Community Development Block Grant Public Infrastructure Program

Application Period: 05/04/2026 - 08/27/2026 : 5:00 PM

Technical Assistance: Offered : Yes; Mandatory : Yes; Date : 05/07/2026 : 1:00 PM; Registration link : https://illinois.webex.com/illinois/j.php?MTID=m0c17bfdc7ced9e97206c4c6fae00a134

Apply here: https://dceo.illinois.gov/aboutdceo/grantopportunities/1632-4274.html

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Application Documents

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State of Illinois Uniform Notice of Funding Opportunity (NOFO)
Summary Information
Awarding Agency Name Commerce And Econ Opp
Agency Contact Wendy Bell (ceo.ocd@illinois.gov)
Announcement Type Initial
Type of Assistance Instrument Grant
Funding Opportunity Number FY26-1
Funding Opportunity Title Community Development Block Grant Public Infrastructure Program
CSFA Number 420-75-1632
CSFA Popular Name CDBG Public Infrastructure
Anticipated Number of Awards 17
Estimated Total Program Funding $25,000,000
Award Range $300000 - $1500000
Source of Funding Federal
Cost Sharing or Matching No
Requirements
Indirect Costs Allowed No
Restrictions on Indirect Costs Yes : The CFDA Number for these awards is 14.228, which exempts
the grants from the indirect cost requirements of 2 C.F.R. Part 200,
pursuant to 2 C.F.R. § 200.l0l(d){l). Alternatively, we allow our
grantees to charge Activity Delivery up to a set amount. Activity
Delivery Costs are eligible as part of the cost of carrying out CDBG
activities authorized under 24 CFR 570.201-570.204. HUD Notice
CPD-16- 04 also covers Indirect Costs and Activity Delivery, and notes
that “activity delivery costs are those included in the costs of carrying
out an activity. This term typically refers to costs that may include both
direct and indirect components and, thus, apply more broadly than
indirect costs. Deviation has been approved.
Posted Date 05/04/2026
Application Date Range 05/04/2026 - 08/27/2026 : 5:00 PM
Grant Application Link Please select the entire address below and paste it into the browser...
https://dceo.illinois.gov/aboutdceo/grantopportunities/1632-4274.html
Technical Assistance Session Offered : Yes
Mandatory : Yes
Date : 05/07/2026 : 1:00 PM
Registration link :
https://illinois.webex.com/illinois/j.php?MTID=m0c17bfdc7ced9e97206
c4c6fae00a134

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Agency-specific Content for the Notice of Funding Opportunity
Community Development Block Grant Public Infrastructure
NOFO ID: 1632-4274
For information about grants please visit:
https://dceo.illinois.gov/dceo-grants.html
A. Program Description
Notice of Funding Opportunity Intent
The Illinois Department of Commerce and Economic Opportunity (the “Department” or “DCEO”) is issuing
this Notice of Funding Opportunity (“NOFO”) to solicit applications for the 2026 Public Infrastructure Grant
opportunity funded by the Community Development Block Grant (CDBG) through the U.S. Department of
Housing and Urban Development.
Program Description
The purpose of grants relative to the Public Infrastructure (PI) Notice of Funding Opportunity is to
fund water and sanitary systems and storm sewer construction projects that alleviate public
health, safety, and public welfare and help communities with substantial low to moderate-income
populations. Project areas must be primarily residential1 in character. Projects that are designed
to benefit a commercial/business area are not eligible.
All grant funded projects must meet the following requirements:
1. Low-to-Moderate Income Benefit Requirements: Projects must benefit at least 51.0
percent low-to-moderate income persons. Those projects benefiting less than 51.0 percent
LMI persons will not be considered for funding.
2. Documentation of Threat to Health and Safety:
Projects must address present conditions that affect public health and safety.
3. Water and Sewer Rates:
Water or sewer rates must currently meet or exceed 1 percent of the Median Household Income
(MHI) per 5,000 gallons. This requirement does not apply to storm sewer or drainage projects.
Projects determined to not meet those requires will automatically be designated as DO NOT FUND and
not reviewed further.
All grant funded projects must relate to one of the following HUD-defined activity codes:
03I Flood and Drainage Improvements 24 CFR 570.201(c) or 42 USC 5305(a)(2) Used for the
acquisition, construction, or rehabilitation of flood drainage facilities, such as retention ponds or
catch basins. Do not use 03I for construction/rehabilitation/separation of storm sewers,
street drains, or storm drains: use 03Js for those.
1 The definition of primarily residential, provided by a federal source, is an area where the majority can be considered to contain
residential real property. Under 12 CFR 1266.1, residential real property can be any of the following: one-to-four family property;
multifamily property; real property to be improved by the construction of dwelling units; real property in the process of being
improved by the construction of dwelling units.

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NOFO ID: 1632-4274
03Jw Water Improvements 24 CFR 570.201(c) or 42 USC 5305(a)(2) Used for the installation or
replacement or relining of water lines and fire hydrants (fire hydrants are only eligible when part of
a larger project). Costs of street repairs (usually repaving) or sewer re-location made necessary
by water improvement activities are eligible.
03Js Sewer Improvements 24 CFR 570.201(c) or 42 USC 5305(a)(2) Used for the installation,
or replacement, re-lining or separation of sanitary sewers and storm sewers. Costs of street
repairs (usually repaving) or water main re-location made necessary by sewer improvement
activities are eligible.
Activities must be germane, connected in purpose, address the same threat to health and safety, and
have the same LMI benefit (project outcome). The Department will not accept applications for projects
that have both a community-wide and a project-area benefit (e.g., water tower & water main replacement
in same grant application) or that have multiple activity codes (e.g., water improvements and sewer
improvements) in the same application.
For infrastructure projects involving alterations of streets, roads or highways which have pedestrian
walkways, applicants must factor in the costs of adding and/or replacing curb ramps at all intersections
having curbs or other barriers to entry from a street level or pedestrian walkway.
Funds may be used to finance costs associated with the connection of residential structures to public
facility improvements. Residential structures which are "occupied" by eligible low-to-moderate income
persons must be connected. A Connection is a privately-owned and maintained line on privately-owned
property between a service lead/connection and a structure. The limit that CDBG will pay for each
individual water or sewer LMI household connection is $6,500 per household. If the Connection
cost exceeds $6,500 per household, the difference must be paid by other sources, but cannot be
assessed against the low-to-moderate income occupant. Applications for the sole or primary purpose
of connecting low-to-moderate income households to public facility improvements will not be
accepted.
The following activities are specifically identified as ineligible.
1. Construction of buildings, or portions thereof, used predominantly for the general conduct of
government (e.g., city halls, courthouses, jails, police stations).
2. General government expenses. Costs of operating and maintaining public infrastructure and
services (e.g., mowing parks, replacing street light bulbs).
3. Servicing or refinancing of existing debt.
4. Activities that do not address the threat to health & safety, including but not limited to:
a. projects designed for the sole purpose of replacing water meters;
b. projects designed for the sole purpose of addressing water loss;
c. portable generators;
d. permanently-affixed generators that are not part of a larger project;
e. telemetry systems and similar equipment that are not part of a larger project.
5. Projects needed as a result of deferred maintenance.
6. All Engineering costs associated with the planning, design or management of construction
activities.
7. The following items when included as part of the Engineer’s Cost Estimate:
a. Televising
b. Camera, Camera Work and/or Camering
c. Cleaning, Pre-Cleaning or Testing
d. Any word or phrase containing “Engineering”
e. Construction Management and Oversight
f. Construction Observation
g. Contingency or Contingencies
h. Miscellaneous, Misc., Miscellaneous Costs, and/or any phrase/word containing “Misc”
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NOFO ID: 1632-4274
i. Other, Other Costs, Other Expenses and/or Other Construction (that is not defined on
the Estimate)
j. Interest or Bond Costs
k. Inflation
l. Legal
m. Any other item or phrase not related to actual construction activities
n. Any construction item or phrase not related to construction activities spelled out in the
Project Summary and Threat to Health/Safety Documentation (e.g., proposed sewer-
relining project area is in SW side of community, but engineer’s estimate includes
sewer lift station rehab on east side of town, with no other documentation and/or
explanation of how that relates to the SW side project)
The grant ceiling has been established at $1,500,000 per award. The Department has established a
minimum grant level of $300,000. Applications for less than the minimum grant will not be accepted.
