1. Purpose and Charitable Framework
Mound City Fund (the "Fund") makes charitable grants to assist low- to moderate-income (LMI) homeowners in rehabilitating vacant, deteriorated, or substandard residential property in targeted neighborhoods across St. Louis City and County. The program advances the Fund's exempt purposes of relieving the poor and distressed and combating community deterioration. Consistent with federal tax law governing grants to individuals, all grants are awarded under the objective, published criteria in these Guidelines, applied consistently by a selection committee whose members are independent of applicants, with documentation retained showing how each grantee qualified.
2. Eligible Applicants
An applicant is eligible if the applicant satisfies (a) through (e): (a) the applicant is an owner-occupant, or intended owner-occupant upon completion (including a purchaser of a City Prop NS stabilized property who will occupy it as a principal residence), whose total household income does not exceed 80% of the Area Median Income for the St. Louis metropolitan area as published by HUD; (b) the applicant holds, or will hold at closing of any project financing, legal title to the property, free of undisclosed liens; (c) the applicant is current on real estate taxes for the property or enrolled in an approved payment plan; (d) the applicant is not a director, officer, employee, or substantial contributor of the Fund, or a family member or controlled entity of any of them, all of whom are ineligible; and (e) the applicant has not received a Fund grant within the preceding 24 months, unless the Board waives this limit for phased projects.
3. Eligible Properties and Projects
Eligible properties are residential structures of one to six units located within the Fund's published target area, which prioritizes underserved neighborhoods in St. Louis City and County, including census tracts designated low- to moderate-income by HUD. Eligible projects are rehabilitations that will bring the property into compliance with applicable City of St. Louis or St. Louis County occupancy and building codes, including projects addressing vacancy, structural deficiency, tornado damage, or major systems (roof, foundation, electrical, plumbing, HVAC). Qualified redevelopment costs include hard construction costs, permits, architectural and engineering fees, environmental abatement, and required inspections. Costs excluded are land or building acquisition, furnishings and appliances not permanently affixed, refinancing of existing debt, and work completed before grant approval, except emergency stabilization documented and approved in writing.
4. Priority Criteria (Additionality)
The Fund exists to make possible projects that would not otherwise proceed. The selection committee gives priority, in scoring, to applications demonstrating one or more of the following: (a) a documented appraisal gap, meaning an as-completed appraisal or broker price opinion below total project cost; (b) a written denial or conditional approval of rehabilitation financing from a lender or CDFI; (c) purchase of a Prop NS stabilized building or comparable land bank property requiring rehab capital; (d) location on a block with two or more vacant structures, where completion will interrupt the spread of vacancy; and (e) a Fund grant commitment that will serve as the credit enhancement enabling approval of third-party financing, such as a Gateway Neighborhood Fund mortgage.
5. Grant Amount and Form
Grants are awarded on a sliding scale of up to 20% of qualified redevelopment costs, subject to a per-project cap established annually by the Board and published on the Fund's website. Grants are not loans and are not repayable if all conditions of the Grant Agreement are met. Grants are disbursed in tranches upon verified completion of milestones set out in the approved scope of work, or paid directly to licensed contractors upon inspection, at the Fund's election. To protect the charitable purpose, owner-occupant grants include an occupancy commitment of three years from project completion; if the grantee sells or ceases to occupy the property before that date, a prorated portion of the grant is repayable under the Grant Agreement's recapture schedule.
6. Application Process
Step 1, Pre-Application: the applicant submits the short pre-application form describing the property, the project, estimated costs, and financing status. Fund staff confirm threshold eligibility within ten business days. Step 2, Full Application: eligible applicants submit proof of income (for LMI applicants), evidence of ownership or contract to purchase, a scope of work with at least one licensed contractor estimate, evidence supporting any priority criteria, and photographs of existing conditions. Step 3, Review: the Grant Selection Committee scores complete applications against the published rubric at its next regular meeting; committee members with any relationship to an applicant must disclose it and recuse. Step 4, Award: approved applicants receive a written commitment letter and execute the Fund's Grant Agreement before any disbursement. Step 5, Completion: the grantee provides receipts, lien waivers, and inspection or occupancy documentation as each milestone is reached. The Fund aims to issue decisions within 45 days of a complete application.
7. Grantee Obligations and Compliance
Grantees must use funds solely for the approved scope of work, obtain all required permits, use licensed and insured contractors for work requiring licensure, permit the Fund reasonable access to inspect, retain records for four years, and promptly report any material change in the project, ownership, or occupancy. Misuse of funds, material misrepresentation, or failure to complete the project within the agreed schedule (subject to reasonable extensions) entitles the Fund to suspend disbursements and demand repayment of amounts disbursed. Grant proceeds may have tax consequences depending on the grantee's circumstances; the Fund does not provide tax advice, and grantees should consult their own advisors.
8. Non-Discrimination
The Fund awards grants without regard to race, color, religion, national origin, sex, familial status, disability, age, sexual orientation, gender identity, or veteran status, in accordance with applicable fair housing and civil rights laws. Eligibility criteria based on income and geography exist solely to direct charitable resources to the communities and households the Fund was organized to serve.
9. Amendments and Discretion
The Board of Directors may amend these Guidelines at any time; the version posted on the Fund's website governs applications submitted after posting. All grants are discretionary. Submission of an application, satisfaction of eligibility criteria, or receipt of a commitment letter does not create an entitlement to funding except as set out in an executed Grant Agreement.
Adopted by the Board of Directors of Mound City Fund. This document is provided for general information; it is not legal, tax, or financial advice.