Community Development Block Grant Waivers, Funding Additions, and Flexibilities
ADDITIONAL FUNDING TO THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM IN RESPONSE TO COVID-19 (CDBG-CV) AND NEW FLEXIBILITIES AND WAIVERS FOR 2019 + 2020 COMMUNITY DEVELOPMENT BLOCK GRANTS (CDBG)
The CARES Act makes $5 billion available in supplemental CDBG funding in response to the coronavirus and creates flexibilities for current grantees. These waivers and flexibilities are meant to make it easier for grantees to provide services given the uncertainties that the pandemic has created.
KEY TAKEAWAYS:
Grantees for both CDBG and CDBG-CV funds can now spend more than 15% of their funding on public services activities (e.g. job training for new health services workers, testing and diagnosis, equipment and supplies, and meals on wheels delivery to quarantined individuals).
Grantees with CDBG-CV funding can use the funds to reimburse costs incurred due to the coronavirus pandemic, regardless of when the costs occurred, as long as the costs comply with CDBG policy.
Citizen participation and public hearing requirements have been reduced. Public comment periods can now be as few as 5 days. In-person public hearings are no longer required and can now be done virtually.
Consolidated Plans and Action Plans must now be submitted by the deadline of August 16, 2021.
ACTIONS TO TAKE NOW:
To apply for CDBG-CV grants, grantees may follow existing regulatory requirements for a substantial amendment to the grantee’s action plan that describes the amount of CDBG-CV funds available in the first allocation and planned use of funds.
Grantees can apply for CDBG-CV grants before HUD releases a Federal Register describing the requirements for applying.
IMPORTANT LINKS: