The City of Salem has created the Building Rehabilitation and Restoration Grant Program to encourage property and business owners to enhance their storefronts and properties. This program aims to support the revitalization of the North Gateway Urban Renewal Area by promoting new construction and improvements to existing properties.

Why This Program Matters

Program Guidelines

Grant Terms

• Matching Funds: For every dollar in grant funds, the applicant must contribute one dollar of their own funds. Both grant funds and matching funds must be used for eligible costs.
• Timing of Costs: Grant funds cannot be used for costs incurred before the grant is awarded.
• Grant Limits: Applicants may receive one grant per project location every three years. Additional grants may be awarded for projects at other locations within the Urban Renewal Area. Phased projects may qualify as a single grant, with a maximum award of $300,000.
• Phased Project Example: A company planning equipment installation and electrical upgrades totaling $300,000 can apply for a single grant if they provide a detailed plan and timeline for the project.

Additional terms may apply to ensure compliance with laws and Urban Renewal Area regulations. Terms are subject to change.

Eligible Recipients

• Property Owners or Tenants: Applicants must either own the property or have a lease agreement with written consent from the property owner to make improvements.
• Non-Profit Exclusion: Non-profit organizations are not eligible for this grant.
• Previous Applicants: Applicants who received funding before July 1, 2014, are considered new applicants if they apply after June 27, 2016. Those who received funding after July 1, 2014, may apply for the balance of their previous award, up to $300,000.

Eligible Property

• Properties must be located within the North Gateway Urban Renewal Area.
• Properties must meet zoning requirements for the proposed use.

Eligible Grant Activities

Grant funds can be used for the following activities:

1. Building Improvements: Restoration or rehabilitation of building facades visible to the public, including awnings, lighting, roofing, painting, windows, and signage.
2. New Construction or Redevelopment: Projects involving commercial, industrial, mixed-use, or multi-family housing properties.
3. System Upgrades: Renovation or replacement of Heating, Ventilation and Air Conditioning, electrical, or plumbing systems.
4. Roof Repairs: Roof replacements to prevent further deterioration of commercial or industrial buildings.
5. Accessibility Improvements: Upgrades to meet the Americans with Disabilities Act accessibility standards.
6. Environmental Remediation: Activities to address environmental concerns.
7. Permit and Review Fees: Costs for site plan reviews, building permits, and design reviews (up to $5,000).
8. Code Compliance: Renovations to address zoning, building, fire, or seismic code deficiencies.
9. Demolition: Demolition work as part of an approved project.
10. Capital Equipment: Purchase of equipment to expand business operations or create jobs. Equipment must remain in the Urban Renewal Area for 10 years. If moved outside the Urban Renewal Area, a proportional reimbursement of grant funds is required. 

Conditions for Grant Recipients

•  Maintenance: Improvements funded by the grant must be maintained in good condition for at least five years. Graffiti and vandalism must be promptly addressed.
• Capital Equipment: Equipment purchased with grant funds must remain in the URA for 10 years and be kept in good working order per section 4.1
• Permits: All work must comply with City of Salem building permit requirements.
• Reimbursement Limit: The agency will reimburse no more than 50% of submitted receipts.
• Taxes and Insurance: Property taxes and fees must be current, and proof of property insurance is required.

Grant Application Process

To apply for the North Gateway Rehabilitation Grant, applicants must complete the grant application and ensure they meet all eligibility requirements.

North Gateway Rehabilitation/Restoration Grant Application

Subcontractor Transparency

Transparency documentation identifying each contractor, subcontractor and all sole proprietors performing work on the projects that have received either Multi Unit Housing Tax Incentive Programs or Urban Renewal Area grants with a grant exception must be filed with the City at the time building permits are obtained. The Subcontractor Transparency Form must be displayed at the job site and kept up-to-date until the completion of the project.

Subcontractor Transparency Form 

Additional Resources

• Multi Unit Housing Tax Incentive Program (MUHTIP)
• Fairview URA Grant Program
• Riverfront Downtown Capital Improvement Grant Program
• West Salem Redevelopment Grant Program

By participating in the North Gateway Rehabilitation Grant Program, property and business owners can help create a vibrant, thriving community in the North Gateway Urban Renewal Area.