Community Development Block Grants are federally funded and must comply with extensive federal
regulations including procurement, environmental, Davis-Bacon labor standards and others. Failure to
comply could result in grant funds being repaid by the Grantee/Community. It is important that Grantees
seek out an experienced Grant Administrator to manage all the details of the grant, provide oversight and
coordination of the project. This management process is called “Activity Delivery”.
All grant administrators (is assumed the administrator is writing the grant) must attend the 2026
Application Workshop to be held virtually Thursday, May 7th at 1:00 pm.
All Grantees must use an experienced Environmental specialist, who has completed at least one
Illinois CDBG Environmental Record Review since January 1, 2024 OR has successfully
completed DCEO Environmental Training conducted on July 18, 2018.
The Administrating Entity must be named in the application. Contracts for the purpose of securing
services for activity delivery and/or rehabilitation administration (Inspector) must be competitively
procured under 2 CFR 200 prior to application unless the contract is with an Intergovernmental
Agreement Agency or an Inter-Entity Agreement Agency. The grantee’s procurement process must be
documented and kept with the grant files. All contracts for provision of Activity Delivery and/or
Rehabilitation Administration (Inspector) must be provided to DCEO with the application,
regardless of whether Activity Delivery is paid from grant funds or local government funds. In
addition, if Activity Delivery is procured and paid by grant funds, a completed Exempt-CENST-ER-
Format form must be included with the application.
The maximum amount of CDBG funds that may be allowed for reasonable activity delivery costs is
$40,000. Activity delivery costs above that amount must be contracted separately and not included in the
application. If paid with CDBG funds, activity delivery costs must be included in the total grant award.
Activity Delivery: Includes such costs as (but are not limited to) salaries, travel costs, services
performed under third party contracts, including legal and audit services, environmental record review
preparation, additional fidelity bonding costs or other services required for the delivery of grant activities.
For Housing Rehabilitation, Activity Delivery is to be used for administrative services necessary to the
delivery/completion of the CDBG housing rehabilitation project.
Activity delivery costs may include the estimated cost of an audit to be conducted in accordance with the
Comptroller General's Governmental Auditing Standards, and 2 CFR 200.501, if applicable. However, be
advised that CDBG funds can only be used to pay for its portion of the costs of an audit when a "single
audit" is required. If a grantee expends less than $750,000 of federal funds in one fiscal year, a single
audit is not required. The grantee may still have to conduct an annual audit as required by State statute,
but CDBG funds may not be used to pay for any portion of the audit costs. For more information on audit
standards, please see: https://www.ilga.gov/commission/jcar/admincode/044/044070000A00900R.html
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NOFO ID: 1632-4274
All Activity Delivery costs must be substantiated with complete invoices utilizing the template provided by
the Department. Invoices without sufficient detail will not be paid.
A public hearing must be held prior to submission of an application and prior to passage of a local
council resolution of support by the local governing body.
Public Participation
• All applicants must provide for public participation. All citizens must be given reasonable access
to the community’s application and reasonable time to review the application prior to the public
hearing.
Public Notice
• A Notice of Public Hearing must be published at least once in a newspaper of general circulation
at least seven calendar days (excluding the date of publication and excluding the date of the
hearing) prior to the public hearing.
• The Notice of Public Hearing must include the address of where project information is available
for viewing.
• All project information must be available for viewing on the first business day (not Saturday,
Sunday, or a holiday) after date of publication at an easily accessible location within the
community applying for the grant.
• The Public Comment Period must coincide with the time period between Notice and Hearing;
concluding after the Hearing has been completed. The address for submission of written
comments must be included in the Public Notice.
Conducting the Public Hearing
• Public Hearings must be facilitated by the applicant’s governing body chief elected official or
authorized official and certified by the chief elected official, authorized official or clerk.
• Efforts must be made to assure reasonable access to the public hearing by persons with
disabilities; as well as be conducted in a manner to meet the needs of non-English speaking
residents where a significant number of non-English speaking residents can reasonably be
expected to participate.
• Those attending the public hearing must be informed of where and how to access the applicant's
CDBG records.
• The Hearing must allow for public comments on the application and project.
• A sign-in sheet must be provided to document attendance. It is suggested that each person
attending the public hearing provide his address and identify his role of participation (e.g., citizen,
elected or appointed official, municipal employee, contractor, grant writer or administrator,
business owner, etc.).
• The public hearing must cover:
1. The amount of funds available;
2. The project activities that will be undertaken with CDBG funding, including amount;
3. The project activities that will be undertaken with additional project funding, including
amount;
4. The estimated amount proposed for activities that will benefit LMI individuals;
5. Plans for minimizing displacement as a result of the CDBG grant-assisted activities and
to assist persons actually displaced, if applicable;
6. A detailed, prioritized list of community development and housing needs; and
7. A narrative discussion of the scope of the project including the proposed improvements,
costs, benefit area, impact on community finances, etc.
• The minutes of the public hearing must be certified by the chief elected official or other authorized
local officials, such as county clerk, city clerk, etc.
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NOFO ID: 1632-4274
• Following the Public Hearing, a Resolution of Support from the local governing body must be
passed that authorizes the local government to apply for funds. The date of the Resolution must
be on or after the date of the Public Hearing.
If the publication guideline or public hearing requirements are not met, the application will not be
reviewed further nor considered for funding.
Program History
The Community Development Block Grant (CDBG) Program was established by the federal Housing and
Community Development Act of 1974 (Act). Administered nationally by the U.S. Department of Housing
and Urban Development (HUD), the Act combined eight existing categorical programs into a single block
grant program. In 1981, Congress amended the Act to allow states to directly administer the block grant
for small cities. At the designation of the Governor, the Department of Commerce and Economic
Opportunity (Department) assumed operation of the State of Illinois CDBG – Small Cities Program in the
same year. Through this program, funds are available to assist Illinois communities to meet their greatest
economic and community development needs, with an emphasis on helping persons of low-to-moderate
income.
Performance Goals and Measures
To ensure that the State-administered program meets the intent of the federal Housing and Community
Development Act of 1974, as amended, Congress has required that state-administered programs meet at
least one of the following three national objectives:
• Benefiting low-to-moderate income (LMI) persons; or
• Aiding in the prevention or elimination of slums and blight; or
• Meeting other community development needs that pose a serious and immediate threat to the
health and welfare of the community.
To complement these federally-mandated objectives, the State has established the following specific
objectives for the CDBG Program:
• Strengthen community economic development through the creation of jobs, stimulation of private
investment and strengthening the tax base;
• Improve public infrastructure and eliminate conditions which are detrimental to health, safety and
public welfare; and
• Conserve and expand the State's housing stock in order to provide a decent home and a suitable
living environment for persons of low-to-moderate income and the developmentally disabled.
Other Information
All application information and forms for Community Development Block Grant funded programs can be
found in the 2026 CDBG Guidebook, available on the website at:
https://dceo.illinois.gov/communitydevelopment.html
The sections relevant to the Public Infrastructure Program can also be found as Appendix A to this
NOFO.
B. Funding Information
This grant program is utilizing federal pass-through appropriated by by the General Assembly.
Community Development Block Grant funds are authorized by Congress on an annual basis and
allocated by the U.S. Department of Housing and Urban Development (HUD) to States and Entitlement
programs Total amount of funding expected to be awarded through this NOFO is $25,000,000. Awards
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NOFO ID: 1632-4274
will range from $300,000 to $1,500,000. The Department expects to make 17 awards through this
NOFO.
The period of performance is expected to be approximately 90 days after issuance of a Notice of State
Award Finalist (NOSAF). A NOSAF outlines the special grant conditions, including the federal
environmental process, which must be completed prior to grant agreement. The period of performance is
expected to be two years from the grant execution date.
Allowed costs relate to construction and contractual line items. This is a reimbursement grant. All
expenses must be substantiated with invoices, cancelled checks and bank statements. See Program
Description for details on specific allowable and unallowable costs.
Agreement(s) and budget(s) with subrecipients and subcontractors must be on file with DCEO.
Agreements can be submitted to DCEO when available. Subcontractors and subrecipients are subject to
all applicable provisions of the Agreement(s) executed between DCEO and the grantee. The successful
applicant shall retain sole responsibility for the performance of its subrecipient(s) and/or subcontractor(s).
