RACP projects are authorized in the Redevelopment Assistance section of a Capital Budget Itemization Act, have a regional or multi-jurisdictional impact, and generate substantial increases or maintain current levels of employment, tax revenues, or other measures of economic activity. RACP projects are state-funded projects that cannot obtain primary funding under other state programs.
Announcements:
The window to apply for Funding Round 2023 (December 8, 2023 through January 12, 2024) is now closed. The listing of Funding Round 2023 grant requests Round 2023 Submissions-Awards is now available.
The Public Comment Period is now closed for Funding Round 2023 RACP submissions.
Next Funding Round Window:
To Be Determined
RACP Grant Process
The process of obtaining RACP funding has three distinct phases:
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1
The pre-award process;
Pre-award Flowchart (PDF)
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2
The post-award process and;
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3
The reimbursement process
Each phase requires applicants to provide documentation that the project is in the public interest and meets the requirements of the program as set out in statute Capital Facilities Debt Enabling Act (PDF).
More details about non-state funding and reimbursable cost categories can be found in Section 1 - D. Eligible Costs in the Program Guidelines (PDF).
Please select one of the categories below for more detail on each of the processes...
e-RACP Application Instructions (PDF)
RDA-300, RDA-301, and RDA-302 Forms (XLSX)
Statement of Compliance Acknowledgement Template (DOCX)
Pre-award Flowchart (PDF)
A project is eligible for RACP funding only if that project has been itemized in a PA Capital Budget Project Itemization Act (XLSX) such itemizations have remaining "Project Allocation" amounts, and have not been statutorily "sunset" according to Act 77 of 2013. Applicants who have an authorized and eligible project will need to submit an e-RACP Application to the Office of the Budget.
TO DETERMINE ELIGIBILITY A RACP PROJECT MUST ...
- Have a total project cost of at least $1,000,000.
- Be a project which will generate substantial increases in or maintain current levels of employment, tax revenues or other reassures of economic activity.
- Be a project that has a regional or multi-jurisdictional impact or, in the case of housing, is part of a community revitalization plan.
- Be eligible for tax-exempt bond funding under existing Federal law and regulations.
- Have at least secured 50% non-state financial participation.
RACP projects are state-funded projects that cannot obtain primary funding under other state programs. Projects that can normally obtain funding from PENNDOT, PENNVEST, the Department of Community and Economic Development, or other state agencies are generally restricted from participating in RACP.
Be advised of the following:
- A completed set of budget forms, also known as the RDA-300, RDA-301, and the Construction Cost Breakdown, will be needed for submittal and referenced throughout the e-RACP Application.
- The e-RACP Application should be completed by the Candidate or Applicant.
All submissions that pass an initial review of eligibility and completeness will be considered for a RACP grant award. The Office of the Budget staff will forward a complete listing of projects and summaries to the Administration for grant award consideration.
There is a 30-day "public comment period" after the closing of an e-RACP Application window until an award can be made.
If your capital project is approved by the Office of the Budget, you will receive an Award Letter to submit a formal Project Management Proposal (PMP).
If you did not receive an award letter by the date the Office of the Budget officially closes a funding round, as posted on the website, then you were not selected for an award. You will need to re-apply during a subsequent open funding round.
Project Management Proposal Handbook (PDF)
Project Management Proposal Fillable Template (DOCX)
Cash Flow Schedule Template & Example (XLSX)
RDA-300, RDA-301, and RDA-302 Forms (XLSX)
Applicants who accept the award letter within 30 days of being received, are then required to submit a formal PMP within 6 months of the date of the Award Letter. As part of the improved post award process, additional deadline extensions to submit your PMP (previously known as A&BP) are no longer guaranteed.
If a funding recipient is unable to demonstrate a forward moving project, the RACP grant award will be terminated. This action would not prevent the funding recipient from applying for RACP funding in the future when the project is ready to proceed.
All RACP projects must submit the PMP through an eligible Applicant, as listed below:
- A redevelopment authority.
- An industrial development authority.
- A general-purpose unit of local government (county or municipality).
- A local development district that has an agreement with a general-purpose unit of local government.
- A public authority established pursuant to the laws of this Commonwealth.
- An industrial development agency.
The Office of the Budget (OB) personnel are available to assist Applicants throughout the funding process. At the time of the PMP submission, the Applicant must be able to demonstrate that at least 50% of the required non-state funds necessary to complete the project are secured.
