2020-042 CDGB Available FundsDate: May 1, 2020 Report No.
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
The Community Development Block Grant (CDBG-CV) $618,762 in funding made available to
the City of Denton through the Coronavirus Aid, Relief and Economic Security Act (CARES Act).
BACKGROUND:
The Coronavirus Aid, Relief and Economic Security Act (CARES Act) (Public Law 116-136)
made available $5 billion in supplemental Community Development Block Grant (CDBG) funding
for grants to prevent, prepare for, and respond to coronavirus (CDBG-CV grants). Additionally,
the CARES Act provides CDBG grantees with flexibilities that make it easier to use CDBG-CV
grants and fiscal years 2019 and 2020 CDBG Grants for coronavirus response and authorizes HUD
to grant waivers and alternative requirements.
HUD announced the allocations of the first $2 billion in this CARES Act funding for CDBG
grantees. On April 2, 2020, HUD provided the City with notification that our allocation would be
$618,736. The CARES Act added additional flexibility for both the CDBG-CV grant funding and
for the annual FY2020 CDBG grants. The public comment period is reduced to not less than 5
days, allowing the City to use virtual public hearings when necessary for public health reasons.
Overview of Provisions Related to the CDBG-CV Allocation
• Extends the deadline for submission of the FY19 and FY20 consolidated plan/action plans.
Due date is now August 16, 2021.
• Suspends the 15% cap on public services during the emergency, including FY19 and FY20
CDBG funds (Must be COVID-19 related).
• 5-day public comment period.
• Suspends in-person public hearings; allows grantees the option of holding virtual hearings.
• Allows HUD to waive further program requirements (except for requirements related to
fair housing, nondiscrimination, labor standards, and the environment).
• States and local governments may reimburse costs of eligible activities incurred for
pandemic response regardless of the date.
Overview of CDBG -CV Eligible Activities
Examples of eligible activities to support coronavirus and other infectious disease response are as
follows:
• Acquisition, construction, reconstruction, or installation of public works, facilities, and site
or other improvements;
• Rehabilitation of buildings and improvements;
• Provision of assistance to private, for-profit entities, when appropriate to carry out an
economic development project;
• Provision of assistance to microenterprises;
Date: May 1, 2020 Report No.
• Provision of public services used for coronavirus efforts; and
• Planning costs.
HUD Requirements
To facilitate the use of CDBG-CV funds, the City must amend the following:
• The HUD-approved 2015-2019 Consolidated Plan to specify economic and public service
goals in response to COVID-19;
• The HUD-approved 2019 Action Plan to allocate grant funds to COVID-19 related
activities through a substantial amendment; and
• The City’s 2015-2019 Citizen Participation Plan to incorporate HUD waivers for some of
the public noticing and comment periods typically required for substantial plan
amendments.
Timeline for CDBG-CV Funds
• On May 8, 2020, the Community Development Advisory Committee and the Human
Services Advisory Committee plan to meet remotely and consider recommendations for
use of the CDBG-CV funds and to provide guidance of the process for allocation.
• On May 19, 2020, a work session will be scheduled with City Council to review the
committee’s recommendations and receive direction.
• On May 20, 2020 the City will open a public comment period for substantial amendment
to the 2019 Action Plan regarding the use of the CDBG-CV funds.
• On June 2, 2020, City Council will consider approval of an ordinance authorizing the City
Manager to sign and submit a substantial amendment to the 2019 Action Plan for Housing
and Community Development in June 2020.
STAFF CONTACT:
Danielle Shaw
Community Services Manager
Danielle.Shaw@cityofdenton.com
REQUESTOR: Staff Initiated
PARTICIPATING DEPARTMENTS:
Community Development
STAFF TIME TO COMPLETE REPORT: 1.5 hours