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  1. DCEO
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Community Development

The Community Development Block Grant (CDBG) Program was established by the U.S. Housing and Community Development Act of 1974 ("HCD Act"). The programs assists Illinois communities that do not receive a HUD direct entitlement allocation with meeting their greatest economic and community development needs.

CDBG provides federal funding for community-based projects in non-metropolitan areas.  The program consists of the following components.  More information on each component is provided in the links on the right side of the page.

  • Public Infrastructure – Local governments that need to improve public infrastructure and eliminate conditions detrimental to public health, safety, and public welfare may request a maximum of $450,000.00 to undertake projects designed to alleviate these conditions, with an emphasis on helping communities with substantial low to moderate-income populations.
  • Housing Rehabilitation Program – Low-to-moderate income communities can apply for grants to improve housing and rehabilitate and retrofit properties.  A maximum of $450,000 in grant funds or $45,000 per household is available to improve the homes of low-to-moderate income residents of owner occupied single family housing units.  Grants provide residents with safe and sanitary living conditions and help to stabilize neighborhoods and affordable housing in the community.
  • Economic Development – Local governments may request a maximum of $750,000.00 for gap financing to assist businesses locating or expanding in the community. Funds may be used for machinery and equipment, working capital, building construction and renovation, or improvements to public infrastructure that creates and/or retains jobs in the community.
  • Critical Assistance – Communities may apply for a maximum of $200,000.00 in funding to undertake projects that address an emergency or a particular urgency requiring immediate assistance to eliminate conditions detrimental to health, safety, and public welfare.
  • Revolving Fund – Since 1983, the Department has awarded approximately $140 million in CDAP Economic Development grants to more than 180 local units of government throughout the state to help them provide financial assistance to businesses locating or expanding within their boundaries. As financial assistance projects are repaid, the communities place the moneys in locally-administered Revolving Funds (RFs).

For more information contact:

Office of Community Development
Illinois Department of Commerce
217.785.6174
cdbg@illinois.gov