Work Session

Mayor and Council Work Session and Executive Session October 6, 2020 Agenda "The City of Hagerstown will promote a diverse, business-friendly, and sustainable community with clean, safe, and strong neighborhoods." "The City of Hagerstown shall be the model provider of the most efficient and highest quality customer services to be known as the municipal location of choice for all" "Productivity is never an accident. It is always the result of a commitment to excellence, intelligent planning, and focused effort." Paul J. Meyer ********************************************************************** In accordance with CDC guidelines, attendees are required to wear face coverings, and seating is limited to provide social distancing. ********************************************************************** 2:00 PM Dedication of Mural on Basketball Court at Wheaton Park 3:00 PM Executive Session 4:00 PM WORK SESSION 1. Proclamation: Fire Prevention Month 4:05 PM 2. Community Coalition Legislative Priorities - Paul Frey, CEO/President of Washington County Chamber of Commerce, and James Kercheval, Executive Director Greater Hagerstown Committee 4:25 PM 3. Request for Demolition Assistance Grant for 341 Jonathan Street - Pastor Pamela Parson - Scott Nicewarner, City Administrator 4:40 PM 4. FY 2021 Community Legacy and Strategic Demolition Fund Applications - Megan Flick, Planner 4:55 PM 5. Renewal of Rental Contract with NIST for Use of Space in Elizabeth Hager Center - Jonathan Kerns, Community Development Manager 5:05 PM 6. Additional Community Development Block Grant CARES Act Funding Allocation (CDBG-CV) - Jonathan Kerns, Community Development Manager CITY ADMINISTRATOR'S COMMENTS MAYOR AND COUNCIL COMMENTS ADJOURN  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: ********************************************************************** In accordance with CDC guidelines, attendees are required to wear face coverings, and seating is limited to provide social distancing. ********************************************************************** Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates:  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Dedication of Mural on Basketball Court at Wheaton Park Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates:  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Executive Session Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: File Name Description October_6__2020_Executive_Session.pdf Executive Session Agenda  EXECUTIVE SESSION MAYOR & CITY COUNCIL OCTOBER 6, 2020 AGENDA 3:00 p.m. EXECUTIVE SESSION 1. To consider a matter that concerns the proposal for a business or industrial organization to locate, expand, or remain in the State; #4 *Business proposal 2. To consult with counsel to obtain legal advice, #7 *Legal advice and negotiation of an agreement – 4 items *AUTHORITY: Annotated Code of Maryland, General Provisions Article: Section 3-305(b) (Subsection is noted in parentheses)  CITY OF HAGERSTOWN, MARYLAND PUBLIC BODY: Mayor & City Council DATE: October 6, 2020 . PLACE: Council Chamber, 2nd floor, City Hall TIME: 3:00 pm . AUTHORITY: ANNOTATED CODE OF MARYLAND, GENERAL PROVISIONS ARTICLE: Section 3-305(b): 1. To discuss: [ ] (i) the appointment, employment, assignment, promotion, discipline, demotion, compensation, removal, resignation or performance evaluation of appointees, employees, or officials over whom it has jurisdiction; or [ ] (ii) any other personnel matter that affects 1 or more specific individuals; [ ] 2. To protect the privacy or reputation of individuals with respect to a matter that is not related to public business; [ ] 3. To consider the acquisition of real property for a public purpose and matters directly related thereto; [X] 4. To consider a matter that concerns the proposal for a business or industrial organization to locate, expand, or remain in the State; [ ] 5. To consider the investment of public funds; [ ] 6. To consider the marketing of public securities; [X] 7. To consult with counsel to obtain legal advice; [ ] 8. To consult with staff, consultants, or other individuals about pending or potential litigation; [ ] 9. To conduct collective bargaining negotiations or consider matters that relate to the negotiations; [ ] 10. To discuss public security, if the public body determines that public discussions would constitute a risk to the public or public security, including: (i) the deployment of fire and police services and staff; and (ii) the development and implementation of emergency plans; [ ] 11. To prepare, administer or grade a scholastic, licensing, or qualifying examination; [ ] 12. To conduct or discuss an investigative proceeding on actual or possible criminal conduct; or [ ] 13. To comply with a specific constitutional, statutory, or judicially imposed requirement that prevents public disclosures about a particular proceeding or matter; or [ ] 