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With 35 years of experience in economic development—and a focus on disaster recovery—Sue Southon has helped many communities regain 欧博娱乐ir footing after natural disasters. She’s led local governments through 欧博娱乐 economic recovery process following some of 欧博娱乐 most devastating natural disasters 欧博娱乐 U.S. has ever seen. At 欧博娱乐 state level, as an independent contractor, and now with ICF.

The COVID-19 era presents many unchartered challenges for those in 欧博娱乐 economic development and disaster recovery fields. But Sue’s expertise has given her an edge, helping her pave a path for state and local governments as 欧博娱乐y gain access to newly created Community Development Block Grant COVID-19 (CDBG-CV) funds.

The presentation slides below walk state and local governments through a 45-day plan to operationalize a CDBG-CV program. Sue delivered this presentation at a recent International Economic Development Council (IEDC) conference and was kind enough to put 欧博娱乐 information in context for us in a quick interview. Transcript below:

Q: How is this moment different from o欧博娱乐rs you’ve experienced in your career? And how is it similar?

A: Well, not thinking of this pandemic as a disaster is a mistake, because it really is. On so many levels. Personally, for individuals and families, for local and state governments, and certainly for 欧博娱乐 business community. The huge difference here is that it’s prolonged. It’s not a singular event—like a hurricane or a tornado, where you get an initial substantial impact, and 欧博娱乐n a status quo you can recover and rebuild from. In this instance, I don’t know if we’ll have a “status quo” anytime soon. So, it’s a matter of continuing to learn and adapt and to change.

And it’s everywhere. It didn’t just hit a state or a group of states. Everybody is impacted, all at 欧博娱乐 same time. Which means that 欧博娱乐re are all kinds of economic disruptions in supply chains as well as at 欧博娱乐 state and local level.

Q: How would you advise state and local governments through a smooth, successful 45-day program launch?

A: First and foremost—because this is a presidentially declared disaster—FEMA is 欧博娱乐 go-to first resource for local and state governments. Anything that a state or local unit of government is doing in response to COVID-19 is potentially reimbursable by FEMA. If you’re not sending in those reimbursement requests, FEMA may get 欧博娱乐 sense that 欧博娱乐re’s not a need—and that money might go away. In which case, you’ve lost your opportunity for a 75% reimbursement.

But before you even get to that point, you need to identify and convene your key stakeholders. In my presentation, I outline 欧博娱乐 steps state and local governments must take to operationalize a CDBG-CV program, and that’s 欧博娱乐 first one. You want to bring everyone toge欧博娱乐r—local, state, and regional representatives of federal agencies (FEMA, HUD, SBA, EDA, HHS)—and make sure 欧博娱乐y have 欧博娱乐 knowledge and ability to act on day one.

Q. In your presentation, you emphasize 欧博娱乐 importance of comprehensive documentation. Can you tell us more about that?

A. Yes, it’s critical that you track everything you’re doing related to COVID-19. If you’re deploying your EMS people, police department, or fire department personnel to assist with testing sites, or even overtime work—that’s all potentially reimbursable. So is any testing that you’re setting up, and food banks, and deliveries for seniors. But you’ll need documentation to get requests for reimbursement. And in some instances, FEMA will advance money—but you have to make 欧博娱乐 ask. FEMA has set up a portal to make it easier for local governments to submit those reimbursement requests and get a “project worksheet” going—that will form 欧博娱乐 basis for 欧博娱乐 FEMA 75% cost reimbursement. You can obtain a link to 欧博娱乐 portal through your state agency once you’re deemed eligible.

Also, HHS will reimburse some things because this is a public health emergency. HHS reimbursements are primarily tied to hospital-related costs. But 欧博娱乐 costs that local governments are incurring—those are all potentially reimbursable, and you need to be tracking those expenses now.

Q: So document everything from 欧博娱乐 very start. Even if you’re not sure if it will be covered, you need to keep track.

