Community Health Center Construction Grants
Community Health Centers
CSFA Number: 511-00-3658
STATE AGENCY INFORMATION
Agency Name
Capital Development Board (511)
Agency Identification
CHC
Agency Contact
PROGRAM INFORMATION
Short Description
Pursuant to 30 ILCS 766, the Community Health Center Construction Act ("Act"), the Capital Development Board in cooperation with the Illinois Department of Public Health is authorized to make grants available to Federally Qualified Health Centers (FQHC) and FQHC Look-Alikes for the following purposes:
1. Purchasing equipment
2. Acquiring a new physical location for the purpose of delivering health care services, and/or
3. Constructing or renovating new or existing community health center sites.
Federal Authorization
N/A
Illinois Statue Authorization
The Community Health Center Construction Act, 30 ILCS 766
Illinois Administrative Rules Authorization
Community Health Center Construction Grant Rules, 71 Ill. Adm. Code 42
Objective
To improve the provision of healthcare throughout the state and boost health outcomes for medically underserved residents of Illinois.
UGA Program Terms
Timely Billing Required. Grantee must submit any payment request after completion of the
payment milestones identified in Part Three of the Grant Agreement. Grantee is not required to
submit pay requests at the end of each quarter.
Business Enterprise for Minorities, Women, and Persons with Disabilities Act. For projects
$250,000 and over, CDB will place goals for the utilization of businesses owned by minorities, women and persons with disabilities. The applicable goals will be determined by CDB based on the size and location of the project. Grantee agrees to endeavor to meet any applicable goals and agrees to coordinate the meeting of these goals with CDB’s Fair Employment Practices Unit and to provide documentation of its good faith efforts to meet those percentages in the event that the goals are not met.
Failure to meet the goals or to provide sufficient Good Faith Efforts, as determined by CDB, is a breach of the grant agreement, which may result in withholding payments, termination, or other action under the grant agreement. If awarded a grant, applicable goal percentages should be reflected in any advertisements and resulting contracts that are funded with grant funds. CDB will provide a Letter of Intent that must be included in all bid packages and returned to CDB, when requested. Each of the contractors, subcontractors, and suppliers used in meeting the goals must be certified with the Commission on Equity and Inclusion as a minority-owned business, woman-owned business, or person with a disability owned business and must provide a "commercially useful function," as outlined in 49 CFR 26.55(c). Only the value of the portion of a contract being performed by the minority-owned business, woman-owned business, or person with a disability owned business will count towards meeting the goal.
Additional Legal Requirements.
(a) All project procurements shall be in accordance with applicable law, including but not limited to 2 CFR Part 200.
(b) Grantee agrees to comply with the Business Enterprise for Minorities, Women, and Persons with Disabilities Act (30 ILCS 575), the Illinois Accessibility Code (71 Ill. Admin. Code 400), and the Employee Classification Act (820 ILCS 185).
(c) Grantee agrees to comply in all respects with the Illinois State Agency Historic Resources Act (20 ILCS 3420) and the Archaeological and Paleontological Resources Protection Act (20 ILCS 3435) and hereby accepts the assignment of any duties Grantor has or may have under the Acts.
(d) Grantee agrees to comply in all respects with Executive Order 2006-05, Construction Activities in Special Flood Hazard Areas, if applicable.
(www.illinois.gov/Government/ExecOrders/Documents/2006/execorder2006-5.pdf)
(e) If the Grantee’s project(s) and/or land development(s) fall under the requirements of the Farmland Preservation Act (505 ILCS 75), the Interagency Wetland Policy Act of 1989 (20 ILCS 830), the Illinois Natural Areas Preservation Act (525 ILCS 30), and/or the Illinois Endangered Species Protection Act (520 ILCS 10), Grantee hereby accepts the assignment of any duties Grantor has or may have under those, and prior to beginning any construction, Grantee shall provide Grantor with proof of compliance. In the alternative, Grantee certifies that the project(s) and/or land development(s) is not impacted by the statutes identified herein.
(f) Grantee agrees to comply with Prohibition on Use of Grant Funds for Prohibited Political Activities in the Illinois Grant Funds Recovery Act (30 ILCS 705/4.3).
