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 was awarded to the City of Hagerstown and following an application process this funding was made available in the form of grants to the following non-profits to carry out eligible public service activities:
- Girls' Inc. of Washington County: $21,100.00
- Washington County Commission on Aging: $17,300.00
- Washington County Community Action Council: $435,482.69
In September 2020, the City received a second allocation of $274,365 in CDBG-CV funds. Applications to receive a grant from this funding are currently being accepted until January 22, 2021.
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.
Unlike the first allocation's application cycle, the second allocation of funding is open to any type of activity as long as it (1) prevents, prepares for, or responds to the COVID-19 pandemic and (2) benefits low-to-moderate income individuals.
Eligible activities for this funding include, but are not limited to:
- 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 six (6) 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