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               Researh Sevice






Funding for HUD in the CARES Act



April 7, 2020
Division B of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116-136)
provided S 12.4 billion in additional FY2020 funding for several Department of Housing and Urban
Development (HUD) programs and activities. The funds are generally for one of three broad purposes: to
provide additional resources to meet emerging needs, to support existing rental assistance programs, or to
provide additional administrative capacity and oversight. Three-quarters of the funding can be considered
new resources to meet emerging needs, with most of the remaining funding supporting rental assistance
programs. HUD has announced allocations of some grant funding provided by the law.

Additional Resources to Meet Emerging Needs

Several HUD grant programs provide relatively flexible funding to state and local governments, tribes, or
other entities for eligible affordable housing, community development, or related activities. Because these
programs generally fund a range of allowable activities, they may be useful in addressing a variety of
emerging needs related to the pandemic. More-targeted grant programs can help address needs of specific
vulnerable populations. The CARES act provides the HUD Secretary broad waiver authority in most
accounts to expedite or facilitate the use of the funds to respond to the coronavirus.
    *  $5 billion for the Community Development Fund for Community Development
       Block Grants (CDBG): $2 billion to be allocated pursuant to the standard CDBG
       formula, $I billion for direct allocation by HUD to states and insular areas, and up to $10
       million to supplement existing awards and for technical assistance. The remaining funds
       are to be distributed to states and units of local government on a rolling basis as
       determined by the HUD Secretary.
    *  $4 billion for the Emergency Solutions Grants (ESG) (one type of HUD Homeless
       Assistance Grants): up to $2 billion to be distributed to states and units of local
       government using the ESG formula (based on the CDBG formula); remaining funds
       distributed based on a formula that will take into account factors such as risk of
       coronavirus transmission, number of people experiencing homelessness, and housing
       market conditions. Funds can be used for emergency shelter, short- and medium-term
       rental assistance, homelessness prevention activities, and supportive services; as well as
       temporary emergency shelters, to train staff on disease prevention and mitigation, and for
       hazard pay. A technical assistance set-aside for health care services is included.

                                                                 Congressional Research Service
                                                                   https://crsreports.congress.gov
                                                                                       IN11319

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