Salem has created the Building Rehabilitation/Restoration Grant Program to encourage new construction and existing business and property owners to improve their store fronts and properties to contribute to the North Gateway Urban Renewal Area's (URA) revitalization.

The North Gateway URA Grant Program has helped several area businesses expand and supported workforce development with investment in the Salem Keizer Career and Technical Education Center. Since July of 2017, $2M in grant funds have helped leverage $3.6M in private investment in the area.

Grant Funding Options

In order to address a variety of needs within the North Gateway URA, grant funds have been allocated to achieve specific goals. Our Rehabilitation/Restoration Grant Program has an allocated $1M to it for Fiscal Year 2019/2020. In addition, we are also allocating grant funds specifically for development infrastructure and affordable housing.

Guidelines

The grant recipient and the property must meet the minimum requirements as outlined below; additional requirements may apply. Please read all requirements before submitting an application.

All terms, guidelines, and conditions remain the same for the development infrastructure and affordable housing grants. The $300,000 maximum award applies to the grant program as a whole, it does not apply to each application type.

Affordable Housing Financial Assistance Program: Financial Assistance for the purposes of capital improvements of existing multi-family housing units consistent with the U.S. Housing and Urban Developments' (HUD) Housing Quality Standards and/or development of new multi-family housing units. For the purposes of this funding source, "affordable" is defined as being no more than 20% above the annual rates published by HUD

*Applicant required to show proof of eligibility as outlined in additional guidelines as part of application process*

Development Infrastructure Assistance Program: Financial Assistance to those properties in which development is a challenge due to lack of necessary city and certain private infrastructure (service is not currently on-site) and/or the location of existing infrastructure. This would apply to water, sewer, storm and fiber.

Grant Terms

• Each dollar in grant funds must be matched by a dollar in applicant funds. Grant funds and matching dollars must be used for eligible costs. Applicant expenditures for ineligible costs may not be applied as grant match.
• Grant funds may not be applied to costs incurred prior to the grant award.
• An applicant is limited to one grant award every three years per project location. An applicant is eligible for additional grants supporting projects at other locations within the URA. Phased projects may be approved as a single grant. The maximum award for a phased project shall not exceed $300,000.

Example: A company envisions the phased installation of equipment and related electrical system upgrades totaling $300,000. If the company describes the overall plan for the improvements with a timeline for completion, the project may be considered a single grant award (even though the dispersal of funds may be phased).

Grant awards may be combined with a loan award for a single project, but a loan award may not be used to satisfy the grant award match requirement.

Additional terms may apply for award to comply with law or URA rules and regulations. Terms are subject to change.

Maximum Grant Award: $300,000

Eligible Recipient

• Grant recipient may be the owner of the property (fee title or executed land sale contract evidencing right to perform improvements) or a tenant with an executed lease and written consent from property owner to make the proposed improvements.
• ‘Recipient’ includes all legal entities where the recipient has a membership, shareholder, or ownership interest. Non-profit entities are not eligible for grants.
• Grantees awarded funding prior to July 1, 2014, who apply for funding after June 27, 2016, will be considered a new applicant, if eligible, for up to $300,000. Individuals awarded North Gateway URA funding after July 1, 2014 will be eligible to apply for the balance of their previous award, up to $300,000. The same eligibility requirements and policies apply to all applicants, regardless of whether they have received previous grants.

Eligible Property

• Properties must be located within the North Gateway URA.
• Properties must be appropriately zoned for the site use.

Eligible Grant Activities

• Restoration or rehabilitation to the face of a building that is in public view, including installation, repair or replacement of: awnings, canopies, exterior lighting, roofing, gutters, painting, signs, windows, doors, and other facade improvements.
• New construction or redevelopment of commercial, industrial, mixed-use, and multi-family housing properties.
• HVAC, electrical, plumbing renovation or replacement.
• Roof replacement to prevent further deterioration of a commercial or industrial building.
• ADA accessibility improvements.
• Environmental remediation.
• Site plan review, building permit, and design review fees (not exceeding $5,000 total).
• Renovation or replacement of items required to address zoning , building, fire code, or seismic deficiencies.
• Demolition in conjunction with an approved project.
• Purchase of capital equipment as a business investment or to expand job opportunities. Equipment purchased with URA funds shall remain with the building for a period of 10 years. Should the equipment be moved outside of North Gateway URA, the grant funds used to purchase the equipment shall be reimbursed to the Urban Renewal Agency on a proportional basis related to the time remaining on the 10-year commitment. Example: A company that purchases equipment with URA funds, leaves the URA in eight years (2 years short of the 10-year commitment) shall reimburse the City for 20% of the original grant award.

Conditions

• Applicants shall maintain improvements funded by the grant in good order for a period of at least five years and be dutiful about removal of graffiti and repair vandalism. Capital equipment purchased with grant funds shall be maintained in good working order and must remain in the URA for a period of 10 years per section 4.1.
• If required, work shall be done under a building permit issued by the City of Salem.
• Agency shall not reimburse more than 50% of all submitted receipts.
• Taxes or fees assessed by the City must be current.
• Evidence of property insurance is required.