Community Development Block Grant Housing Rehabilitation Program
Can you apply?
This grant is for local governments in Illinois seeking to rehabilitate owner-occupied, single-family homes for low-to-moderate income households. Eligible activities include structural repairs, energy efficiency improvements, lead-based paint treatment, and accessibility modifications. Projects must meet state plumbing, electrical, and lead codes. Administrative costs up to $40,000 are allowed for project delivery and oversight.
The program prioritizes neighborhood revitalization alongside housing preservation. Rehabilitation can include mechanical, electrical, and structural work. Water and sewer connections are eligible if needed for code compliance. Homes serving dual residential-business purposes may qualify if improvements benefit residential occupants.
Projects must use HUD activity codes 14A (Rehabilitation), 14H (Activity Delivery), or 14HI (Rehabilitation Administration). Applicants should demonstrate low-to-moderate income benefit and community need. No cost-sharing is required.
This grant is for local governments in Illinois seeking to rehabilitate owner-occupied, single-family homes for low-to-moderate income households. Eligible activities include structural repairs, energy efficiency improvements, lead-based paint treatment, and accessibility modifications. Projects must meet state plumbing, electrical, and lead codes. Administrative costs up to $40,000 are allowed for project delivery and oversight.
The program prioritizes neighborhood revitalization alongside housing preservation. Rehabilitation can include mechanical, electrical, and structural work. Water and sewer connections are eligible if needed for code compliance. Homes serving dual residential-business purposes may qualify if improvements benefit residential occupants.
Projects must use HUD activity codes 14A (Rehabilitation), 14H (Activity Delivery), or 14HI (Rehabilitation Administration). Applicants should demonstrate low-to-moderate income benefit and community need. No cost-sharing is required.
Program description
The program targets housing projects which preserve single-family, owner-occupied housing and encourage neighborhood revitalization. The funds are available to local governments to address housing needs of eligible low-to-moderate income households. Rehabilitation codes and standards which address mechanical, structural, energy efficiency and other associated rehabilitation activities should, at a minimum, incorporate applicable State plumbing, electrical and lead based paint codes as well as any local rehabilitation codes and standards. The program emphasizes the dual goal of serving low-to-moderate income households and improving the quality of housing in communities. Activity Delivery for administrative activities up to $40,000 is eligible for
funding. Under the CDBG Housing Rehabilitation component grants may
be used to finance the rehabilitation of single-family, owner-occupied
residential buildings, including improvements to increase the energy
efficiency of the structures. All grant funds must relate to one of the
following HUD-defined activity codes: 14 A Rehab: Single-Unit Residential
to be used for the rehabilitation of owner-occupied, single-family homes.
CDBG-eligible costs include: • Labor and materials, • Replacement of
principal fixtures and components of existing structures; • Water and sewer
connections; (if needed for code compliance) • Initial homeowner warranty
premium; • Hazard insurance premium; • Flood insurance premium; •
Conservation costs for water and energy efficiency; • Garages where
health & safety issues have been identified; • Evaluating and treating
leadbased
paint; and • Removal of architectural barriers that restrict the
mobility and accessibility of elderly or severely disabled persons.
Rehabilitation to a single-family, owner-occupied residential property that
is also used as a place of business and is required to operate the business
may be considered homeowner rehabilitation (as opposed to commercial
rehabilitation) if the improvements provide general benefit to the residential
occupants of the building. 14 H Activity Delivery to be used for
administrative services necessary to the delivery/ completion of the CDBG
housing rehabilitation project. This activity is a fee of up to and not
exceeding $40,000. 14 HI Rehab: Administration (inspection) to be used
for all delivery costs (including staff, other direct costs, and service costs)
directly related to carrying out housing rehabilitation activities. Examples
include appraisal, architectural, engineering, and other professional
services; preparation of work specifications and work write-ups; loan
processing; survey, site and utility plans; application processing; and other
fees. Beneficiaries: Low-to-moderate income owners of a single-family, owner-occupied home. Federal Assistance Listing: 14.228 — Community Development Block Grants/State’s program and Non-Entitlement Grants in Hawaii. Administered by the Illinois Department of Commerce and Economic Opportunity via the Illinois GATA Catalog of State Financial Assistance (CSFA 420-75-1633).
