Massachusetts Downtown Initiative Capital Grant Program

The Massachusetts Downtown Initiative Capital Grant Program (MDI Capital) is administered by the Executive Office of Economic Development (EOED) as part of the Community One Stop for Growth initiative. The program is designed to strengthen the economic and cultural vitality of the Commonwealth’s downtowns, village centers, and main streets. Its core aim is to foster vibrant, livable, and inclusive community centers that attract residents, stimulate business activity, and contribute to equitable regional growth across Massachusetts. MDI Capital builds on the foundational work of the original MDI Technical Assistance program, now expanding to offer both design and capital implementation grants. Through this structure, the program supports strategic investments intended to increase pedestrian activity, reduce commercial vacancies, enhance public spaces, and reinforce Massachusetts' reputation as a desirable place to live, work, and invest. Planning grants support local governments in crafting targeted strategies for improvement, while implementation grants fund capital projects that bring those strategies to life. Eligible applicants include all Massachusetts cities and towns, as well as public entities designated by municipal officers. Applicants are encouraged to collaborate with Business Improvement Districts (BIDs) or similar partners. Funded activities fall into two main categories: planning and implementation. Planning grants support projects such as Downtown or Village Center Improvement Plans and District Management Creation. Implementation grants support tangible upgrades to public infrastructure, such as streetscapes, wayfinding systems, public facilities, and gathering spaces. Grants are issued on a cost-reimbursement basis and require documentation of eligible expenses. Planning grants are available for up to $100,000, while implementation grants are available for up to $250,000. Proposals requesting up to $500,000 will be considered only with evidence of a 1:1 cash match for the amount exceeding $250,000. Projects must be completed within 18 months of award, and costs must not include ineligible items such as operating expenses, private property improvements, or vehicle-related costs. All applications must be submitted through the Community One Stop for Growth online portal. Applicants are encouraged to submit an optional Expression of Interest to receive feedback prior to submitting a full proposal. The full application includes several required forms and must be completed and submitted electronically by the stated deadline. Late applications will not be considered. Evaluation of applications is based on project need, anticipated outcomes, project readiness, capacity to execute, funding justification, and alignment with community planning. Additional factors include demonstrated local and private-sector commitment, equity and opportunity impacts, and plans for long-term maintenance. The program is funded through annual state appropriations, and all awards are contingent on contract execution. Applicants not selected will be notified in writing and may request feedback to strengthen future submissions.

Strong applications build on prior planning work, demonstrate equity, and include well-developed budgets with local support.