Community Development Block Grant – Disaster Recovery (CDBG-DR) is a federal grant awarded by the U.S. Department of Housing and Urban Development (HUD) to help jurisdictions recover from presidentially declared natural disasters. CDBG-DR funding is designed to address housing, infrastructure, and economic revitalization needs after all other assistance has been exhausted. A portion of funds is also reserved for mitigation efforts to ensure awardees are better prepared to withstand natural disasters in the future.

Additional information about HUD’s CDBG-DR program can be found at: https://www.hud.gov/hud-partners/community-cdbg-dr.

CDBG-DR funding is provided to support long-term recovery and mitigation efforts after all other assistance has been exhausted. CDBG-DR can be used for three types of recovery projects: housing, infrastructure, and economic revitalization. Across these three categories, funds can be invested in disaster relief efforts, long-term recovery initiatives, or mitigation strategies. A few examples of how CDBG-DR funds can be used include:

• Expanding sewer tunnels to increase water capacity and mitigate future flooding risks.
• Loaning working capital to businesses in disaster-impacted areas.
• Rebuilding and repairing damage to a city’s housing stock after severe flooding.

CDBG-DR cannot be used for any activities that are unrelated to disaster recovery, mitigation, or for activities covered by other federal funding sources. Additionally, funds may not be used for the maintenance of public buildings, direct cash assistance, or for employment relocation, among other uses.

There are a range of requirements that govern how CDBG-DR funds can be spent and allocated to different activities. Some of the key requirements for the City’s CDBG-DR funding are:

Eligible Uses:

• Spending must address the impact of a specific disasters, meet one of the HUD-identified national objectives, and be within the “Most Impacted and Distressed” area.
• Be a CDBG-eligible activity under section 105(a) of the HCDA of 1974 (42 U.S.C. 5305(a).

Spending Requirements:

100% of the funds must be spent in the most impacted and distressed areas. At a minimum, 70% of funds must be spent in low- to moderate-income communities and 15% must be used for mitigation activities. At a maximum, no more than 15% may be spent on planning activities and no more than 5% on administrative costs.

Additional information about grant requirements can be found at: https://www.hud.gov/hud-partners/community-cdbg-dr.

In the past few years, Chicago faced three presidentially declared disasters that qualified the City for CDBG-DR funding based on the level of damage and unmet need for recovery investments. The storms that resulted in funding were:

• FEMA DR-4728-IL: From June 9 – July 2, 2023, severe storms with heavy rainfall caused widespread flooding across the City, with peak rainfall of up to 9.1 inches in some communities.
• FEMA DR-4749-IL: On September 17 - 18, 2023, a slow-moving rainstorm caused significant flash flooding in several neighborhoods.
• FEMA DR-4819-IL: From July 13 - 16, 2024, a severe storm system with strong straight-line winds and tornadoes downed trees, disrupted powerlines, and caused road closures across the City.

The City of Chicago’s CDBG-DR program will be administered by the Office of Budget and Management in collaboration with stakeholders including the Mayor’s Office, City departments, City Council, neighboring local governments, and community organizations. Implementation for each CDBG-DR and companion project is overseen by the applicable City department, which includes the Department of Water Management, the Department of Housing, the Chicago Department of Transportation, the Department of Planning and Development, and the Department of Business and Consumer Affairs.

All CDBG-DR grant recipients must develop an Action Plan outlining how their allocation will be spent. OBM, in partnership with a wide range of City Departments and community stakeholders, conducted an in-depth analysis of storm damage and existing vulnerabilities to develop its plan and ensure funds are spent in a way that best remediates the effects of the severe storms and mitigates against such damage happening in the future.

The Action Plan includes a review of storm impacts on the City’s housing, infrastructure, and economy to identify where the most damage occurred and determine where the most critical investments are needed. Through the analysis, critical infrastructure projects were identified as most in-need of remediation to mitigate against such damage happening in the future, should the City experience storms of this nature in the future. To read more about how the City is proposing to use its CDBG-DR funds, please review the Draft Action Plan here: Chicago.gov/CDBGDR.

The City will host two public hearings to answer questions and solicit feedback on the Action Plan. Public comments can also be submitted via an online form, phone, or mail.

The City, as required by HUD, has prepared a Draft Action Plan proposing how CDBG-DR funds will be used. To develop the Draft Action Plan, the City, in consultation with community stakeholders, local, state, and federal government partners, conducted an in-depth analysis on the damages from the storms and where the need for investments was most critical. Based on this analysis, Chicago’s CDBG-DR funding will be used to increase infrastructure capacity and enhance storm resiliency in the areas of the City impacted the most by the declared disasters, particularly in the west side wards 28, 29, 30, and 37.

The funding will be used for a range of activities including infrastructure projects and resources for homeowners and businesses.

In addition to the $5 million allocated from the City’s 2024 budget, the Johnson administration is supplementing the CDBG-DR grant award with $40 million in increased investment in the Department of Housing’s Home Repair Program, which will repair remaining storm damage for eligible homeowners. Application details will be made available on the City’s disaster recovery website.

The Johnson administration is supplementing the CDBG-DR grant award with $5 million in increased investment in the Department of Business and Consumer Protection’s Storefront Activation Program. The Storefront Activation Program is a comprehensive initiative designed to revitalize commercial corridors by activating vacant storefronts and providing support to small businesses, with the goal of boosting local economies and enhancing neighborhood vibrancy. The program offers rent-free space and no-cost technical/operational assistance to eligible entrepreneurs, enabling them to restart or expand operations in flood-affected areas.

The City invites Chicagoans to provide feedback on the City’s flood recovery effort in the following ways:

Attend a Public Hearing:

• May 14, 2025: Zoe Life Ministries International - 5151 W. Madison St., Chicago, IL 60644 from 6-8 p.m.
• May 16, 2025: Intentional Sports Center - 1841 N. Laramie Ave., Chicago, IL 60639 from 6-8 p.m.

Send us your feedback:

• Online: Send us your comments using this form
• Email: grantsupport@cityofchicago.org
• Phone: (312) 744-9745
• Mail: Office of Budget & Management, Attn: CDBG-DR Grants Administrator, 121 N. LaSalle St. Room 604, Chicago, IL 60602

• The City will post the Draft Action Plan at Chicago.gov/CDBGDR and accept public comments through June 6, 2025.
• After the City’s Action Plan is approved by HUD, the City will begin the grant agreement execution process, likely to occur in fall 2025.
• The City will then have six years to implement the projects highlighted within the Action Plan.
• Details regarding program timelines will be shared on the City’s disaster website as plans are finalized.

For additional information regarding the City’s use of CDBG-DR funding, please visit Chicago.gov/CDBGDR, or reach out to OBM using the channels listed below.

• Email: grantsupport@cityofchicago.org
• Phone: (312) 744-9745
• By Mail: Office of Budget & Management, Attn: CDBG-DR Grants Administrator, 121 N. LaSalle St. Room 604, Chicago, IL 60602

For any additional questions, please reach out to us in one of the following methods:

• Email: grantsupport@cityofchicago.org
• Phone: (312) 744-9745
• By Mail: Attn: CDBG-DR Grant Administrator; Office of Budget & Management, 121 N. LaSalle St. Room 604, Chicago, IL 60602