Neighborhood Opportunity Fund (NOF)

The Neighborhood Opportunity Fund (NOF) was launched in 2016 to build strong and vibrant commercial corridors on the South, Southwest, and West Sides of Chicago. It is a reimbursement grant and technical assistance program that supports permanent builds and renovations of commercial spaces. SomerCor is proud to administer the NOF Grant on behalf of the Chicago Department of Planning and Development (DPD).

Unlike many other City financial incentives programs, the NOF program is not funded through local property taxes or federal dollars. Funds are sourced through the Neighborhood Opportunity Bonus program, which enables downtown developers to make financial payments to the City in exchange for density bonuses for new construction projects. Eighty percent of the proceeds are allocated to the NOF.

NOF grants cover 75% of eligible project costs up to $250,000 and up to $50,000 in additional funding may be provided for approved technical assistance. Grant eligibility depends on project location, project use, and the amount of financial assistance being requested. Grant funds can only be accessed through reimbursement or an escrow agreement for completed work.

Questions? Contact us at [email protected]

Contents:

    Grant Calculation

    The NOF grant consists of the base grant, which may include coverage for acquisition of the project property, as well as the possible addition of the Technical Assistance Fund (TAF) for approved technical assistance. Grant funds can only be accessed through reimbursement or an escrow agreement for completed work. Grantees can request up to three disbursements from either method or request to receive the full amount upon project completion.

    Base Grant

    The base grant is calculated from the project's eligible expenses, which are identified from the itemized costs on the project's construction bid(s). The base grant cannot exceed 75% of total eligible project costs or $250,000 (whichever is less).​

    Acquisition Coverage

    Acquisition of the project property may qualify as an eligible expense if it is part of a larger rehabilitation or new construction project. The acquisition costs are credited to the actual construction project and will impact the base grant amount.

    Technical Assistance Fund

    The TAF provides financial assistance for approved design, permitting, and construction management service providers. It is provided in addition to the base grant. The maximum amount is 20% of the base grant amount or $50,000 (whichever is less).

    NOF Grant Calc SC colors

    *Regardless of the total eligible project cost, the maximum award amount for the NOF grant is $250,000 and the maximum amount of the TAF is $50,000​

    Eligibility

    Eligible Applicants

    The NOF can fund projects comprising any of the following uses independently or combined in a mixed-use development. All uses must be revenue-generating and in substantial compliance with the Chicago Zoning Ordinance.

    Commercial (office, retail, exteriors of mixed-use residential)

    Cultural (museums, theaters, performance venues)

    Non-profits with an on-site commercial component

    Artisanal manufacturing, production, and services with an on-site commercial component

    Applicant Requirements

    The project property must be located along a NOF-eligible commercial corridor. Verify if your property's location is eligible with the interactive eligibility map.

    Applicants must have site control of the property in the form of a deed, lease (minimum five years and landlord approval for proposed project), or executed purchase and sale agreement

    Applicants for start-up organizations are required to submit both a business plan that describes the details of your business idea and its prospective operative functions and a strategic plan that outlines the projection of your business over the next five years and your plan to achieve those goals.

    Ineligible Applicants

    The following are examples of project types that are ineligible for the NOF grant:

    Project properties that are outside the NOF qualified investment area (QIA). Verify your property is located on a eligible commercial corridor with the interactive eligibility map.

    Places of worship that exclusively promote or incorporate religious teachings of any kind (e.g. after school programming with religious education)

    Residential properties including home-based businesses and live/work spaces​

    Heavy manufacturing or industrial businesses or properties​

    Social services organizations including workforce development, schools, and daycare centers

    Projects that only correct deferred maintenance issues (e.g. boiler system replacement)

    Projects that only address building repairs compelled by a Court Order due to significant issues, mechanic liens, building code violations, or substantial past due property taxes

    Projects that only conduct minor structural/site repairs and improvements (e.g. outdoor patio resurfacing)

    Projects that only create new surface parking lots (e.g. design, construction, resurfacing)

    Eligible Expenses

    All expenses must be approved by the City of Chicago before construction starts and prior to any payments to contractors. Permanent building improvements that enhance the appearance or viability of a property are generally eligible for reimbursement. Eligible improvements include, but are not limited to:

    Site preparation, such as environmental remediation work and demolition

    Exterior improvements, such as roofs, walls, doors, and windows

    Interior improvements, such as stairs, floors, and ceilings

    Mechanical system upgrades, such as electrical, HVAC and fire prevention

    Acquisition costs that are part of a larger redevelopment project

    Ineligible Expenses

    The following items are not eligible for reimbursement. Ineligible expenses include, but are not limited to:

    Any work on the interior of residential units. However, the exterior of residential portions of mixed-use buildings may be eligible.

