Deadline: Ongoing Opportunity
The City of Chicago is seeking applications for its Community Development Grants to help support business and neighborhood vitality through Small, Medium and Large Community Development Grant (CDG) awards.
CDGs use proceeds from the 2024 Housing and Development Bond and other funding sources to support a variety of eligible, business-related investments that create and maintain jobs and quality-of-life improvements for local residents.
Types of Grant
- Small Grant: For office, retail, light industrial and mixed-use projects.
- Medium Grant: For office, retail, cultural, industrial, institutional and mixed-use projects.
- Large Grant: For office, retail, cultural, industrial, institutional and mixed-use projects.
Funding Information
- Community Development Grant – Small:
- Small grants up to $250,000 are intended to support eligible commercial, mixed-use and light manufacturing projects. Grants provide funding for up to 75% of total eligible project costs involving new construction, rehabilitation or both.
- Priority is given to projects with strong local impacts that leverage local talents, capacities and institutions and contribute to community vitality
- Funding is provided on a reimbursement basis; all project expenses are paid upfront by awardees. Grant disbursements are made at defined milestones during construction.
- Community Development Grant – Medium:
- Medium grants from $300,001 to $5 million are intended to support eligible commercial, cultural, industrial, institutional, social service and mixed-use projects. Grants are intended to support up to 50% of total project costs involving new construction, rehabilitation or both.
- Funding is provided on a reimbursement basis with payments made at either defined milestones during construction or upon project completion. At the discretion of DPD, funding may be offered as a loan rather than a grant.
- Community Development Grant – Large
- Large grants exceeding $5 million are intended to support eligible commercial, cultural, industrial, institutional, social service and mixed-use projects. Grants are intended to support approximately 25% of total project costs involving new construction, rehabilitation or both.
- Funding is provided as a lump-sum reimbursement upon project completion. At the discretion of DPD, funding may be offered as a loan rather than a grant.
Eligibility Criteria
- Community Development Grant – Small:
- Private and non-profit developers, property owners and businesses are eligible to apply.
- Proposed projects must be revenue-generating and comprise the following uses:
- Commercial (office, retail)
- Light industrial
- Mixed-use residential (residential costs cannot exceed 25% of total grant amount and must be part of a larger building improvement, such as HVAC/plumbing).
- Grant uses may include hard costs, soft costs and acquistion costs. Acquisition and soft costs must be part of a broader commercial project. Acquisition costs cannot exceed 25% of the total grant amount.
- Applications are evaluated using criteria based on a project’s anticipated impact, location, site characteristics, uses, documentation and financing. DPD also reviews applications for potential issues related to zoning, design and historic preservation.
- Applicants are encouraged to confer with general contractors to provide estimates based on formal bids. Small grant funding is calculated based on the budget provided in the application.
- Community Development Grant – Medium:
- Private and non-profit developers, tenants and property owners are eligible to apply individually or jointly during competitive, semi-annual funding rounds.
- Proposed projects must primarily comprise one of the following uses either independently or combined with another eligible use:
- Commercial (office, retail)
- Cultural (museums, theaters, performance venues)
- Industrial and manufacturing
- Institutional (healthcare, education)
- Mixed-use residential (10+ units with 100% ground floor commercial use)
- Social services (workforce development, unhoused interventions, etc.)
- All uses must be generally accessible to the public and should add to the economic vitality of the surrounding neighborhood, benefit the community, and meet a local need. Projects must also be received as proposals, meaning construction of these projects must not be completed when the application is submitted.
- Eligible grant uses include hard costs (construction), soft costs (pre-development) such as design and site preparation expenses, and acquisition costs. A full list of eligible and ineligible expenses is included in the program manual.
- Medium grants can be used for projects anywhere in the City of Chicago; however, projects that are under construction or completed are ineligible for funding.
- Applications are evaluated using criteria based on a project’s anticipated impact, location, site characteristics, uses, documentation and financing. DPD also reviews applications for potential issues related to zoning, design and historic preservation.
- While not required, Medium grant applicants are advised to engage the services of real estate attorney, financial professional, architect, and at least one contractor.
- Community Development Grant – Large:
- Private and non-profit developers, tenants and property owners are eligible to apply individually or jointly during competitive, semi-annual funding rounds.
- Proposed projects must primarily comprise one of the following uses either independently or combined with another eligible use:
- Commercial (office, retail)
- Cultural (museums, theaters, performance venues)
- Industrial and manufacturing
- Institutional (healthcare, education)
- Mixed-use residential (10+ units with 100% ground floor commercial use)
- Social services (workforce development, unhoused interventions, etc.)
- All uses must be generally accessible to the public and should add to the economic vitality of the surrounding neighborhood, benefit the community, and meet a local need. Projects must also be received as proposals, meaning construction of these projects must not be completed when the application is submitted.
- Eligible grant uses include construction-related hard costs, pre-development soft costs such as design and site preparation expenses, and acquisition costs.
- Large grants can be used for projects anywhere in the City of Chicago; however, projects that are completed are ineligible for funding.
- Applications are evaluated based on a project’s anticipated impact, location, site characteristics, uses, documentation and financing. Applications are also reviewed for potential issues related to zoning, design and historic preservation.
Application Deadlines
- Small Grant
- Nov. 8, 2024
- Medium Grant
- Feb. 14, 2025
- Large Grant
- Rolling basis
For more information, visit City of Chicago.