Community Development Block Grant (CDBG) - Public Infrastructure

The Community Development Block Grant (CDBG) Public Infrastructure Program is a competitive funding opportunity administered by the Illinois Department of Commerce and Economic Opportunity (DCEO), Office of Community Development. Funded through Title I of the Housing and Community Development Act of 1974 and operated under the CFDA number 14.228, this program provides federal support to address infrastructure needs in Illinois' non-entitlement communities—those not receiving HUD formula funds directly. The State’s 2025 allocation is expected to be similar to 2024’s, which included $19.5 million for this component. The funding aims to benefit low-to-moderate income (LMI) residents by improving essential infrastructure while promoting public health and safety. The program’s primary focus is on critical water and sanitary sewer systems, storm sewer improvements, and combined sewer separation projects. Activities eligible for funding must meet one of the following HUD activity codes: 03I (Flood and Drainage Improvements), 03Jw (Water Improvements), or 03Js (Sewer Improvements). The maximum grant award is $1,000,000 per project, including up to $35,000 in activity delivery costs. Projects must be primarily residential in nature and must directly benefit LMI populations. The program strictly excludes projects for deferred maintenance, general government use, or that primarily serve commercial areas. Specific limits apply, such as a $6,000 per household cap for LMI residential connections. To be eligible, applicants must be units of general local government—such as cities, villages, townships, or counties—not designated as entitlement communities by HUD. Applications may be submitted as joint or "on behalf of" applications for districts or cooperatives, provided they meet documentation and eligibility requirements. The project area must demonstrate at least 51% benefit to LMI persons, supported by HUD’s LMISD data or a qualified income survey. Applicants must also show sufficient water/sewer rates, typically exceeding 1% of local median household income per 5,000 gallons, and must clearly document an ongoing threat to public health and safety. The application process requires several narrative and documentation components, including a Letter of Transmittal, detailed Project Summary, and Project Readiness Summary. Supporting materials must include engineering cost estimates, project maps, income documentation, and other certifications. Applications are scored based on ranking criteria such as LMI benefit, health and safety urgency, cost per capita, funding leverage, and administrative readiness. Applications failing to meet eligibility thresholds or lacking required documentation are automatically deemed "Do Not Fund." Applications are due by December 4, 2024, no later than 5:00 p.m. Central Time. Submissions must be delivered in person or by mail to the Office of Community Development in Springfield, IL. No electronic or facsimile submissions are accepted. Awards will be announced following a review process by DCEO staff and final approval by the Director. Projects must be operational within 24 months of award, with only one possible 12-month extension. While the program is not formally recurring, it typically operates on an annual basis. Interested applicants are advised to review Sections I, II, and VII of the guidebook in addition to the Public Infrastructure section for full compliance.

Use detailed and accurate documentation, ensure early preparation of technical attachments (e.g., maps, cost estimates), and engage in public participation activities early to avoid delays.