CDBG-CV CARES Act Funding
CDBG-CV CARES Act Funding Overview
On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law and made available a total of $5 billion in supplemental Community Development Block Grant funds (CDBG-CV) to be used for grants to prevent, prepare for, and respond to the COVID-19 pandemic. An allocation of $472,845 in CDBG-CV funds has been awarded to the City of Hagerstown and this funding will likely be available in the form of grants to local non-profits to carry out eligible public service activities.
Federal HUD Regulations
To be considered for CDBG-CV funding a program or project must meet the following National Objective:
- Benefit to Low-to-Moderate Income (LMI) Persons: to qualify for funding under the LMI category, the persons or households served must have income levels at or below 80% of the area median income (AMI) as set forth in the chart below. Programs that serve special needs populations, including the elderly or disabled, are usually considered to be a presumed benefit as these populations are principally considered to be low-to-moderate income.
The following activities will be eligible to receive CDBG-CV program funds (please note that for each of these eligible activities the low-to-moderate income individual receiving benefit would need to demonstrate pandemic related hardship to qualify):
- Housing stability programs for utility relief, rent relief payments, mortgage relief (up to three months) for low-to-moderate income households living within the City of Hagerstown;
- Other housing stability/homeless prevention activities; and
- Food assistance programs.
Reasonable administration expenses incurred for carrying out the proposed public service activity will also be considered an eligible use of funds (not to exceed 15% of the grant award).
Priority Ineligible Activities
The following activities will be considered ineligible to receive CDBG-CV program funds:
- Any activity that is not directly related to the prevention of, preparation of, or response to the COVID-19 pandemic;
- Any activity that does not benefit a majority low-to-moderate income persons;
- Reimbursement for expenses that have already been accrued (other than utility/rental/mortgage assistance);
- Income payments for more than three (3) consecutive months;
- Supplanting or substituting expenses currently paid for by other sources;
- Political activities and lobbying;
- Purchase of equipment, specifically for construction but also including fire protection equipment, furnishings, and personal properties; and
- Maintenance expenses.
Any questions or concerns about the CDBG-CV application or CDBG-CV funding in general can be directed to Mr. Jonathan Kerns, Community Development Manager, at firstname.lastname@example.org or (301) 739-8577 ext. 134.
Additional information about the CDBG-CV funding allocations as provided by the U.S. Department of Housing and Urban Development can be found at https://www.hud.gov/coronavirus