Four Big Island charities have been approved for a portion of a $1.5 million federal grant. But the red tape will eat up $250,000 of it.
The County Council on Wednesday unanimously and without comment approved the grants of the federal money meant to bolster the county’s response to the coronavirus pandemic.
The money became available under the Coronavirus Aid, Relief, and Economic Security Act — known as the CARES Act — as part of the U.S. Department of Housing and Urban Development’s Community Development Block Grant.
Under the county’s plan, the Food Basket will receive $643,000; HOPE Services will receive $300,000; the Boys &Girls Club will receive $200,000 and the Hawaii County Economic Opportunity Council will receive $150,000.
“There’s many more nonprofits; nonprofits who are deserving of this money. But this is what we felt for the quickest impact,” said county Housing Administrator Duane Hosaka. “Food and rental assistance were our priorities in giving out this money.”
The county Office of Housing and Community Development will use the $250,000 to administer the grant. It might sound like a lot. But there were no negative comments during the public comment period, Hosaka said.
An April 27 West Hawaii Today story that mentioned the grants did receive some negative feedback online, with several readers asking why it cost so much to administer money to just four nonprofits.
“$250K could help a heck of a lot of people. … Can’t you just administer the grant as part of YOUR JOB DESCRIPTION???” wrote Sara Steiner-Jackson. “Kinda like everyday running of the government … got your little fingers in every pie, even the rescue pie.”
The agency will use the money for two contract hires — a CDBG contract specialist and an accountant — to work for six months administering and overseeing the grants, said Hosaka.
Hosaka said his agency has just one CDBG specialist on staff.
“HUD has so many rules,” Hosaka.
Dealing with CDBG grants is a complicated process. The county’s amendment to its annual action plan to accept the money ran 63 pages.
Unlike some jurisdictions receiving the CDBG-CV money, the county didn’t undergo a competitive selection process but picked the four nonprofits because of the work they already do in the community and because they’re already familiar with the CDBG process, said Hosaka. A county task force helped select the recipients, he said.
“They know the CDBG rules, the federal rules and how to comply,” Hosaka said. “They’re familiar with the process.”