Community Development Grant – Medium (CDG-M)

The Medium Community Development Grant is administered by the City of Chicago Department of Planning and Development as part of a consolidated funding initiative designed to support impactful real estate development projects across the city. The program merges several historic funding streams, including Tax Increment Financing, the Neighborhood Opportunity Fund, and Housing and Economic Development bond proceeds, into a unified framework with consistent rules and evaluation criteria. Its primary objective is to stimulate economic vitality, create jobs, and improve quality of life for residents and visitors by supporting moderate scale development projects that serve public needs. The program provides financial assistance ranging from three hundred thousand one dollars up to five million dollars and is structured to fund up to fifty percent of total eligible project costs. Eligible activities include new construction, rehabilitation, or a combination of both. Funding may be delivered as a grant, forgivable loan, or traditional loan at the discretion of the Department of Planning and Development. All funds are distributed on a reimbursement basis, either through milestone based progress payments or as a single disbursement upon completion of the project. Eligible expenses include hard construction costs, soft predevelopment costs such as design and engineering, and certain acquisition costs tied to redevelopment activities. Eligible applicants include private developers, nonprofit organizations, tenants, property owners, business owners, and institutional entities such as healthcare or higher education organizations. Projects must fall within specific use categories, including commercial, cultural, industrial, institutional, mixed use residential with at least ten units and ground floor commercial activity, or social service uses. All proposed projects must be accessible to the public and demonstrate clear benefits to the surrounding community, including economic impact and responsiveness to local needs. Importantly, projects must be submitted prior to completion, as the program does not fund completed developments. Applications are submitted through an online platform and are accepted on a rolling basis, but evaluated during semi annual funding rounds typically occurring in February and August. For the current cycle, applications are open with a stated deadline of August 14 at eleven fifty nine pm. Following submission, applications undergo a multi stage evaluation process that includes eligibility screening, technical review for zoning and design considerations, and scoring based on project impact, financial feasibility, and documentation completeness. Projects are also assessed for alignment with neighborhood priorities and potential to revitalize underutilized properties. Applicants must submit comprehensive documentation, including site control evidence, financial projections, development budgets, contractor estimates, and proof of financing for non city portions of the project. Selected applicants enter into a formal redevelopment agreement with the City, which outlines legal obligations, compliance requirements, and performance benchmarks. This process includes multiple approval steps and may require City Council authorization. The timeline from application deadline to finalist announcement typically spans four to five months, followed by an additional approval period of approximately six months prior to funding disbursement. Projects receiving funding must comply with a range of regulatory and operational requirements, including minority and women owned business participation thresholds, prevailing wage standards, and city residency labor requirements. Upon completion, projects enter a compliance period generally lasting five years, during which recipients must maintain operations, occupancy levels, and reporting obligations. The program operates on a recurring basis with semi annual funding rounds, allowing unsuccessful applicants to revise and resubmit proposals in future cycles. Additional program details, requirements, and guidance are outlined in the official program manual.

Apply early before deadline to allow deficiency corrections; ensure full documentation completeness; engage professional team including architect and financial advisor