The release of this NOFO does not obligate the Department to make an award.
C. Eligibility Information
An entity must be registered in the Grant Accountability and Transparency Act (GATA) Grantee Portal,
https://grants.illinois.gov/portal/, at the time of grant application. The portal will verify that the entity:
• Has a valid FEIN number (https://www.irs.gov/businesses/small-businesses-self-
employed/get-an-employer-identification-number)
• Has a current SAM.gov registration (https://sam.gov). SAM.gov registrations must be marked as
“public” to allow the GATA Grantee Portal to expedite the review of the federal information;
• Has a valid UEI number (https://sam.gov)
• Is not on the Federal Excluded Parties List (verified at https://sam.gov)
• Is in Good Standing with the Illinois Secretary of State, as applicable
(https://www.ilsos.gov/departments/business_services/corp.html)
• Is not on the Illinois Stop Payment list (verified once entity is registered in GATA Grantee Portal);
and
• Is not on the Department of Healthcare and Family Services Provider Sanctions list
(https://www.illinois.gov/hfs/oig/Pages/SanctionsList.aspx)
Entities on the Illinois Stop Payment List and/or the Federal Excluded Parties List at time of application
submission will not be considered for an award.
An automated email notification to the entity alerts them of “qualified” status or informs how to remediate
a negative verification (e.g., not in good standing with the Secretary of State). A federal Debarred and
Suspended status cannot be remediated.
At this time, federal memo M-21-20 allows entities to apply for grant awards without a valid UEI number.
The UEI number must be obtained prior to grant execution. The State of Illinois has adopted this
guidance for the issuance of state awards also.
Pursuant to the policy of the Illinois Office of the Comptroller, to receive grant funds from the State of
Illinois, a grantee must be considered a regarded entity by the IRS for federal income tax purposes.
Disregarded entities will not be eligible to receive grant funds.
1. Eligible Applicants include:
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NOFO ID: 1632-4274
Only units of general local government (i.e., cities, villages, townships and counties) may apply
for funding. County and township applicants should not include areas that are
incorporated within a city or village. Incorporated areas must apply on their own behalf,
regardless of whether a water district or sanitary district is involved. Only units of local
government recognized by the Illinois Constitution and able to support economic development
activities on a sufficient scale are eligible to apply for Economic Development grant funding. This
includes cities, villages, and counties.
Local governments are limited in the number of applications which may be submitted and
awarded in a program year. Units of local government may submit one application per
competitive component per year. Communities that received a competitive grant in the
previous year are not eligible to apply the following year. Applications that further a project
in progress, whether funded with or without CDBG funds, will not be accepted. Local
governments that have forfeited an award or had their grant de-obligated for any reason will not
be eligible to apply for three program years.
All applicants must be registered in the Grant Accountability and Transparency Act system
(GATA) and be prequalified on the GATA Portal at https://gata.illinois.gov on the application due
date. Applications submitted by communities who are not prequalified will not be considered for
review. For more information on GATA Prequalification and other Grantee resources, visit
https://dceo.illinois.gov/aboutdceo/grantopportunities/learning-library.html.
Municipalities must not be a HUD direct Entitlement community or be located in an urban county
that receives "entitlement" funds. Communities receiving an annual allocation directly from HUD
on an entitlement (formula) basis are not eligible to apply for the State’s CDBG funding. In 2023,
Illinois has 33 metropolitan cities and eight urban coutnies names as Entitlements. This includes
the Counties of Cook, DuPage, Kane, Lake, Madison, McHenry, St. Clair and Will; and the Cities
or Villages of Arlington Heights, Aurora, Berwyn, Bloomington, Champaign, Chicago, Cicero,
Danville, Decatur, DeKalb, DesPlaines, Elgin, Evanston, Hoffman Estates, Joliet, Kankakee,
Moline, Mount Prospect, Naperville, Normal, Oak Lawn, Oak Park, Palatine, Pekin, Peoria,
Rantoul, Rockford, Rock Island, Schaumburg, Skokie, Springfield, Urbana, Waukegan.
The Department complies with all applicable provisions of state and federal laws and regulations
pertaining to nondiscrimination, sexual harassment and equal employment opportunity including,
but not limited to: The Illinois Human Rights Act (775 ILCS 5/1-101 et seq.), The Public Works
Employment Discrimination Act (775 ILCS 10/1 et seq.), The United States Civil Rights Act of
1964 (as amended) (42 USC 2000a-and 2000H-6), Section 504 of the Rehabilitation Act of 1973
(29 USC 794), The Americans with Disabilities Act of 1990 (42 USC 12101 et seq.), and The Age
Discrimination Act (42 USC 6101 et seq.).
2. Cost Sharing or Matching.
Cost sharing is not required, however up to 10 points may be added to the score when
communities contribute other funding toward the completion of the proposed project.
Applications must provide written evidence that necessary, additional funding for the project is
firmly committed. If proper documentation is not provided, points will not be assessed. Unless
otherwise directed by DCEO staff, if other funds are committed and the grant awarded, additional
funding must be spent on a 1:1 ratio with grant funds until either the grant funding, or match is
exhausted.
Applicants are strongly cautioned to investigate all funding sources and make a firm
decision as to the source prior to submitting a CDBG application. Documentation necessary
to provide evidence of additional funding includes:
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NOFO ID: 1632-4274
• American Rescue Plan Act (ARPA) funds can be utilized by local governments for
improvements in water and sewer infrastructure. The applicant’s council or board
resolution committing a specific dollar amount of ARPA funds to the project must be
included.
• A current firm commitment letter from a FINANCIAL INSTITUTION must include: language
which indicates that the loan will be approved and that the institution will lend subject to
certain conditions; the specific dollar amount of the loan; the specific term of the loan (not
to exceed 10 years, and no balloon or adjustable rate language); and the projected
interest rate of the loan. The date of the commitment letter cannot be more than 12
months prior to application date.
• For projects which intend to secure funding from the ILLINOIS ENVIRONMENTAL PROTECTION
AGENCY (IEPA), the CDBG application must include a copy of and be listed on the IEPA
Intended Funding List effective July 1st of the most recent year OR include a copy of an
IEPA Letter of Commitment of funding. NOTE: IEPA must be included in the CDBG
Public Infrastructure grant application if it is to be used for construction costs of
the project. If IEPA funding will be used for line items outside of construction
costs, it must be secured prior to application and indicated in the Project
Readiness Summary. We will not hold an awarded grant for additional IEPA
funding.
• For projects which intend to secure bonds through the ILLINOIS FINANCE AUTHORITY (IFA),
a copy of the Preliminary Resolution issued by IFA to indicate approval of the
community’s application for bond funds must be submitted.
• A firm commitment of funding from the UNITED STATES DEPARTMENT OF AGRICULTURE RURAL
DEVELOPMENT (RD) must include all pages of an approved Form RD 1940-1, “Request for
Obligation of Funds.” Loan and grant funds are available with loans up to 38 years with
interest rates generally 5 percent or lower.
• Units of Local Government proposing to use local sources (cash-on-hand, bonds, in-kind
labor, or on behalf of utilities), must submit the following documentation, per source:
• LOCAL CASH ON HAND – The applicant’s council or board resolution that committed a
specific dollar amount to the project, which identifies where the monies will be paid
or received from, must be included.
• ISSUE REVENUE OR GENERAL OBLIGATION BONDS – The applicant’s council or board
resolution approving the intent to issue bonds and specify a dollar amount.
• IN-KIND LABOR - the application must include 1) a “schedule” which details the
activities to be completed by its employees, their titles, qualifications, hourly wages,
and the projected number of hours needed to complete the activity to calculate the
value of the in-kind labor; and 2) the applicant’s Resolution Committing In-Kind
Labor identifying the activities and value of the labor.
• ON BEHALF OF UTILITIES - The on behalf of utility’s council or board resolution
committing a specific dollar amount to the project, which identifies where the monies
will be paid or received from, must be included.
• For Applicants identifying IL CAPITAL PROJECTS as the fund source, an internal review
will be conducted by the Department to verify that the project is fully-approved;
including an executed Grant Agreement; all conditions have been met; final
Business Enterprise Program clearance has been obtained (if applicable); and that
the initial sanctioned-percentage of funds has been disbursed.
