City of Monterey earns additional federal grant

Monterey is one of only 22 cities to earn additional funds -- $105,968-- through the CARES ACT.

MONTEREY >> The city of Monterey is one of only 22 cities across the country to earn an additional Community Development Block Grant through the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The award — $105,968 in extra federal funds — is the third of its kind doled out to the city since the CARES Act was passed by Congress in March 2020 to alleviate the economic fallout of COVID-19. Monterey has earned more than $650,000 in Community Development Block Grant funds to date.

“We are proud to be selected among one of only 22 cities in the United States with a proven track record of getting federal funds out quickly to support the community,” Monterey City Manager Hans Uslar said in a press release.

At the onset of the pandemic, the CARES Act made available $5 billion in Community Development Block Grant coronavirus monies, which have dispersed to state and local governments through several rounds of funding over the past two years. Of the initial bout of awards, allocated by the Department of Housing and Urban Development, Monterey received $152,845.

The assistance helped finance Monterey's Emergency Rental Assistance Program during the early days of COVID-19. Also backed by the city's own Housing Program income, the rental assistance initiative offered critical financial support to low-income households.

After allotting inaugural awards, the Department of Housing and Urban Development distributed the remaining Community Development Block Grant coronavirus capital based on needs. Monterey collected nearly $400,000 in subsequent funding. The supplemental assistance, again, went toward the city's Emergency Rental Assistance Program.

The most recent score of payments are a reallocation of previous awards denied or not used in full by original grantees. In all, the Department of Housing and Urban Development is reapportioning over $3 million to grantees that have demonstrated the capacity to quickly expend the funds. Monterey, having fully expended its previous Community Development Block Grant coronavirus awards, was tapped to receive a portion of this reallocation.

With its newly assigned aid, Monterey is looking to bolster public services citywide.

Each year, the city offers Community Development Block Grant-funded Public Service Grants to qualifying nonprofits serving low-income and at-risk residents of Monterey. The partnership allows the city to secure services for members of the community in need without directly managing complex social service programs.

Though mutually beneficial, Monterey's nonprofit partnering agencies often share that there is a greater demand for additional funding, explained Monterey Housing Programs Analyst Grant Leonard. Normally, that's a difficult ask, as the city is limited to spending no more than 15% of Community Development Block Grant entitlement on public services. In recognition of the role played in responding to COVID-19, however, the Department of Housing and Urban Development has waived the 15% cap on public service grants for CARES Act funding.

“We're always overprescribed in terms of grant requests,” said Leonard. “This allows us to meet that need — to have an extra $105,000 go out to services that are really helping our low-income neighbors and community members.”

The city will allocate the additional special grant block funding in conjunction with its yearly Public Service Grant application period for the 2023-2024 fiscal year. Per that application process, Leonard noted the reallocated award could be distributed starting July 1, 2023.

“We're excited to have this new funding. …It was a big surprise but a good surprise,” said Leonard.