Commercial Rehabilitation 

The Commercial Rehabilitation Grant Program is administered by the Kansas Department of Commerce (CDBG) and aims to support cities in enhancing the quality and productivity of their downtown commercial districts. The program provides financial assistance to private property owners for the rehabilitation of blighted commercial structures. The objective is to stimulate economic revitalization by preventing the spread of deterioration, improving safety, and promoting viable business operations in historically or economically distressed areas. Eligible activities under this grant are focused on structural and exterior building improvements rather than direct business assistance. Permissible uses of funds include exterior enhancements such as roofing, facades, doors, windows, signage, and code violation corrections including ADA compliance and health/safety upgrades. Additional eligible expenses may include HVAC, electrical, plumbing, and fire suppression upgrades (when addressing code violations), energy improvements (only if they accompany other eligible activities), and historic restorations for properties listed or eligible for the National Register. Real property acquisition is also allowable if it follows Uniform Relocation Assistance (URA) guidelines. To qualify, applicants must meet at least one of two CDBG national objectives: 1) benefit low- and moderate-income (LMI) individuals through job creation or retention (at least 51% of jobs created or retained must benefit LMI individuals based on their personal income), or 2) eliminate slums or blight through designated spot improvements. All applications must clearly document the national objective addressed, provide a comprehensive reuse plan for the building, and submit a complete business plan for each business occupying the renovated space. Residential areas of mixed-use buildings are not eligible for funding. Applicants must be non-entitlement communities in Kansas, meaning they do not already receive CDBG funds directly from HUD. These include all incorporated cities or counties in Kansas except Kansas City, Lawrence, Leavenworth, Manhattan, Overland Park, Topeka, Wichita, and any entity within Johnson County. Projects must target buildings owned privately and cannot involve ownership by nonprofits, Chambers of Commerce, local governments, or anyone with a conflict of interest under HUD regulations. Each application must involve a single building or a group of properties considered one parcel under common ownership. The program allocates up to $2,500,000 annually, with a maximum award of $300,000 per project. A 25% match of the grant request is required, with at least 10% of that match being cash from a local source. Funds used prior to award—such as for architectural and engineering reports—must be paid from local funds and can only count toward the match if clearly documented. Projects operate on a two-year cycle, beginning with design and environmental review, followed by implementation. Applications are accepted from May 1 to November 14, 2025, and are reviewed within 45 days of submission. Evaluation criteria include the community’s efforts to revitalize the commercial district (10 points), scope of work and impact (20 points), financial capacity and experience of the owner/operator (30 points), reuse/business plan viability (30 points), and readiness to proceed (10 points). The application process requires submission of public hearing documentation, engineering/architectural reports, environmental reviews, business plans, and proof of matching funds, among other items. For additional guidance or inquiries, applicants are encouraged to contact the CDBG team at cdbg@ks.gov or call 785-296-3481. More information is available at kansascommerce.gov/cdbg.

Applications are more successful when administered by an experienced grant administrator. Applicants must ensure public hearing dates and funding notices match what is submitted. Matching funds should be secured and documented before submission.