Community Development Grant - Large (CDG-L)

The Community Development Grant - Large (CDG-L) is a funding initiative administered by the Department of Planning and Development (DPD) in the City of Chicago. This grant program supports commercial, cultural, industrial, institutional, social service, and mixed-use projects with grants exceeding $5 million. The goal of the grant is to promote economic vitality in the city by assisting in new construction and rehabilitation projects that meet community needs. Funding is designed to cover approximately 25% of total project costs. Eligible applicants for the grant include private and nonprofit developers, tenants, and property owners. Applications may be submitted individually or jointly during competitive, semi-annual funding rounds. The program is funded through Tax Increment Financing (TIF) and the Housing and Economic Development (HED) bond, with the specific source of funding determined at the discretion of DPD. Funding is provided as a lump-sum reimbursement upon project completion, although in some cases, it may be issued as a loan rather than a grant. To be eligible, proposed projects must focus on one or more of the following uses: commercial (office, retail), cultural (museums, theaters, performance venues), industrial and manufacturing, institutional (health care), mixed-use residential (with at least 10 residential units and 100% ground floor commercial use), and social services (such as workforce development and support for unhoused individuals). The project must be accessible to the public, provide economic benefits to the community, and meet a local need. Additionally, construction cannot be completed before submitting an application. The CDG-L program funds various expenses, including construction-related hard costs, pre-development soft costs like design and site preparation, and acquisition costs. However, it does not cover staffing, operational expenses, furniture, fixtures, or non-construction-related costs. Applications are evaluated based on factors such as anticipated community impact, site characteristics, project documentation, financial feasibility, zoning, design, and historic preservation considerations. Applications are accepted on a rolling basis through the Submittable platform. Once submitted, applicants receive an initial review within two to four weeks. Projects recommended for funding require approval from the Chicago City Council, a process that can take between nine and twelve months. If an application is not selected, the applicant receives a deficiency letter outlining concerns and can reapply in future funding rounds. Awardees are required to execute a Redevelopment Agreement within six months of City Council approval and must complete construction within two years. Projects receiving funding must also comply with Chicago's affordability requirements, ensuring at least 20% of residential units are available to households earning no more than 60% of the Area Median Income (AMI). Additionally, recipients must adhere to city regulations on MBE/WBE contracting, local hiring, and prevailing wage requirements. For further details, applicants can consult the program manual and Large grant FAQ page provided by the DPD. Applicants must apply online, as physical applications are not accepted. Selection is based on project feasibility, readiness, and overall community impact, with a preference for projects in historically disadvantaged areas or those aligned with city development initiatives.