant retail or commercial property/space the business will occupy:

 

Tier 1 Areas – 2 Years (Calendar Years 2023 and 2024)

Baltimore City, Allegany, Baltimore, Caroline, Cecil, Dorchester, Garrett, Kent, Prince George’s, Somerset, Washington, Wicomico, and Worcester Counties.

Opportunity Zones and the State’s 33 designated Main Street Maryland communities located in any Maryland county.

 

Tier 2 Areas – 1 Year (Calendar Year 2023)

All other counties no listed in Tier 1 Areas.

Grant amounts may be reduced relative to requests if demand exceeds available funding.

• Announcement of Funding Opportunity: June 10, 2022

• Sample application will be posted no later than June 20, 2022: https://dhcd.maryland.gov/Pages/ProjectRestore/default.aspx

• Projected on-line Project Restore application portal opens: 12:00 noon, Thursday, July 7, 2022

• Application portal closes: 5:00 pm Thursday, September 8, 2022 at the latest; the portal may close if or when grant requests exceed available funding.

• Funding decisions will be made on a rolling basis beginning September 30, 2022.

Existing or new Maryland based businesses, including nonprofits, with 50 or fewer full-time employees that are expanding, moving to or opening in a property that was previously vacant for at least six months.

 

NOTE: Businesses that have the following as their principal purpose are NOT eligible to apply:

(1) Adult bookstore, adult video shop, or other adult entertainment facility; (2) Check cashing facility;(3) Gambling facility; (4) Gun shop; (5) Liquor store; (6) Massage parlor; (7) Pawn shop; (8) Tanning salon; or (9) Tattoo parlor.

Property must have been vacant for at least six months.

If Applicant Is Leasing the Vacant Property/Space: Date of the signed lease or Letter of Intent must not be older than April 1, 2022, therefore property must have been vacant as of October 1, 2021 or earlier.

NOTE: Applicants with a signed lease dated between July 1, 2021 and March 31, 2022, that meet grant requirements, may apply for the Business Operations Grant but NOT Property Assistance Grant.

If Applicant Owns the Vacant Property/Space: Business applicants that are also the building owner(s) cannot have owned the property prior to July 1, 2021 and the property must have been vacant for at least six months prior to or during the period of ownership.