City of Chicago Community Development Grants (US)

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.