The CARES Act:

On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Public Law 116-136, to directly address the impacts of the COVID-19 Coronavirus.  As part of the CARES Act, Congress appropriated $5 billion in Community Development Block Grant Coronavirus (CDBG-CV) funds.  Of this amount, the U.S. Housing and Urban Development (HUD) immediately allocated $2 billion, based on the fiscal year 2020 CDBG formula.  The remaining $3 billion was allocated on needs, using best available data, in the following tranches, or portions:

• Second Tranche: $1 billion is being allocated to States and insular areas within 45 days of enactment of the CARES Act.
• Third Tranche: $2 billion is being distributed to states and local governments at the discretion of the HUD Secretary.

Consolidated Plan Requirement Waivers to Prevent the Spread of COVID-19

Additionally, HUD has issued waivers of certain regulatory requirements related to Consolidated Plan and Citizen Participation requirements.  Specifically, the City of Merced will be utilizing two of these waivers in order to expedite the use, City Council authorization, and implementation of these funds:

1. Citizen Participation Plan Comment Period - this waiver grants a reduction of the required 30-day comment period to no less than five (5) days, in order to balance the City's ability to lessen the negative effects of the coronavirus with the regulatory requirement to provide our citizens with governmental transparency and opportunity to comment.  Accordingly, when actions regarding use of CDBG-CV funds are necessary, the City will be providing citizens with a reduced public comment period of at least five (5) days.
2. Citizen Participation Reasonable Notice and Opportunity to Comment - this waiver grants the City the ability to determine, outside the adopted Citizen Participation Plan, what constitutes reasonable notice and opportunity to comment during its efforts to limit public gatherings and expedite the use of funds.

The City of Merced's CDBG-CV Allocation:

First Round:

The City of Merced Housing Division's CDBG Program was allocated $661,246 in the first or "immediate" allocation of CDBG-CV funds, as described above.  These funds are supplemental to the annual allocations of CDBG funds the City receives and shall specifically be used to prevent, prepare for, and respond to COVID-19. 

At Public Hearings in May and June of 2020, the First Substantial Amendment to the 2019 Annual Action Plan was approved by City Council and funding was allocated to approved local programs.  Through provided public comment, the City assessed the immediate needs in the community in order to determine where best to direct this special allocation.  As a result, First Round funding was directed to the following activities: COVID-related rent/mortgage/utility payment assistance (residential); food bank operating cost assistance; and, microenterprise (1-5 employees)/small business assistance (6-20 employees).

Third Round:

On September 11, 2020, HUD notified the City of Merced that an additional allocation of CDBG-CV funding is available.

After publishing notices in the Merced Sun-Star and Merced County Times, a five-day public comment period (2/9 - 2/16/21) was held, and on February 16, 2021, the City Council approved a Second Substantial Amendment to the 2019 Annual Action Plan to accept and allocate these funds.  The Third Round funding will be distributed to the existing CDBG-CV rental/mortgage/utility payment assistance and food bank assistance programs that were identified and approved during the First Round of CDBG-CV funding.  

2021 HUD CDBG Income Limits Effective June 1, 2021

2020 HUD CDBG Income Limits Effective July 1, 2020