Community Development Grant – Medium (CDG-M)

The Community Development Grant - Medium (CDG-M) program is designed to support commercial, cultural, industrial, institutional, social service, and mixed-use projects within the City of Chicago. Grants range from $300,001 to $5 million and may cover up to 50% of total project costs, including new construction, rehabilitation, or both. Funding for these grants comes from Tax Increment Financing (TIF), the Neighborhood Opportunity Fund (NOF), and the Housing and Economic Development (HED) bond, with the specific funding source determined at the discretion of the Department of Planning and Development (DPD). Eligible applicants include private and nonprofit developers, tenants, and property owners who can apply individually or jointly during the competitive semi-annual funding rounds. Grants are disbursed on a reimbursement basis and are typically paid out either at defined construction milestones or upon project completion. In some cases, at the discretion of the DPD, the grant may be structured as a loan instead. The CDG-M grant can be used for commercial, cultural, industrial, institutional, mixed-use residential (with at least ten units and ground-floor commercial use), and social service projects. These projects must be publicly accessible, contribute to the economic vitality of the surrounding neighborhood, and meet a local need. Eligible expenses include hard construction costs, soft costs related to pre-development, such as architectural design and site preparation, and acquisition costs. However, the grant cannot be used for staffing, operational expenses, or furniture, fixtures, and equipment (FFE). Applications for the current funding round are now open and must be submitted by 11:59 PM on August 15, 2025. The grant program follows a semi-annual cycle, with application deadlines typically in February and August. Selected projects are announced within four to five months following the close of each funding round. Applicants whose projects are not selected may request feedback from the DPD and reapply in future rounds. All applicants must submit their proposals through the online platform Submittable. Those awarded funding must enter into contractual redevelopment agreements with the City, which may require City Council approval. Selected projects must comply with the City’s construction requirements, including Minority Business Enterprise (MBE) and Women Business Enterprise (WBE) contracting, local hiring policies, and prevailing wage obligations. Projects must demonstrate readiness to begin construction within six months of receiving funding and aim for completion within two years. While it is not a requirement, applicants are encouraged to work with professionals such as real estate attorneys, financial advisors, architects, and contractors to strengthen their applications. Additional information about the grant, including a list of eligible expenses, selection criteria, and program regulations, is available in the Medium Grant Program Manual and the FAQ page.