January 2008: Many communities create grant agreements to set clear expectations when granting CPA funds for projects on privately-owned property. A grant agreement helps to ensure that the CPA funds are used appropriately and provides clear procedures to remedy problems or unforeseen circumstances.
Grant agreements typically specify what the funds are intended to be used for, any conditions of funding (such as acquiring matching funds or executing a deed restriction), reporting and monitoring requirements, and what remedies would be required should the funds be used improperly or not entirely used.
Grant agreements are executed after the municipality’s legislative body approves the use of the funds but prior to distributing the funds to the private organization. The agreement is accepted (signed) by both the municipality and the party receiving the CPA funds. It is critical to involve your community’s legal staff in the early stages of these types of projects.
The Community Preservation Coalition has collected a variety of examples of grant agreements, some of which can be viewed by clicking on the links below:
Sample Grant Agreement from Lincoln
Grant Agreement from Dartmouth
Letter of Agreement Between the Children’s School of Science and the CPC of the Town of Falmouth
Harwich Grant Agreement with Housing Authority
Southwick Cigar Factory Grant Agreement
West Tisbury Grant Agreement for Housing Creation
In addition, the Acton CPC has created a detailed award letter that includes many of the same elements that grant agreements often include.