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Illinois State Community Development Block Grant Program.

Illinois uses federal CDBG funds to support eligible non-entitlement communities with infrastructure, housing rehabilitation, disaster response, and sponsored economic-development projects.

Offered byIllinois Department of Commerce and Economic Opportunityverified 2026-07-10

Overview

What it does.

The City of Chester would be the applicant. A business or property project may receive indirect gap financing only through an approved local-government project that meets federal low- and moderate-income, slum and blight, or urgent-need requirements plus DCEO rules.

Best for: Local-government projects that address public infrastructure, housing conditions, or a financing gap tied to jobs and an eligible CDBG national objective.

Eligibility

Who and what may qualify.

Eligible applicants

  • Eligible Illinois non-entitlement units of general local government

Applicants excluded by the source

  • Private businesses, property owners, and individuals as direct applicants
  • HUD entitlement communities for the State CDBG allocation

Eligible uses

  • Public infrastructure
  • Housing rehabilitation
  • Disaster response
  • Government-sponsored economic-development gap financing for eligible business location or expansion projects

Uses excluded by the source

  • Projects that fail a CDBG national objective
  • Direct unrestricted grants to businesses
  • Activities outside Illinois DCEO's current notice and guidebook

Application

How to start.

  1. Confirm Chester's current non-entitlement eligibility and the open DCEO component
  2. Develop the project with the City and document the applicable CDBG national objective
  3. Complete environmental, citizen-participation, underwriting, jobs, benefit, and grant-application requirements before committing work

Timing: DCEO lists 2026 Public Infrastructure and Housing Rehabilitation deadlines of August 27, 2026; Community Revitalization and Economic Development are listed as rolling.

Planning notes

Limits to account for.

  • Private applicants cannot apply directly
  • Every activity must meet a federal CDBG national objective
  • Public participation, environmental review, procurement, labor, benefit, and reporting rules apply

Often used as gap financing with business, lender, local, and state sources after formal duplication, underwriting, lien, and national-objective review.

Evidence

Official sources.