Guide to Local Recovery Update: September 15

Billions of dollars in state and federal housing funding for cities were announced in the past week. Additionally, the U.S. Department of the Treasury issued an important update on the Coronavirus State and Local Fiscal Recovery Funds Final Guidance and the National League of Cities is hosting two webinars on American Rescue Plan implementation.

Project Homekey funding released

The California Department of Housing and Community Development (HCD) recently announced the availability of approximately $1.45 billion of Homekey Program grant funding,, which can be used to create interim or permanent long-term housing. Due to the potential for program oversubscription, cities are encouraged to submit their application as soon as possible.

HCD will accept applications on a continuous, over-the-counter basis after the release of the Homekey application in late September until May 2, 2022, or until the funds are exhausted — whichever happens first. A third round of funding will be available at a later date..

HOME Investment Partnerships Program

The American Rescue Plan (ARP) provides $5 billion in grant funding for housing, rental assistance, supportive services, and non-congregate shelter for individuals or households who are homeless or at risk of homelessness, as well as other vulnerable populations. The grant funds will be administered through the U.S. Department of Housing and Urban Development’s (HUD) HOME Investment Partnerships Program (HOME).

HUD issued Notice CPD-21-10: Requirements for the Use of Funds in the HOME-American Rescue Plan (HOME-ARP) Program,, which establishes requirements for funds. HUD will soon begin disbursing HOME-ARP grants for every participating jurisdiction. This will enable jurisdictions to plan for their use of HOME-ARP funds and to access 5% of the grant for related eligible program administration and planning activities.

Coronavirus State and Local Fiscal Recovery Funds Final Guidance

The U.S. Department of the Treasury announced that its Coronavirus State and Local Fiscal Recovery Funds Final Guidance will arrive this fall. The Interim Final Rule received nearly 1,000 unique comments, which will be addressed in the Final Guidance (Cal Cities gave extensive feedback ahead of the comment deadline that advocated for increased flexibility, clarity, and ease of administration). Importantly, the Treasury Department clarified that the Interim Rule remains in effect and following the interim guidance will not result in the recoupment of funds. The two-page document also includes a non-exhaustive list of eligible funding uses.

American Rescue Plan Webinars

The National League of Cities (NLC) is partnering with the Government Finance Officers Association for a  session on the key responsibilities for finance and budget staff implementing American Rescue Plan funding. Scheduled for Sept. 23 at 12:30 p.m., the webinar will cover guiding principles for building recovery fund plans that incorporate equity and address potential challenges and strategies.

NLC will also host a webinar on Sept. 29 at 11 a.m. on leveraging American Rescue Plan funding to bridge the digital divide. Specifically, the session will focus on how cities can use the funding to promote digital inclusion and assist their residents in accessing digital inclusion programs, such as the Emergency Broadband Benefit. The program will conclude with a Q&A.

City officials looking for additional information about the American Rescue Plan Act and additional tools for recovery can visit the Cal Cities Guide to Local Recovery webpage.