14. Before a contract is awarded or bids are opened, discuss a matter directly related to a negotiation strategy or the contents of a bid or proposal, if public discussion or disclosure would adversely impact the ability of the public body to participate in the competitive bidding or proposal process. [ ] 15. Administrative Function  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Proclamation: Fire Prevention Month Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates:  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Community Coalition Legislative Priorities - Paul Frey, CEO/President of Washington County Chamber of Commerce, and James Kercheval, Executive Director Greater Hagerstown Committee Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: File Name Description memo_-_Community_Coalition_-_2021_Legislative_Priorities.pdf 2021 Legislative Priorities  CITY OF HAGERSTOWN, MARYLAND Donna K. Spickler City Clerk One East Franklin Street • Hagerstown, MD 21740 E-mail: dspickler@hagerstownmd.org Telephone: 301.766.4183 • TDD: 301.797.6617 TO: Mayor and City Council Members Scott Nicewarner, City Administrator FROM: Donna K. Spickler, City Clerk SUBJECT: Community Coalition Legislative Priorities DATE: October 1, 2020 ------------------------------------------------------------------- Paul Frey, CEO/President of the Washington County Chamber of Commerce, and Jim Kercheval, Executive Director of Greater Hagerstown Committee, will be present during the October 6, 2020 Work Session to discuss the Coalition’s 2021 Draft Legislative Priorities. Please let me know if you have any questions. Thank you.  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Request for Demolition Assistance Grant for 341 Jonathan Street - Pastor Pamela Parson - Scott Nicewarner, City Administrator Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: File Name Description Request_for_Demolition_Assistance_Grant_for_341_Jonathan_Street.pdf Memo - Request for Demolition Grant  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: FY 2021 Community Legacy and Strategic Demolition Fund Applications - Megan Flick, Planner Mayor and City Council Action Required: Discussion: Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: File Name Description UPDATED_MCC_Community_Legacy_FY21.docx DHCD Grant Requests FY21  CITY OF HAGERSTOWN, MARYLAND Planning and Code Administration Department MEMORANDUM TO: Scott Nicewarner, City Administrator FROM: Megan Flick, Planner DATE: October 1, 2020 SUBJECT: FY 2021 Community Legacy and Strategic Demolition Fund Applications Mayor and Council Action Requested Mayor and Council authorization is needed to begin the process to submit FY 2021 applications to the State’s Community Legacy Program and Strategic Demolition Fund as well as adoption of a resolution in support of the City’s applications. The deadline for grant applications is October 15. Staff is bringing the grant requests for Mayor & Council support at the October work session and approval of resolutions on October 27. DHCD’s Community Revitalization Assistance Program – Community Legacy & SDF The goal of the programs are to provide funding to local governments and community development organizations for essential projects aimed at strengthening declining urban areas through a comprehensive approach that includes activities such as business retention and attraction, encouraging home-ownership and rehabilitation, and commercial revitalization. Projects must be consistent with the goals and strategies outlined in the City’s Sustainable Community Plan and the projects must be located in the City’s Sustainable Community Area. Community Legacy funds may be used only for capital projects - bricks and mortar projects or loan/grant programs for brick and mortar projects. Our Community Legacy representative at the State has indicated that projects must be ready to go and be completed within two years. While there is no matching requirement, the application needs to show that the project will leverage other funds. The Strategic Demolition Fund may be used for pre-construction costs of a project – acquisition, demolition, architectural and engineering services, etc. and the matching requirement is 25%. Proposed FY 2021 Applications The proposal for applications to Community Legacy this year is to request funding for: an Upper Floor Market Rate Housing Development Fund, 12-40 unit projects; a CDC Acquisition/Rehab of Vacant, Blighted Buildings Fund, and a Broadband Fit-Out to facilitate Distance Learning and Job Development at community accessible non-profit facilities. The proposal for applications to the Strategic Demolition Fund this year is to re-apply as a pass-through for the Doleman Black Heritage Museum. The projects are consistent with the City’s Sustainable Community Plan. One East Franklin Street | Room 300 | Hagerstown, Maryland 21740-4987 301.739.8577, Ext. 138 or 103 