Build MI Community Grant Initiative

Program Overview & Goals

The Build MI Community Initiative is designed to promote private investment by emerging developers with limited real estate development experience. Administered by the Michigan Economic Development Corporation (MEDC), this tool provides access to real estate development gap financing for small scale, incremental development projects.

The Build MI Community Initiative has been established to reactivate underutilized or vacant space into vibrant areas by promoting capital investment into development projects being taken on by developers and property owners with limited real estate development experience and familiarizing them with the development process to position them to potentially undertake more complex projects in the future.

Award Structure & Funding

Support will be in the form of a grant and will range between $50,000 and $350,000, but not greater than 50% of project costs for any project. For communities with populations of 15,000 or less, 30% of the annual funding will be set aside until March 30th of each fiscal year. Disbursement of grant funds will follow development milestones. Generally, 50% of funds may be disbursed at closing, with the remainder disbursed when the project is verified complete. Applicants may also be eligible for additional funding up to $35,000, for real estate development training and/or technical assistance.

Process

All applicants are required to submit an application while working with their Community Development Manager. The timing for project consideration is impacted by various factors which may include changes to project scope, inadequate or incomplete documentation, and project complexities.

The following is a high-level summary of the process:

Applicant provides completed application with additional supporting documents.
MEDC reviews project based on the criteria and if project aligns with Place goals and program guidelines, an LOI will be issued.
MEDC staff completes a full statutory and financial review.
MEDC prepares a recommendation to MEDC leadership and authorizes project approval.
MEDC drafts appropriate legal agreement.
Applicant completes milestones outlined in the agreement and necessary for disbursement of funds.
Applicant completes required reporting following project completion.
MEDC completes compliance verification and project closeout.

Project Considerations

The most competitive project submissions will also address local and regional impact, place, and economic and financial considerations. These considerations are listed below by category and are in no particular order. A project will be considered more competitive for funding the more criteria that are met.

Local and Regional Impact Considerations

Project aligns with local vision and goals stated in a master plan, downtown plan, capital improvements plan and/or economic development strategy.
Readiness of infrastructure – utilities, housing, transportation, public transit and other community services.
Located in a community engaged in Redevelopment Ready Communities. Located in a designated Michigan Main Street community.
Located in a Geographically Disadvantaged Area (GDA). Click here to see a map.
Project uses (including residential) align with local market needs.

Place Considerations

Project incorporates strong human-centric design principles and will contribute to the investment’s long-term value through holistic rehabilitation of the site.
Reuse of vacant or underutilized properties located in and contributing to a vibrant walkable mixed-use district.
Project positively contributes to the pedestrian experience and considers availability of adjacent multi-modal transportation options.
Rehabilitation, infill, and/or historic revitalization projects.

Economic and Financial Considerations

The following financial conditions will be considered by staff when determining a project’s competitiveness for Build MI Community grant support:

Availability of financing for the project.
Long-term financial viability of the project as demonstrated through project proforma.
Financial need for the project is exhibited.

More Information

Program Guidelines

Program Fact Sheet

Developer Toolkit

Application

The Build MI Community grant application is now available and can be downloaded below. Please note, prior to starting a project, or filling out any part of the BMC application, it is very important to work closely with the local municipality and with your Community Development Manager. Your Community Development Manager can provide valuable assistance toward a successful BMC request as well as save you time if the project is not competitive.

Download BMC Grant Application

Your Community Development Manager can also be found by using the interactive map below.