Who can apply
Eligible applicants
Demographic focus
Details
This grant is for local governments in Illinois seeking to rehabilitate owner-occupied, single-family homes for low-to-moderate income households. Eligible activities include structural repairs, energy efficiency improvements, lead-based paint treatment, and accessibility modifications. Projects must meet state plumbing, electrical, and lead codes. Administrative costs up to $40,000 are allowed for project delivery and oversight.
The program prioritizes neighborhood revitalization alongside housing preservation. Rehabilitation can include mechanical, electrical, and structural work. Water and sewer connections are eligible if needed for code compliance. Homes serving dual residential-business purposes may qualify if improvements benefit residential occupants.
Projects must use HUD activity codes 14A (Rehabilitation), 14H (Activity Delivery), or 14HI (Rehabilitation Administration). Applicants should demonstrate low-to-moderate income benefit and community need. No cost-sharing is required.
How to apply
Application links
Required documents
- CDBG application form (via Illinois GATA system)
- Detailed project scope and work specifications
- Cost estimates and budget narrative
- Lead-based paint assessment (if applicable)
- Documentation of low-to-moderate income beneficiaries
- Local government resolution of support
- Engineer or architect review and specifications
Program contact
- 👤 Wendy Bell
- 📧 ceo.ocd@illinois.gov
Funding track record
Recent awards under CFDA 14.228 from the last 3 years — real organizations that won funding through this same program.
Top 10 Largest Recent Awards
-
$1,932,347,000
-
$1,639,381,000
-
$1,428,120,000
-
$1,107,881,000
-
$925,394,000
-
$910,624,000
-
$831,502,000
-
$813,783,000
-
$709,324,000
-
$585,704,000
Top States by Funding
- FL 16 awards $6,650.5M
- PR 3 awards $2,282.6M
- NC 5 awards $1,791.9M
- HI 1 awards $1,639.4M
- IL 8 awards $973.9M
Source: USAspending.gov — federal spending transparency. Data covers last 3 years.
Funding history
Annual funding for this program — Illinois state appropriations. How funding has trended year over year.
| 2019 | $6,500,000 | |
| 2021 | $7,000,000 | |
| 2022 | $7,000,000 | |
| 2023 | $7,000,000 | |
| 2024 | $7,000,000 | |
| 2025 | $7,000,000 | |
| 2026 | $8,000,000 |
FAQ
Who can apply for this grant?
Local governments in Illinois managing housing rehabilitation projects. State departments and nonprofits cannot apply directly; work with your local government.
What is the award range?
Grants typically range from $300,000 to $800,000. Your project scope should align with this funding level.
What rehabilitation activities are eligible?
Structural repairs, energy efficiency upgrades, lead abatement, accessibility modifications, and utility connections for code compliance. Labor, materials, and professional services (appraisal, engineering) are covered.
Can we use funds for administrative costs?
Yes, up to $40,000 for activity delivery and up to additional costs for inspection and professional services directly tied to project delivery.
Is cost-sharing required?
No, this grant does not require local cost-sharing or matching funds from applicants.
💡 Tips for applicants
- Focus applications on low-to-moderate income households; document income levels and community benefit clearly.
- Address lead-based paint evaluation and remediation if properties were built before 1978; federal rules are strict.
- Ensure all proposed work complies with Illinois state codes plus local rehabilitation standards; non-compliance causes delays.
- Include detailed work specifications and cost estimates prepared by licensed professionals (architect or engineer).
- Coordinate with your local community development department early; CDBG grants require strong local government backing.
⚠️ Common mistakes
Underestimating scope of lead-based paint assessment or remediation; federal rules require full compliance. Proposing rehabilitation that fails to serve low-to-moderate income households or lacks clear community revitalization benefit. Exceeding the $40,000 administrative fee cap or mixing ineligible commercial work into residential projects.
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