Downtown Winthrop

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 FUNDS

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

Grantee Recipient

Consortium

Service Area

Entity providing assistance to service area residents, or managing project


Total CDBG-CV1 Award

A

City

No

Single city

City grantee or a subrecipient serving city area

Up to $13 per city LMI population*

B

County

No

Single county

County grantee or a subrecipient serving county area

County population formula amount**

C

County or city

Yes

2 or more counties and cities

County or City grantee, or a subrecipient serving the combined areas

Combined county population formula amounts**,
PLUS $13 per city LMI population*,
PLUS $1,000 for each consortium city or county (not including grant recipient)

* 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.

Program Links

CDBG Home Page
CDBG Specialty Grants
Consolidated Plan and Action Plan

Need help?

CDBG Section manager
Local Government Division
kaaren.roe@commerce.wa.gov
Phone: 360.725.3018
www.commerce.wa.gov/CDBG