COVID-19 HUD CDBG-DR Quick Guide to CDBG Eligible Activities to Support Infectious Disease Response
Grantees should coordinate with local health authorities before undertaking any activity to support state or local pandemic response. Document republished from HUD Exchange.

By Writers Pool published 3-16-2020 updated 3-16-2020

Grantees should coordinate with local health authorities before undertaking any activity to support state or local pandemic response. Grantees may use Community Development Block Grant (CDBG) funds for a range of eligible activities that prevent and respond to the spread of infectious diseases such as the coronavirus disease 2019 (COVID-19).

Examples of Eligible Activities to Support Infectious Disease Response.

For more information, refer to applicable sections of the Housing and Community Development Act of 1974 (for State CDBG Grantees) and CDBG regulations (for Entitlement CDBG grantees).

Buildings and Improvements, Including Public Facilities.

Acquisition, construction, reconstruction, or installation of public works, facilities, and site or other improvements. See section 105(a)(2) (42 U.S.C. 5305(a)(2)) 24 CFR 570.201(c).

  • Construct a testing and diagnosis, or treatment facility.
  • Rehabilitate a community facility to establish an infectious disease treatment clinic.
  • Acquire and rehabilitate, or construct, a group living facility that may be used to centralize patients undergoing treatment

Rehabilitation of buildings and improvements (including interim assistance). See section 105(a)(4) (42 U.S.C. 5305(a)(4)) 24 CFR 570.201(f) 570.202(b).

  • Rehabilitate a commercial building or closed school building to establish an infectious disease treatment clinic, e.g., by replacing the HVAC system.
  • Acquire, and quickly rehabilitate (if necessary) a motel or hotel building to expand capacity of hospitals to accommodate isolation of patients during recovery.
  • Make interim improvements to private properties to enable an individual patient to remain quarantined on a temporary basis.

Assistance to Businesses, including Special Economic Development Assistance.

Provision of assistance to private, for-profit entities, when appropriate to carry out an economic development project. See section 105(a)(17) (42 U.S.C. 5305(a)(17)) 24 CFR 570.203(b).

  • Provide grants or loans to support new businesses or business expansion to create jobs and manufacture medical supplies necessary to respond to infectious disease.
  • Avoid job loss caused by business closures related to social distancing by providing short-term working capital assistance to small businesses to enable retention of jobs held by low- and moderate-income persons.

Provision of assistance to microenterprises. See section 105(a)(22) (42 U.S.C. 5305(a)(22)) 24 CFR 570.201(o).

  • Provide technical assistance, grants, loans, and other financial assistance to establish, stabilize, and expand microenterprises that provide medical, food delivery, cleaning, and other services to support home health and quarantine.

Public Services (Capped at 15 Percent of the Grant, With Some Exceptions).

Provision of new or quantifiably increased public services. See section 105(a)(8) (42 U.S.C. 5305(a)(8)) 24 CFR 570.201(e).

  • Carry out job training to expand the pool of health care workers and technicians that are available to treat disease within a community.
  • Provide testing, diagnosis or other services at a fixed or mobile location.
    Increase the capacity and availability of targeted health services for infectious disease response within existing health facilities.
  • Provide equipment, supplies, and materials necessary to carry-out a public service.
  • Deliver meals on wheels to quarantined individuals or individuals that need to maintain social distancing due to medical vulnerabilities.

Planning, Capacity Building, and Technical Assistance.

States only: Planning grants and planning only grants. See section 105(a)(12).

  • Grant funds to units of general local government may be used for planning activities in conjunction with an activity, they may also be used for planning only as an activity. These activities must meet or demonstrate that they would meet a national objective. These activities are subject to the State&rsquos 20 percent administration, planning and technical assistance cap.

States only: use a part of to support TA and capacity building. See section 106(d)(5) (42 U.S.C. 5306(d)(5).

  • Grant funds to units of general local government to hire technical assistance providers to deliver CDBG training to new subrecipients and local government departments that are administering CDBG funds for the first time to assist with infectious disease response. This activity is subject to the State&rsquos 3 percent administration, planning and technical assistance cap.

Entitlement only. data gathering, studies, analysis, and preparation of plans and the identification of actions that will implement such plans. See 24 CFR 570.205.

  • Gather data and develop non-project specific emergency infectious disease response plans.

Planning Considerations Infectious disease response conditions rapidly evolve and may require changes to the planned use of funds:

  • CDBG grantees must amend their Consolidated Annual Action Plan when there is a change to the allocation priorities or method of distribution of funds an addition of an activity not described in the plan or a change to the purpose, scope, location, or beneficiaries of an activity (24 CFR 91.505).
  • If the changes meet the criteria for a &ldquosubstantial amendment&rdquo in the grantee's citizen participation plan, the grantee must follow its citizen participation process for amendments (24 CFR 91.105 and 91.115).

Related Resources:

The Department has technical assistance providers that may be available to assist grantees in their implementation of CDBG Funds for activities to prevent or respond to the spread of infectious disease.

Ask A Question Submit your questions to your local CPD Field Office Director. For contact information, please visit

Research Resource: