HUD Removes Three-Year Expenditure Requirement for CDBG-CV Funds

On April 18, HUD’s Office of Community Planning and Development published a notice of change that removes the Three-Year Requirement, which specified that 80 percent of a Community Development Block Grant CARES Act (CDBG–CV) grant must be expended within three years of the grant agreement execution date. The notice maintains the Period of Performance requirement, which still requires grantees to expend all CDBG-CV funds within six years.

In response to member concerns of the Three-Year Requirement, NAHRO submitted a letter to HUD in February 2023 requesting that the requirement be waived. The removal of the Three-Year Requirement provides grantees the ability to expend all of their CDBG-CV funds in a reasonable amount of time.

The requirement, which was written into the CDBG-CV program rules notice in August of 2020, did not account for supply chain issues, prolonged shutdowns, and other issues that prevented funds from being used. The notice of change acknowledges this as their reason for the removal of the requirement and provides further detail of their evaluation.

To view the notice, please see here.

For the NAHRO’s letter to HUD please see here.