Municipal Climate Recovery Fund

The Municipal Climate Recovery Fund (MCRF) is designed to provide municipal budgetary relief in the flood recovery effort by lowering the costs of borrowing to bridge FEMA reimbursement or otherwise pay for the many unexpected costs of the flood.

The MCRF is funded in partnership with the Vermont State Treasurer’s Office that is providing the Vermont Bond Bank (Bond Bank) with a $15 million loan through the 10% in Vermont Program. The Bond Bank is relying on this source to make MCRF loans to Vermont municipalities. The Bond Bank is passing through the rate of the 10% in Vermont Program at no additional cost to borrowers. 

VLCT PACIF will further assist eligible members as outlined in the attached memo.

View Informational Webinar Presentation 

View Informational Webinar Recording

Apply here

Loans will be provided following one or more application periods. Multiple application periods will be announced if Round One loans are less than $15 million. To the extent applications for funding are in excess of available funds, the following allocation methodology will be used to prioritize applications: 

Disaster Impact Ratio = (Documented losses – expected insurance payouts + own source revenue loss) / Prior year operating expenses

Round One Timeline

Informational Webinar – Tuesday, December 12, 2023 at noon 

Application Due Date – Wednesday, January 10, 2024

Loan Approvals – Thursday, February 1, 2024 (Expected)

Round One Application Details 

The application will be released during the webinar. Components will include the following.

  1. Three years of financial statements 

  2. Requested loan amount

  3. FEMA Public Assistance documentation to support loan request 

  4. As applicable, non-FEMA documentation or description to support loan request 

  5. Narrative in support of loan request

  6. Preliminary legal opinion

In addition, the Bond Bank will require inputs to calculate the Disaster Impact Ratio, these include:

  • Total documented losses 

  • Expected insurance payouts

  • Own source revenue loss

Preliminary MCRF Terms and Conditions (Subject to Change)

  • Amount: Minimum $100 thousand; maximum TBD; all loans subject to availability and credit review 

  • Term: 7 years

  • Amortization: 5 years

  • Interest Rate: 1.30% 

  • Closing Costs: $1,000

  • Payment Dates: Semi-annual - December 1 and June 1

  • Prepayment: At any time with no penalty 
  • Flow of Funds: Pay-off of bank and/or interfund loans; direct expense reimbursement considered 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
  • Security: General obligation 

  • Legal: Local bond counsel opinion 

  • Covenants: Quarterly reporting on FEMA reimbursement timeline; annual financial audit starting in year two of loan; FEMA reimbursement must be used to pay off loan (or pro rata portion thereof)