CDBG - Disaster Response Program

The Community Development Block Grant (CDBG) Disaster Response Program is administered by the State of Illinois Department of Commerce and Economic Opportunity (DCEO), through the Office of Community Development. This program is part of the larger CDBG initiative, which was established under the federal Housing and Community Development Act of 1974. The CDBG program is nationally administered by the U.S. Department of Housing and Urban Development (HUD) and aims to address economic and community development needs with a focus on benefiting persons of low-to-moderate income. In 1981, the State of Illinois began directly managing the CDBG Small Cities Program to assist communities in meeting their development priorities. The Disaster Response component specifically targets communities facing imminent and urgent threats to public health and safety due to state-declared disasters. The CDBG Disaster Response Program provides financial assistance to Illinois communities impacted by natural or other disasters that result in a Gubernatorial Disaster Declaration. The purpose of the grant is to support urgent community needs that cannot be addressed with local funding or other available resources. Eligible activities include debris removal, clearance of streets, temporary or permanent street repairs limited to disaster-related impacts, and specific activity delivery costs. The program is designed to meet the federal National Objective of Urgent Need, though if the affected project area has 51 percent or more low-to-moderate income residents, it can also qualify under the Low-to-Moderate Income (LMI) objective. Eligibility is limited to units of general local government, such as cities, villages, townships, and counties that are not HUD entitlement communities. The community must be within a state disaster-declared area, demonstrate inability to finance the activity independently, and have exhausted all other potential funding sources. Additional eligibility requirements include current registration in the Illinois Grant Accountability and Transparency Act (GATA) portal, a valid SAM registration, compliance with non-discrimination and equal opportunity laws, and adherence to federal and state audit requirements. Cost sharing is typically required at a minimum of 25 percent of project costs, although waivers may be requested. Indirect costs are not covered under this grant. Applications must be submitted within six months of the Gubernatorial Disaster Declaration and adhere to detailed submission guidelines outlined by DCEO. Required materials include a comprehensive project summary, various FEMA cost forms, a project location map, public hearing documentation, council resolutions of support, and various financial and registration documents. The application process also mandates a public hearing with proper notice and citizen participation documentation. Submissions must be made in hard copy to the Springfield office of DCEO; electronic submissions are not accepted. The review process is on a first-come, first-served basis until funds are exhausted. Funding for this program is federally sourced, with $2,120,450 allocated for Disaster Response grants in the current cycle. The maximum award is $250,000 per unit of local government. The number of awards depends on the number of disasters and funding requests received. Grants are awarded for a 12-month contract period with no extensions. Grantees must comply with various federal mandates, including environmental reviews, labor standards, fair housing requirements, and procurement standards. Regular reporting is required through Periodic Performance Reports and Financial Reports, along with a final closeout report within 60 days of grant completion. Additional monitoring and auditing by DCEO may occur throughout the project lifecycle. For assistance, applicants can contact Wendy Bell, Program Manager at the Office of Community Development, via email at ceo.ocd@illinois.gov or phone at 217-785-6174. The program's detailed Guidebook and further application resources can be found at https://dceo.illinois.gov/communitydevelopment.html. This funding opportunity remains open on an ongoing basis, as long as applications are received within the prescribed six-month window from a disaster declaration.