3. Indirect Cost Rate.
This grant will not compensate for indirect costs.
4. Freedom of Information Act/Confidential Information.
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NOFO ID: 1632-4274
Applications and accompanying materials are subject to disclosure in response to requests
received under provisions of the Freedom of Information Act (5 ILCS 140/1 et seq.). Information
that could be proprietary, privileged, or confidential commercial or financial information should be
clearly identified as such in the application materials. The Department will maintain the
confidentiality of that information only to the extent permitted by law.
5. Other, if applicable.
The following requirements and disclaimers apply to all applications submitted for consideration
under the CDBG Program.
1. Costs previously incurred (such as design) as well as costs incurred in preparation of
applications and local income surveys are not reimbursable under this grant program.
2. The Department reserves the right to reject any or all applications received and/or
negotiate or cancel in part or in entirety grants resulting from application awards if it is in
the Department’s best interest to do so.
3. The Department reserves the right to withdraw a commitment for CDBG funds
a. when special grant conditions have not been satisfied within 90 days after the
date of the Notice of State Award Finalist,
b. when the Federal wage rate request has not been received within 6 months of
Grant Execution for projects requiring Federal labor standards
c. when the Notice of Contract Award and initial Davis-Bacon Federal labor
standards documentation ha have not been received within 9 months of Grant
Execution,
d. or at the discretion of the Department if it is determined the project will not
progress.
4. The Department reserves the right to establish the amount of grant funds awarded, raise
the individual grant ceilings, and to shift funds from one CDBG component funding area
to another. The Department further reserves the right to award funds to the next highest
rated applicant(s) for any component should funds become available due to de-
obligations, etc.
5. The Department reserves the right to deny funding when submitted applications involve
eligible units of government with serious unresolved monitoring or audit findings related
to performance. Additionally,
a. An application will be considered “Do Not Fund” if at the time of application, the
applicant has an overdue audit.
b. Funding will be withdrawn for any awardee that has not completed required
audits and has been FEIN locked subsequent to the award but prior to grant
agreement execution.
c. Funding will be withdrawn for any awardee that has not completed required
audits and has been FEIN locked for 6 months or more after grant agreement
execution.
6. On an annual basis, the Department will re-evaluate the timely distribution of funds under
all program components, as well as the availability of unspent and recaptured funds.
Unspent and recaptured funds will be awarded to fund additional CDBG-eligible projects.
Depending upon available funds, a Back-up Funding round may be implemented later in
the program year.
7. The Department reserves the right to not fund applications that address problems which
obviously are a result of deferred maintenance.
8. The Department reserves the right to consider an outside technical review by an
appropriate agency or agencies. The Illinois Environmental Protection Agency, the
Illinois Department of Public Health, and/or USDA Rural Development may be asked to
review public infrastructure projects involving water or sewer activities.
9. Any additional non-CDBG resources must be firmly committed and included in the
application. Changes to the source of additional funds after the application will not be
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NOFO ID: 1632-4274
accepted. It must also be evident in the application that both CDBG and non-CDBG
funds will address the same need.
10. Proposed projects (including the fund source, cost estimates, benefit, urgency, project
area, and/or construction activities) supplied in the grant application submitted for funding
must not be changed or modified prior to grant award or at the time the project is bid. If
extenuating circumstances exist, the Grantee may submit a modification request after the
receipt of its executed Grant Agreement.
11. A grant agreement will be issued for a contract period of twenty-four months for Public
Infrastructure, Housing Rehabilitation and Community Revitalization grants. All projects
must be operational at the end of the twenty-four-month grant term. No more than one
twelve-month extension may be considered.
12. Requests for Modifications must be presented to the Department prior to any changes
being made to the project area, beneficiaries, cost estimates, or funded activities. All
modifications must include only original and environmentally-cleared project location(s).
Requests for activities outside the original project location(s) will not be considered.
Modifications that will decrease the benefit to low-to-moderate income persons will not be
considered. Modifications to decrease or increase the scope of work due to greater than
or less than estimated costs will not be considered.
13. The use of in-kind services as additional funding is limited. Applicants must identify the
specific tasks/services that will be performed or provided. Each task/service must be
quantified by outlining the number of personnel assigned to the task and current payroll
status; number of hours; and the hourly rate. Additionally, the qualifications of each
individual to perform the assigned task/service (e.g., construction inspection) must be
provided. If in-kind services are being utilized, a local council resolution must be included
in the application.
14. Local governments may not assess any fees against property "occupied" by eligible low-
to-moderate income persons. The most common type of assessment is a connection
fee, which is a one-time charge made as a condition of access to an improvement --
normally a sanitary sewage collection or water distribution system.
15. With the exception of the Exempt-CENST-ER-Format form, and only if CDBG funded
Activity Delivery and/or Rehabilitation Administration is budgeted, no environmental
review activities can take place until the applicant has received the Notice of State
Award Finalist. Once this Notice is received, only then may the grantee initiate required
environmental clearance requests with the four State environmental clearance agencies and
federal environmental sources, in accordance with Federal NEPA requirements and State
law. DO NOT reuse State environmental clearance letters previously obtained for another
funding source. In certain circumstances, the CDBG Community Revitalization Program
Manager may allow a community to begin the Environmental review early only for Economic
Development projects.
16. In accordance with the Interagency Wetland Policy Act of 1989, an applicant whose
proposed project site is located on or within 250 feet of a wetland site listed on the
National Wetlands Inventory will be required to comply with the requirements of the Act.
This includes: developing a plan to minimize adverse impacts on wetlands, or providing
written evidence that the proposed project will not have an adverse impact on a wetland.
Project must also comply with Federal Wetlands Protection regulations at 24-CFR
58.5(b)(2) and Executive Order 11990, which may require preparation of an Eight-Step
Wetlands Review.
17. A FEMA issued Floodplain Map must be included in the application. You can obtain this
map by calling FEMA at 1(800) 358-9616 or by using their website:
https://msc.fema.gov. Exact project location(s) must be clearly drawn on the FEMA map
prior to submission. The most current version available on https://msc.fema.gov must be
used.
18. CDBG grant funds may not be used for any activity in an area delineated as a special
flood hazard area in FEMA's most current flood advisory maps unless it also ensures
that the action is designed or modified to minimize harm to or within the floodplain in
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accordance with Executive Order 11988, 24 CFR 55, and (eff. 6/24/24) HUD Federal
Flood Risk Management Standard "(FFRMS). In accordance with 24 CFR 55, CDBG
grant funds must not be committed in a FEMA-designated floodway, unless the project
is a functionally dependent use of the floodway, as approved by the Department ahead
of time, Under HUD FFRMS, CDBG assistance committed for any Critical Action (e.g.,
for PI, water or sewer plant, or water tower) in a FFRMS flood plain must be mitigated
through elevation.
Communities receiving an annual allocation directly from HUD on an entitlement (formula) basis
are not eligible to apply for the State’s CDBG funding per U.S. Department of Housing and Urban
Development regulations.
Applicants may submit one application per competitive component per year. Communities that
received a competitive grant in the previous year are not eligible to apply the following year.
application for this opportunity.
D. Application and Submission Information
1. Address to Request Application Package.
Grant application forms are available at the web link provided in the “Grant Application Link” field
of this announcement or by contacting the Program Manager:
Office of Community Development
Illinois Department of Commerce & Economic Opportunity
1011 South Second Street
Springfield, IL 62704
Tele: 217-558-4222
Email: ceo.ocd@illinois.gov
2. Content and Form of Application Submission.
A standard application package must be submitted to and reviewed by DCEO. Each package
must contain the following items:
Uniform Grant Application in fillable PDF format.
☐
 Signature page must be signed by the authorized signatory before submission
Can be printed, signed, and scanned
o
Can be signed digitally
o
Uniform Budget utilizing the template provided by DCEO for this project.
☐
 The entire Excel document with all the tabs included, even if the tabs are not
relevant to the grant opportunity, must be submitted.
 Do not send a restricted version of the Uniform Budget.
 Certification page must be signed by the authorized signatory before submission
Can be printed, signed, and scanned
o
Can be signed digitally
o
Conflict of Interest Disclosure.
☐
 Conflict of Interest Disclosure must be signed by the authorized signatory before
submission
Can be printed, signed, and scanned
o
Can be signed digitally
o
Mandatory Disclosure.
