Emergency Response HEAL Grant

Emergency Response HEAL grants are intended to bring rural downtown buildings back from likely demolition or collapse and rehabilitate them into productive use as spaces for new or expanding businesses, childcare, housing, arts and culture, or entrepreneurship. In 2023, the Kansas Legislature and Governor Kelly approved an annual allocation of $500,000 for Emergency Response HEAL projects, establishing a rolling deadline program that can be quickly reviewed and awarded to stabilize a building at risk of collapse.   

Buildings that are at risk of imminent loss, that are causing damage to surrounding downtown buildings, and/or have significant damage due to fire, storms, wind, etc. are eligible projects for Emergency HEAL. A maximum of $100,000 will be awarded per community. If there is more than one building affected due to an event, the city or another local organization can apply for the maximum of $100,000 to save more than one building. There is a 1:1 match required for this grant (Example: $100,000 cash match required for a $100,000 grant award). 

• The intent of this program is to bring this building into use by the end of the grant term, which is 30 months.  
• The use of the building must be for one of the following: new or expanding businesses, childcare, healthcare, housing, arts and culture, or entrepreneurship.
• In the application, the final intent of use of the building must be identified, however, the specific tenant must be identified by one year from award date, or occupants of the space must be identified and committed to by the 50% mark of construction completion. The second payment of the grant will not be paid until the business plan, proforma, and tenant commitment letter are provided, no later than one year from the date of the contract signing date.  
• If the building was occupied at the time of the damage, it is eligible, however, an insurance claim, evaluation, and funding from insurance must be included as part of the project match.

A private building owner MUST have an eligible local partnering support organization APPLY for the grant on their behalf. This organization will commit to supporting the project through the fiscal administration of the grant funds (distributing the payments to the building owner), tracking the bi-annual financial reports, and ensuring that the building owner is on track with program deadlines. 

Eligible supporting and applicant organizations include: 

• Designated Kansas Main Street Programs
• Economic Development Corporations or Chambers of Commerce
• Cities 
• Counties
• Schools
• 501(c)3 or 501(c)6 organizations 
• Local Community Foundations
• Tribal Nations

The amount of funding available is currently budgeted at $500,000 annually. The Grant application will open February 8, 2024, and will remain open until June 3, 2024. On July 1, 2024 the next $500,000 of funding will be available. A maximum of $100,000 will be awarded per community annually. 

Awarded projects will be funded on the following schedule with the corresponding project milestones and deadlines:

• 50% of the awarded amount when proof of commencement of construction is verified. Site visit required. 

Deadline: 4 months following grant award. 

NOTE: Site cleanup, removal of debris, and demolition do not qualify as construction. 

• 25% of the awarded amount when 50% of construction completion has been verified. Site visit required. A business plan, pro-forma, and letter of tenant commitment are also required to receive this second payment. Deadline: one year from contract signature date.  
• 25% of the awarded amount when 75% of construction completion has been verified. Site visit required. Deadline: two years after contract signature date.

Projects that complete milestones ahead of deadlines will receive award payments once project updates, appropriate documentation, verification, and a site visit can be completed. The purpose of this funding mechanism is to ensure rapid progress to rehabilitate these buildings and provide assurance for local financial partners.  

Progress will be evaluated through monthly project updates completed by the applicant, fiscal reports in June and December completed by the applicant, and site visits with Commerce staff throughout the project. These are all required to keep projects moving forward, resolve challenges as they arise, and ensure successful completion of the project.

• Projects must show potential for reuse and revitalization as economic drivers in the community.
• The awarded project may include funding from any state or federal source if there is no duplication of benefit. Examples include Community Development Block Grant, USDA Rural Development, State Historic Preservation Office programs or local Network Kansas programs. Proof of this award, via a letter from the awarding agency will be required for proof of match.
• Projects must incorporate Main Street Design Standards and follow local ordinances and codes for improvements. 
• Award recipients are required to sign a contract agreeing to the conditions of the program.
• Projects must begin construction no later than 4 months after the award notification letter is issued, with construction complete in two years, with a tenant in place by the end of 30 months.
  • NOTE: Site cleanup, removal of debris, and demolition do not qualify as construction. 
• No more than one Emergency HEAL grant may be awarded to any city, but multiple projects can be funded with this single award in a community if the disaster or triggering event caused damage to more than one building.
• Work previously completed to stabilize the building due to the emergency nature is eligible as matching funds, within 4 months of the application submission date.

• Projects are encouraged to follow the Secretary of Interior’s Standards for Rehabilitation. https://www.nps.gov/tps/standards/rehabilitation.htm
• Projects are also encouraged to use best preservation practices as outlined in the Preservation Briefs of the NPS. https://www.nps.gov/tps/how-to-preserve/briefs.htm
• Projects that are on the State or National Register of Historic Places or contributing buildings in a Historic District must follow these standard and best practices guidelines and receive appropriate state approvals before beginning work.

• A structural engineering report must be provided showing that the building can be saved, or equivalent from an architect.
• Preliminary architectural drawings are required to support the scope of work. Written contractor quotes are sufficient for projects that do not require architectural drawings such as roofing.
• A 1:1 match (minimum) and proof of matching funds from the building owner. Proof of additional funding to complete the project (non-Emergency HEAL funding) is strongly encouraged to demonstrate that the project can be completed in the required timeframe.
• A letter signed by both the applicant and the building owner confirming commitment of both parties to the project. 

Masonry (including rebuilding of exterior walls), insulation, foundations, roofs and guttering, fire stairs, windows, doors, chimneys, walls, ceilings, floors, interior stairs, elevators, lighting and fixtures, electrical wiring, data and communication, wiring (not including equipment), HVAC systems and components, plumbing systems, fire suppression sprinkler systems and ADA accessibility solutions. This list is not exhaustive. Project expenses not listed here are at the discretion of the Kansas Secretary Commerce for eligibility under the grant. Up to 2% of the grant award may be retained by the applicant organization for project administration expenses. 

Professional services (architect and engineering fees), acquisition costs, or leasing contracts. This list is not exhaustive. Grant funds are to be utilized for the physical construction of the project.

A maximum of $100,000 is available per community, but the triggering event must be the same for each building that is being submitted to fund more than one building with this grant award.

Opens February 1 – June 3rd, 2024 at 11:59 PM. The 2025 fiscal year starts July 1, 2024, and the Emergency HEAL Grant will reopen again on July 1, 2024, closing again on June 1, 2025. Award notifications will be made within no more than 15 business days of the receipt of a complete application. Available funding: $500,000.