As New York receives federal housing and homelessness funding from the recent CARES Act — hundreds of millions in the first round alone — the City and State will have to decide what their priorities are, as there is some flexibility in how the funding can be used.

Below, we outline some of the options for the two biggest pots of money — the Emergency Solutions Grant and the Community Development Block Grant — based on the program rules and the text of the CARES Act. Both programs allow for reimbursement of eligible expenses already incurred. Also, in both programs, the HUD Secretary may waive, or specify alternative requirements, for the funding (except for fair housing, nondiscrimination, labor standards, and the environment).

Emergency Solutions Grant-New York can use this funding to prevent, prepare for, and respond to coronavirus among people who are homeless or receiving homeless assistance and for homelessness prevention activities (for households at risk of homelessness earning up to 50% AMI). This could include:

  • Decrease density at congregate shelters to prevent the spread of the coronavirus — there are already 99 cases at 59 NYC shelters. Use funding to pay for hotels or aparments allowing unsheltered homeless people to self-isolate safely, and keeping at-risk people housed.
  • Help street homeless through outreach, expansion of services and housing options to prevent the spread.
  • Prevent families from entering shelter by offering eviction prevention or rental assistance. NYU Furman Center ‘s analysis released yesterday indicates that low-income renters are most impacted by loss of income from social distancing rules.

Additional Details
The spending cap on shelter, outreach and operations activities (as compared to rental assistance and housing relocation and stabilization spending) under ESG does not apply to this funding. Also, funding may be used for temporary emergency shelters (through leasing of existing property, temporary structures, or other means) to prevent, prepare for, and respond to coronavirus and minimum periods of use do not apply. The funds will be available until Sep. 30, 2022.

Community Development Block Grant-CDBG funding is known for its wide range of community supports. In NYC, it is used across many agencies and supports a variety of community needs including literacy, daycare, nutrition, building improvements, planning activities and building code enforcement. After super storm Sandy, CDBG’s disaster recovery funding supported recovery in New York. To fight the COVID-19 virus and its economic toll, HUD released a guide for infection disease response. Here are some other potential uses:

  • Construct or rehabilitate a facility to create a testing, diagnosis, or treatment clinic.
  • Provide equipment, supplies, and materials necessary to carry-out a public service.
  • Meals delivery to individuals that are quarantined or are social distancing due to medical vulnerabilities. 
  • Provide testing, diagnosis or other services at a fixed or mobile location. Such services could be provided to vulnerable populations in congregate housing such as supportive or senior housing.
  • Grants or loans to small businesses to enable retention of jobs held by low- and moderate-income persons. Many businesses which occupy commercial space in mixed use affordable housing buildings would benefit.
  • Grants or loans to nonprofits to support nonprofits that are affected by the coronavirus and are engaged in neighborhood revitalization or community economic development.

Additional Details
Up to $10 million may be used to provide an immediate increase in capacity building and technical assistance without competition required by procurement rules. The service cap is eliminated and public meeting requirements are waived. The funds will be available until September 30, 2022.