How are Neighborhood Opportunity Fund (NOF) grants structured? 

Selected proposals are awarded 75% of total eligible costs, with a maximum award of $250,000. Grants are provded as reimbursements for incurred costs. 

Payments are provided in one of two ways: 

• Directly to the grantee, or a financier funding the project on behalf of the grantee. 
• Directly to contractor via construction escrow. 

Grantees can request up to three disbursements from either method or the full amount upon project completion. 

What projects are eligible to receive Neighborhood Opportunity Fund grants? 

Grants reimburse businesses for eligble construction or rehabilitation costs involving new and existing commercial spaces and cultural establishments that cater to the public. Residential, industrial, and religious uses that lack a commercial component are ineligible.

Are mixed-use properties eligible for assistance? 

Yes, but only for the commercial spaces. Residential components are ineligible.

What costs are eligible? 

Eligible hard costs involve permanent building improvements, such as:  

• Security measures, including cameras and associated electrical costs 
• Site preparation, including clearing, demolition, earthwork, and environmental remediation 
• Substructures, including foundations and basement 
• Building shells, including roof, floor, exterior walls, windows, and doors 
• Porches, patios, and exterior stairs 
• Interior construction, including walls, doors, stairs, floors, and ceilings 
• Finishing work including painting and millwork 
• Building mechanicals and services, including electrical, plumbing, HVAC, fire protection, and elevators 
• Public infrastructure (e.g., sidewalks, landscaping, storm sewers, and sight lighting) as part of a real estate development project  

Eligible soft costs include professional services corresponding to eligible hard costs, such as:

• Architectural, engineering, and design (e.g., feasibility studies, master planning, and design work).
• Project management fees (i.e., construction consultants assisting the applicant in completing their project after receipt of their Conditional Award Letter) 

Ineligible costs include:

• Uses or services that exclusively promote or incorporate religious teachings (e.g., after school programming with religious education) 
• Furnishings, fixtures, and equipment (e.g., refrigerators, tables, desk chairs) that are not to remain at the project site for the lifetime of the business 
• Expenses that only improve government facilities 
• Expenses that only correct deferred maintenance issues (e.g., boiler system replacement) 
• Expenses that only address building repairs compelled by a Circuit Court Order (e.g., ADA compliance) 
• Expenses that only conduct minor structural/site repairs and improvements (e.g., outdoor patio resurfacing) 
• Expenses that only conduct new surface parking lots (e.g., design, construction, resurfacing, etc.)  
• Work completed prior to an applicant's reception of a conditional NOF award letter.

Approved applicants may begin work on their projects upon receiving a Conditional Award Letter (CAL) from the Department of Planning and Development.

How much funding can an eligible project receive? 

Up to $250,000, with an additional 20% for pre-development expenses if an applicant uses an approved technical assistance (TA) provider.  

Where can Neighborhood Opportunity Fund projects be located? 

Projects must be located on a Priority Corridor, which involve concentrated retail and commercial uses, or an Eligible Corridor, which are generally assocated with retail and commercial activity. To confirm the address is geographically eligible email NOF@CityofChicago.org or contact DPD at 312-744-2780 for more information. 

How were the eligible areas selected? 

Corridors were determined by DPD based on Qualified Investment Area critiera. More information is available on the City's website. 

How are applications evaluated? 

Applications are prioritized based on four key factors: 

1. Catalytic impact. Applicants should submit projects that provide services or goods currently lacking in an area and specify how their projects will build stronger communities.  
2. Project readiness. Applicants should have site control of the project property. Selected properties should not have significant issues, such as mechanic liens, court orders or past-due property taxes.  
3. Project financial feasibility. Applicants should clearly identify the uses of grant funds and the sources of their portion of funding.  
4. Construction implementation. Applicants should demonstrate a clear and ready path to implementation by providing a complete General Contractor bid that itemizes materials and labor costs.  

Following prioritization, applications are reviewed by an advisory committee of community leaders that provide approval or feedback on DPD recommendations. Tentative applicant awards are publicly announced several weeks or months after an appliation period closes.

What if my property has building code violations? 

Any repairs or improvements ordered by the Circuit Court to remedy documented citations of the City's Building Code are not eligible for NOF assistance, and no cited violation is eligible for repair through NOF proceeds.

How long will the selection process take once the application window closes? 

The selection process takes approximately one to three months following an application deadline.