In March 2020, the federal government enacted the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. 116–136) (CARES Act). The CARES Act made available $5 billion in CDBG coronavirus response (CDBG–CV) funds to prevent, prepare for, and respond to coronavirus. The first allocation per the CARES Act requires HUD to allocate up to $2 billion in CDBG–CV funds using the same formula that it used to allocate fiscal year 2020. The second round of funding went directly to the state. The third round granted $567,825 to the city. CDBG–CV and CDBG grants are a flexible source of funding that can be used to pay costs that are not covered by other sources of assistance, particularly to benefit persons of low and moderate income.
CARES Act modifies some CDBG program requirements to provide immediate support for coronavirus efforts. Modifications include the following:
- Permits a public comment period of no less than 5 days when citizen participation is required.
- Permits grantees to develop expedited citizen participation procedures and to hold virtual public hearings when necessary for public health reasons.
- Eliminates the public services cap for coronavirus-related activities.
- Allows states and local governments to reimburse allowable costs of eligible activities regardless of the date the costs were incurred.
In 2020, the City of San Marcos CDBG program initiated the following CDBG-CV initiatives:
The 2019-2020 CDBG Action Plan was amended to add the $425,261 allocated to the City of San Marcos through the CDBG-CV grant for coronavirus response, and to award funding to specific projects for the use of these funds.
Small Business Pandemic Assistance
The San Marcos Area Chamber of Commerce in collaboration with the City of San Marcos administers Revive SMTX which provides local businesses with federal funds to help them get through the COVID-19 pandemic. For link click here Revive SMTX
Community Action of Central Texas, Inc., in collaboration with the Blanco River Regional Recovery Team and the City of San Marcos administers a rent/mortgage/utility assistance program for individuals and families who have been impacted by the COVID-19 pandemic and related economic issues. Click here for more information and an application.