Community Development Block Grant (CDBG) - Public Infrastructure

The Community Development Block Grant Public Infrastructure Program is administered by the Illinois Department of Commerce and Economic Opportunity through federal Community Development Block Grant funding provided by the U.S. Department of Housing and Urban Development. The program is designed to support public infrastructure improvements that address threats to public health, safety, and welfare in Illinois communities with substantial low-to-moderate income populations. The program specifically focuses on residential infrastructure needs and provides funding for water systems, sanitary sewer systems, storm sewer systems, and drainage improvements. The initiative is part of the long-standing federal CDBG framework established under the Housing and Community Development Act of 1974, which allows states to administer community development funding for smaller local governments that are not direct HUD entitlement communities. Eligible projects must primarily benefit residential areas and demonstrate that at least 51 percent of the beneficiaries are low-to-moderate income persons. Projects intended primarily to support commercial or business districts are not eligible. Eligible construction activities include water line installation or replacement, sewer rehabilitation and separation projects, flood and drainage improvements, and related infrastructure repairs directly associated with those activities. The program allows certain residential utility connection costs for eligible low-to-moderate income households, though standalone connection-only projects are prohibited. Funding may not be used for general government buildings, operating expenses, debt refinancing, deferred maintenance projects, engineering planning costs, contingency costs, legal fees, or unrelated infrastructure improvements. The Department emphasizes that projects must directly address documented threats to health and safety, such as failing infrastructure systems, sewer collapses, low water pressure, boil orders, flooding, or contamination concerns. The funding opportunity anticipates approximately 17 awards with total program funding estimated at $25,000,000. Individual awards range from $300,000 to $1,500,000. Cost sharing is not required, but applicants may receive additional scoring points if they contribute supplemental project funding from sources such as ARPA funds, USDA Rural Development, IEPA financing, local cash contributions, bonds, or other committed resources. Although indirect costs are generally not allowed, the Department permits limited activity delivery costs associated with grant administration, environmental review preparation, auditing, and project management, subject to a maximum of $40,000 in CDBG reimbursement. The performance period is expected to begin approximately 90 days after issuance of the Notice of State Award Finalist and extend for twenty-four months following grant execution. Eligibility is limited to units of general local government in Illinois, including cities, villages, townships, and counties. Applicants must be registered and prequalified through the Illinois Grant Accountability and Transparency Act portal and maintain active SAM registration and UEI compliance. Communities that received competitive CDBG awards in the previous year are generally not eligible to apply the following year. Municipalities located within HUD entitlement jurisdictions are excluded from eligibility. Applicants must also comply with numerous federal and state requirements related to procurement, Davis-Bacon labor standards, environmental reviews, fair housing obligations, floodplain regulations, wetlands protections, and nondiscrimination requirements. Grant administrators and environmental specialists must satisfy experience and training requirements established by the Department. The application process requires substantial documentation and public participation activities. Applicants must conduct a public hearing before submitting the application and before passage of a local resolution supporting the project. Public notices must be published at least seven calendar days prior to the hearing, and project information must be available for public review during the comment period. Required application materials include the Uniform Grant Application, Uniform Budget, conflict of interest disclosures, mandatory disclosures, project summaries, project readiness narratives, project maps, floodplain maps, engineer cost estimates, fair housing resolutions, IRS verification letters, and W-9 documentation. Additional supporting materials may include funding commitment letters, right-of-way documentation, environmental compliance materials, water treatment agreements, and utility rate information. Applications must be submitted physically to the Department's Springfield office and electronic or fax submissions are not accepted. Applications are evaluated through a merit review process that considers project impact, public health urgency, project readiness, administrative capacity, opportunity zone status, underserved area designation, and additional funding commitments. Threats to health and safety receive significant scoring weight, with the highest scores awarded to projects facing imminent system failure or severe environmental hazards. The Department also evaluates the historical performance of the applicant's grant administrator based on drawdown progress from other CDBG awards. Applications that fail to meet threshold requirements related to low-to-moderate income benefit, citizen participation procedures, utility rates, engineering documentation, or project readiness may be classified as do not fund and removed from further consideration. Applications opened on May 4, 2026 and are due by August 27, 2026 at 5:00 PM Eastern Time. A mandatory virtual application workshop was scheduled for May 7, 2026. Following review, successful applicants will receive a Notice of State Award to begin grant agreement development and environmental review activities. Additional mandatory grantee workshops are required after award announcements. Program contacts include the Illinois Department of Commerce and Economic Opportunity Office of Community Development and the agency may be reached through the Office of Community Development email address at ceo.ocd@illinois.gov or the Grant Help Desk at CEO.GrantHelp@illinois.gov. The Public Infrastructure Program is offered annually on a competitive basis as part of Illinois' broader Community Development Block Grant programming.

Provide strong documentation demonstrating immediate health and safety threats and ensure all project details costs and maps are fully consistent across application materials. Include complete project readiness documentation and firmly committed supplemental funding to maximize scoring.