The Department of Planning and Development (DPD) Large Community Development Grant (CDG-L) program supports commercial, mixed-use and light industrial development citywide, issuing grants in excess of $5 million.

Below are some frequently asked questions about the program.

Timeline and Awards

What time does the application period close?
The CDG-L program does not have a submission deadline. DPD accepts CDG-L applications on a rolling basis.

Who do I contact after I submit an application?
DPD will reach out to applicants regarding their project submission after an initial review of the application is completed. This happens within two to four weeks.

Who decides if my project is approved for a grant?
DPD reviews applications and recommends projects for CDG-L funding; approval is provided by City Council. Without this approval, DPD does not have legal authority to authorize the use of CDG-L funds for any project.

How long does the City approval process take?
From the time an application is submitted, City Council approval of a Redevelopment Agreement can take anywhere from nine to 12 months, depending on the complexity of the project.

How many projects are awarded each funding round?
The total number of awards depends on the quality and quantity of applications received. While DPD does have limitations on the total amount of funding that can be allocated to projects in any given year, it does not target a set number of projects for awards.

How will grant amounts be calculated?
DPD reviews CDG-L projects on a “but for” basis — meaning that the project would not happen but for the use of public funds. Requests for funding are subject to a financial analysis and underwriting review by DPD to determine the appropriate amount of funding for a project. In many cases, the amount of funding provided by the City is less than the requested amount. Each project is reviewed on a case-by-case basis.

Program Details

Can I request a grant of less than $5 million?
No, the CDG-L program has a minimum award of $5,000,001 in City funds. Applicants requesting $5 million or less may apply for the Medium Community Development Grant.

How much funding can I request for a project?
Although there is no specific limitation on the amount of funding a project may request, all projects are subject to a financial review to ensure that they do not receive more funding than is necessary to support the project. In general, CDG-L projects receive no more than 25% of the project’s total cost.

Does the CDG-L program have a Local Residency Bonus?
No. The Local Residency Bonus is a unique feature of the Medium Community Development Grant program.

Will I receive the grant funds up front, or do I need to pay for the work first and submit invoices to be reimbursed?
Grant funds are not provided up front. Payments are issued as reimbursement for incurred project costs following project completion.

How long will awardees have to complete their projects?
Projects are expected to execute their Redevelopment Agreement with the City within six months of Council approval and to complete construction within two years of executing the Redevelopment Agreement.

Eligibility and Use of Funds

I am not a resident of Chicago. Can I still apply?
Yes.

My project is located outside of Chicago. Is it eligible for funding?
No. Projects must be located within the City of Chicago.

What types of businesses or uses are eligible for this program?
Both for-profit and nonprofit businesses or organizations are eligible to request funding for projects that are primarily commercial, light industrial or mixed-use residential in nature. Cultural, institutional and social service uses may be considered commercial if they are generally accessible to the public. All uses should add to the economic vitality of the surrounding neighborhood, benefit the community and meet a local need. The overall eligibility of projects will be evaluated by DPD on a case-by-case basis.

Are non-profit, social service and religious organizations eligible?
Yes. The primary use of projects must, however, still be an eligible use that is generally accessible to the public. Commercial uses that involve the selling of merchandise or services to the public are generally preferred. The eligibility of all projects will be evaluated by DPD on a case-by-case basis.

Can I apply for this program if my project is residential?
Mixed-use residential projects are eligible, provided the ground floor is entirely commercial and the project incorporates ten or more residential units. Residential-only development and the residential portion of buildings with fewer than ten units are not eligible.

Are the residential portions of mixed-use developments eligible costs?
The residential portions of mixed-use developments can be included in the grant request as part of total project costs, provided the project includes ten or more residential units. Buildings with fewer than ten units are still eligible to be considered for work associated with the development of non-residential portions of the building.

Do projects with residential units have to provide affordable units?
Yes. Any project that receives a CDG-L grant must meet the Chicago Affordability Requirements Ordinance. This generally means no less than 20% of the units must be made available to households earning no more than 60% of Chicago’s Area Median Income (AMI).

Can I apply for this grant if I have a mobile business, such as a food truck?
No. CDG-L grants are limited to permanent building improvements.

Are new businesses, organizations or start-ups able to apply?
Yes.

Can these grants be used for staffing or operations of my business?
No. CDG-L grants are limited to permanent building improvements and cannot be used for operational costs, such as staffing.

Is new construction eligible?
Yes. New construction alone or in combination with rehabilitation of an existing structure is eligible.

If I apply for this program, will I also be considered for other City programs?
The CDG-L program is supported by funds from the Housing and Economic Development Bond and Tax Increment Financing (TIF). Eligible projects will be considered for both funding sources. The submission of a CDG-L application does not result in a project being considered for any other grants or programs that are managed by either DPD or other City departments.

Can I apply if I don’t have detailed construction estimates or designs yet?
Yes, but having construction cost estimates and architectural designs is strongly recommended to demonstrate project readiness.

Can I include pre-development costs, such as architectural fees, in my budget?
Pre-development costs can be included in the proposed project budget, and these costs are eligible uses of grant funds. However, these costs are not eligible for reimbursement until the requisition for the first construction payment.

Can I include furniture, fixtures and equipment (FFE) costs in my budget?
FFE costs can be included in the proposed project budget, but these costs are not eligible uses of grant funds and will not be reimbursed if an applicant receives a grant.

Can I include environmental remediation in my budget?
Environmental remediation can be included in the proposed project budget. These costs are eligible uses of grant funds, provided they are associated with substantial construction or rehabilitation work, such as remediating a vacant lot and building a store on the lot.

Can I include acquisition costs in my project budget?
Acquisition costs can be included in the proposed project budget. These costs are eligible uses of grant funds, provided they are associated with substantial construction or rehabilitation work, such as acquiring a vacant lot to construct a new store. Requests for real estate acquisition costs without an associated redevelopment project will not be considered for funding.

Can I apply if I am currently acquiring or plan to acquire land through programs such as the Cook County Land Bank or ChiBlockBuilder?
Yes. Applicants engaged in one of these programs should submit documentation indicating that they have applied for the property and the application has been accepted, or a letter of intent or ordinance from the relevant government entity.

Will there be requirements for MBE/WBE contracting or prevailing wage if I receive this grant?
Yes. Recipients of CDG-L grants must comply with the City’s construction requirements, including MBE/WBE, Local Hiring and Prevailing Wage.

Will applicants be disqualified if there are building code violations on their property?
Yes, building code violations must be addressed prior to applying, and applying for funds to correct current violations will be considered ineligible.

Application

If I am working on multiple developments, can I apply for multiple grants?
Applicants may submit separate applications, with separate grant requests, for as many projects as they wish. Applications must be for a single project at a single location and applicants may not submit one application for multiple projects at multiple locations.

Can I submit a physical application?
No. Applicants must apply online.

Project Selection

How are projects selected?
Projects will be selected based on the strength of application, with strong applications demonstrating project feasibility, readiness and overall community impact. This is determined by the quality and quantity of information submitted related to these points, including comprehensive responses and the submission of documentation related to site control, architectural designs, business plans, demonstration of funding, etc. 

How does equity factor into the selection process?
Applications with projects located in historically disadvantaged areas, and/or projects that align with City initiatives are prioritized.