codecompliance@hagerstownmd.org | planning@hagerstownmd.org FY2021 Community Legacy and SDF Applications October 1, 2020 Page 2 Program Grant Project Local Match Request Community Upper Floor Market Rate Housing Legacy $750,000- Developer Development Fund $1,500,000 CDC Acquisition/Rehab of Vacant, Community Legacy $200,000 CDBG Blighted Buildings Fund Broadband Fit-Out Fund to facilitate Community Distance Learning & Job Legacy $100,000 No match Development Doleman Black Heritage Museum Strategic $250,000 DBHM (25%) (acquisition & architectural services) Demolition Total $1,300,000- $2,050,000 If funded, the match for the Upper Floor Market Rate Housing Development Fund will be provided by the developer. The plan for the CDC Acquisition/Rehab of Blighted Buildings request is to apply for funding for the work of a land bank. The funding would be matched by the CDBG fund. The request for the Broadband Fit-Out would not be matched if funded. The Doleman Museum plan for a Strategic Demolition Fund program request is $250,000. This would cover the $120,000 acquisition cost of 465 Pennsylvania Avenue and the projected need of $130,000 for architectural services. The last two years, the SDF application for this project was not successful and the museum has requested we apply again this year. Preservation Maryland and the Western Maryland Community Development Corporation are requesting that the City of Hagerstown be a “co-applicant” for Strategic Demolition Funding, a program of Maryland’s Department of Housing and Community Development (DHCD), to support pre-development and development activities in the Jonathan Street neighborhood. The grant will request up to $500,000 in funding to support redevelopment activities including acquisition, architectural and engineering, feasibility studies, stabilization and rehabilitation for up to four structures which may include the Caretakers Cottage in Wheaton Park. If the grant application is successful, the applicant partners will work with the community on priorities for investment. Identifying the community's assets and building a consensus about appropriate actions to preserve the community will be done through a process known as Community Asset Mapping. This community engagement strategy will lead to an appreciation of the community's historic significance which, in turn, will foster a sense of community pride and civic engagement. Preservation Maryland has secured private funding for this community engagement strategy that will be used as match funding for the application. Attachments: Hagerstown’s Past Community Legacy and SDF Awards C: Michelle Hepburn, Finance Director Rodney Tissue, City Engineer Jill Thompson, Director DCED Jonathan Kerns, Community Development Manager Hagerstown’s Past Community Legacy Awards Year Project Award Status FY 2002 Home Pride Housing Improvement Program $500,000 Completed FY 2002 Home Pride Parking Grant Program $110,000 Completed FY 2002 S. Potomac/Antietam Street Intersection Improvement $26,000 Completed FY 2003 University Plaza $750,000 Completed FY 2004 BISFA Feasibility Study $20,000 Completed FY 2004 Performing and Visual Arts Center Relinquished $50,000 (Situation Changed) FY 2005 Massey Redevelopment Loan Relinquished $50,000 (MHT Demo Issues) FY 2006 Alms House Acquisition and Stabilization $85,000 Completed FY 2007 Meda’s Adaptive Re-Use Relinquished $115,000 (Situation Changed) FY 2007 BISFA Facade Improvement $115,000 Completed FY 2008 Upper Floors Renovation RLF $100,000 Completed FY 2008 S. Potomac Street Housing Project Relinquished $150,000 (Impact of Down Economy) FY 2009 Hagerstown Neighborhood Development Partnership, Inc Relinquished Project at 25-29 S. Potomac Street $150,000 (Situation Changed) FY 2011 Business Incubator, 60-64 W. Washington Street $150,000 Completed FY 2012 Artist Lofts, 36-40 N. Potomac Street $80,000 Completed FY 2013 43-53 W Washington Street Acquisition $100,000 Completed FY 2014 43-53 W Washington Street Rehabilitation $100,000 Completed FY2021 Community Legacy and SDF Applications October 1, 2020 Page 4 FY 2014 170 W Washington Street Rehabilitation $50,000 Completed FY 2015 USMH Student Housing Project (grant award transferred to 170 W Washington St Rehabilitation Project due to $100,000 Completed complications with Maryland Historical Trust (MHT) FY 2015 Acquisition/Rehabilitation of 278 South Prospect Street for $100,000 Completed Homeownership FY 2016 Acquisition/Rehabilitation of Dwelling for Homeownership $150,000 Nearly Complete FY 2016 Renovation of storefronts in Main Street Area (for City $50,000 Complete Center Retail/Restaurant Incentive Program) FY 2017 Student Housing Project $200,000 Complete FY 2017 Down Payment Assistance Program $50,000 Complete FY 2017 Façade Grant Program for Commercial & Mixed-Use $25,000 Complete Buildings FY2019 UIP – the Plaza construction and First Hose Historic Rehab Planning in $420,000 process FY2020 