Opportunity Overview
The Kansas Department of Commerce is accepting applications for the 2026 CDBG Commercial Rehabilitation Program. The program supports rehabilitation of qualifying privately owned commercial buildings in Kansas downtown or commercial districts so they can return to productive business use. CDBG funds are for building improvements, not general business assistance.
Funding and Deadline
The controlling 2026 guidelines state that $1.2 million is available for this program. The maximum award is $300,000, Commerce expects approximately two awards, and applicants must provide a 25% match of the CDBG grant request.
Applications are due October 16, 2026 at 11:59 PM Central Time. The application period opened March 2, 2026.
Who Can Apply
Only eligible Kansas cities and counties may apply through the State CDBG program. The following entitlement jurisdictions are not eligible for the state program: Kansas City, Lawrence, Leavenworth, Manhattan, Overland Park, Topeka, Wichita, and all of Johnson County. Communities with an open CDBG project currently in a time extension are also ineligible until that project is successfully closed.
The assisted property must be a privately owned commercial building that, after rehabilitation, will house a new or expanded for-profit business serving the community with goods or services. Only one property under common ownership may be included per application, although multiple addresses may qualify when they are under single ownership and treated as one parcel.
National Objective and Eligible Work
Projects must qualify under either Low- and Moderate-Income job creation/retention or prevention/elimination of blight on a spot basis. Under the job creation/retention track, at least 51% of jobs created or retained must be held by, or made available to, LMI persons. Under the blight track, the local governing body must formally identify the building as blighted under applicable law and document the specific conditions threatening public health and safety.
Eligible rehabilitation can include interior and exterior rehabilitation, internal remodeling to accommodate business use, private infrastructure improvements such as parking, sidewalks and lighting, energy improvements, roof and structural stabilization, unsafe window and door replacement, facade work tied to documented blight, fire suppression and egress improvements, safety-related electrical or HVAC work, ADA corrections, and historic preservation. Business-specific buildouts, ordinary operations, real-property purchase, residential portions of the structure, and purely aesthetic improvements are not eligible under the published rules.
Match and Readiness Requirements
Matching funds may come from public or private sources, including bank financing, owner equity, local-government contributions, and other grants or loans, but they must be firmly committed. At least 10% of the matching funds must be cash from a local source. Costs incurred before award are not reimbursable with CDBG funds.
An approved pre-application is mandatory before a full application may be submitted. Commerce states that pre-applications are reviewed within about ten days. Applicants should also coordinate with CDBG staff before filing. The local government must satisfy citizen-participation requirements, including an initial public hearing held at least 15 full days before application submission, and must prepare the required environmental-review documentation.
Atlas Assessment
Atlas Opportunity Score: 49/100. This is a legitimate Kansas capital-rehabilitation opportunity with meaningful funding, but it is highly property-specific and requires a city or county applicant, a qualifying privately owned commercial building, an identified reuse plan, an eligible national objective, secured match, and an approved pre-application.
N9+ Fit: 0/100. QC Healthcare Fit: 0/100. Direct Vendor Fit: 0/100. The program funds building rehabilitation rather than business equipment or clinical technology. A future healthcare tenant could potentially occupy a rehabilitated building if all program requirements are met, but the published rules do not establish a defensible pathway for N9+, remote-examination technology, or QC Healthcare equipment as grant-funded costs. Ordinary initial outreach must not introduce or sell N9+.
Official Sources
Kansas Department of Commerce — Commercial Rehabilitation
2026 CDBG Commercial Rehabilitation Guidelines