Carson approves flexibility for CDBG CARES Act Funds

New flexibility of CARES Act funding being used by HUD has been approved by Secretary Ben Carson, as announced by a HUD press release last Friday.

These are Community Development Block Grant (CDBG-CV) funds, which are used across the country to help local communities that are struggling during the coronavirus pandemic.

“As communities recover from the impacts of the coronavirus outbreak, HUD is providing States and local units of governments with the flexibility they need to effectively target funds to those efforts that need it most,” said Secretary Carson in the HUD press release. “In combating the novel coronavirus, we have to be responsive to challenges as they arise.”

Examples of new flexibilities for these CDBG-CV funds, as listed by the HUD press release, include:

• "States may carry out activities directly or pass funds through to local governments in both rural and urban areas throughout the state. (Some funds must be set aside for rural areas.)
• Economic development rules updated and streamlined so grantees can move quickly to help small businesses, and
• Emergency payments to a provider or landlord on behalf of a family or individual, usually limited to 90 days, may extend for up to six months.
• The Notice also contains waivers and alternative requirements to expedite submissions across multiple grant programs so states and local governments can quickly realign existing resources to respond to COVID-19."

HUD states that to date, it "has provided over $3 billion in CDBG-CV funds nationwide to help communities combat coronavirus and alleviate economic hardship."