Community Development Block Grant Housing Rehabilitation Program

The Community Development Block Grant Housing Rehabilitation Program is administered by the Illinois Department of Commerce and Economic Opportunity. This program is funded through the federal Community Development Block Grant allocation provided by the U.S. Department of Housing and Urban Development, which was established under the Housing and Community Development Act of 1974 to support community development and housing needs, particularly for low-to-moderate income populations. The Illinois program focuses specifically on preserving and improving owner-occupied housing stock in smaller communities, with the goal of revitalizing neighborhoods and ensuring safe and habitable living conditions. The primary objective of the program is to provide financial assistance to units of general local government so they can rehabilitate single-family homes occupied by low-to-moderate income households. All funded activities must directly benefit this population, and projects must demonstrate both a clear need for rehabilitation and measurable support from residents within the proposed service area. A minimum of eight homes must be rehabilitated per project, and applicants must document need through surveys completed within the prior 24 months and provide evidence of community support through public engagement materials. Funding can be used for a wide range of eligible rehabilitation activities, including labor and materials, structural repairs, utility connections, hazard mitigation such as lead-based paint treatment, accessibility improvements, and energy efficiency upgrades. Certain costs such as construction of government buildings, general government expenses, and refinancing of existing debt are explicitly ineligible. The program also imposes limits such as a maximum expenditure per household and caps on administrative and activity delivery costs, which must be justified and documented through invoices. Eligibility is limited to units of general local government, including cities, villages, counties, and townships that meet specific federal and state requirements. Applicants must not be HUD entitlement communities and must be properly registered and prequalified through the Illinois Grant Accountability and Transparency Act portal. Additional requirements include compliance with federal regulations such as environmental review, labor standards, procurement rules, and fair housing laws. Applicants must also conduct a public hearing prior to submission and secure a formal resolution of support from their governing body. The application process requires submission of a comprehensive package including a uniform application, budget templates, certifications, and multiple narrative components such as project summary, design, and supporting documentation. Applicants must also provide maps, cost estimates, commitment letters for additional funding sources, and evidence of procurement processes for third-party services. A mandatory technical assistance workshop must be attended prior to submission, and all application materials must be submitted in both original and copy formats by the specified deadline. Applications are evaluated through a merit-based review process using criteria including project need, project impact, coordination of resources, and project readiness, with a total possible score of 100 points. Funding decisions are made based on ranking until available funds are exhausted. Successful applicants will receive a Notice of State Award Finalist, followed by a grant agreement phase that includes meeting environmental and administrative conditions before project implementation begins. The expected period of performance is approximately two years from execution. The application window opens on May 4, 2026 and closes on August 27, 2026 at 5:00 PM. A mandatory technical assistance session is scheduled for May 7, 2026. Following submission, applications undergo review and selection, with award notifications issued thereafter. The program is offered annually, providing recurring opportunities for eligible communities to apply for funding to address housing rehabilitation needs.

Demonstrate strong LMI benefit and survey data; ensure project readiness documentation is complete; secure additional funding commitments to increase score; attend mandatory workshop