☐
 Mandatory Disclosure must be signed by the authorized signatory before
submission
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NOFO ID: 1632-4274
Can be printed, signed, and scanned
o
Can be signed digitally
o
This Notice of Funding Opportunity also requires the submission of the following other programmatic
specific items as part of a program application.
NARRATIVE RESPONSES
All applications must include the following narrative responses as well as the requested
documentation. See the Application Checklist contained in Appendix A for placement in the
application.
1. Letter of Transmittal – must be on applicant’s official letterhead, dated, include the
amount requested, a brief project description, the LMI benefit, and additional funding
amount and source; and certify that the application meets the eligibility thresholds of
Benefit to Low-to-Moderate Income Persons and Threat to Health and Safety; and, if not
for a community-wide benefit, the project will benefit a service-area that is primarily
residential. “On behalf of” applications for a Public Utility, System, Cooperative or District,
must indicated the application is ”on behalf of” and for whom in the Transmittal Letter.
2. Project Summary – should consist of a narrative covering all key points of the proposed
project to be funded, in part or in full, with CDBG grant funds. This summary should
include the following:
• Describe the project – What is being proposed (i.e. what specific construction
activites and at what locations will they occur) and why? What threat to health &
safety is being addressed? How long has the problem existed?
• Describe the project area, including legal boundaries. Who is being affected and
how? Indicate whether the project will have a community-wide or service-area
benefit. Provide a detailed explanation of how this specific project area was
determined.
• The project structure (i.e., will the residents be direct customers of the water district
or is an agreement needed, what is the applicant’s source of water, who will treat
wastewater, etc.).
• If an “on behalf of” application, indicate the Public Utility, System, Cooperative or
District that the application is on behalf of.
• The degree to which present conditions affect public health and safety.
• The severity and immediacy of the problem.
• Whether the project is necessary to comply with state or federal regulations.
• Justification of the local government's need for CDBG assistance in relation to its
overall financial capability, including discussion of outstanding indebtedness.
3. Project Readiness Summary – Each application must demonstrate that the proposed
project is appropriate and achievable and that all actions have been completed to ensure
timely implementation of the project. Each item below MUST be SPECIFICALLY
addressed.
• IEPA construction permit(s) - Indicate Status of permit. If not applicable, an
explanation is required;
• Right-of-Way - The community must have full control of the right-of-way either by
having 100 percent of the necessary private property easements signed or a right-
of-way docket. If eminent domain is required to execute a Private Property
Easement as previously identified, proof of court approval of the eminent domain
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must be included in the application. Address the need for and current status of
easements.
• Water/wastewater treatment agreement – If the applicant purchases wather then an
agreement should be in place and a copy included in the application. If not
applicable, an explanation is required;
• Property Ownership/Option To Purchase - Identify the ownership of any property
needed to complete the project (including option to purchase); and verify that the
project will be shovel-ready; Applicant must own the property or agreements must
be in place and included as documentation in the grant application. If option to
purchase is not necessary, an explanation is required;
• Additional funding commitment(s) – Address all additional funding commitments, in
narrative form. If no additional funds will be committed, an explanation is required;
• Status of written permission from railroad(s), county highway commissioners, IDOT,
etc. to proceed with any railroad and/or road borings that are proposed; If written
permissions are not necessary for the completion of the project, an explanation is
required.
INCLUSIONS
1. Project Maps - The following maps must be included in the application submission.
Please place maps larger than 8.5 x 11 inches at the back of the application, number
them accordingly as to where they are located, and state those later page #’s on the
map’s “Page Number” field of the Application Submission Checklist.
• A project location map must be included in the application. It is expected to be
sufficiently detailed to show the following information: 1) specific boundaries of the
project area; 2) all integral components of the system being improved or
constructed, including water tower, well, pump stations, existing water/sewer mains,
proposed water/sewer mains, flow schematics, etc.; 3) railroads, highways,
interstates, towns/cities/villages (rural projects), county lines, and corporate limits.
The project map must be suitable for reproduction and shall not exceed the page
size of 11 x 17 inches. (Applicants may also submit blueprints or larger project
maps as a supplement to their submission, if they deem necessary in order to show
project details sufficiently.)
• A FEMA issued Floodplain map must be included in the application. You can
obtain this map by calling FEMA at 1(800) 358-9616 or by using the website
https://msc.fema.gov. The exact project location must be clearly drawn on the
FEMA map included in the application.
• An income survey map (If conducting an income survey to document LMI in a
project area) must be included in the application. The survey map must be a
minimum of 11”x17”, and clearly identify/detail all households in the project area
indicating “higher” income, “lower” income, vacant, and no response, as well as all
non-residential buildings in the benefit-area (businesses, schools, churches,
government facilities and miscellaneous structures including barns, sheds,
and utility buildings).
The following Key must be used when identifying ALL structures in the project area:
 High Income
 Low Income
 Vacant
 No Response
 Businesses, schools, churches, government facilities
Miscellaneous structures (barns, sheds, and utility buildings)
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If a multi-unit residential building (e.g., apartment complex, duplex, town home,
retirement center/apartments, homeless supportive housing with independent
kitchen/dining area), is located in the project area, it should be identified as such
and the number of units indicated on the map. Those units should be included in
the “number of households” within the project area.
The households identified on the income survey map must total and exactly match
the breakouts indicated on the Income Survey Worksheet:
• Total Households in Area (High Income + Low Income + No Response);
• Total Households Surveyed (High Income + Low Income);
• Total LMI Households Surveyed (Low Income); and
• Total Households Surveyed above LMI (High Income)
If a nursing home, college dormitory, or homeless shelter is located in the project
area, it should be identified on the map, but not counted as a residential building,
and a letter from the facility administrator included in the application. The letter may
be obtained as documentation in lieu of surveying the residents individually. The
letter must verify that the facility meets the HUD definition of a facility having a
shared kitchen and dining facilities and must indicate the number of residents the
facility accomodates. All of the residents are considered by HUD to be low income
and would, therefore, be included in the survey results beginning on Line 14 of the
Income Survey Worksheet. Please make a notation on the worksheet that this is
being done. Retirement apartments, where residents have their own kitchens and
dining areas, are not considered a "nursing home facility" and should be surveyed
individually.
2. Engineer’s Cost Estimate (See Submission Checklist in Section III, Part J for
placement.) Please keep in mind that it may be longer than one year from the time of
application before the project is bid, and current costs might not be accurate at that time.
Be certain to adjust costs based on estimated inflation. If it is difficult to make
adjustments to individual project components, you may include an “Inflation Adjustment”
line with an amount up to 10% of the total of current project construction costs.
• Must be on company letterhead, include the date of the estimate and the
engineer’s name.
• Must be less than one year old from the date the application is due.
• Must include a detailed breakdown of costs that match the costs contained on
the CDBG GATA budget.
• DO NOT include any Ineligible costs as identified in Section 3, Part B above, or
miscellaneous, or contingency.
3. Fair Housing Resolution – All applicants are required to pass a Fair Housing Resolution
to affirmatively further fair housing; post Fair Housing Posters; and make HUD Fair Housing
Complaint forms available to the public. A copy of the Fair Housing Resolution must be
submitted with the application.
4. IRS Certification Letter
Include in the application “Letter 147c” or “Letter 4158c” provided by the IRS to verify the
Taxpayer Identification Number (TIN) or Federal Employer Identification Number (FEIN) for
the applicant. If you do not have a current (dated within five years) copy of an IRS
certification letter on file, please call the IRS Business line, 1-800-829-0115, to request a
“Letter 147C”, or call 1-877-829-5500 to request a "Letter 4158c.” Only the applicant is
authorized to request a copy of this letter.
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5. W-9 Form
Include a completed W-9 form. The name of the entity must exactly match the name
indicated on the IRS certification letter, and the W-9 must be the most current issued
(https://www.irs.gov/pub/irs-pdf/fw9.pdf).
PACKAGING YOUR APPLICATION
All grant application materials must be:
• Typed (except for signatures and maps)
• Clipped together with a large binder clip on the top.
• Any oversize pages such as maps should be placed at the end of the application. State those
later page #’s for oversized pages in the related item’s “Page Number” field on the
Application Submission Checklist page.
