Expanded Municipal Climate Recovery Fund to Safeguard Emergency Access
The Municipal Climate Recovery Fund (MCRF) is expanding to safeguard emergency access for residences in flood impacted communities. This the most recent of the Vermont Bond Bank’s (“Bond Bank’s”) multiple efforts, totaling $25 million, to provide budgetary relief to flood-impacted communities.
Developed in partnership with the Agency of Administration, the expansion is designed to provide immediate financial relief for communities with residences disconnected from first responder access either temporarily or on an ongoing basis from the July 2024 flood.
The loans from the program will ensure that critical services provided by local government can continue while also bridging future FEMA reimbursement at a near-zero rate. The expanded MCRF will be funded through a Memorandum of Agreement with the Agency of Administration for $5 million.
Loans will be provided following one or more application periods. The Bond Bank further expects to announce additional capacity under the MCRF in early November.
The following factors will be used to prioritize applications in the event of applications in excess of funding:
- Evidence of residences dislocated from emergency services due to 2024 flood
- Full-time equivalents or other measures of municipal capacity
- Disaster Impact Ratio = (Documented losses – expected insurance payouts + own source revenue loss) / Grand List
Timeline
Friday, November 1, 2024- Application Due Date
Thursday, November 21, 2024 - Loan Approvals and Awards (Expected)
Funding Date - TBD
Emergency Access MCRF Loan Terms
Amount
Minimum $100 thousand; maximum $1 million; all loans subject to availability and credit review
Term
1 year
Interest Rate
0.50%
Closing Costs
None; cost of bond counsel may be included in loan amount
Payment Dates
Semi-annual - March 1 and September 1
Prepayment
At any time with no penalty
Flow of Funds
Pay-off interfund loans and/or direct expense reimbursement; payoff of bank loan upon request
Eligible Uses via Reimbursement
Costs eligible for FEMA Public Assistance Grant Funding, own source revenue loss up to 10% of prior fiscal year, and planning and initial rebuilding of flood impacted infrastructure
Closing Date
TBD
Security
General obligation
Legal
Local bond counsel opinion
Covenants
Quarterly reporting on FEMA reimbursement timeline; annual financial audit starting in year two; FEMA reimbursement must be used to pay off loan (or pro rata portion thereof)