HUD Expands Uses for Coronavirus Relief Funds

Saying HUD has to be “responsive to challenges as they arise,” Sec. Carson announced “new flexibilities” for communities administering CDBG-CV funds. It includes rule easing for small business aid and emergency payments to landlords on behalf of a family or individual.

WASHINGTON – U.S. Department of Housing and Urban Development (HUD) Secretary Ben Carson announced new flexibilities states and local government can use for Community Development Block Grant (CDBG-CV) funds appropriated by the CARES Act, as well as other federal funds.

HUD has provided over $3 billion in CDBG-CV funds nationwide to help communities alleviate economic hardship during the pandemic. HUD says it’s also giving communities flexibility if using non-CARES Act federal dollars to support coronavirus recovery efforts.

“In combatting the novel coronavirus, we have to be responsive to challenges as they arise,” says Carson.

HUD’s new flexibilities allowed for CDBG-CV funds

• 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.)

• Grantees can move quickly to help small businesses thanks to updated, streamlined economic development rules.

• Emergency payments to a provider or landlord, on behalf of a family or individual, have been extended. They were usually limited to 90 days, but can now be extended 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.

For more information on HUD’s response to the novel coronavirus pandemic and the actions the Department has taken, visit HUD.gov/coronavirus.

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