(g) All contracts for the construction of fixed works which are financed in whole or in part with funds provided by this Agreement shall include a project labor agreement, unless CDB determines that it is not required for a particular project. Each such project labor agreement shall comply with the requirements of Section 25 of the Project Labor Agreements Act (30 ILCS 571/25).
(h) Grantee agrees to comply with the Illinois Works Jobs Program Act Apprenticeship Initiative (30 ILCS 559/20-20).
i. Applicable Goal: For projects with an estimated total project cost of $500,000 or more and for which 50 percent or more of the project is being funded by appropriated capital funds, the 10 percent apprenticeship goal applies to all prevailing wage eligible work on the project. For projects receiving $500,000 or more of appropriated capital funds but for which the appropriated capital funds are less than half of the total project costs, the 10 percent apprenticeship goal only applies to prevailing wage eligible work being funded by the appropriated capital funds. The 10 percent apprenticeship goal does not apply to projects with an estimated total project cost of less than $500,000 or to projects with an estimated total project cost of $500,000 or more but for which the appropriated capital funds for the project are both less than $500,000 and less than 50 percent of the estimated total project costs. Of the 10% Apprenticeship Initiative goal, at least 50% of the labor hours of each prevailing wage classification performed by apprentices shall be performed by graduates of the Illinois Works Preapprenticeship Program, the Illinois Climate Works Preapprenticeship Program, or the Highway Construction Careers Training Program.
ii. Budget Supplement: Grantee shall submit the Illinois Works Jobs Program Act Apprenticeship Initiative Budget Supplement as identified in the Payment Milestones in the Grant Agreement. The Budget Supplement shall contain a complete and thorough estimate of all the labor hours for the project, broken down by prevailing wage category.
iii. Reporting Requirements: When Apprenticeship Initiative goals are applicable, grantee shall submit quarterly reports of the hourly workforce utilization including all apprenticeship hours using Illinois Works Apprenticeship Initiative Reporting Forms. Reports shall be submitted on the dates provided in the grant agreement.
iv. Reduction or Waiver of Goal. If, at any point during the project when goals are applicable, grantee determines that the apprenticeship goal for any prevailing wage classification may not be met, Grantee shall submit a request for a reduction or waiver of that particular goal, indicating why the goal may not be met. Grantee shall include all documentation supporting the request.
v. Certification of Completion. Upon completion of the work set forth in the Grant Agreement, when goals are applicable, Grantee shall submit a certification demonstrating that the 10% apprenticeship goal has been met or that Grantee received a reduction or waiver of the 10% apprenticeship goal for each prevailing wage classification. In the event that work on the project extends beyond the term of the Grant Agreement, Grantee shall submit an additional certification upon completion of all project work.
Bonding Requirements. Grantee shall comply with the bonding requirements in 2 CFR 200.326.
Prohibition on Administrative Costs. Grant funds shall not be spent for Grantee’s administrative costs and expenses, whether incurred as an officer, employee, or on a contractual basis. Indirect Costs may not be charged to the Award. All expenses must be bondable capital improvements.
Use and Ownership of Facility. Grantee must comply with the requirements of 2 CFR 200.311
for any real property acquired or improved using Grant Funds.
Eligible Applicants
Other;
Applicant Eligibility
Applicants for funding must meet the following requirements:
1. Be an FQHC or FQHC Look-Alike as defined by the Community Health Center Construction Act.
2. Serve, in whole or in part, a designated Medically Underserved Area (MUA) or Medically Underserved Population (MUP) as defined in the Community Health Center Construction Act.
3. Meet requirements for FQHC grantees and Look-Alikes under section 330 of the Public Health Service Act; and
4. Offer primary health care services as defined by the Community Health Center Construction Act.
Beneficiary Eligibility
N/A
Types of Assistance
Project Grants
Subject / Service Area
Healthcare
Credentials / Documentation
Applicants must e-mail a signed Letter of Intent on organizational letterhead to apply for these grant funds to the Illinois Department of Public Health, Center for Rural Health and to the Illinois Capital Development Board. The e-mail must include:
1. The proposed grant applicant name, project location, and description of project.
2. The proposed users of the primary health care services and the service area, including identification of any MUA or MUP designations.
