$5 Billion in Supplemental Community Development Block Grant (CDBG)

The Coronavirns Aid, Relief and Economic Security Act (CARES Act) (Public Law 116-136) makes available $5 billion in supplemental Community Development Block Grant (CDBG) funding for grants to prevent, prepare for, and respond to coronavirus (CDBG-CV grants). Additionally, the CARES Act provides CDBG grantees with flexibilities that make it easier to use CDBG-CV grants and fiscal years 2019 and 2020 CDBG Grants for coronavirus response and authorizes HUD to grant wa1vers and alternative requirements.

The Department has announced the allocations of the first $2 billion in CARES Act funding for CDBG grantees, as well as $1 billion for Emergency Solutions Grants (ESG) and $53.7 million for Housing Opportunities for Persons With AIDS (HOPW A). You can find the allocations at www.hud.gov/program offices/comm planning/budget'fy20/.

This memorandum transmits the attached CARES Act Flexibilities for CDBG Funds Used to Support Coronavirus Response Guide (Guide). The Guide describes the immediate availability of a 5-day public comment period for amendments and new plan submissions, uncaps the percentage of CDBG funding for public services to prevent, prepare for, and respond to coronavirus, as well as other flexibilities.

Please note that these new provisions are not only applicable to the $5 billion in CDBG :funding from the CARES Act but many of the new provisions are also applicable to FY2019and FY2020 CDBG funding. This broad applicability provides grantees with flexibility to help address the challenges facing our nation.

Grantees are advised to amend or prepare their plans as soon as possible and not to wait for the pending Federal Register notice, which may provide additional waivers and alternative requirements. Similarly, grantees should not wait for HUD to allocate the remaining nearly $3 billion of the $5 billion provided by the CARES Act for the CDBG program. Upon publication of the Federal Register notice and subsequent allocations, grantees receiving allocations will then amend plans accordingly.


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