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2026 Pre-Application Now Open!

A pre-application must be submitted and approved by CDBG before an application can be submitted. The pre-application is used to determine project eligibility and readiness before proceeding to the full application stage. Commerce will review submissions within ten days and provide further instructions. Please discuss your project with CDBG staff before submitting a pre-application. You can contact a project manager at any time or email [email protected].

Pre-Application Form

Propósito

En Commercial Rehabilitation Grant Program is intended to help cities improve the quality of their downtown commercial districts by assisting private property owners in the rehabilitation of blighted structures, and return them to productive businesses. It is hoped that a strategic investment of grant funds in a key building would prevent the spread of blighted conditions to other nearby structures and be a catalyst for change in the commercial district.

CDBG National Objective

All CDBG projects must meet a national objective and involve an eligible activity under the Housing and Community Development Act of 1974. National objectives are 1) benefiting Low- and Moderate-Income persons (LMI), 2) aid in the prevention or elimination of blight, and 3) meet a need having a particular urgency (urgent need).

En Commercial Rehabilitation Grant Program will utilize one of two national objectives: benefiting Low- and Moderate-Income persons (job creation/retention) or prevention/elimination of blight (spot basis). Eligible activities depend on the national objective met, and all scopes of work must be approved by CDBG. A wider variety of activities may qualify under the job creation/retention objective. When meeting this objective Public Benefit standards must also be met.

Eligible Activities

• Interior and exterior rehabilitation
• Internal remodeling to accommodate business use
• Install/improve mechanicals or business signage
• Historic preservation
• ADA improvements
• Real property acquisition (must follow URA requirements)

• Exterior building improvements to eliminate specific conditions of blight or physical decay, such as roof, masonry/exterior walls, windows, doors, and associated facade improvements
• Interior improvements that eliminate conditions detrimental to public health and safety could be eligible
• Real property acquisition (must follow URA requirements)

Criterios de selección

Las solicitudes de subvención se evalúan para su financiación en función de la necesidad, la preparación, el impacto y la sostenibilidad del proyecto, así como de la fuente y la disponibilidad de fondos de contrapartida. Revised 2026 guidelines will be available in January.

Las consideraciones clave incluyen:

• Proyectos que cumplen un objetivo nacional e implican una actividad subvencionable en virtud de la Ley de Vivienda y Desarrollo Comunitario (HCDA) de 1974, centrada en edificios de propiedad privada.
• Job creation or retention of employees, with at least 51% of the beneficiaries (employees) meeting HUD’s LMI (low-to-moderate income) requirements – which is at or below 80% of the Average Median Income for the county in which the family resides.
• If the applicant community qualifies under the LMI Job Creation/retention national objective, the application must be submitted under that category.

Fondos de contrapartida

Local funding is required for all CDBG projects, and no project can be funded entirely by grants. Matching funds can originate from private or public sources, but the application must document that these funds are firmly committed (e.g., a letter of commitment from a bank or other funding source). Examples of matching funds include bank loans, industrial revenue bonds, owners’ equity, contributions from local governments, or grants and loans from economic development entities.

Applicants are allowed to match CDBG funds with other grant funds if that funding is secured in a city/county account by the time the contract is signed. At least 10% of the matching funds must be cash from a local source (i.e., owner funds, city/county cash). Any expenses incurred prior to the grant award are ineligible for reimbursement with CDBG funds. This includes grant writing, engineering, and architecture.

Pre-Application

Applicants must submit a pre-application to confirm eligibility before applying for CDBG funding. This process allows us to provide early feedback and address any eligibility concerns before applicants complete the full application, and ensures projects align with program goals and are prepared for funding. The form requires a brief project description, estimated budget, eligibility status, and readiness to proceed. Commerce will review submissions within ten days and provide further instructions. Only those with an approved pre-application may submit a full application, but pre-approval does not ensure grant funding.