    Operational expenses of any kind (e.g. inventory, staff salaries)

    Costs related to furnishings, fixtures, and equipment that are not permanently installed at the project site (e.g. tables and chairs)

    Repairs and improvements for government facilities

    These lists are not comprehensive. For more information on eligibility and requirements, please see the NOF's official DPD page or contact [email protected].

    Applicant Resources

    Interested in applying for the NOF but not sure where to start? We offer several resources to assist prospective applicants in building their application.

    Quick Links

    NOF Program Overview Slideshow

    English Version

    Spanish Version | Versión en español

    Grant Information Sessions

    Potential applicants are encouraged to attend a grant information session in-person or online.

    Upcoming Sessions

    Additional dates coming soon.

    Previous Sessions

    Webinar | Friday, Jan. 31 2025
    Hosted by BACP
    Watch the recording here

    Webinar | Dec. 5 2024
    Watch the recording here

    Webinar | Thursday, Nov. 19
    Watch the recording here.

    Resources to Optimize Your Application

    Project Readiness

    Financial Feasibility

    Community Impact

    • Chicago Wards and Alderpeople - Find your local ward and alderperson as well as information about the City Council, including meetings, legislation, live streaming and other resources

    • Chicago Community Plans - A list of updated Community Plans that guide development in targeted Chicago neighborhoods

    • Neighborhood Business Development Centers (NBDCs) - No-cost hyper-local business development assistance to entrepreneurs and business owners throughout the city

    • Connect to Cook Data Portal - A portal that utilizes geographic Information systems (GIS) to highlight strategic opportunities for location, investment, or development

    • Chicago Open Data Portal - Find city data, find facts about your neighborhood, create maps and graphs about the city, and freely download the data for your own analysis

    • Community Partner Contact Information Neighborhood and development organizations that support NOF applicants and work with DPD to support the NOF grant program

    Applicant Toolkits

    Here you can find toolkits to assist you with specific aspects of the NOF application. They will walk you through the creation of required documentation, definitions of terms, and best practices for making your application as strong as possible.

    Our team is here to help! If you have questions that are not answered in the toolkits, please reach out to us at [email protected].

    Finalist Resources

    An applicant becomes a NOF finalist once their application is approved by the DPD Commissioner. ​IT IS IMPORTANT NOT TO BEGIN CONSTRUCTION OR PAY CONSTRUCTION COSTS UNTIL THE CONDITIONAL AWARD LETTER (CAL) IS ISSUED. Here you can find resources to aid with some pain points you may encounter as a NOF Finalist. More Finalist resources coming soon!

    Quick Links

    Legal Documents - Fillable Templates

    • Economic Disclosure Statement - Instructions for filling out the Economic Disclosure Statement (EDS) are viewable here. The EDS must be completed by the entity that is or will operate the business and also by the entity that owns the project property (unless you are a tenant).

    • Affidavit and Certification of Property Owner - This affidavit provides a formal declaration regarding property status and ownership, and protects against false declarations and claims.

    • Principal Profile Information - This information will be used for the purposes conducting “scofflaw” checks to ensure that all applicants are current on debts owed to the City. This form must be completed by any person that has more than a 7.5 percent ownership stake in your business or the real estate associated with your project. If you are a non-profit organization, your Board Directors will need to complete these forms.

    • Affidavit of Child Support Compliance - This form must be completed by any person that has more than a 7.5 percent ownership stake in your business or the real estate associated with your project. If you are a non-profit organization, your Board Directors will need to complete these forms.

    Finalist Toolkits Coming Soon!

    Grantee Resources

    A finalist becomes a NOF grantee and project construction begins once they have signed their grant award contract, the Conditional Award Letter (CAL). Here you can find resources to aid with some pain points you may encounter as a NOF grantee. More grantee resources coming soon!

    Quick Links

    City of Chicago Processes

    This information is provided to help NOF grantees better understand some of the City of Chicago requirements and procedures that commonly lead to delays in project completion. If you are unable to find the answers you're looking for, please don't hesitate to reach out with questions!