3. Issues creating a high need for primary health care services, including any significant or unique barriers to care.
4. Other providers of care including any other FQHCs under section 330 of the Public Health Service Act or FQHC Look-Alikes in the service area.
5. All primary health care services to be provided, including mental health, substance abuse and oral health care services, as well as the mechanism for providing each service (e.g., direct service, referral).
6. Project stage of development and the ability of the applicant to meet the requirements for program compliance including either acquiring a new physical location or renovating existing sites or purchasing equipment to expand the services of an existing community health center site.
7. Readiness to receive funding, including the ability of the facility and providers at the new access point or expanded facility to be operational upon completion of the capital portion of the project.
Upon submitting the Letter of Intent, the prospective applicant shall e-mail a copy of the “Notification of Application for State Funding of Community Health Center Construction” to the Executive Director or CEO at other FQHCs and FQHC Look-Alikes in the service area. The application packet submitted to the Department and the Board shall include a copy of the completed notification form as well as the names and addresses of individuals to whom the forms were sent, the organizations that the individuals represent and the date of the notification.
If the applicant leases the building or land to be modified as part of the grant proposal, they must include a letter signed by the landlord agreeing to CDB's terms of use for leased spaces. The letter is provided as part of the application and must be uploaded to the application in order to be accepted.
Preapplication Coordination
Applicants must e-mail a signed Letter of Intent on organizational letterhead to apply for these grant funds to the Illinois Department of Public Health, Center for Rural Health and to the Illinois Capital Development Board. The e-mails must include:
1. The proposed grant applicant name, project location, and description of project.
2. The proposed users of the primary health care services and the service area, including identification of any MUA or MUP designations.
3. Issues creating a high need for primary health care services, including any significant or unique barriers to care.
4. Other providers of care including any other FQHCs under section 330 of the Public Health Service Act or FQHC Look-Alikes in the service area.
5. All primary health care services to be provided, including mental health, substance abuse and oral health care services, as well as the mechanism for providing each service (e.g., direct service, referral).
6. Project stage of development and the ability of the applicant to meet the requirements for program compliance including either acquiring a new physical location or renovating existing sites or purchasing equipment to expand the services of an existing CHC site.
7. Readiness to receive funding, including the ability of the facility and providers at the new access point or expanded facility to be operational upon completion of the capital portion of the project.
Upon submitting the Letter of Intent, the prospective applicant shall e-mail a copy of the “Notification of Application for State Funding of Community Health Center Construction” to the Executive Director or CEO at other FQHCs and FQHC Look-Alikes in the service area. The application packet submitted to the Department and the Board shall include a copy of the completed notification form as well as the names and addresses of individuals to whom the forms were sent, the organizations that the individuals represent and the date of the notification.
If the applicant leases the building or land to be modified as part of the grant proposal, they must include a letter signed by the landlord agreeing to CDB's terms of use for leased spaces. The letter is provided as part of the application and must be uploaded to the application in order to be accepted.
Application Procedures
Submissions shall be made via the State of Illinois Grant Management System. A link to the application site is provided below.
Criteria Selecting Proposals
To ensure that all parts of the State benefit from this program, at least one award will be made to the highest scoring applicant in each of the six Illinois Department of Public Health regions. (https://dph.illinois.gov/contact-us/regional-health-departments.html)
This program will also award one grant to a designated Rural location based on census data, if not already awarded by region.
Remaining funds will be awarded to the overall highest scoring applicants.
Award Procedures
Awards will be selected by merit based review process.
Funds are disbursed following industry standard construction milestone achievements on the following sample schedule:
Execution of Agreement: 10% of award
Completion of Construction Documents: 20% of award
Bid award and acceptance of Business Enterprise Program requirements: 20% of award
Construction reaching 50% completion: 40% of award
Substantial Completion: final 10% of award
Actual milestones may differ depending on the requirements of the project.
Range of Approval or Disapproval Time
N/A
Appeals
Competitive grant appeals are limited to the evaluation process. Evaluation scores may not be protested. Only the evaluation process is subject to appeal.
Submission of Appeal - An appeal must be submitted in writing in accordance with the grant application document.
An appeal must be received within fourteen calendar days after the date that the grant award notice has been published.
