Urban Development Grants

What is it?

Urban Development Grants are discretionary grants used for promoting job creation, inward investment and environmental improvement, by developing vacant, derelict or underused land or buildings in priority areas. Priority is given to schemes within the Belfast Regeneration Office Team areas in Belfast and within the City Centre and Waterside Business Districts in Londonderry. There is also flexibility to respond to urgent needs outside priority areas. Increasingly, grants will be directed towards Neighbourhood Renewal areas.

A range of physical development projects may attract UDG including;

This scheme involved the demolition of a derelict library building that had been vacant since 1992 and the construction of a 5-storey office building for owner occupation. This scheme gave a leverage of 5.89 (i.e. for every £1 of public money spent on this project, £5.89 of private monies was also spent). This scheme also contributed 500m² of commercial floor space and created an additional 10 new jobs.

This scheme involved the demolition of a property vacant since 1997 and the construction of 4 one-storey retail units and 2 three storey office units for letting. This scheme gave a leverage of 5.19 (i.e. for every £1 of public money spent on this project, £5.19 of private monies was also spent). This scheme also provided 1807m² of commercial floorspace and created an additional 30 new jobs along with significant environmental improvement.

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Amount of grant

For physical development projects, the amount of grant offered will be the minimum necessary to trigger a scheme. This will usually take the form of a cash grant to cover the funding gap or shortfall between the cost of the development and its value on completion.

In Belfast a shortfall of up to a maximum of 40% of total development costs may be applicable for speculative schemes i.e. for selling or renting on completion. (NB. In Londonderry this figure is 30% of total development costs.)

Projects undertaken on an owner/occupier basis may attract grant of up to 40% of eligible costs on refurbishment works and 30% on new build works. All grant offers are subject to an appropriate sharing of risks and benefits with the applicant.

How to apply for funding

You can apply for an Urban Development Grant by downloading and completing an application form. Hard copies may be requested directly from Belfast Regeneration Office. It is recommended that applicants contact the Urban Development Grants Branch (028 9081 9747) prior to completing the Application Pack, as advice will be given on the suitability of the proposals.

In some cases a preliminary site visit may be arranged to establish contact with the applicant and his professional adviser, examine the property and ensure that the extent and purpose of the project is clearly understood. This also provides an ideal opportunity to discuss the project in the context of the Urban Development Grants Scheme, to explain the Scheme and the method of appraisal and, if appropriate, to suggest alterations to the project. It is necessary to establish the nature of the project, cost details, employment implications, timescale for the project, nature of assistance required, type of economic activity for which the building will be used, the development experience of the applicant, other potential sources of funding and the overall project benefits.

Belfast Regeneration Office or North West Development Office