Student Housing Project $200,000 RFP in process TOTAL $3,996,000 Hagerstown’s Past Strategic Demolition Fund Awards Year Project Award Status FY 2018 UIP – Maryland Theatre Expansion (pre-construction) $300,000 Complete FY 2018 UIP – BOE Expansion (pre-construction) $300,000 Complete FY 2018 UIP – the Plaza (underground wiring) $300,000 Complete FY 2019 UIP –the Maryland Theatre Expansion $500,000 Complete FY2020 Life Safety Infrastructure Grant Program (Sprinkler $125,000 In process Vaults) TOTAL $1,525,000  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Renewal of Rental Contract with NIST for Use of Space in Elizabeth Hager Center - Jonathan Kerns, Community Development Manager Mayor and City Council Action Required: Staff request Mayor & Council approval to renew a rental contract agreement with the National Institute of Standards and Technology (NIST) for use of space in the Elizabeth Hager Center. The term of the proposed rental contract is for one year with renewal options for up to four additional years. Discussion: Background and New Agreement Terms For several years, NIST has been utilizing space in the Elizabeth Hager Center to serve as a continuity of operations site (commonly referred to as a COOP). The new rental contract allows for NIST staff to conduct emergency drills in the Elizabeth Hager Center up to four times a year. NIST staff may also use the Elizabeth Hager Center if an actual emergency event would prevent use of NIST offices in Gaithersburg, MD. The previous rental contract agreement with NIST was approved by the Mayor & City Council in December of 2016 and the contract included one year renewal options through December of 2021. The contract required NIST to pay the City an annual rent payment of $13,848 and the annual payment amount would increase to $14,476 in 2020 and 2021. Due to an administrative error with NIST’s internal staff process for extending this contract, the contract has now expired and a new contract must be executed. Key terms and conditions of the proposed rental contract include the following: Contract to be effective from October 2020 through October 2021 Annual rent charge of $15,344 One year renewal options that could extend the contract through October 2025 Annual rent charge would increase in option year 3 and option year 4 to $16,264 Staff have worked with the City Attorney and NIST representatives to review all terms of the proposed rental contract. If City staff are directed to move forward with the NIST contract, a resolution approving the contract will be scheduled for approval during an October special session. Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: File Name Description 100620_NIST_Lease_Renewal.pdf NIST Rental Contract Renewal  REQUIRED MOTION MAYOR AND CITY COUNCIL HAGERSTOWN, MARYLAND Topic: Additional Community Development Block Grant CARES Act Funding Allocation (CDBG-CV) - Jonathan Kerns, Community Development Manager Mayor and City Council Action Required: Staff request Mayor & City Council feedback on proposed next steps for a second allocation of CDBG-CV funding being awarded to the City through the Federal CARES Act legislation. Discussion: Background on CDBG-CV Funding In early April, the City received written correspondence from the U.S. Department of Housing and Urban Development (HUD) regarding a special allocation of “CDBG-CV” funding being awarded to the City in the amount of $472,845. This CDBG-CV funding was a result of the Federal CARES Act legislation in response to the COVID-19 pandemic. A second allocation of CDBG-CV funding was to be announced at a later date. Staff recently received formal HUD notification that the City will be awarded a second allocation of CDBG-CV funding in the amount of $274,365. Like the first CDBG-CV allocation, the second allocation of CDBG-CV funding must be used via standard CDBG activities that also prevent, prepare for, or respond to the COVID-19 pandemic. These activities still must meet CDBG national objective requirements with the primary national objective being a benefit to low/moderate income citizens. Initial CDBG-CV For Local Non-Profit Service Providers For the City’s first allocation of CDBG-CV funding, non-profit service providers were given the opportunity to submit applications to seek CDBG-CV funding for public service activities that provide assistance to COVID-19 impacted, CDBG eligible clientele. After an application period and review process, the City Council approved CDBG-CV funding awards to local non-profit organizations as follows: Washington County Community Action Council Housing Stability Program (mortgage payment assistance and/or rent payment assistance) - $350,245 Washington County Community Action Council and Horizon Goodwill Housing Short- Term Housing Stability Funding and Food Resource Funding - $58,900 (this funding is administered in partnership with Horizon Goodwill and the Washington