• Contained in two brown legal-size (will accommodate 8½” x 14” papers), open-top (no
foldovers with cords or ties) expandable folders (one marked “original,” and one marked
“copy”)
• Brown legal size folders are to be labeled with a 2”x 4” white label, placed in the top right-
hand corner of the folder with the following information:

Name of Applicant

2026 Public Infrastructure

Original or Copy

For Example:
VILLAGE OF ABRACADABRA
2026 Public Infrastructure
Original
DO NOT USE: dividers, staples, binders, folders or other methods of containment.
Submit the original and one complete copy. Be certain if there are documents in color in the
original, that the copies are in color also!
Please note there is a maximum upload of 10 documents in the web form that you submit the
application, so combining files may be necessary.
3. Unique Entity Identifier (UEI) and System for Award Management (SAM).
Each applicant (unless the applicant is an individual or Federal or State awarding agency that is
exempt from those requirements under 2 CFR 25.110(b) or (c), or has an exception approved by
the Federal or State awarding agency under 2 CFR 25.110(d)) is required to:
(i) Be registered in SAM. To establish a SAM registration, go to https://sam.gov and/or utilize
this instructional link: How to Register in SAM from the gata.illinois.gov Resource Library
tab. SAM.gov registrations must be “public.”
(ii) Provide a valid UEI number in the GATA Grantee Portal registration.
(iii) Continue to maintain an active SAM registration with current information at all times during
which it has an active Federal, Federal pass-through or State award or an application or plan
under consideration by a Federal or State awarding agency. The State awarding agency may
not make a Federal pass-through or State award to an applicant until the applicant has
complied with all applicable UEI and SAM requirements and, if an applicant has not fully
complied with the requirements by the time the State awarding agency is ready to make a
Federal pass-through or State award, the State awarding agency may determine that the
applicant is not qualified to receive a Federal pass-through or State award and use that
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determination as a basis for making a Federal pass-through or State award to another
applicant.
4. Submission Dates and Times.
Applications for this opportunity must be submitted by Thursday, August 27, 2026 at 5pm. All
applicants should complete the application package and submit an original and copy of all
requested material to the Department’s Springfield Office at:
In Person:
Illinois Department of Commerce and Economic Opportunity
Office of Community Development
1020 South Spring
Springfield, IL 62704
Or mailed to:
Illinois Department of Commerce and Economic Opportunity
Office of Community Development
1011 South Second Street
Springfield, IL 62704
Facsimile and e-mailed submissions will not be accepted.
The Department is under no obligation to review applications that do not comply with the above
requirements. Failure to meet the application deadline may result in the Department returning
application without review or may preclude the Department from making the award.
5. Intergovernmental Review, if applicable.
The Department reserves the right to consider an outside technical review by an appropriate
agency or agencies. The Illinois Environmental Protection Agency, the Illinois Department of
Public Health, and/or USDA Rural Development may be asked to review public infrastructure
projects involving water or sewer activities.
6. Funding Restrictions.
This opportunity does not allow reimbursement of pre-award costs. Other restrictions can be
found in Sections A., B., and C.
7. Other Submission Requirements.
Documents stored in Google Docs or other cloud-based servers are not allowed.
Applicants may confirm receipt of the application and documents by contacting the program
contact listed in this NOFO.
E. Application Review Information
1. Criteria.
Projects will be evaluated according to the criteria noted below.
1. Opportunity Zones: Illinois has 327 designated opportunity zones, all of which are low-
income communities. To further encourage the investment in and vitality of these
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communities, three (3) points will be given to applicant communities with projects located
within opportunity zo nes. For more information on Opportunity Zones, please see:
https://dceo.illinois.gov/oppzn.html
` Opportunity Zone = 3 Points
2. DCEO Underserved Area: An “underserved area” is a census tract which meets one of
the following four tests:
• Poverty rate of at least 20%; or
• 35% or more of the families with children in the area are living below 130% of the
poverty line, according to the latest American Community Survey; or
• At least 20% of the households in the area receive assistance under the
Supplemental Nutrition Assistance Program (SNAP); or
• Average unemployment rate that is more than 120% of the national unemployment
average, for a period of at least two (2) consecutive calendar years preceding the
date of the application.
Applicant communities with projects located within a designated underserved area will
receive two (2) points. For more ‘information and to identify an underserved area, please
see: https://dceo.illinois.gov/expandrelocate/incentives/underservedareas.html
Underserved Area = 2 Points
3. Project Impact/Per Capita Cost: In order to maximize the number of beneficiaries,
points will be assigned according to the grant funds requested per person served. A
maximum of ten points will be assigned to projects requesting $1,000 or less per person
served. No points will be assigned to projects requesting $5,000 or more per person.
Points will be assigned as follows:
Per Capita Cost Points
$0 - $1,000.99 .…… 10
$1,001.00 - $1,250.99 .……. 9
$1,251.00 - $1,500.99 .……. 8
$1,501.00 - $1,750.99 .……. 7
$1,751.00 - $2,000.99 .……. 6
$2,001.00 - $2,500.99 .……. 5
$2,501.00 - $3,000.99 .……. 4
$3,001.00 - $3,500.99 .……. 3
$3,501.00 - $4,000.99 .……. 2
$4,001.00 - $4,999.99 .……. 1
$5,000.00 Plus .……. 0
4. Additional Funding: Additional points will be assessed for communities contributing
other construction funding toward the completion of the proposed project. A maximum of
10 points will be assigned to projects contributing 60% or more of the total construction
costs. No points will be assigned to projects contributing less than 10% of the total
construction costs. The breakout is as follows:
POINTS Percentage of Total Construction Costs Contributed
1 At least 10% and up to 19.9 % of Total Construction Costs
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NOFO ID: 1632-4274
2 At least 20% and up to 29.9 % of Total Construction Costs
4 At least 30% and up to 39.9 % of Total Construction Costs
6 At least 40% and up to 49.9 % of Total Construction Costs
8 At least 50% and up to 59.9 % of Total Construction Costs
10 At least 60% or over of Total Construction Costs
No points will be assessed if all appropriate documentation indicating a firm commitment
of funding (outlined in Section C, Part 2 is not included.
5. Threat to Health & Safety/Urgency (25 percent of overall score): The degree to
which present conditions affect public health and safety, and the severity and immediacy
of the problem must be demonstrated in the documentation. Points received will be
allocated on the following criteria (maximum 25 points). No points will be allocated if
proper documentation is not included in the application. See C2 of the Guidebook
for examples.
• Imminent threat of entire system failure (25 points)
Example:
 Well pumps broken and parts are no longer manufactured; using stand by
pumps.
 Court order (must be directly related to the project)
 Consent decree
 Raw sewage in water source
 Consistent, systematic water pressure less than 20 PSI (not related to breaks)
• Imminent failure in a specific area that does not affect the entire system, but does
have a negative impact on a portion of the system, and which will result in total
failure, or a complete interruption in service, if not addressed. (20 points)
Example:
 Same as above, but in a service area
 Collapsed Water/Sewer Line
• Project should be completed as soon as possible (15 points)
Example:
 Radon found in water supply.
 Serious IEPA violation/s (must be directly related to the project)
 Collapsed sewer line
 Excessive water main breaks or boil orders (10+ within 6 months)
 Large percentage of private wells containing coliform (75-100% of sampling)
 Leaky water tower that is affecting water pressure
• Project is not urgent, but needs to be completed in short term (10 points)
Example:
 Private wells having unacceptable levels of coliform (50-75% of sampling)
 Frequent water main breaks or boil orders (2-9 within one year)
 EPA non-compliance letter (must be directly related to the project)
 Infill and inflow into sewers
 Water pressure less than 20 PSI (depending on severity)
 Leaky water tower
• Project can be completed in the next few years (5 points)
Example:
 Over-utilized water source
 Low water pressure (but higher than 20 psi)
6. Project Administration (20 percent of overall score) A professional Grant
Administrator with a proven track record is an important resource for completing a
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successful CDBG project. The track record of a Grant Administration Entity will be
evaluated by examining all open CDBG grants on the application deadline date.
Calculations will be made to provide DCEO staff the overall average percentage of funds
drawn on open grants of each Grant Administration Entity. “Entity” includes all persons
permanently employed by or temporarily contracted to complete grant administration
work for the firm.
