Financially Distressed Cities, Villages and Townships (FDCVT) Grants

The Financially Distressed Cities, Villages and Townships (FDCVT) Grant Program provides funding to local units of government in Michigan that demonstrate one or more conditions of probable financial distress. The primary purpose of the grant program is to pay for specific projects or services that help move the distressed municipality toward long-term financial stability.

Eligibility is limited to Michigan cities, villages, and townships that exhibit at least one condition of probable financial distress as determined by the Michigan Department of Treasury. Preference and priority are given to applicants with two or more conditions indicating probable financial distress, communities where a financial emergency was declared within the preceding ten years, municipalities with an approved General Fund Deficit Elimination Plan, and units where the General Fund balance has declined over the past five years and stands at less than 3% of General Fund revenues.

Funding must be directed toward specific municipal projects or services that directly lead toward financial stability. The applicant must clearly demonstrate in the project budget and narrative how all proposed expenditures will resolve financial distress indicators and foster financial health.

Applicants must complete and submit the official FDCVT grant application with comprehensive supporting details during the open application period to the Michigan Department of Treasury's Revenue Sharing and Grants Division. Local units may utilize the provided board resolution template to prepare and submit the necessary grant acceptance documentation from their governing body.