CARES Act CDBG-CV Program
CARES Act & CDBG-CV Overview
On March 27, 2020, the president signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The $2 trillion aid package provides financial aid to families and businesses impacted by the COVID-19 coronavirus pandemic. Funding was provided to multiple Federal Agencies and programs, including HUD and three of the Consolidated Plan Programs. ESG, HOPWA and CDBG all received CARES-Act funding or ESG-CV, HOPWA-CV and CDBG-CV funding. First round of CARES Act funding for South Carolina State Consolidated Plan programs included $8,745,852 for ESG-CV and $337,889 for HOPWA-CV. The second round of ESG CV, or ESG-CV2, provided an additional $18,346,815, bringing total ESG-CV funding to $27,092,667. Three allocations of CDBG-CV (CDBG-CV1, CV2 and CV3) were also announced bringing total CDBG-CV funding to $39,499,819.
CDBG-CV1 funding will be used to assist non-Entitlement local governments with community response to the coronavirus pandemic through funding for critically needed public services and public facility improvements, especially for schools where 75% or more of students receive SNAP or TANF and are in households meeting federal poverty guidelines. CDBG-CV can be used for public services as a primary component because, unlike regular CDBG, the CARES Act eliminated the public services cap. Only 15% of regular CDBG funding received in any year can be used for public services, whereas there is no cap on CDBG-CV funding for public services.
CDBG-CV2 and CV3 will be used for up to six months of short-term housing assistance to LMI families throughout the state, who have been financially impacted by the pandemic and are unable to meet rent or mortgage obligations. This is possible due to several CARES Act provisions that a) eliminate the regular CDBG cap on public service, which includes short-term housing assistance, b) extend the maximum amount of time that “subsistence payments” can be made from three months, applicable to the regular CDBG Program, to six months and c) gave HUD the authority to provide additional waivers. One of these HUD waivers under the CARES Act for CDBG-CV allows amounts in excess of the first CDBG-CV allocation, or CDBG-CV1, to be used in both entitlement and non-entitlement areas of the state and to involve activities carried out directly by the State or through contractors.
The SC Department of Commerce will administer the CDBG-CV1 program, and through an interagency agreement, the SC State Housing Authority will administer CDBG-CV2 and CV3.
- Click here to go the CDBG-CV Action Plan
CDBG CV Public Services & Facilities Program
CDBG-CV Short-Term Housing Assistance Program