Vermont
Housing &
Conservation
Board


Project Feasibility Fund

1/03


The purpose of the Project Feasiblity Fund is to provide applicants with a source of funding to cover predevelopment project costs as described below in order to answer the question "is the project feasible?". Evaluation of feasibility fund requests is done by VHCB staff on an ongoing basis. There are no application deadlines for feasibility funds.

Amount of Award

Conservation applicants may request up to $8,000 as a grant for a single project to cover feasibility related expenses. Housing applicants may request up to $10,000 as a grant for a single project to cover feasibility related expenses and up to $15,000 for scattered site projects containing more than two separate sites. Funds can only be used to compensate contracted services and shall not be used to compensate applicants for staff time.

Guidelines for Disbursement of Project Feasibility Funds

The applicant shall submit to the VHCB staff a request briefly describing the resource and outlining the significance of the resource, a proposed budget and information on potential conservation or development strategies. The applicant shall provide a brief outline of the analysis and consultation needed to develop and evaluate the potential project. Applications for feasibility funds must be submitted prior to applications for project implementation funds in order to be considered for an award. Upon receipt of a request for funds, VHCB staff may, at its discretion, visit the site prior to consideration of the request. The applicant must show that:

  1. the proposed project shall conform to local or regional plans;

  2. some degree of site control must have been established and evidence of site control submitted at the time of application. Site control may be established through any one of the following:

a. purchase and sales agreement;

b. option to purchase;

c. right of first refusal;

d. letters of agreement between land owner and applicant stating that the property is not currently under any purchase and sales agreement and that the landowner will not convey property or execute a contract to convey the property for a period of at least four months following the allocation of VHCB funds.

3. If the fund is to be used to contract for an appraisal, attempts should have been made to share the costs of needed evaluations with the landowner or other interested party (leveraged projects shall be a higher priority);

4. in any preliminary assessment of the site, the potential of providing a dual goal project shall be addressed;

In addition, in the case of farm projects:

5. the proposed project shall meet the primary guidelines for the acquisition of development rights in farmland;

6. any site planning must be designed to minimize negative impact on the agricultural potential of the property;

7. any site planning and assessment shall be designed to ensure that farm housing be made available or maintained so that the farm operators and employees are ensured of adequate housing.

Process and Fiscal Limits

Once the VHCB staff has determined that the applicant has met the above guidelines, funds may be allocated for the following uses. Funds shall be used to compensate contracted services only and shall not be used to compensate applicant staff members.

  1. appraisals - (up to $2,500)
  2. financial planning/evaluation
  3. site design and land use planning
  4. specialized studies approved by VHCB staff
  5. percolation and other septic suitability tests
  6. tests for toxic or hazardous wastes or other environmental analyses. The fund generally may not be used for Phase I environmental studies unless there is reason to believe that there are environmental contaminants on the site.

  7. water quality tests

  8. market studies

  9. options or purchase and sales contracts, (up to $3,000 per parcel. Exceptions can be made under unusual circumstances at the discretion of VHCB staff.)

  10. energy analyses
Administrative/Reporting Requirements

The staff may allocate up to the amounts outlined above if the above guidelines are met. If the project proves feasible and a subsequent application for additional funds is submitted or if staff otherwise requests, the applicant shall supply the Vermont Housing and Conservation Board with a copy of all work completed with the use of these funds. In the event that the applicant decides to discontinue the project after initial feasibility projects have been completed with assistance of VHCB funds, applicant must submit a report of the results of the funded studies and reasons for discontinuance of the project.

If the applicant proceeds with the development of the project and applies to the Trust Fund for additional money, feasibility funds already expended shall be noted in the Project Development Budget and/or Sources and Uses Statement.