County Community Action Council is the lead agency) Washington County Community Action Council Food Resources for Food Pantry Program - $25,300 Washington County Commission on Aging Food Resources for Seniors - $17,300 Girls Inc. Food Resources for Girls Inc. Members - $21,100 During the initial application process for local non-profit organizations, total CDBG-CV funding requests exceeded available CDBG-CV funding. The initial CDBG-CV award amounts were based on an across the board reduction proportional to the requested amount of funding for each service. Proposed Next Steps for Second CDBG-CV Allocation CDBG-CV funding has been allocated to states and cities nationwide. After researching a random sample of CDBG-CV funded cities throughout the county, the majority of CDBG-CV funded programming is targeted for public service assistance programs (housing subsistence payments, homelessness services, food resource services) and business assistance programs. Hagerstown’s initial CDBG-CV allocations for housing stability services and food resource services appear to be in line with many CDBG-CV funded activities nationwide. Based on the common practice for CDBG-CV programming noted above and based on guidance from the HUD Baltimore Field Office, the recommended next steps for allocating the recently awarded CDBG-CV funding are: · Review progress of current CDBG-CV recipients (Girls Inc, Washington County Commission on Aging, Washington County Community Action Council) to discuss their demand for CDBG-CV funded services thus far after initial CDBG-CV award from July 2020 · If deemed appropriate by Mayor & City Council, the second allocation of CDBG-CV funding can be distributed to each non-profit recipient that received initial allocation of CDBG-CV funding without the need for a new application process · If distributed to initial CDBG-CV non-profit recipients, newly available CDBG-CV funding could be distributed in amounts proportional to the first awards OR funding could be awarded based on most critical need · After Mayor & City Council decision on second CDBG-CV allocation, a CDBG-CV amendment reflecting planned expenditures for the new CDBG-CV funding must be advertised– 5 day public comment period required · After required comment period, CDBG-CV amendment will be submitted to HUD for approval Staff is currently in the process of retrieving information from existing non-profit service providers that received the initial CDBG-CV awards. Information on their demand for CDBG-CV funded services and CDBG-CV expenditures thus far will be discussed in more detail during the October 6th work session. Staff will also be available to discuss other CDBG-CV program options and/or answer any questions on all of the above during the work session. Financial Impact: Recommendation: Motion: Action Dates: ATTACHMENTS: File Name Description 100620_CDBG-CV_Second_Allocation.pdf CDBG CARES Funding  U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WASHINGTON, DC 20410-7000 ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND DEVELOPMENT September 11, 2020 The Honorable Robert Bruchey Mayor of Hagerstown 1 E Franklin Street Hagerstown, MD 21740-4859 Dear Mayor Bruchey: I am pleased to inform you of a special allocation to your jurisdiction of Community Development Block Grant funds to be used to prevent, prepare for, and respond to the coronavirus (COVID-19). This allocation was authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Public Law 116-136, which was signed by President Trump on March 27, 2020, to respond to the growing effects of this historic public health crisis. The CARES Act made available $5 billion in Community Development Block Grant Coronavirus (CDBG-CV) funds. Of this amount, the Department immediately allocated $2 billion on March 27, 2020, the same day President Trump signed the Act, based on the fiscal year 2020 CDBG formula; this constituted the first round of CDBG-CV funds. Next, $1 billion was required by the Act to be allocated to States and insular areas within 45 days of enactment of the Act; HUD accomplished this on May 11, 2020, and this constituted the second round of CDBG-CV funds. Finally, the remaining $2 billion in CDBG-CV funds was required by the Act to be allocated to states and local governments at the discretion of the Secretary on a rolling basis; HUD accomplished this on September 11, 2020, and this constituted the third round of CDBG-CV funds. Additionally, up to $10 million will be set aside for technical assistance. Accordingly, this letter informs you that your jurisdiction’s allocation for the third round is $274,365. Your cumulative amount for all allocation rounds is $747,210. The CARES Act adds additional flexibility for both the CDBG-CV grant and, in some cases, for the annual FY2019 and FY2020 CDBG grants in these unprecedented times. The public comment period is reduced to not less than 5 days, grantees may