Commercial Rehabilitation

Commercial Rehabilitation is sponsored by Kansas Department of Commerce (via HUD). Supports the rehabilitation of commercial properties to revitalize downtown areas and stimulate economic development.

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Exporting Programs & Services, Investment, Reshoring Resources for your move to Kansas. Taxes, Credits, & Exemptions To The Stars: Kansas Business Awards Corporate & Professional Services Food Processing and Manufacturing Energy & Natural Resources COMMERCIAL REHABILITATION This program funds projects that upgrade private commercial buildings in a community’s downtown or commercial district and return them to productive uses.

Get Program Notifications arrow_forward_ios of the CDBG grant request Meet Housing and Community Development Act objectives Check qualifications, programs, and more The Commercial Rehabilitation Grant Program funds projects that upgrade private commercial buildings in a community’s downtown or commercial district and return them to productive business uses.

The program helps cities improve the quality of their downtown districts by assisting private property owners in the rehabilitation of downtown buildings. Commercial Rehabilitation funds must be used for building improvements, not business assistance. Commerce retains full authority to limit some aspects of the project to the space the business(es) will occupy.

Eligible Use of Funds by National Objective Interior and exterior rehabilitation Internal remodeling to accommodate business use Install/improve mechanicals or business signage Prevention/Elimination of Blight : 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 Only cities and counties (units of local government) can apply for CDBG grants.

Large cities and urban counties are considered entitlement communities and receive CDBG funds directly from HUD, while smaller communities apply through the state CDBG program. The following entitlement communities are NOT eligible to apply for the state CDBG program: Kansas City, Lawrence, Leavenworth, Manhattan, Overland Park, Topeka, Wichita, and all of Johnson County.

The building must be a privately-owned commercial building that when renovated will house a new or expanded for-profit business that will serve the community with goods or services. Only one property under common ownership may be included per application but multiple addresses could be eligible if they are under single ownership and considered as one parcel.

All CDBG projects must meet a national objective and involve an eligible activity under the Housing and Community Development Act of 1974.

The three CDBG national objectives are: Benefit Low- and Moderate-Income (LMI) Persons Prevention or Elimination of Blight Addressing an Urgent Need All activities proposed in applications for the Commercial Rehab Grant Program must meet either the objective of benefiting LMI persons through the subcategory job creation/retention or the elimination of blight . All scopes of work must be approved by CDBG.

Grant applications are evaluated for funding based on efforts of the community to revitalize the downtown commercial district, scope of work, financial capacity, business plan for reuse of building, and readiness to proceed with project. Key considerations include: Projects that meet a national objective and involve an eligible activity under the Housing and Community Development Act (HCDA) of 1974, focused on privately owned buildings.

At least 51% of the jobs created or retained must be considered LMI There is a maximum of $35,000 of CDBG funds invested per job created or retained Projects must meet the required Public Benefit test Download the 2026 CDBG Commercial Rehab Guidelines for more information on program requirements. 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. 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. Only those with an approved pre-application may submit a full application, but approval of the pre-application does not ensure grant funding. 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] . Can a community apply for more than one project? Communities may apply for multiple CDBG categories but can only be awarded up to two projects total , with no more than one from a major category.

Major categories include: Community Facilities: Large/Small, Blueprint to Build, Water and Sewer Infrastructure, and Regional Water Implementation​. For example, a city can submit applications for a Housing Rehabilitation and a Community Facilities: Large Grants project. However, a city cannot apply for both a Large and Small Community Facilities project.

What are the public hearing requirements? Citizen participation is a required component of the CDBG program. Any local government applying for CDBG funds must provide citizens with reasonable opportunities to participate in the planning and development of applications, especially residents of proposed project areas.

Citizens must be provided adequate and timely information so they can be meaningfully involved in important decisions. The purpose of the initial public hearing is to inform citizens about the proposed project, including its location, total cost, activities, and beneficiaries.

Community members must be given a chance to suggest other project ideas and share their input, and the local governing body should carefully consider this feedback before submitting the application. The initial public hearing must be held at least 15 FULL days before the CDBG application is submitted, and no earlier than 120 days. The total project funding and CDBG amount requested must match what appears in the public hearing notice.

Public hearings must be held at a time and location convenient to potential or actual beneficiaries, with accommodations for non-English speaking residents and persons with disabilities.

Records of these efforts must be part of the grant files, including the public hearing notice, affidavit of publication, record of posting, public hearing attendance log, public hearing minutes, any written complaints and grantee response, and any other documented efforts to involve citizens throughout all stages of the project.

Requirements to Publish a Public Hearing Notice A notice about the hearing must be published at least 5 FULL days in advance (but no more than 20 days) in advance to allow citizens the opportunity to schedule their attendance. The day that the public hearing notice is first advertised and the day of the public hearing do NOT count towards the minimum 5 day period. What is the environmental review process?

All CDBG-funded projects are federally required to have an environmental review. The Environmental Determination of Level of Review form must be submitted with the application. This will inform Commerce as to what level of environmental review you will undertake for your project if awarded.

Post-award, the city or county must conduct a full environmental review of the project. This responsibility cannot be delegated and the cost to conduct the review must be paid with local funds . Project activities may not begin until after Commerce issues the environmental release of project funds.

See other communities that have received funding in past years The Community Development Block Grant (CDBG) program requires that each CDBG funded activity must either principally benefit low- and moderate-income (LMI) persons, aid in the prevention or elimination of slums or blight, or meet a community development need having a particular urgency.

Based on program participants View LMI Family Income Limits for LMI calculations are from the 2020 Census and LMI by household are from 2026 HUD Section 8. Final LMI will be confirmed upon application review. Assistance from a professional with CDBG grant experience can help you streamline and strengthen your application.

Some or all of the costs to engage help can be covered by your award. Here are the background documents for the Commercial Rehabilitation grant that will help you apply. 2026 CDBG Commercial Rehab Guidelines (.

pdf) Deadline: October 16, 2026 Get notifications for this year and next year Email Tim Parks, CDBG Specialist Incentives & Financing, Taxes, Credits & Exemptions, Site Selection, Doing Business in Kansas Infrastructure assessment, community planning, development support, and downtown activation Find a Job, Job Seeker Services, Employer Services Plan your trip to Kansas. Places to visit, things to do. Order a free Travel Guide.

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