HUD Allows New Uses for COVID-19 Relief Funds

State and local governments have been given increased flexibilities to assist in pandemic response.

States and local government have been given new flexibilities to utilize Community Development Block Grant (CDBG-CV) funds appropriated by the CARES Act, as well as other federal funds, to support their communities in the wake of the COVID-19 pandemic.

In a mid-August announcement, the Department of Housing and Urban Development (HUD) said:

States may carry out activities directly or pass funds through to local governments in both rural and urban areas throughout the state. Some funds must be set aside for rural areas.

Economic development rules have been updated and streamlined so grantees can move quickly to help small businesses.

Emergency payments to a provider or landlord on behalf of a family or individual, usually limited to 90 days, may be extended for up to six months.

The notice also contains waivers and alternative requirements to expedite submissions across multiple grant programs so states and local governments can realign existing resources to respond to COVID-19.

For more information on HUD's response to the pandemic, visit HUD.gov/coronavirus.