use virtual public hearings when necessary for public health reasons, the public services cap is suspended during the emergency, and States and local governments may reimburse costs of eligible activities incurred for pandemic response regardless of the date. In addition, the CARES Act authorizes the HUD Secretary to grant waivers and alternative requirements of statutes and regulations the HUD Secretary administers in connection with the use of CDBG-CV funds and fiscal year 2019 and 2020 CDBG funds (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment). Waivers and alternative requirements can be granted when necessary to expedite and facilitate the use of funds to prevent, www.hud.gov espanol.hud.gov prepare for, and respond to coronavirus. The CDBG CARES Act Federal Register Notice (FR-6218-N-01) was released on August 10, 2020. The notice describes the allocations and grant procedures applicable to the CDBG-CV grants. It also describes the program flexibilities, waivers, and alternative requirements that apply to the CDBG-CV grants as well as the fiscal year 2019 and 2020 CDBG grants. As further such flexibilities become available, they will be posted on HUD’s website and distributed to grantees. The Department will also support grantees with technical assistance. As you develop your plan for the use of these grant funds, we encourage you to consider approaches that prioritize the unique needs of low- and moderate–income persons and the development of partnerships between all levels of government and the private for-profit and non- profit sectors. You should coordinate with state and local health authorities before undertaking any activity to support state or local pandemic response. CDBG-CV grants will be subject to oversight, reporting, and the requirement that each grantee have adequate procedures to prevent the duplication of benefits (DOB). HUD will provide guidance and technical assistance on DOB, the prevention of fraud, waste, and abuse, and on documenting the impact of this program for beneficiaries. Reminder, all CPD Grantees must ensure they maintain active Dun and Bradstreet Numbering System (DUNS) numbers in the System for Award Management (SAM) system. Entities must have an active and unexpired DUNS before execution of grant agreements to avoid delays in the obligation of funds- which will delay your ability to drawdown funds in the Integrated Disbursement & Information System (IDIS). Grantees are required to maintain an active SAMs registration by re-activating their DUNS number annually in the SAM system for the entire drawdown period of their grants. DUNS numbers can be registered and renewed each year at the following website: https://www.sam.gov/SAM/. The Office of Community Planning and Development (CPD) is looking forward to working with you to successfully meet the urgent and complex challenges faced by our communities. If you or any member of your staff has questions, please contact your local CPD Field Office Director or CPDQuestionsAnswered@hud.gov. Sincerely, John Gibbs Acting Assistant Secretary for Community Planning and Development U.S. Department of Housing and Urban Development Quick Guide to CDBG Eligible Activities to Support Coronavirus and Other Infectious Disease Response REVISED April 6, 2020 Grantees should coordinate with local health authorities before undertaking any activity to support state or local pandemic response. Grantees may use Community Development Block Grant (CDBG) funds for a range of eligible activities that prevent and respond to the spread of infectious diseases such as the coronavirus. Examples of Eligible Activities to Support Coronavirus and Other Infectious Disease Response For more information, refer to applicable sections of the Housing and Community Development Act of 1974 (for State CDBG Grantees) and CDBG regulations (for Entitlement CDBG grantees). Buildings and Improvements, Including Public Facilities Acquisition, construction, Construct a facility for testing, diagnosis, or treatment. reconstruction, or installation of public works, facilities, and Rehabilitate a community facility to establish an infectious disease treatment clinic. site or other improvements. Acquire and rehabilitate, or construct, a group living facility that may be used to See section 105(a)(2) (42 centralize patients undergoing treatment. U.S.C. 5305(a)(2)); 24 CFR 570.201(c). Rehabilitation of buildings and Rehabilitate a commercial building or closed school building to establish an infectious improvements (including disease treatment clinic, e.g., by replacing the HVAC system. interim assistance). See section 105(a)(4) (42 Acquire, and quickly rehabilitate (if necessary) a motel or hotel building to expand U.S.C. 5305(a)(4)); 24 CFR capacity of hospitals to accommodate isolation of patients during recovery. 