    Business Licenses

    • The Chicago Small Business Center (SBC) is the business licensing and permitting division of the City of Chicago Department of Business Affairs and Consumer Protection (BACP).

    • You can apply online or in person at the SBC (121 N LaSalle St). If you choose to apply in person, live wait times are viewable online.

    • Licenses are separated by type and each type has its own cost. Your license fee could be anywhere from $250 up to a few thousand dollars, so it’s important to know in advance what the cost is for your business type and to budget accordingly.

    • There is a late fee for license renewal applications filed after the expiration date of the current license. The license renewal late fee is 25% of the amount of the license fee, but in no event less than $25.

    • There are business activities regulated by the State of Illinois that may be exempt from City licensing. Please review the Business License Exemptions page for a sample list of occupations/professions which do not require a Chicago Business License.

    Please keep in mind when budgeting your project that the NOF cannot be used for license fees.

    Building Permits

    • Permits issued by the Department of Buildings (DOB) help to ensure construction work complies with the minimum standards of safety established by the Chicago Construction Codes in order to protect public health, safety, and welfare. A permit is required before beginning most construction, demolition, and repair work.

    • As of January 27, 2025, the average total time for building permit issuance is 73 Days. In adherence to the conditions set forth in your grant agreement (the Conditional Award Letter [CAL]), you must produce your permit within 120 days of the issuance of your CAL. It is important for you to keep this in mind, and to account for delays, as you are planning the timeline of your project.

    • In DOB's Guide to Building Permits (2024) you will find information on different types of permits and a Step-by-Step Tool to walk you through the permit process for different project types.

    • Through the Express Permit Program, some small projects are able to apply for a building permit without submitting any drawings. Other small projects can be permitted based on documentation less than full plans.

    • A permit must be paid for within 120 days of the notification that it is ready for payment, and the permit becomes active once payment is received. You then have 180 days from the date of payment to "begin" work for a plan-based building permit and 365 days for a permit issued through the Express Permit Program. To obtain a permit time extension or reinstatement, email [email protected] with the original permit number and address. Describe what work has been completed under the original permit (if any) and include the date of your last inspection with a DOB inspector (if applicable).

    Please keep in mind when budgeting your project that the NOF cannot be used for permit fees.

    Inspections

    • General contractors (GCs) are responsible for scheduling inspections as permitted work progresses so that the Department of Buildings (DOB) may inspect and verify the work being done is consistent with the permit drawings and the building code.

    • All building permit-related inspections must be requested using online forms. Only requests submitted on-line will be accepted.

    • The DOB responds to all requests for permit-related inspections on a first-come, first-served basis. You may request a specific date, and the Department will attempt to honor that request if an inspector is available. When requesting a specific date, please allow a minimum of four business days.

    • All projects involving 4 or more dwelling units, non-residential work exceeding 10,000 square feet, an institutional or assembly occupancy, or change of occupancy classification are required to obtain a Certificate of Occupancy, and inspections are required at specified intervals.

    Please keep in mind when budgeting your project that the NOF cannot be used for inspection fees.

    Grantee Toolkits Coming Soon!

    NOF News

    Now Accepting RFQs for TA and CDFI Services!

    SomerCor is seeking applications for professional services firms, architectural firms, and other professionals to provide specific technical assistance (TA) services for NOF participants, as well as applications for CDFIs to participate in the NOF’s Loan Loss Reserve (LLR) program and provide lending services for NOF grantees to finance and complete their projects.

    Click here to view the Approved CDFI Providers Request for Qualifications (RFQ).The CDFI application can be completed here.

    Click here to review the Approved TA Providers Request for Qualifications (RFQ). The TA application can be completed here.

    Applications for both RFQs are due by 5 p.m. on Friday, Feb. 28.

    Quarterly Newsletter

    View our most recent quarterly newsletter below. To sign up to receive future issues and other alerts about the NOF, click here.

    NOF January 2025 Newsletter Page_1
    NOF January 2025 Newsletter Page_2

    Additional Resources

    DPD NOF Website

    NOF Eligibility Map

    NOF Program Manual

    NOF Community Partners

    BACP Resources

    Chicago Small Business Center (SBC)

    Neighborhood Business Development Centers (NBDCs)

    Department of Buildings