When OB receives the PMP, it conducts a preliminary review and then assigns a consultant to conduct a thorough assessment of the PMP. The consultant then provides OB with a report detailing the assessment. OB reviews the report and prepares the grant agreement, which will contain applicable special conditions.
The grant agreement will be provided to the Grantee for signature. Once it is returned to OB it will be forwarded to the appropriate agencies within the Commonwealth administration for validation and execution. The contract must be approved by the following signatories:
- Office of the Budget Chief Counsel
- Secretary of the Budget
- Deputy General Counsel
- Deputy Attorney General
- Comptroller Operations
The execution of the grant could take up to 90 days. A final copy of the executed grant will be provided to the Grantee. It is important to note that OB cannot reimburse on any RACP-compliant costs until a fully executed grant agreement is in place.
Once the grant agreement is fully executed, the Grantee will then have a maximum of six (6) months to meet the terms and conditions of the grant agreement. The Grantee would be qualified to receive reimbursements for paid costs once the construction activities have started and these terms and conditions are satisfactory.
Once construction activities have started, it is advised that the Grantee request a facilitation meeting. These meetings are conducted by OB personnel and are at no cost to the project. At these meetings, RACP requirements will be discussed, and payment request procedures will be explained.
Once the project has incurred eligible reimbursable costs, they may then submit a payment request to start receiving grant funds.
Payment Request (PR) Forms (XLSX)
Reimbursement Handbook (PDF)
RACP will use a reimbursement process to fund projects. Grantees must apply for payments to reimburse a portion of paid project expenses.
A Payment Request must include paid construction costs before any other items will be reimbursed. Therefore, if construction has not started, the Commonwealth will not reimburse on acquisition, permits, or interest costs.
To facilitate the release of grant funds, the submission of completed, signed Payment Request (PR) Forms (XLSX) and supporting documentation must be sent to the Office of the Budget.
The state-assigned consultant will issue Construction Monitoring Reports periodically, which will be used to assist OB staff in their review process.
The approved PR form will be sent to Treasury through Comptroller Operations for the release of grant funds when:
- special conditions (Appendix B of the Grant Agreement) have been fully satisfied via a letter from the Office of the Budget,
- all other terms and conditions of the grant are satisfactory,
- compliance with program requirements is verified, and
- the payment request forms are acceptable.
Upon submission of a final payment request, retainage of up to 10% may be withheld by OB until a close-out audit is concluded. This percentage may be reduced at the discretion of OB.
A close-out audit will be performed by OB staff for all projects. The Grantee will not be required to pay for this audit. Generally, the Grantee, among other things, is required to:
- Maintain books, records, documents, correspondence and evidence pertaining to the costs and expenses to the project funded with the Grant Agreement.
- Retain records for a period ending the later of 1) seven (7) years after final payment is made by the Grantee with funds awarded via the Grant Agreement; 2) seven (7) years after the Grant Agreement has expired; or 3) seven (7) years after the effective date of any termination of the Grant Agreement.
- Provide access to Commonwealth risk and compliance officers during the term of the Grant Agreement and after as specified in the Grant Agreement for record retention.
Definitions:
Candidate: Any entity that has an authorized eligible project and, subsequently, has submitted an e-RACP Application, but has not received an award. For project eligibility requirements, please see the Program Guidelines.
Applicant: An eligible entity that has submitted a formal PMP for a project that has received a RACP award letter. It may be the candidate itself, or if they are not an eligible applicant, a separate "sponsor" entity selected by the candidate.
Sub-Applicant: In cases where a RACP candidate is not an eligible applicant, the candidate becomes the sub-applicant and selects an eligible applicant to "sponsor" them and submit the formal PMP.
Grantee: An applicant that meets eligibility requirements and has received a grant agreement for execution. For grantee eligibility requirements, please see the Post Award Process Section of this website.
Sub-Grantee: An entity that, through the cooperation of a grantee, will use RACP funds for an eligible project.
Contact Us by Mail:
Redevelopment Assistance Capital Program
Office of the Budget
Bureau of Redevelopment, Capital, and Debt
333 Market Street Tower | 18th Floor
Harrisburg, PA 17101-2210
NOTE: Requests for information in accordance with the Right-to-Know Law (RTKL), must be submitted directly to OBRightToKnow@pa.gov. Requests sent to any other email address listed on this website will not be considered an official RTKL request. Please see the Office of the Budget's Right-To-Know Law page for more information.
Be advised that any information included in the submission of an e-RACP Online Application (Pre-Award-Application) and PMP (Post-Award-Application) and any attachments thereto may be subject to the Right-to-Know Law in Pennsylvania.
