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As with the first allocation, this second allocation of ESG-CV funds is subject to the <br />following flexibilities and conditions provided by the CARES Act: <br />• The funds may be used to cover or reimburse allowable costs incurred by a State or <br />locality before the award of funding (including prior to the signing of the CARES Act) to <br />prevent, prepare for, and respond to COVID-19; <br />• The funds are not subject to the spending cap on emergency shelter and outreach under 24 <br />CFR 576.100(b)(1); <br />• Up to 10 percent of funds may be used for administrative costs, as opposed to 7.5 percent <br />as provided by 24 CFR 576.108(a); <br />• The funds are exempt from the ESG match requirements, including 24 CFR 576.201; <br />• The funds are not subject to the consultation and citizen participation requirements that <br />otherwise apply to the Emergency Solutions Grants, however each recipient must publish <br />how its allocation has and will be used, at a minimum, on the Internet at the appropriate <br />Government web site or through other electronic media; <br />• The funds may be used to provide homelessness prevention assistance (as authorized <br />under 24 CFR 576.103 or subsequent HUD notices) to any individual or family who does <br />not have income higher than HUD's Very Low-hicome Limit for the area and meets the <br />criteria in paragraphs (1)(ii) and (1)(iii) of the "at risk of homelessness" definition in 24 <br />CFR 576.3; <br />• That recipients may deviate from applicable procurement standards when using these <br />funds to procure goods and services to prevent, prepare for, and respond to coronavirus, <br />notwithstanding 24 CFR 576.407(f) and 2 CFR 200.317-200.326; <br />• While we encourage you to offer treatment and supportive services when necessary to <br />assist vulnerable homeless populations, individuals and families experiencing <br />homelessness must not be required to receive treatment or perform any other prerequisite <br />activities as a condition for receiving shelter, housing, or other services for which these <br />funds are used, notwithstanding 24 CFR 576.401(e). <br />In addition, the Act authorizes the Secretary to grant waivers of and specify alternative <br />requirements for statutes and regulations the Secretary administers in connection with the use of <br />ESG funds (except for requirements related to fair housing, nondiscrimination, labor standards, and <br />the environment). These waivers and alternative requirements can be issued when necessary to <br />expedite and facilitate the use of funds to prevent, prepare for, and respond to coronavims. HUD <br />has made available the following waivers that are applicable to ESG-CV funding: <br />• CPD Memo: Availability of Additional Waivers for CPD Grant Programs to Prevent the <br />Spread of COVID-19 and Mitigate Economic Impacts Caused by COVID-19 (5/22/2020) <br />o Waiver Applicability to ESG-CV -Made all ESG waivers provided in 3/31/2020 <br />memo applicable to ESG-CV <br />60A-5 <br />