On March 25, HUD’s Office of Community Planning and Development (CPD) released a Q&A on using CDBG funds for staff costs and unused and partially utilized space.
Staff costs of CDBG program administration can be used for staff that are on leave due to the closure of the grantees or sub-recipient’s offices in response to COVID-19. These costs can be covered so long as the costs meet program administration requirements related to carrying out eligible activities, the cost of fringe benefits, and costs of other benefits so long as it is allowed under established written leave policies, costs are equitably allocated to all related activities, and the account basis selected for costing each type of leave is consistently followed.
CDBG funds can also be used to cover the cost of unused and partially utilized space related to COVID-19 as well. Although not usually permitted, exceptions exist when the space is unused due to unforeseen consequences, such as COVID-19.
For more COVID-19 related information, see NAHRO’s coronavirus resource page.