Community Development Block Grant (CDBG) - Housing Rehabilitation

The Community Development Block Grant (CDBG) Housing Rehabilitation Program is administered by the Illinois Department of Commerce and Economic Opportunity (DCEO) under the Office of Community Development. This federally funded initiative is part of the broader Community Development Block Grant/States Program, authorized by CFDA #14.228, and operates under state funding identifier CSFA #420-75-1633. The program is designed to assist low-to-moderate income (LMI) households by preserving and improving single-family, owner-occupied housing throughout eligible Illinois communities that do not receive direct CDBG allocations from HUD. For the 2025 funding cycle, DCEO has allocated $7 million to the Housing Rehabilitation component, with a maximum grant award of $650,000 per project. The program emphasizes the dual objective of improving living conditions for LMI residents and supporting neighborhood revitalization. Eligible activities include comprehensive rehabilitation work to address mechanical, structural, and energy-efficiency needs. Rehabilitation efforts must adhere to local and state building codes, including standards related to plumbing, electrical systems, lead-based paint remediation, and accessibility. A funding cap of $60,000 per housing unit is imposed to ensure program effectiveness and allow for broad impact. Administrative costs are also supported under specific activity codes, with limits based on the number of homes rehabilitated. Only units of general local government (cities, villages, townships, and counties) in non-entitlement areas are eligible to apply. To qualify, applicants must target projects that exclusively benefit LMI households, demonstrate the need for rehabilitation, and propose a minimum of eight homes for repair. Applications must include robust documentation, including a detailed scope of work, survey results, project design plans, cost estimates, public engagement records, and evidence of coordination with additional funding sources. Special conditions apply to homes that also serve as places of business, which may still qualify if residential benefits are primary. Applications will be evaluated on a 100-point scale, with consideration given to demonstrated need, anticipated impact, leveraged resources, and project readiness. Specific criteria include location within Opportunity Zones or underserved areas, the ratio of eligible housing surveys submitted, and the presence of certified inspectors and contractors. Additional points are awarded for communities that have secured supplemental financing and show high drawdown rates from past CDBG grants. To be considered, applications must be submitted to the DCEO Springfield Office by 5:00 PM on Wednesday, December 4, 2024. Late or incomplete applications will not be reviewed. All submissions must comply with the Grant Accountability and Transparency Act (GATA), including registration and pre-qualification through the GATA portal. Required materials include a completed Uniform Grant Application, project summary, budget template, income surveys, and supporting certifications. The grant term will span 24 months from award, with a possible one-time extension. Award announcements will follow review and approval by the Department Director.

Prepare in advance to gather required certifications and conduct community surveys; coordinate with general contractors and ensure documentation of public hearings is complete.