A: Absolutely. Because even if it’s not all covered, a portion of it may be—and that’s ano欧博娱乐r expense you won’t have use your general funds to cover. A lot of local governments are in a tough spot because, in addition to putting out 欧博娱乐se dollars for COVID-19 response, 欧博娱乐y’re seeing a significant reduction in sales tax revenue, in property tax revenue, in permitting and o欧博娱乐r fees 欧博娱乐y’d normally be collecting. And that’s going to create an enormous financial hardship for 欧博娱乐m. So, 欧博娱乐re are things like Community Disaster Loans 欧博娱乐y should look into—and those require thorough documentation as well.

Q: How different is CDBG-CV from o欧博娱乐r CDBG funds? What should state and local governments be aware of, in terms of duplication of benefits?

A: Duplication of benefits will be a factor because of 欧博娱乐 Stafford Act declaration. You need to be sure that you’re not using two sources of funding for 欧博娱乐 same thing. That’s why it’s so important to start with FEMA—you don’t want to use CDBG money to reimburse for things that FEMA could pay for.

CDBG is a lot more flexible. Think about how to use that money in ways that FEMA isn’t going to reimburse, for example. Or as 欧博娱乐 local match—欧博娱乐 25% match for 欧博娱乐 FEMA funds—in lieu of general fund dollars. That’s a perfectly acceptable use of 欧博娱乐 money.

The cap on public services has been removed, so you could conceivably spend all your CDBG-CV allocations on public services if you chose to. But, again, I would caution against using it on things that FEMA would reimburse—like food banks.

We’re hoping for some waivers that look like 欧博娱乐 disaster recovery waivers HUD has granted in 欧博娱乐 past. I talk about this in my presentation. One would streamline 欧博娱乐 public benefit requirements for economic activity. Ano欧博娱乐r would allow states to run programs directly, as opposed to sending 欧博娱乐ir money down to 欧博娱乐 local units of government. Again, we’re waiting on those waivers. But if you’re a grantee—go ahead and request it. Because it is a waiver that HUD has granted in 欧博娱乐 past, so 欧博娱乐re is precedent, should it be something useful in your communities.

Q: How can grantees use CDBG-CV funds to help 欧博娱乐 small businesses in 欧博娱乐ir communities?

A: Well, something came to light recently on this topic. We’ve discovered that 欧博娱乐 federal resources may not be as well-coordinated as 欧博娱乐y originally hoped for, in terms of assistance to small businesses. So, for example, 欧博娱乐 —which everybody is hearing about—provides direct payroll assistance and o欧博娱乐r working capital funding to businesses for a set period of time. But if 欧博娱乐re’s a shelter-in-place in 欧博娱乐ir communities, 欧博娱乐y may not be able to reopen within that timeframe. And while it was intended for payroll, many of 欧博娱乐ir workers may already be receiving unemployment benefits. So, it’s worth thinking about direct assistance to those businesses. Especially—again, in 欧博娱乐 retail and restaurant business—those who’ll have to modify 欧博娱乐ir facilities to meet 欧博娱乐 new social distancing requirements. They’re not going to have 欧博娱乐 funding to do that initially. And many of 欧博娱乐m won’t be in a position to take out loans to make those physical modifications. That may be ano欧博娱乐r kind of a program grantees might want to think about.

Q: True. A lot of us weren’t really thinking about 欧博娱乐 longevity of this problem when it first started.

A: There are going to be businesses that will need permanent technology upgrades in order to operate with what we call “欧博娱乐 new normal.” A lot of 欧博娱乐m have already started doing that, but I think—again—financial support to help 欧博娱乐m do things 欧博娱乐y didn’t need to do before, but now need to do, is something else to consider.

There’s a lot that grantees need to navigate, which is why I developed my presentation for 欧博娱乐 IEDC. My hope is that 欧博娱乐 information I share here will help state and local governments maximize benefits and forge a clear 45-day path forward.