Keystone Communities Program (KCP)

The Keystone Communities Program (KCP), administered by the Pennsylvania Department of Community and Economic Development (DCED), is designed to foster public-private partnerships that support community revitalization efforts across Pennsylvania. The program emphasizes the development and stability of local neighborhoods through a wide range of eligible projects. These projects aim to stimulate economic and social growth, enhance livability, and preserve the character of communities. Although the guidelines reviewed here are archived from June 2023, they offer comprehensive insight into the program’s structure, funding options, eligibility requirements, and administrative processes. The KCP provides funding through several distinct grant types, including planning grants, implementation grants, façade improvement grants, development grants, public improvement grants, and accessible housing grants. Each grant type targets different community needs. Planning grants support early-stage assessments and feasibility studies, limited to $25,000 with a 1:1 match requirement. Implementation grants, capped at $50,000, assist designated Keystone Communities with key strategies such as signage and business retention, also requiring a dollar-for-dollar match. Façade grants, intended to beautify and restore downtown or neighborhood exteriors, offer up to $50,000 with individual projects capped at $5,000 unless additional funding is justified. Development and public improvement grants have higher ceilings—$500,000—with development grants requiring a minimum 70% match and often structured as repayable loans if private sector beneficiaries are involved. Accessible housing grants, with a ceiling of $300,000, target home modifications for individuals with permanent physical disabilities. Eligible applicants include units of local government, redevelopment or housing authorities, nonprofit and community development organizations, business and neighborhood improvement districts, and similar entities. Grant requests must be submitted electronically through DCED’s Single Application for Assistance (ESA) system. Required supplemental documents include a detailed project description, cost estimates, match documentation, financials, and municipal resolutions or letters of notification. Planning-related applications tied to program designations (such as Keystone Main Street or Elm Street) must demonstrate the capacity to support a program manager for the full five-year designation period. Applications are evaluated using quantitative criteria including strategic importance, community and economic impact, level of private and local financial support, financial need, operational capacity, and project readiness. Only designated Keystone Communities are eligible for some grant types, such as implementation grants. The DCED reserves the right to waive certain match or loan requirements based on project need or hardship, especially for Keystone Elm Street designees, which may qualify for reduced match percentages or waivers. Façade and housing improvement grants require local program guidelines and demonstration of community need. Contracts are issued electronically upon approval and must be signed within 45 days. Funds are reimbursed based on actual incurred costs unless otherwise authorized. Contract closeout is mandatory, with audits required for awards of $100,000 or more. Grantees are also responsible for detailed recordkeeping, competitive bidding, compliance with prevailing wage laws where applicable, and adherence to nondiscrimination clauses. Applications should be coordinated with DCED regional offices for guidance and pre-submission review. Contact for inquiries is the Center for Community Enhancement at ra-dced-kcp@pa.gov or (717) 787-6245. The June 2023 archived version of the guidelines serves as a reference for past projects and audit verification.