What Can CARES Act Funds Be Used For?
The CARES Act is a federal law designed to provide emergency assistance to those affected by disasters and crises. It allocates $2.2 trillion in short-term funding for various programs, including public health.
In 2020, Lakewood received funds from the state as part of an emergency relief program. These funds were allocated for COVID-19-related expenses such as facility safety improvements, technology upgrades and payroll reimbursement.
Community Development Block Grants (CDBG)
Community Development Block Grants (CDBGs) are federal funds that can be allocated for housing, community services, infrastructure and other needs identified by local communities. Their purpose is to assist low-income people lead safe, decent and healthy lives.
CDBG funding can be allocated for a range of activities, such as building or renovating homes; redeveloping neighborhoods; and creating business start-ups and microenterprises. Furthermore, funds may be allocated towards job training, substance abuse treatment and other public services.
Congress allocated $5 billion of the Coronavirus Aid, Relief, and Economic Security Act (CARES) to the CDBG program for state and local governments to distribute to communities as part of their COVID-19 pandemic response efforts19.
The North Carolina Department of Commerce administers the Non-Entitlement CDBG program for municipalities and counties under 50,000 in population. This initiative assists general-purpose local governments that do not participate in HUD’s CDBG Entitlement or Urban County programs by funding public service initiatives, public facilities projects and special economic development activities.
Emergency Shelter Assistance (ESA)
The Emergency Shelter Assistance (ESA) program offers a one-time payment up to $400 to prevent eviction or foreclosure of your home/apartment and find permanent housing. Additionally, it provides an allowance of between $100-$300 for temporary shelter.
Families may qualify for an ESA if their housing becomes unfit for human habitation due to an emergency or disaster, such as fire, flood, malfunctioning furnace or plumbing, or they must leave their permanent residence due to domestic violence.
In counties with HAP Rental Assistance programs, the CAO will reach out to HAP when necessary and arrange for the applicant to combine their ESA payment with HAP funds in order to receive the amount of financial assistance required to resolve a housing emergency.
Funds can be allocated to create, expand or upgrade public facilities providing medical care, social services and/or emergency housing in order to bolster a community’s capacity to prepare for, prevent and respond to the coronavirus pandemic as well as any future pandemics that may impact the region. This initiative is especially critical for those affected by both the current outbreak of coronavirus as well as any future ones that may impact it in the future.
Homelessness Prevention and Rapid Re-Housing Program (HPRP)
The Homelessness Prevention and Rapid Re-Housing Program (HPRP) offers rental assistance to households at imminent risk of homelessness. Services include assistance with rent/utility arrears, landlord-tenant negotiation, legal services, housing relocation assistance, case management support and referrals/linkages to other community resources.
HPRP has had great success in aiding individuals and families to exit shelter systems quickly and secure permanent housing. Furthermore, it has enabled communities to reduce both the number of people experiencing homelessness and their duration in shelter.
A key component of the HPRP approach is working with landlords to provide rental assistance. To do this, they identify affordable rental units, recruit landlords who are willing to rent to homeless families and individuals, and address potential barriers like tenant qualifications or past evictions that might prevent participation by landlords.
HPRP grantees must ensure their programs adhere to Recovery Act requirements, including determining eligibility and conducting initial evaluations. Furthermore, they are accountable for guaranteeing all households served receive assistance based on need rather than predetermined household type or condition.
Local Assistance and Tribal Consistency Fund (LATCF)
LATCF is a federal program created under the American Rescue Plan Act that provides funding to counties and Tribal governments during times of public health or economic emergency.
The LATCF is a two-year general fiscal aid program available to eligible revenue sharing counties and Tribal governments. These funds can be used for any governmental purpose other than lobbying activities as defined by ARPA.
County governments can apply for funding under the LATCF through a county application portal. Counties who have not yet applied may do so before January 31, 2023.