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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: 

  1. Evidence of residences dislocated from emergency services due to 2024 flood
  2. Full-time equivalents or other measures of municipal capacity
  3. Disaster Impact Ratio = (Documented losses – expected insurance payouts + own source revenue loss) / Grand List

Timeline

Friday, October 18, 2024 at noon - Informational Webinar

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)