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Posted on: May 4, 2020

City of New Braunfels Receives HUD Funding for COVID-19 Response

The City of New Braunfels has received a special allocation of $243,102 to the Community Development Block Grant (CDBG) program to be used to prevent, prepare for, and respond to COVID-19...

The City of New Braunfels has received a special allocation of $243,102 to the Community Development Block Grant (CDBG) program to be used to prevent, prepare for, and respond to COVID-19.  These funds are to be used for activities that support the unique needs of low- and moderate-income persons who have been affected by COVID-19.

Some standard requirements of typical CDBG funds have been adjusted for this special allocation.  Typically, only 15% of funds may be expended on Public Services for low- to moderate-income persons.  However, for these special funds there are no percentage caps for the distribution between different categories.

Possibly eligible activities include, but are not limited to:

  • Emergency rent/utility assistance
  • Food distribution
  • Provide testing, diagnosis, or other services at a fixed or mobile location
  • Provide short-term working capital assistance to small businesses to enable retention of jobs held by low- and moderate-income persons
  • Construct a facility for testing, diagnosis, or treatment
  • Rehabilitate a community facility to establish an infectious disease treatment clinic

At the City Council meeting on April 27, 2020, City staff presented information regarding these special funds and options for their use, as well as a potential timelines for the disbursement of the financial resources.  As approved by City Council, the City is now requesting applications from nonprofits and other eligible entities for participation in the program.  Hard copy or electronic applications are due by 4:00pm on May 8, 2020.  Applications and additional information are available online at www.nbtexas.org/CDBG-CV.

For more information about the program, contact the City’s Grants Coordinator Jennifer Gates at jgates@nbtexas.org or CDBG Consultant Paula Harper at paula.cstx@gmail.com.

ABOUT: The Community Development Block Grant is a program of the U.S. Department of Housing and Urban Development.  This special 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.

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