Main Street Matters: District Development Grants

Main Street Matters: District Development Grants

Status: ACTIVE
Funder: Pennsylvania Department of Community and Economic Development
Amount: Up to US $1,000,000
Last Updated: October 31, 2025

Summary

The Main Street Matters program aims to revitalize downtown areas and surrounding neighborhoods through grants for planning, business support, and aesthetic improvements. Eligible entities include local governments, redevelopment authorities, and nonprofits. Funding supports various projects, such as building rehabilitation and infrastructure improvements, with a minimum 50% match required. This initiative promotes community development, safety, and sustainability, helping districts recover from disasters while fostering vibrant local economies.

Overview

Main Street Matters Overview The Main Street Matters (MSM) program is designed to support our downtown cores and surrounding neighborhoods with tools to create healthy, vibrant, and welcoming communities. Funding is available to support revitalization efforts in planning, business support, aesthetic improvements, and the increase of safety and security. Communities may wish to consider designation through the MSM program as a Main Street or Elm Street. Designation is an opportunity for targeted investment and development including the identification of specific needs for investment and/or development and the design and implementation of a strategy to address those needs. Uses A flexible tool for use in community and economic development for a variety of uses including planning activities, façade grant programs, business improvement grant programs, accessible housing programs, and district development grants. Eligibility Units of local government (counties, cities, boroughs, townships, towns, and home rule municipalities)Redevelopment and/or housing authoritiesNonprofit organizations to include economic development organizations, housing corporations, etc.Community development corporationsBusiness improvement districts, neighborhood improvement districts, downtown improvement districts, and similar organizations incorporated as authorities Eligible Uses of Funds D. District Development Grants Activities District development grants are available for large public and private development projects which improve the buildings, housing units, and infrastructure associated with downtowns and commercial districts and residential areas and neighborhoods adjacent to the community’s downtown or commercial district, as well as for public safety and permanent aesthetic improvements for these districts. District development activities may include, but are not limited to: a. Acquisition, rehabilitation or restoration of older or under-utilized buildings for immediate reuse supporting other community development goals, including those which qualify for listing in the National Register of Historic Places or are an anchor building in a community.b. Demolition of blighted structures with a plan for committed private or public development and/or site maintenance.c. Site improvements to support the construction of new housing units or commercial structures.d. Acquisition, rehabilitation, and/or new construction of:i. Housing resulting in homeownership or rental opportunities.ii. Mixed-use buildings which contain a combination of distinct and separate commercial and residential uses.iii. Commercial buildings which support opportunities for the location of new businesses and commercial enterprises.e. Rehabilitation of owner-occupied residential properties.f. Public infrastructure improvements such as:i. Road rehabilitation or construction, streetscape improvements, and water and sewer improvements.ii. Extension of service through public rights-of-way, including widening of roadways and upgrades to water, sanitary, or storm sewers.g. Purchase and installation of police cameras, street lighting, and other infrastructure which contributes to improved public safety outcomes.h. District development grants may also be available to help a Main Street or Elm Street district recover from a disaster event, such as flooding or fire. Funding Requirements and Limitations a. District development grants require a minimum 50% match of the total project cost and may not exceed $1,000,000.b. Grant requests from designated Main and Elm Street programs should refer to the MSM Main and Elm Street Match Requirements outlined in Appendix I.c. Projects that benefit for-profit or private sector individuals or entities are eligible as follows:i. Funding assistance for projects which benefit a for-profit or private sector entity can be conveyed through a grant, loan, or combination of a grant and a loan, with all funding required to pass through an eligible applicant to the MSM program.ii. For assistance conveyed via a loan, the loan must be repaid to the local agency receiving grant funds and deposited into an existing or, if establishing a Revolving Loan Fund (RLF) for the first time, a newly created RLF. Such projects are subject to the following requirements:DCED must review and approve the financial underwriting of the loan and all loan terms and conditions.Applications should include the following information regarding the proposed loan:– Proposed terms and conditions of the loan to include annual interest rate, amortization period, description and value of collateral, and position of real estate encumbrance,– Business history of proposed borrower,– Financial documentation from the borrower evidencing the borrower’s ability to pay back the loan, and– Draft loan documents.The existing or proposed RLF program guidelines must be submitted for review and approval in accordance with the instructions in Appendix II – Administration of Revolving Loan Funds.Reporting requirements are outlined in Appendix II – Administration of Revolving Loan Funds.d. Entities which intend to apply for grant support for private or for-profit projects must receive pre-approval from DCED prior to applying for grant assistance.

Eligibility

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