CDBG Coronavirus Response Supplement (CDBG-CV)

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- Attention Interested Parties - 

 

5/7/2020:  Please access the CDBG-CV funding application at the below link to download and print.  We will work on a fillable .pdf version as we are able, but please begin with this.  Thank you for your patience.

LINK:  Community Development Block Grant Coronavirus Response (CDBG-CV) Application

 

Other updates:

  • 5/7/2020:  The City of Merced Housing Division is amending its Citizen Participation Plan with HUD-issued waiver flexibilities for public notice, citizen participation, and reasonable opportunity to comment procedures that were issued on April 1, 2020, and which the City of Merced implemented on April 30, 2020.  Please refer to this page for details and opportunity to add your comments May 4-8, 2020.
  • The Merced City Council will be discussing a COVID-19 Recovery Plan, Report Item J.1., at the City Council Meeting of Monday, May 4, 2020, at 6:00 p.m.  CARES Act CDBG-CV funding will be one of the options discussed. 
  • Link to Agenda: Agenda - May 4, 2020 City Council.   If you miss this meeting on the evening it is held, you will still be able to play back and view the meeting via this link.
  • As part of the Public Comment period for CARES Act funding, comments regarding the use of this funding will be accepted from Monday 5/4/20 through 5/8/20 by following the directions in the 4/30/2020 Public Notice .
  • As published on April 30, 2020, a Public Hearing will be held on May 18, 2020, where your submitted comments will be considered and heard and final funding allocations determined.

The CARES Act:

On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Public Law 116-136, to directly address the impacts of the COVID-19 Coronavirus.  As part of the CARES Act, Congress appropriated $5 billion in Community Development Block Grant Coronavirus (CDBG-CV) funds.  Of this amount, the U.S. Housing and Urban Development (HUD) has immediately allocated $2 billion, based on the fiscal year 2020 CDBG formula.  The remaining $3 billion will be allocated on needs, using best available data, in the following tranches, or portions:

  • $1 billion will be allocated States and insular areas within 45 days of enactment of the CARES Act
  • $2 billion will be distributed to states and local governments at the discretion of the HUD Secretary.

Consolidated Plan Requirement Waivers to Prevent the Spread of COVID-19

Additionally, HUD has issued waivers of certain regulatory requirements related to Consolidated Plan and Citizen Participation requirements.  Specifically, the City of Merced will be utilizing two of these waivers in order to expedite the use and implementation of these funds:

  1. Citizen Participation Plan Comment Period - this waiver grants a reduction of the required 30-day comment period to no less than five (5) days, in order to balance the City's ability to lessen the negative effects of the coronavirus with the regulatory requirement to provide our citizens with governmental transparency and opportunity to comment.  Accordingly, the City will be providing citizens with a reduced public comment period of five (5) days.
  2. Citizen Participation Reasonable Notice and Opportunity to Comment - this waiver grants the City the ability to determine, outside the adopted Citizen Participation Plan, what constitutes reasonable notice and opportunity to comment during its efforts to limit public gatherings and expedite the use of funds.

* Please Note * - Amendments to the Citizen Participation and Public Comment Process for COVID-19 Response

A Public Notice will be published in the April 30, 2020, editions of the Merced County Times and Merced Sun-Star publications that explains the citizen participation and public comment process that will be followed to our best efforts under these circumstances.  The Public Notice can also be viewed here - Public Notice.

The public comment period will be held from 8:00 a.m. Monday, May 4, 2020, to 5:00 p.m. Friday, May 8, 2020.   During this period, comments may be submitted by sending an email of 500 words or less to: housing@cityofmerced.org, or by leaving a voicemail of no more than three (3) minutes in length at this number: 209-385-6863.

A public hearing will be held at the City Council Meeting of May 18, 2020, 6:00 p.m., where public comments will be considered in determining the use of CDBG-CV funding.

The City of Merced's CDBG-CV Allocation:

The City of Merced Housing Division's CDBG Program has been allocated $661,246 in the first allocation of CDBG-CV funds.  These funds are supplemental to the annual allocations of CDBG funds the City receives and shall specifically be used to prevent, prepare for, and respond to COVID-19.  The City is in the process of assessing the immediate needs in the community in order to determine where best to direct this special allocation.  The City is required to direct a minimum of 70% of the funding to low-moderate income persons and households, per CDBG regulations.

HUD is not limiting the amount of this funding that may go to public service activities, which include, but are not limited to, those concerned with preventing homelessness, including subsistence rent and utility payment assistance programs; costs associated with the operation of food banks, community kitchens, and food pantries; and programs serving multiple groups of clients, such as meal delivery services for homeless, elderly, or disabled persons.

Notice of Funding Availability for Public Service Activities for COVID-19 Response 

A Notice of Funding Availability (NOFA) was published on April 16, 2020, and letters were sent directly to non-profit community organizations inviting applications to apply for CDBG-CV funds for specific programs that are directed to the local COVID-19 response.  The NOFA can be viewed here - 4-16-20 NOFA.  Applications will be accepted through May 22, 2020. 

An application is being prepared and will be posted shortly.

Economic Development - Help for Small Businesses

The City is also assessing economic development assistance for small businesses, in the form of grants or loans that would aim at the retention of jobs or assist new businesses create new jobs.  Economic Development assistance with CDBG-CV funds is also subject to HUD's requirements to prioritize funds to low- to moderate-income (LMI) persons; therefore, these grants or loans would be specially aimed at LMI business owners or businesses that hire LMI workers.

The City is developing its intended use for these funds.  Please revisit this page for more information.