HUD CPD Removes Requirement to Spend 80% of CDBG-CV Funds in Three Years

HUD’s Office of Community Planning and Development (CPD) published a notice in the Federal Register on April 18 removing the requirement that state and local grantees that received Community Development Block Grant supplemental funds (known as “CDBG-CV” funds) through the “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act) spend at least 80% of their grant within three years after the finalization of the grant agreement with CPD. Grantees must still spend all their CDBG-CV allocation within six years.

The Federal Register notice states that CPD did not anticipate expenditure delays that would be caused by the coronavirus pandemic, such as major supply chain issues for construction materials, prolonged shutdowns, and other economic effects of quarantines, social distancing, and workers dropping out of the workforce to care for family members. These forces delayed construction launch and completion, stalled inspections, and delayed at least some activities for virtually every CDBG-CV grantee. Delays were compounded for grantees as staff struggled to adjust to remote or hybrid work while implementing a number of other fast-moving and often overlapping CARES Act, Federal Emergency Management Agency (FEMA), and “American Rescue Plan Act” funding from multiple agencies, while considering the best uses for each funding source and preventing duplications of benefits. Due to impacts related to the pandemic, over one-third of the more than 1,200 CDBG-CV grantees have yet to achieve the 80% expenditure target.

Read the April 18 Federal Register notice at: