The Department of Planning and Development (DPD) Medium Community Development Grant (CDG-M) program supports commercial, mixed-use and light manufacturing development citywide, issuing grants between $300,001 and $5,000,000.

Below are some frequently asked questions about the program. More detailed information can be found in the Medium Grant Program Manual.

Timeline and Awards 

When does the application period close for future rounds?
In any given year, the deadline for the first round of CDG-M funding is generally scheduled for early February and the second round for early August.

When will I find out if my project has been awarded a grant?
Applicants for the second round of 2024 funding that closed on Aug. 9 are anticipated to be notified in late 2024.

How many projects are awarded each funding round?
The number of awards depends on the quality of applications received. The City does not target a set number of projects to fund each round.

How will grant amounts be calculated?
Grant amounts are based on application strength, total project costs, requested grant amount, overall financial need and available funds.

Will those who apply earlier have a better chance of receiving funds?
No. DPD reviews all applications at the close of each funding round at the same time, regardless of when they are submitted during the round. Applicants should apply when they are best able to demonstrate project feasibility and readiness and submit the strongest application.

Can I access City funds normally awarded by the CDG-M program outside of the application process?
No. The City will not consider requests for the use of any funding source managed by DPD outside of the competitive application process. Funding requests between $300,001 and $5 million must be submitted during the competitive application process in advance of that round’s deadline.

Program Details

Can I request a grant of more than $5 million?
No, the CDG-M program has a maximum award of $5 million. Applicants requesting more than $5 million may apply for a Large Community Development Grant.

How do projects qualify for the Local Residency Bonus?
If a proposed project is located within the Neighborhood Opportunity Fund (NOF) program’s Qualified Investment Area (QIA), and the applicant’s primary residence is also located within the QIA, the applicant is eligible for the Local Residency Bonus. Entities applying with multiple owners must provide evidence that at least 50% of the ownership can be attributed to individuals who reside in the QIA.

Non-profits and organizations without a defined owner are ineligible for the Local Residency Bonus.

Can I request a grant of more than 50% of my total costs?
The base grant of the CDG-M program may not exceed 50 percent of the total project cost. Applicants who meet the requirements for the Local Residency Bonus are eligible to receive additional funding of up to 25% of the total proposed project cost, or $500,000. In no case may the total award of City funds exceed either 75 percent of the total project cost, or $5 million. For example, if the base grant of a project is $4.7 million, the Local Residency Bonus would be limited to $300,000.

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, either at defined milestones during construction, or as a lump sum payment at project completion.

How long will awardees have to complete their projects?
Competitive applications should demonstrate the ability to begin construction within six months of being awarded a grant and aim to be completed within two years.

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 nonprofit, 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-M grant must meet Chicago’s 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-M grants are limited to permanent building improvements.

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

Can I apply if I have a home-based business?
No, a home-based businesses are not eligible for CDG-M unless the business owner intends to move the business into a separate space that is unaffiliated with the residence.

Can these grants be used for staffing or operations of my business?
No. CDG-M 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.

Can you apply for this program if you’ve already received other City funds (such as NOF, SBIF, TIF)?
Yes. Prior City funding does not disqualify projects from CDG-M. Explain in the application why additional funding is needed beyond what was previously awarded. If the combined total request, including previously awarded City funds and the amount of new funding, exceeds $5 million, you must apply for the Large Community Development Grant program.

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

Can I apply if I don’t have detailed construction estimates or designs yet?
Yes, but having construction cost estimates and architectural designs are 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. Other documentation that may be accepted includes a letter of intent or ordinance from the relevant government entity.

Do I have to acquire property to be eligible for a grant?
No, applicants may be current tenants who lease space, or prospective tenants who intend to lease space. Applicants can demonstrate this through an executed lease agreement of five or more years, or a letter of intent to lease a property for five or more years. Rental fees are operational costs and therefore ineligible uses of grant funds, so they will not be reimbursed if an applicant receives a grant.

Will there be requirements for MBE/WBE contracting or prevailing wage if I receive this grant?
Yes. Recipients of CDG-M 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 the feasibility and readiness of a project, as well as its overall impact and benefit. 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.

Will information about selected projects be made publicly available?
Awarded projects will be announced publicly, including the project name, location and amount awarded.

If a proposed project is not selected for funding, can the applicant reapply?
Yes. Applicants whose projects are not selected for a particular round may work on their project and application and then reapply for a future round.