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Posted on: November 25, 2020

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

The City of New Braunfels recently received notification of a second special allocation to the Community Development Block Grant (CDBG) funds that will 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 27th, 2020, to respond to the growing effects of COVID-19. 

The CARES Act will provide an additional $423,819 in Community Development Block Grant Coronavirus (CDBG-CV) funds to the City.  Similar to CDBG funding, CDBG-CV funds are to be used for activities that support the unique needs of low- and moderate-income residents of New Braunfels who have been affected by COVID-19.  However, it is important to note that some standard requirements have been adjusted for this special allocation.  For example, there are no percentage caps for the distribution of CDBG-CV funding between different categories. Possible eligible activities include, but are not limited to: 

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

The first round of CDBG-CV funding was $243,102, which was awarded earlier this year through a competitive application process to five local nonprofit agencies that continue to respond to the pandemic through various services and programs. 

At their regular meeting on November 23, staff presented City Council with an update regarding the CDBG-CV program as well as a potential timeline for disbursement of the funds.  Consistent with the first round of funding, the City is now requesting applications from nonprofits and other eligible entities for participation in the program. Hard copy or electronic applications are due at 4:00pm on December 4, 2020. 

Additional information regarding the CDBG-CV program, including applications, is available online at www.nbtexas.org/cdbg-cv.  Prospective applicants and those interested in learning more can contact the City’s Grants Coordinator, Jennifer Gates, at JGates@nbtexas.org or Paula Harper, CDBG Consultant, at paula.cstx@gmail.com.

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