While the majority of this white paper examines the existing federal housing policy infrastructure, this section highlights the relevant housing policy provisions of the recently enacted Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act is the most substantial fiscal stimulus in U.S history, providing more than $2 trillion to bolster the healthcare system, support households, backstop businesses, and alleviate budgetary issues for state and local governments. The measure includes supplemental funding for critical federal housing resources, such as the Community Development Block Grant (CDBG) program and various rental assistance programs. The package provides relief for renters and homeowners with federally backed loans through eviction protection, mortgage forbearance, and renter protections.

The bill provides the CDBG program with an added $5 billion, approximately $1.6 billion more than the program received through FY2020 appropriations. The additional funding includes $2 billion for states and units of local governments that typically receive CDBG formula funding and $1 billion for state governments to support a coordinated response across entitlement and non-entitlement communities. The remaining $2 billion goes to states and units of local government based on the prevalence and risk of COVID-19 and related economic and housing disruption. Additionally, the legislation removes the cap on funds that a CDBG grantee can spend on public services. It also allows CDBG grantees to be reimbursed for COVID-19 response activities, regardless of when the costs occurred.