The Municipal Climate Recovery Fund (MCRF) was designed to provide municipal budgetary relief in the flood recovery effort by lowering the costs of borrowing to bridge FEMA reimbursement or otherwise pay for the many unexpected costs of the flood. Funded in partnership with the Vermont State Treasurer’s Office, the Vermont Bond Bank (Bond Bank) received an initial $15 million loan in 2023 through the 10% in Vermont Program.
The MCRF is expanding to safeguard emergency access for residences in flood impacted communities. The loans from the program will ensure that critical services provided by local government can continue while also bridging future FEMA reimbursement at a near-zero rate. The expanded MCRF will be funded through a Memorandum of Agreement with the Agency of Administration for $5 million.
What Does This Program Fund?
Developed in partnership with the Agency of Administration, the expansion is designed to provide immediate financial relief for communities with residences disconnected from first responder access either temporarily or on an ongoing basis from the July 2024 flood.
This program will fund costs eligible for FEMA Public Assistance reimbursement, a local government's own revenue loss up to 10% of its prior fiscal year, and planning and initial rebuilding of flood impacted infrastructure.
These funds can be used to pay off interfund loans and/or direct expense reimbursement. Upon request and approval by the Bond Bank, these funds also can be used to pay off a bank loan.
What Kind of Funding is Available?
Applicants must request a minimum of $100,000 and no more than $1 million. All loans are subject to availability and credit review.
The term is one year with an interest rate of 0.50% and no closing costs. Bond Counsel costs may be included in the loan amount.
Your FEMA Public Assistance reimbursement must be used to pay off the loan (pro rata to the payments you receive). Bond Bank loan payments are semi-annual on March 1 and September 1.
How Does My Community Apply?
Applications are due November 1, 2024. Apply at https://www.jotform.com/242598277300157.
Local governments will need to provide:
- Prior two years of financial statements
- Current Budget to Actual
- Summary of current FEMA damage inventory
- Non-FEMA cost documentation
- Bond Council engagement letter
What Will Make Our Application Competitive?
Local governments with residences disconnected from first responder access either temporarily or on an ongoing basis from the July 2024 flood are most competitive.
The following factors will be used to prioritize applications in the event of applications in excess of funding:
- Evidence of residences dislocated from emergency services due to 2024 flood
- Full-time equivalents or other measures of municipal capacity
- Disaster Impact Ratio = (Documented losses – expected insurance payouts + own source revenue loss) / Grand List
How Can My Community Learn More?
Visit the Bond Bank's MCRF Emergency Access Expansion webpage at https://www.vtbondbank.org/mcrf-ea.
Where Can My Community Find Help with Grant Writing or Management?
VLCT published a resource, Increasing Municipal Capacity for Grants, that offers ideas for assistance with grants. Many of the capacity builders also provide project management services. Hiring experienced project management assistance can increase the speed of project development and help avoid cost, permitting, and other development surprises.