In March 2020, the federal government enacted the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. 116–136) (CARES Act). The CARES Act made available $5 billion in CDBG coronavirus response (CDBG–CV) funds to prevent, prepare for, and respond to coronavirus. The first allocation per the CARES Act requires HUD to allocate up to $2 billion in CDBG–CV funds using the same formula that it used to allocate fiscal year 2020. CDBG–CV and CDBG grants are a flexible source of funding that can be used to pay costs that are not covered by other sources of assistance, particularly to benefit persons of low and moderate income.
CARES Act modifies some CDBG program requirements to provide immediate support for coronavirus efforts. Modifications include the following:
- Permits a public comment period of no less than 5 days when citizen participation is required.
- Permits grantees to develop expedited citizen participation procedures and to hold virtual public hearings when necessary for public health reasons.
- Eliminates the public services cap for coronavirus-related activities.
- Allows states and local governments to reimburse allowable costs of eligible activities regardless of the date the costs were incurred.
In 2020, the City of San Marcos CDBG program initiated the following CDBG-CV initiatives:
The 2019-2020 CDBG Action Plan was amended to add the $425,261 allocated to the City of San Marcos through the CDBG-CV grant for coronavirus response, and to award funding to specific projects for the use of these funds.
A public application process for the funding was held in May 2020. Four applications were received, and three are recommended for funding. Please review the presentation below or the Action Plan at the link above for more information.