Community Development Block Grant – Coronavirus Funds (CDBG-CV)
What are CARES Act CDBG-CV funds?
The federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) has allocated supplemental CDBG Coronavirus (CDBG-CV) funds through the US Department of Housing and Urban Development (HUD) to the state CDBG program at Commerce. The CDBG-CV funding will be provided to Commerce in up to three separate funding rounds.
Who will receive CDBG-CV funds from Commerce?
The first $7.7 million CDBG-CV1 allocation is granted to CDBG nonentitlement city and county governments (cities with less than 50,000 population and not part of a CDBG entitlement urban county CDBG program; and counties with less than 200,000 in population excluding entitlement cities).
The second $23 million CDBG-CV2 allocation is granted for eligible, CDBG entitlement and nonentitlement city and county government, and state activities based on COVID-19 factors prioritized by HUD, state and local governments. Additional details will be added as further guidance is provided by HUD.
A third CARES Act allocation is anticipated to be distributed by HUD to states and units of local government on a rolling basis, at the discretion of the HUD Secretary, with formula factors to be defined by HUD. It is uncertain whether the state of Washington will receive a portion of this allocation.
CDBG-CV1 grants fund local public services and microenterprise assistance programs; and public health, emergency response, or temporary housing facilities that address COVID-19 impacts, and grant administration. CDBG funded activities must benefit low- and moderate-income persons or meet the CDBG urgent need national objective criteria.
How do eligible cities and counties apply for CDBG-CV1 funds?
They submit an application describing proposed uses of funds and how federal requirements are met. The CDBG-CV ZoomGrants online application and guidance materials will be available here May/early June after the state submits its CARES Act Action Plan Amendment for HUD approval. The application due date will be announced.
What is the maximum CDBG-CV1 grant amount and funding distribution determined?
The population-based approach distributes funds equitably across the state, supports local/regional services and assistance programs, builds on local grant administration capacity, allows flexibility to respond to state and local priorities, and targets funds towards activities that benefit persons with low- and moderate-incomes impacted by COVID-19.
Grant amounts are in the applicable CDBG-CV1 Fund Distribution list. In addition, incentive funds are available for city/county consortiums in the following grant options table. To create a CDBG-CV1 consortium, use this CDBG-CV1 Funding Request Worksheet (Excel).
CDBG-CV1 Grant Option
Entity providing assistance to service area residents, or managing project
City grantee or a subrecipient serving city area
Up to $13 per city LMI population*
County grantee or a subrecipient serving county area
County population formula amount**
County or city
2 or more counties and cities
County or City grantee, or a subrecipient serving the combined areas
Combined county population formula amounts**,
* City amount = $13 per LMI population based on HUD LMI percentage or CDBG approved income survey ** County amount = $3 million distributed based on population (including nonentitlement cities), with a minimum of $8,000 for counties under 5,000 population.
How do people or businesses impacted by COVID-19 access the assistance?
The CDBG-funded services and programs may be offered directly by the local government CDBG recipient or they may pass the funds to a subrecipient service provider. So contact your local government, community action program, or associate development organization to learn if CDBG-funded assistance or other resources are available, and the qualifications. CDBG assistance is for persons with low- and moderate-incomes, and microenterprises (small businesses with five or fewer employees, with one being the owner).
When do the funds begin and end?
CDBG-CV funds may reimburse allowable costs incurred by the grantee recipient or subrecipient for approved activities related to COVID-19 beginning March 27, 2020 (CARES Act authorization date). The funds must be expended in a timely manner to address immediate needs. The grantee recipient’s CDBG-CV contract will establish the end date, which could extend to June 30, 2022.