Federal Grant Money, What does this mean?

Question

I recently came across a listing that mentioned Federal Grant Money available for the rehab of a historic building.  I started doing some internet research but have reached a dead end.  Does anyone have some clarification on what this could entail?  Maybe some possible numbers associated with it?

Phillip Dougher · Answer

So far we have been running the numbers without the Federal Money.  We are looking at worst case scenario.  We aren't sure of the history with the building.  The city/state/fed may just want the building restored in general because of what it would mean for the area.  The building has 6 commercial lower units and 15 residential units upstairs.  While there is a push for some affordable housing, the area might just dictate otherwise.

The renovation will cost about two million.  Anyone have insight into how much grant money could be obtained to offset our investment?

Mitchell Hare · Answer

I'm looking at a Historic building myself. I am still waiting for the reply to whether or not any State, County, or Federal money was used getting the Historic designation and recorded in the National Register of Historic Places. It's my understanding that if no government money was used and I purchase it...it's mine to do as I please. If government money was used, what ever level it came from, (State, Fed, etc) they would have a say on what can be done to the structure. Generally they want it as original as possible so I would think this out carefully. What do you plan to do with it? If you plan on gutting it and doing a grand renovation that may not be possible with a Federal Grant. There are no numbers. It would all depend on the scope and cost of the proposed improvements, how much skin in the game they think you should have in it, and if they feel the character and charm (or whatever) is not compromised. Sometimes they want to dictate everything down to the nails you use. If no government money has been invested in it yet, I would try to work the numbers without a grant. The grant money would be free, but could end up costing a lot more in the end because of the demands and restrictions they may impose. Hope this helps.