Yesterday, HUD released its second allocation of Emergency Solutions Grants (ESG) funding included in the CARES Act. The amount allocated totaled $2.96 billion. HUD will immediately begin distributing award letters notifying ESG Program recipients of their second allocation of CARES funding. The funds are available to be used to prevent, prepare for, and respond to the coronavirus pandemic.

Eligible recipients generally include states, metropolitan cities, urban counties and territories. Local governments may subgrant ESG funds to public housing agencies (PHAs) and local redevelopment authorities. 

As required by the CARES Act, HUD developed a new formula for these awards. The formula accounts for the following variables:

• Total homeless population
• Unsheltered homeless population
• Total Very Low-Income (VLI) renters
• VLI renters that are overcrowded or without a kitchen or plumbing