Points will be assessed on the average draw-down percentage as follows:
Average Drawdown Percentage Points
80% or more drawn = 20 points
70 – 79.9% drawn = 16 points
60 – 69.9% drawn = 14 points
50 – 59.9% drawn = 12 points
40 – 49.9% drawn = 8 points
30 – 39.9% drawn = 4 points
20 – 29.9% drawn = 2 points
Less than 20% drawn = 0 points
7. Project Readiness (30 percent of overall score): Each application must demonstrate
that the proposed project is appropriate and achievable and that all actions required have
been completed to ensure timely implementation of the project. If the application is
funded, any action not completed at the time of application will be included in the Notice
of State Award Finalist (NOSAF) as a special grant condition. All applicants will start with
the maximum 30 points. If any actions are not completed, deductions will be made on
the following requirements:
• If applicable, a copy of an executed agreement for the purchase of water or
wastewater treatment, signed and dated by all parties, must be in place. If not
included, not addressed, or unclear, -10 points.
• If applicable, a valid copy of an option to purchase land. (Option must include price,
date option expires and seller’s signature). If not submitted, not addressed, or
unclear, -10 points.
• Copy of Project Location Map. If not submitted or if the project activities are not
clearly drawn on the project map, -5 points.
• Copy of Floodplain Map indicating project location(s). If not submitted, or the project
is not drawn on the map, -5 points.
• The percentage goal for minority contractors must meet or exceed the percentage of
minorities residing in the project’s community. (Information to be provided on the
Minority Benefit/Affirmative Housing Statement contained in Section III, Part J). If the
form is incomplete, not included, or the minority percentage is not met, -2 points.
• Fair Housing Resolution - A Fair Housing Resolution must be adopted/in place. If not
included, -5 points.
Deductions Made for Clerical Errors: Applications will receive a 5-point deduction in
the area of Project Readiness for each of the following situations, deficiencies: (-5 each)
• Inconsistencies exist throughout the application. Examples:
i. The cover letter indicates “sewer project” and the summary indicates water
project extension.
ii. Narrative information is for “Community A” when the application is submitted
for “Community B”).
iii. The project costs or total funds requested differ between the cover letter,
CDBG GATA budget, Engineer’s cost estimate, and the project information
form.
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• The project summary is vague and the reviewer cannot determine what the project is
or how the problem will be addressed and/or the project completed.
• Forms are not completed in their entirety, i.e., missing dates, signatures, general
contact information, etc.
• The FEIN, UEI #, or other identifying codes contained in the application are not
assigned to the applicant or responsible entity.
• The “Copy” file required for application submission does not contain all documents as
the “Original”, or (if included in original) does not contain color copies of documents.
• The application contains evidence of pre-scoring.
2. Review and Selection Process.
Applications will be graded using the Merit Review Process and scored on the criteria specified in
Section E.1. The Department will designate an Evaluation Committee to grade each application
received for this funding opportunity. The final score of each Committee member will be
calculated and an average of all scores will be the final applicant score. Grants will be awarded
starting at the highest score working down the list until funding is exhausted. In cases where
projects have identical overall ratings, applications benefiting the highest number of LMI persons
will be considered first for funding.
The following applications will be deemed “Do Not Fund” (DNF), not reviewed further nor
considered for funding:
a. Applications for local governments that are not Grant Accountability and Transparency
Act (GATA) registered and pre-qualified on the GATA Portal at https://gata.illinois.gov on
the application due date.
b. Applications that do not meet the Citizen Participation requirements as outlined in Section
II of the Guidebook.
c. Applications that do not clearly demonstrate and document 51.0 percent low-to-moderate
income benefit to persons in the project area.
d. Applications that do not clearly demonstrate and document a threat to health and safety.
e. Applications in which the local government’s Water or Sewer (whichever is applicable to
the project) rate does not currently meet or exceed 1 percent of the Median Household
Income (MHI) per 5,000 gallons. Required utility rates are posted annually on the DCEO
Office of Community Development website. A rate is not required for storm sewer,
combined sewer separation, or drainage projects.
f. The type of infrastructure proposed requires an IEPA Construction Permit, and a copy of
a non-expired IEPA Construction Permit is not included in the grant application, or the
type of infrastructure proposed does not require an IEPA Construction Permit, but the
applicant did not explain why the Permit is not required.
g. Applications in which the Private Property Easements form, indicating 100% signed, or a
Right-of-Way Docket is not submitted, or if the necessity of easements is not addressed.
If eminent domain is required to execute a Private Property Easement as previously
identified, proof of court approval of the eminent domain must be included in the
application or the project will be deemed “Do Not Fund”.
h. Applications for projects that have both a community-wide and a project-area benefit.
i. Applications for projects that appear to primarily benefit a business/commercial district.
j. Applications that do not designate an Administrating Entity and/or include the required
contract and (if applicable) environmental form.
k. Applications in which the Chief Elected official did not sign all appropriate documents as
the Authorized Representative.
l. Applications that contain forged or altered signatures or dates or in which non-CDBG
forms are used (Section I of the Guidebook)
m. Applications that have the following errors in relation to the Engineer’s Cost Estimate:
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NOFO ID: 1632-4274
i. Engineer’s cost estimate not contained in application;
ii. Engineer’s cost estimate not on company letterhead without engineer’s name or
not dated;
iii. Engineer’s cost estimate does not include a detailed breakdown of costs;
iv. Engineer’s cost estimate more than one year old from the application due date.
All recommendations are forwarded to the Director of the Department who makes the final
funding decisions.
The Merit Based Review process is subject to appeal per
https://dceo.illinois.gov/aboutdceo/grantopportunities/meritappreview.html. However,
competitive grant appeals are limited to the evaluation process. Evaluation scores may not be
protested. Only the evaluation process is subject to appeal. The appeal must be submitted
through the merit review appeal request form
(https://app.smartsheet.com/b/form/6444bed39ef140c589f002f53b9bc092) within 14 calendar
days after the date that the grant award notice has been published.
3. Anticipated Announcement and State Award Dates, if applicable.
After the application period is closed, the Department will conduct a merit based review of eligible
applications. Successful applicants will receive a Notice of State Award (NOSA) to initiate the
grant agreement phase. During this phase, successful applicants will be contacted by a grant
manager to develop a grant agreement, which can be a months long process depending on
complexity, cooperation, and conformity with all applicable federal and state laws.
The Department reserves the right to issue a reduced award, or not to issue any award.
F. Award Administration Information
1. State Award Notices.
The Notice of State Award (NOSA) will specify the funding terms and specific conditions resulting
from the pre-award risk assessments and the merit-based review process. The NOSA must be
accepted in the GATA Portal by an authorized representative of the grantee organization. The
NOSA is not an authorization to begin performance or incur costs.
2. Administrative and National Policy Requirements.
Subrecipients and Subcontractors: Agreement(s) and budget(s) with subrecipients and
subcontractors must be pre-approved by and on file with DCEO. Agreements can be submitted
to DCEO when available. Subcontractors and subrecipients are subject to all applicable
provisions of the Agreement(s) executed between DCEO and the grantee. The successful
applicant shall retain sole responsibility for the performance of its subrecipient(s) and/or
subcontractor(s).
Grant Uniform Requirements: The Grant Accountability and Transparency Act (30 ILCS 708/1
et seq.) (and its related administrative rules, 44 Ill. Admin. Code Part 7000), was enacted to
increase the accountability and transparency in the use of grant funds from whatever source and
to reduce administrative burdens on both State agencies and grantees by adopting federal
guidance and regulations applicable to those grant funds; specifically, the Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR 200).
Procurement: Grantees will be required to adhere to methods of procurement per the
Procurement Standards (2 CFR 200.317 – 2 CFR 200.327).Other: Each applicant must agree to
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comply with all applicable federal and state requirements. This includes 2 CFR 200, 24 CFR
570, Part 85, and the Grantee Accountability & Transparency Act (GATA). These can have a
significant impact on the costs and complexity of a project. Applicants who receive a grant award
will be expected to submit signed assurances that they will comply with all federal mandates.
Some areas which applicants must comply with include:
1. The National Environmental Policy Act (NEPA) which establishes procedures for
protecting the environment. In order to use the CDBG funds awarded to a local
government, the grantee has to comply with environmental procedures, standards and
guidelines mandated by NEPA and all other applicable environmental regulations (e.g.,
prime farmland protection, historic preservation, floodplain hazards, etc.).