570.201(f); 570.202(b). Make interim improvements to private properties to enable an individual patient to remain quarantined on a temporary basis. Assistance to Businesses, including Special Economic Development Assistance Provision of assistance to Provide grants or loans to support new businesses or business expansion to create jobs private, for-profit entities, and manufacture medical supplies necessary to respond to infectious disease. when appropriate to carry out an economic development Avoid job loss caused by business closures related to social distancing by providing project. short-term working capital assistance to small businesses to enable retention of jobs held by low- and moderate-income persons. See section 105(a)(17) (42 U.S.C. 5305(a)(17)); 24 CFR 570.203(b). Provision of assistance to Provide technical assistance, grants, loans, and other financial assistance to establish, microenterprises. stabilize, and expand microenterprises that provide medical, food delivery, cleaning, See section 105(a)(22) (42 and other services to support home health and quarantine. U.S.C. 5305(a)(22)); 24 CFR 570.201(o).  Provision of New or Quantifiably Increased Public Services Following enactment of the Carry out job training to expand the pool of health care workers and technicians that CARES Act1, the public are available to treat disease within a community. services cap2 has no effect on CDBG-CV grants and no Provide testing, diagnosis or other services at a fixed or mobile location. effect on FY 2019 and 2020 Increase the capacity and availability of targeted health services for infectious disease CDBG grant funds used for response within existing health facilities. coronavirus efforts. See section 105(a)(8) (42 Provide equipment, supplies, and materials necessary to carry-out a public service. U.S.C. 5305(a)(8)); 24 CFR Deliver meals on wheels to quarantined individuals or individuals that need to 570.201(e). maintain social distancing due to medical vulnerabilities. Planning, Capacity Building, and Technical Assistance States only: planning grants Grant funds to units of general local government may be used for planning activities and planning only grants. in conjunction with an activity, they may also be used for planning only as an activity. See section 105(a)(12). These activities must meet or demonstrate that they would meet a national objective. These activities are subject to the State’s 20 percent administration, planning and technical assistance cap. States only: use a part of to Grant funds to units of general local government to hire technical assistance providers support TA and capacity to deliver CDBG training to new subrecipients and local government departments that building. are administering CDBG funds for the first time to assist with infectious disease See section 106(d)(5) (42 response. This activity is subject to the State’s 3 percent administration, planning and U.S.C. 5306(d)(5). technical assistance cap. Entitlement only: data Gather data and develop non-project specific emergency infectious disease response gathering, studies, analysis, plans. and preparation of plans and the identification of actions that will implement such plans. See 24 CFR 570.205. Planning Considerations Infectious disease response conditions rapidly evolve and may require changes to the planned use of funds: CDBG grantees must amend their Consolidated Annual Action Plan (Con Plan) when there is a change to the allocation priorities or method of distribution of funds; an addition of an activity not described in the plan; or a change to the purpose, scope, location, or beneficiaries of an activity (24 CFR 91.505). If the changes meet the criteria for a “substantial amendment” in the grantee’s citizen participation plan, the grantee must follow its citizen participation process for amendments (24 CFR 91.105 and 91.115). Under the CARES Act, CDBG grantees may amend citizen participation and Con Plans concurrently in order to establish and implement expedited procedures with a comment period of no less than 5-days. Resources The Department has technical assistance providers that may be available to assist grantees in their implementation of CDBG funds for activities to prevent or respond to the spread of infectious disease. Please contact your local CPD Field Office Director to request technical assistance from HUD staff or a TA provider. Submit your questions to: CPDQuestionsAnswered@hud.gov Coronavirus (COVID-19) Information and Resources: https://www.hud.gov/coronavirus CPD Program Guidance and Training: https://www.hudexchange.info/program-support/ 1 On March 27, 2020, President Trump approved the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136) (CARES Act). The CARES Act makes available $5 billion in CDBG coronavirus response (CDBG-CV) funds to prevent, prepare for, and respond to coronavirus. 2 Section 105(a)(8) of the HCD Act caps public service activities at 15 percent of most CDBG grants. Some grantees have a different percentage cap.