2025 CDBG Housing Rehabilitation Program in Illinois

The 2025 Housing Rehabilitation Grant opportunity, funded by the Community Development Block Grant (CDBG) through the U.S. Department of Housing and Urban Development and administered by the Illinois Department of Commerce and Economic Opportunity (DCEO), aims to address housing needs for eligible low-to-moderate income (LMI) households. This program aligns with the foundational mission of community development by directly investing in the preservation and revitalization of residential areas, specifically targeting single-family, owner-occupied housing in need of rehabilitation. The primary beneficiaries of this grant are low-to-moderate income households residing in Illinois. The impact goal is to improve housing conditions, enhance neighborhood quality, and ensure safe and habitable living environments for these families. The program's core priorities include preserving existing owner-occupied housing, encouraging neighborhood revitalization, and ensuring that 100 percent of the CDBG funds directly benefit LMI persons. Projects must rehabilitate a minimum of eight homes to qualify. The grant focuses on essential rehabilitation activities such as labor and materials, replacement of principal fixtures, water and sewer connections for code compliance, insurance premiums (homeowner, hazard, flood), conservation costs for efficiency, addressing health and safety issues in garages, lead-based paint evaluation and treatment, and removal of architectural barriers for elderly or disabled persons. The program strategically prioritizes interventions that directly improve the safety, accessibility, and efficiency of homes, contributing to a broader theory of change that links improved housing to overall community well-being and economic stability for LMI families. Expected outcomes include a significant number of rehabilitated homes for LMI residents, leading to safer and more energy-efficient living conditions. Measurable results will be demonstrated through the completion of at least eight rehabilitated homes per project, with applications requiring evidence of need through surveys (completed within 24 months) and resident support through public meeting minutes or signup sheets. The total funding expected is $7,000,000, with individual awards ranging from $300,000 to $650,000 over a two-year performance period, reflecting the DCEO's strategic priority to make a substantial and measurable impact on housing quality and community development across Illinois.