The written appeal shall include at a minimum the following:
i. the name and address of the appealing party
ii. identification of the grant
iii. a statement of reasons for the appeal
Renewals
The grant term will be a maximum of five years. Renewals are not permitted. No-cost extension requests may be considered.
Uses and Restrictions
No portion of a Community Health Center Construction grant awarded under this program may be used by a health center or other healthcare provider to pay for any on-going operational costs, pay outstanding debt, or be allocated to an endowment or other invested fund. All purchases made with grant funds must be bondable, meaning the items must have an extended useful life, be durable, improve or enhance the facility, and not be a reoccurring expense.
Allowable costs and activities include the following:
• Acquisition and installation of allowable equipment
• Appraisals from a licensed appraiser
• Architectural and engineering services by licensed individuals
• Bid advertising
• Bid bonds and performance and payment bonds. A bid bond or guarantee is a form of security assuring that the bidder will not withdraw a bid within the period specified for acceptance and will execute a written contract and furnish required bonds. Performance bonds secure fulfillment of all the contractor's obligations under the contract and payment bonds assure payment as required by law to all persons supplying labor and material in the execution of the work provided for in the contract.
• Contingency fund. To provide for unanticipated costs, applicants for construction grants may include a project contingency amount with the initial total allowable cost estimates. The construction contingency is an allowance for cost growth that may occur during construction as a result of unexpected circumstances or incomplete design documents. CDB recommends no more than 10% of the construction budget for contingency. Any unused contingency funds set aside from the grant award must be spent on other, approved direct project costs or returned.
• General conditions (e.g., moveable site trailers, port-a-johns, hard hats, temporary or limited duration signage, security costs during construction).
• Inspection and commissioning fees.
• Insurance. Costs of builder’s risk insurance, title insurance, physical destruction insurance, and liability insurance are generally allowable. Builder's risk insurance and title insurance may be charged to the grant in proportion to the amount of State participation in the property.
• Legal fees. Legal fees related to obtaining a legal opinion regarding title to a site.
• Pre-award costs. Costs incurred before award for architect's fees, consultant's fees, and environmental analysis necessary for the planning and design of the project are allowable if the project is subsequently approved and funded. Pre- award construction costs are generally unallowable.
• Site survey and soil investigation and any necessary remediation.
• Site clearance. Site clearance costs are allowable if they are reflected in the bid.
Reports
Grantees are required to submit financial and performance reports. Additional reports on the utilization of apprentices during construction may also be required.
In addition to required reporting, grantees are subject to fiscal and programmatic monitoring visits by CDB in accordance with 2 CFR 200.329. Grantees must have an open-door policy allowing periodic visits by CDB monitors to evaluate the progress of the project and must provide documentation upon request. CDB staff will also maintain contact with the participants and will monitor progress and performance under the terms of the agreement(s). CDB may modify grants based on performance.
Audits
Grantee must comply with the audit requirements listed in Administrative Rule, 44 Ill Adm Code 7000.90.
Records
Grantees must retain all records related to the project for no less than three years following completion of the project.
Account Identification
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Range and Average of Financial Assistance
Award ceiling of $3,000,000
Program Accomplishments
Results of this grant program will improve the availability of healthcare services, reduce healthcare disparities, and improve the coordination, effectiveness, and efficiency of care delivery.
Regulations, Guidelines, and Literature
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Regional or Local Assistance Location
N/A
Headquarters Office
Capital Development Board
401 S. Spring, 3rd Floor
Springfield, IL 62706
Example Projects
Purchase and renovation of an existing building to create additional medical exam rooms and a multi-chair dental clinic.
Renovation of an existing clinic to add more than 10 exam rooms and create additional lab space.
Replace facility roof and purchase new electronic signage.
FUNDING INFORMATION
Funding By Fiscal Year
FY 2026 : $50,000,000
Federal Funding
None
Notice of Funding Opportunities
| Agency ID | Award Range | Application Range |
| Details | GMS Community Health Center Construction Grants - Rebuild Illinois | $0 - $3000000 | 01/19/2026 - 03/31/2026 |
| Details | 511-00-3658 | $1 - $3000000 | 01/20/2026 - 03/31/2026 : 05:00PM |
ACTIVE AWARDS