In this edition:

Treasury ERA FAQ and Award Terms Updates • OCS Vaccination Guidance •
New COBRA Subsidies • CDC Eviction Moratorium Extended • 
OCS Monitoring Guidance • PPP Extended

Treasury Updates ERA FAQ and Award Terms for Indirect Costs and Housing Stability Services

Community Action Agencies (CAAs) concerned about bearing the costs of running Emergency Rental Assistance (ERA) programs and offering more robust housing stability services recently received welcome guidance from the U.S. Department of Treasury (Treasury). On March 26, 2021, Treasury updated its Grant Award Terms (Grant Terms) and Emergency Rental Assistance Frequently Asked Questions (FAQ) to clarify that indirect costs may be recovered, indirect cost rates may be used, and housing stability services are not solely administrative costs.

OCS Issues Guidance on COVID-19 Vaccinations

On April 2, 2021, the Office of Community Services (OCS) issued CSBG Information Memorandum (IM) 161, addressing the use of CSBG funding to support COVID-19 vaccinations. IM 161 highlights how state Community Services Block Grant (CSBG) lead agencies and Community Action Agencies (CAAs) can participate in community COVID-19 vaccination efforts and increase community vaccine awareness.

The IM states that CSBG CARES and regularly appropriated CSBG funding may be used to support fair and equitable COVID-19 vaccination efforts and related activities, and it actively encourages CAAs and state CSBG officials to engage in these efforts. CAAs may implement CSBG-funded public health activities, including the promotion of COVID-19 vaccinations, based on the results of local community needs assessments, which may include a review of health outcomes and available health care resources. In addition, CAAs may partner with other organizations serving low-income residents, including public health departments, religious organizations, charitable groups, and community organizations.

The IM provides the following examples of allowable COVID-19 vaccination-related activities:

• Hosting vaccination clinics;
• Providing transportation to vaccination sites;
• Signing up to join the national volunteer COVID-19 Community Corps (for additional information visit wecandothis.hhs.gov and hhs.gov/CovidCommunityCorps);
• Reaching out to local public health departments and other related entities to partner in COVID-19 vaccination outreach, including supporting efforts to reduce vaccine hesitancy;
• Incorporating information on COVID-19 vaccinations, testing, safety practices, and other related resources into intake processes, whether conducted online, by mail, in person, or over the phone, while ensuring accessibility for those with limited English proficiency;
• Providing information to ensure staff are well-versed on COVID-19 vaccination outreach, including to limited English proficiency populations;
• Ensuring Head Start staff and other early childhood educators are aware they have priority access to COVID-19 vaccination (See Office of Head Start for additional information); and
• Displaying and disseminating materials and information in different languages that explain the basics of COVID-19 vaccination, testing, safety practices and other related resources.

To assist CAAs and state CSBG officials in implementing these activities, OCS also references an appendix to the IM listing a number of COVID-19 vaccination outreach resources compiled from several legal and government agency sources.

OCS explained that it is working closely with partner agencies across the Department of Health and Human Services and is expected to issue additional guidance and resources in the coming weeks.

New Employee COBRA Subsidies Take Effect April 1

The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows covered employees and certain family members to temporarily remain on their employer’s group health insurance plan after a voluntary or involuntary termination. Typically, the former employee must pay the full cost of the health insurance premium to receive COBRA coverage. Under the American Rescue Plan Act of 2021, the federal government will subsidize 100% of the COBRA premiums for individuals who lose healthcare coverage due to involuntary termination or reduction of hours between April 1 and September 30, 2021, as well as for those who are already enrolled in COBRA as of April 1 or could have been enrolled in COBRA during that period, but were not. While employers are still responsible for paying such individuals’ premiums to the insurance carrier, they will now be able to receive a dollar-for-dollar tax credit against their Medicare payroll taxes.

CAAs covered by COBRA should be aware of the requirement to provide employees with an updated COBRA notice explaining the subsidy, and they should work with their COBRA administrator to plan for the change. This article from the law firm Venable LLP contains a high-level summary of the subsidy and suggested next steps for covered employers.

CDC Eviction Moratorium Extended Through June 30

On March 28, 2021, the Centers for Disease Control and Prevention (CDC) extended its temporary halt, or moratorium, on residential evictions through June 30, 2021. The original moratorium, which was due to expire on March 31, 2021, protects individual renters earning less than $99,000 per year, as well as couples earning less than $198,000.

OCS Issues Guidance on Remote Monitoring

The Office of Community Services (OCS) has released guidance on remote monitoring of Community Services Block Grant (CSBG) eligible entities (or CAAs) amidst the ongoing COVID-19 public health crisis. Except for a brief postponement of its own on-site monitoring visits in Information Memorandum 157, this is the first time OCS has specifically addressed monitoring requirements in formal guidance during the pandemic. 

The new nonbinding guidance, contained in Information Memorandum 160, is directed to state CSBG lead agencies with monitoring obligations under the CSBG Act. Pursuant to the Stafford Act, which authorizes federal agencies to modify or waive administrative conditions for assistance in the event of a major disaster, OCS is modifying the requirement to conduct full monitoring of CAAs to allow for exclusively remote reviews. Such reviews should be reported as full, on-site monitoring desk reviews on the CSBG Annual Report, but state CSBG offices should maintain documentation demonstrating the rationale for remote monitoring and should consider conducting on-site, follow-up monitoring when conditions permit. 

IM 160 encourages CSBG lead agencies to: (1) work with eligible entities on assessing risk to determine the appropriate level of monitoring and where to focus oversight efforts; (2) evaluate tripartite board composition compliance, which may include reviewing documents such as an eligible entity’s organizational policies or board roster; (3) obtain reasonable assurance that CSBG funds are used to provide services to eligible communities, families, and individuals; (4) obtain reasonable assurance that CSBG funds are used in accordance with the CSBG Act, the cost principles in the Uniform Guidance, and the CAA’s Community Needs Assessment (including allowances for emergency services); and (5) obtain assurance as possible that program funds are used as efficiently and effectively.   

The flexibility to conduct exclusively remote monitoring applies for the duration of the COVID-19 public health emergency. States are expected to resume on-site monitoring at the conclusion of the public health emergency.

PPP Extended through June 30

On March 30, 2021, President Biden signed the PPP Extension Act of 2021 (the Act) into law, extending the Paycheck Protection Program (PPP) through the end of June. The PPP was previously set to expire on March 31. The Act did not make any substantive changes to the program, which is discussed in CAPLAW’s CARES Act Benefits for Nonprofit CAAs Web Portal.

This Legal Update is part of the CARES Community Services Block Grant (CSBG) Legal Training and Technical Assistance (T/TA) Center. It was created by Community Action Program Legal Services, Inc. (CAPLAW) in the performance of the U.S. Department of Health and Human Services, Administration for Children and Families, Office of Community Services Cooperative Agreement – Grant Award Number 90ET0467-03-02. Any opinion, findings, conclusions, or recommendations expressed in this material are those of the author(s) and do not necessarily reflect the views of the U.S. Department of Health and Human Services, Administration for Children and Families.

The contents of this publication are intended to convey general information only and do not constitute legal advice. Any communication through this publication or through CAPLAW’s website does not constitute or create an attorney-client relationship. If you need legal advice, please contact CAPLAW or another attorney directly.