Redevelopment Assistance Capital Program (RACP)

The Redevelopment Assistance Capital Program, commonly referred to as RACP, is a state-funded grant program administered by the Office of the Budget for the Commonwealth of Pennsylvania. The program is designed to provide financial assistance for the design, acquisition, and construction of regional economic, cultural, civic, recreational, and historical improvement projects. RACP was established under the Capital Facilities Debt Enabling Act and is intended to support large-scale initiatives that provide broad community benefits while fostering economic development and stability. Projects authorized under this program must be listed within a Pennsylvania Capital Budget Project Itemization Act, retain available allocation amounts, and must not have expired under the statutory sunset provisions of Act 77 of 2013. RACP specifically targets projects that cannot receive primary funding through other state programs, such as PENNDOT, PENNVEST, or the Department of Community and Economic Development. The program prioritizes initiatives that produce or maintain employment, tax revenue, and overall economic activity, and requires that all projects demonstrate a regional or multi-jurisdictional impact. Housing projects are eligible if they are incorporated into community revitalization plans. Additionally, all projects must qualify for tax-exempt bond funding under federal law and regulations. To ensure equitable financial responsibility, the program requires that at least 50 percent of project costs are covered by non-state sources. The application process for RACP includes three distinct phases: pre-award, post-award, and reimbursement. The pre-award process requires the submission of an e-RACP application, along with supporting documents such as RDA budget forms and a statement of compliance. A mandatory fee of $500 must be submitted at the time of application, payable by Visa, MasterCard, or Discover. Applications are screened for eligibility and completeness before being forwarded for administrative review. After submission, there is a 30-day public comment period following the application window. Awardees are then notified via an award letter and are required to prepare a Project Management Proposal for further review before entering into a grant agreement. The program operates on competitive funding rounds announced by the Office of the Budget. The next open window begins August 29, 2025, at 12:00 p.m. and closes on September 23, 2025, at 11:59 p.m. All applications must be submitted electronically through the e-RACP portal, and applicants are encouraged to prepare project narratives and budget information in advance to avoid timeouts or submission errors. Applicants must also ensure their project is authorized under a Capital Budget Itemization Act and that project costs meet the statutory minimum of at least $1,000,000, with construction constituting the majority of expenditures. Applicants are required to provide detailed project narratives outlining the community need, project scope, proposed expenditures, job creation or retention potential, and a project schedule with anticipated milestones. Eligible costs include construction, acquisition of land, and certain associated expenses such as design or engineering services. However, RACP is primarily a brick-and-mortar program, and no more than 30 percent of the funding may be allocated to land or equipment purchases. Awarded projects undergo strict compliance requirements, including submission of qualified cost estimates and adherence to labor and investment protections. The Office of the Budget provides comprehensive guidelines, compliance requirements, and supporting documents, including application forms, flowcharts, and handbooks, which are accessible through the RACP website. Applicants may contact the Bureau of Redevelopment, Capital, and Debt at 333 Market Street Tower, 18th Floor, Harrisburg, PA 17101-2210, or via email at RA-OB-RACP@pa.gov. Technical support for the e-Application system is also available through the Commonwealth’s Enterprise Solutions Office at 833-448-0647 or by email at egrantshelp@pa.gov. Successful applicants will receive continued guidance throughout the post-award and reimbursement phases to ensure compliance with state and federal requirements, as well as the long-term success of funded projects.