When persons and households do not have reliable internet access, they often rely on community anchor institutions to provide that access. Through this facilities program, the authority is looking to expand broadband access across the commonwealth.
The facilities program is expected to be highly competitive, so it is important for municipalities and community anchor institutions to identify their projects for the application submission. Municipalities and community anchor institutions will want to carefully review the facilities program guidelines when conceptualizing a project and conveying that project to the authority to maximize their competitiveness in the application process.
Guidelines for Eligibility and Project Costs
A successful applicant will need to demonstrate that its project meets the various criteria found in the facilities program guidelines. This involves a building or public space that is open to the public and directly enables and enhances vocational, educational, and health monitoring services at the facility. Eligible project costs include:
- Pre-construction costs, such as data gathering.
- Feasibility studies.
- Public/community engagement efforts.
- Equity and needs assessments.
- Permitting.
- Planning.
- Architectural design.
- Engineering.
- Any necessary environmental, historical, or cultural reviews.
- Repairs, rehabilitation, construction, improvement, and acquisition of real property, facilities, and equipment (such as devices/technology).
Administrative costs are eligible but are limited to 2.5% of the grant award; otherwise, operational expenses are not eligible costs. Further, grant funds may not be used for short-term operating leases, payment of interest on debt or other debt service costs; satisfaction of a legal judgment; securing other financing; lobbying; fines; and general construction projects that otherwise do not meet project eligibility criteria.
Compliance and Accountability Measures
Emphasizing the importance of a long-term investment, the authority requires applicants to include a sustainability model or long-term plan that demonstrates the ability to cover all necessary costs (including property taxes/rents); a commitment to retain occupancy at the facility for five years; a detailed plan for maintaining the facility without federal funding; and a detailed list of intended project outcomes and means to verify progress, risks, and assumptions. An applicant must provide a final report within three months after project completion. The final 10% of grant funds will be held until after submission of the final report and the authority’s satisfaction of project completion.
Compliance with the facilities program is a crucial component to a successful grant. Applicants must provide the authority with access to all relevant records, including data, reports, contracts, and documents relevant to a funded project. An applicant will be required to certify that its expenses were incurred pursuant to the scope of work approved by the authority. The authority may, under its discretion, conduct a formal audit of any funded project. The authority’s guidelines thus reflect the commonwealth’s objective to ensure cost-efficient deployment of the substantial injection of federal funds over a relatively condensed period of time.
Next Steps
The facilities program application period will close on April 20. The minimum grant amount is $250,000 and the maximum amount is $2 million. At this time, the authority plans to announce awards July-August 2024, with construction envisioned to commence in September 2024. All projects must reach substantial completion before Dec. 31, 2026. Facilities program guidance is available at Capital Projects Fund Multi-Purpose Community Facility Program Guidelines (pa.gov).
Reprinted with permission from the April 2, 2024 edition of The Legal Intelligencer © 2024 ALM Media Properties, LLC. Further duplication without permission is prohibited. All rights reserved.