2. The Interagency Wetland Policy Act of 1989 requires applicants to certify that the
proposed project is compatible with established State of Illinois policy regarding wetlands
(i.e., to minimize the destruction of existing wetlands in Illinois as a result of State and
State-supported activity). The Federal Wetlands Protection regulations at 24 CFR
58.5(b)(2), Executive Order 11990 and HUD FFRMS also apply.
3. The Illinois Endangered Species Protection Act and the Illinois Natural Area Preservation
Act & Federal Endangered Species Act of 1973 Compliance requires consultation with
the Endangered Species Consultation Program of the Illinois Department of Natural
Resources to assure compliance. The consultation process must be implemented to
avoid or minimize adverse impacts to State-listed species and their essential habitats that
may result from the actions of state and local units of government. Applicants must
certify the completion of the consultation process, as well as Federal Endangered
Species Compliance under 24 CFR 58.5(e). This process can be initiated through the
U.S. Fish & Wildlife Service Endangered Species website
(https://www.fws.gov/endangered/).
4. The Davis-Bacon Prevailing Wage Act requires the payment of prevailing wages for all
construction funded in whole or in part with federal funds, including funds passed through
to private firms. If your project involves construction and/or equipment installation, go to
https://dceo.illinois.gov/communitydevelopment/davisbaconresources.html for information
concerning the applicability of federal labor standards. Demolition, not in furtherance of
re-development, does not require compliance with Davis-Bacon.
5. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1987
applies to federally assisted activities that involve the acquisition of real property or the
displacement of persons, including displacement caused by rehabilitation and demolition
activities. Any person or business displaced as a direct result of federal assistance must
be provided with Uniform Relocation benefits.
6. Equal Opportunity and Fair Housing Accessibility Laws require that CDBG grantees
administer their project in a manner that affirmatively furthers equal opportunity and fair
housing. All CDBG grantees will be required to undertake specific activities to further fair
housing. CDBG grantees must assure all activities and services are accessible to
persons with disabilities.
7. Section 3 under the Housing and Urban Development Act of 1968 requires recipients to
give, to the greatest extent feasible and consistent with the existing federal, state, and
local laws and regulations, job training, employment, contracting and other economic
opportunities to Section 3 residents and Section 3 business concerns. For more
information on Section 3, please see
https://dceo.illinois.gov/communitydevelopment/section3.html
8. The National Emission Standards for Hazardous Air Pollutants (NESHAP) of the U.S.
Clean Air Act assures that, when existing buildings are demolished and/or renovated,
people outside of those buildings (i.e., passers-by or neighborhood residents) are
protected from airborne asbestos. If asbestos materials are involved in the rehabilitation
work, the applicant must contact the Field Operations Section, Bureau of Air of the Illinois
Environmental Protection Agency to ensure compliance with Asbestos NESHAP.
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9. Build America Buy America Standards set forth in the Infrastructure Investment and Jobs
Act. The Grantee must comply with the requirements of the Build America, Buy America
(BABA) Act, 41 USC 8301 note, and all applicable rules and notices, as may be
amended, if applicable to the Grantee’s infrastructure project. Pursuant to HUD’s Notice,
“Public Interest Phased Implementation Waiver for FY 2022 and 2023 of Build America,
Buy America Provisions as Applied to Recipients of HUD Federal Financial Assistance”
(88 FR 17001), any funds obligated by HUD on or after the applicable listed effective
dates, are subject to BABA requirements, unless excepted by a waiver. BABA does not
apply to the Housing Rehabilitation program, or to the CDBG-CV funded Demolition
program.
Successful applicants will receive a Notice of State Award Finalist (NOSAF) specifying terms
and conditions of the grant. This will include completion of Environmentals (including “before”
pictures for Tier II Housing Rehabilitation projects), clearance of special conditions resulting from
the application review, and acknowledgement letters to the locality’s federal-level Senators and
Representative. GRANTEES MUST COMPLETE ALL REQUIREMENTS IDENTIFIED ON THE
NOTICE OF STATE AWARD FINALIST (NOSAF) WITHIN 90 DAYS OF THE NOSAF DATE. If
not completed, the Chief Elected Official and Grant Administrator will be notified and a
two-week extension provided. FAILURE TO COMPLETE OUTSTANDING REQUIREMENTS
WITHIN 104 DAYS OF THE NOSAF DATE WILL RESULT IN FORFEITURE OF THE GRANT
AWARD.
DCEO will hold a mandatory Grant Administration Workshop after Competitive Awards are
announced. All Grant Administrators assigned to an awarded grant are required to attend.
DCEO will hold mandatory Grantee Workshops in two regions after Awards are announced. All
Grantees receiving a Competitive Award (PI and/or HR) must be represented by at least one
Local Government (Grantee) Contact at one of the Workshops. The Mayor or a Councilman and
the person handling the finances is preferred. If a Grantee does not attend either Workshop
with appropriate representation, the grant will be withdrawn.
Once terms are accepted, and the conditions met, the Grantee will receive a Notice of State
Award (NOSA) which includes information regarding your entity, grant funding, grant terms and
conditions, and specific conditions assigned to the grant based on the risk assessments. In order
to receive the formal Grant Agreement, the Grantee must indicate agreement to the contents of
the NOSA by remitting its acceptance through Grantee Portal (https://grants.illinois.gov/portal).
After the Grantee has submitted all applicable documents, they will receive a formal Grant
Agreement with further instructions. Grantees will be expected to sign and return the agreement
within 30 days for formal execution by the Department.
3. Reporting.
Periodic Performance Report (PPR) and Periodic Financial Report (PFR)
Grantees funded through this NOFO are required to submit in the format required by the Grantor,
at least on a quarterly basis, the PPR and PFR electronically to their assigned grant manager.
The first of such reports shall cover the first three months after the award begins. Pursuant to 2
CFR 200.328, Periodic Financial Reports shall be submitted no later than 30 calendar days
following the period covered by the report. Pursuant to 2 CFR 200.329, Periodic Performance
Reports shall be submitted no later than 30 calendar days following the period covered by the
report. Any additional reporting requirements will be disclosed in the NOSA. Grantees are
required within 45 calendar days following the end of the period of performance to submit a final
closeout report in the format required by the Grantor (See 2 CFR 200.344).
Monitoring
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Grantees funded through this NOFO are subject to fiscal and programmatic monitoring visits by
the Department in accordance with 2 CFR 200.337. They must have an open-door policy allowing
periodic visits by Department monitors to evaluate the progress of the project and provide
documentation upon request of the monitor. Program staff will also maintain contact with
participants and monitor progress and performance of the contracts. The Department may modify
grants based on performance.
Audit
Grantees shall be subject to Illinois’ statewide Audit Report Review requirements. Terms of the
Single Audit Act Amendments of 1996 (31 USC 7501-7507), Subpart F of 2 CFR Part 200, and
the audit rules set forth under the Grant Accountability and Transparency Act Admin Rules shall
apply (See 44 IL Admin Code 7000.90).
Notice of Contract Award.
The Notice of Contract Award must be submitted to the Department within 30 days of the award
of any construction contract.
Grant Evaluation Report
The final report covering final expenditures and deliverables of the grant must be submitted to the
Department within 60 days of the grant closing.
G. State Awarding Agency Contact(s)
Grant Help Desk
Illinois Department of Commerce & Economic Opportunity
Email: CEO.GrantHelp@illinois.gov
H. Other Information, if applicable
The Community Development Block Grant Public Infrastructure (CDBG) is available on a competitive
basis annually. Other CDBG programs include Housing Rehabilitation, Economic Development, and
Disaster Response. More information on CDBG programs can be found at:
https://dceo.illinois.gov/communitydevelopment.html.
All Community Development Block Grant application information and forms are contained in an annual
Guidebook, which is the basis of the Action Plan approved by the U.S. Department of Housing and Urban
Development. The Guidebook (in Microsoft Word) can be found at:
https://dceo.illinois.gov/communitydevelopment.html.
The applicable Sections of the Guidebook for the CDBG Public Infrastructure program are Sections I, II,
III, and VII. These Sections have been formatted as a pdf and attached to this Notice of Funding
Opportunity as Appendix A.
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