New Mexico's Child Care Supply Building Grant FREQUENTLY

Updated: 07/07/22

Page 1

MICHELLE LUJAN GRISHAM

GOVERNOR

HOWIE MORALES

LIEUTENANT GOVERNOR

ELIZABETH GROGINSKY

CABINET SECRETARY

JOVANNA ARCHULETA

ASSISTANT SECRETARY for Native American

Early Childhood Education and Care

New Mexico’s Child Care Supply Building Grant

FREQUENTLY ASKED QUESTIONS

1. Q: What is the New Mexico Child Care Supply Building Grant?

A: The New Mexico Child Care Supply Building Grant is supported through funding from the

federal American Rescue Plan Act – Child Care Stabilization grant. The purpose of the Child Care

Supply Building Grant is to expand the availability of licensed child care in New Mexico

communities that are considered child care deserts. In particular, the state wants to expand the

capacity of infant and toddler, school age, and non-traditional hour care (e.g., before 7 a.m.

after 6 p.m. and weekends).

2. Q: What is a Child Care Desert?

A: A child care desert is any census tract with more than 50 children under age 5 that contains

either no child care providers or so few options that there are more than three times as many

children as licensed child care slots. Please see this link to a map of New Mexico's Child Care

Deserts.

3. Q: Who is eligible to apply?

A: The Grant is open to (1) existing licensed centers or homes and registered homes doing

business in the State of New Mexico, including eligible Head Start and Tribal early care and

education programs that seek to expand child care capacity; and (2) employers that intend to

create or expand child care for their employees.

4. Q: Does an applicant have to be 5 Star to apply for the grant?

A: No, the Grant is available to applicants who meet or are working to meet ECECD’s 5 Star

accreditation. Applicants must obtain ECECD’s 5 Star accreditation for their child care center

within 18 months of opening the slots. ECECD will be releasing information and documentation

related to obtaining 5 Star accreditation in the near future.

5. Q: What are allowable costs for the Child Care Supply Building Grant?

A: The New Mexico Child Care Supply Building grant is for facility maintenance and

improvements to include minor renovations that do not meet the definition of major renovation

at 45 CFR 98.2, and costs associated with direct services for child care services. Examples of

allowable costs include, but are not limited to, the purchase of furniture, supplies, or necessary

Updated: 07/07/22

Page 2

MICHELLE LUJAN GRISHAM

GOVERNOR

HOWIE MORALES

LIEUTENANT GOVERNOR

ELIZABETH GROGINSKY

CABINET SECRETARY

JOVANNA ARCHULETA

ASSISTANT SECRETARY for Native American

Early Childhood Education and Care

equipment for new classrooms or child care spaces. Please see above regarding allowable minor

renovations and please see below regarding allowable staffing costs.

6. Q: Can the Child Care Supply Building Grant be used for new building infrastructure or the

purchase or leasing of land or buildings that would expand more child care spaces?

A: No. The Child Care Supply Building Grant is for facility maintenance and improvements to

include minor renovations that do not meet the definition of major renovation at 45 CFR 98.2.

Because of this, applicants cannot use these grant funds to purchase or lease land, buildings, or

undertake the construction of new buildings or any major renovations as defined in the 45 CFR

98.2.

7. Q: What is the definition of a major renovation?

A: In accordance with the Child Care and Development Block Grant 45 CFR 98.2, a major

renovation includes (1) structural changes to the foundation, roof, floor, exterior or load bearing

walls of a facility, or the extension of a facility to increase its floor area; or (2) extensive

alteration of a facility such as to significantly change its function and purpose, even if such

renovation does not include a structural change. Major renovations are not permitted under this

Grant.

8. Q: What are some examples of minor renovations?

A: Upgrading the kitchen to add safe electrical outlets and fix plumbing fixtures, repainting walls

with a non-toxic paint, renovating and updating a bathroom (e.g., sink, faucet, toilet, etc.) to

ensure age-appropriateness and child safety, installing rails and ramps that are accessible to

individuals with disabilities, updating a sidewalk to provide a safe pathway for children, building

or updating a playground, replacing fire sprinklers, carbon monoxide detectors, and smoke

detection systems, replacing windows or doors, completing a minor roof repair, removing non-

load bearing walls to create additional space for social distancing, or investing in other minor

renovations in order to expand available child care slots.

9. Q: Can the Child Care Supply Building Grant be used to hire more staff?

A: Applicants can use Child Care Supply Building Grant funds to hire and pay for staff salaries,

wages, and benefits that are needed to support the expanded capacity but only for the first six

months after the new child care slots have been opened. After six months, grantees are

Updated: 07/07/22

Page 3

MICHELLE LUJAN GRISHAM

GOVERNOR

HOWIE MORALES

LIEUTENANT GOVERNOR

ELIZABETH GROGINSKY

CABINET SECRETARY

JOVANNA ARCHULETA

ASSISTANT SECRETARY for Native American

Early Childhood Education and Care

required to maintain sustain funding to pay the staff salaries, wages, and benefits required for

the expanded capacity.

10. Q: Is an applicant eligible to receive a Child Care Supply Building grant if they received a Child

Care Stabilization Grant?

A: Yes, you can still apply; however, Child Care Supply Building Grant funding cannot be used for

the same purposes as the Child Care Stabilization Grant. Please see Information Memorandum

for ARPA Child Care Stabilization

, in particular, pages 4 and 5.

11. Q: Is there a formula for the total amount of funding an applicant could receive for direct

services?

A: No, there is no specific formula for awarding a grant. Awards will be determined on the basis

of community need, agency and state priorities, quality of care proposed, and other relevant

factors. Applicants are encouraged to focus on increasing child care supply in these areas:

(1) New Mexico’s designated child care deserts

(2) Communities with high poverty

(3) Infant and toddler care

(4) Non-traditional hour child care (e.g., before 7 a.m. after 6 p.m. and weekends)

(5) Before and after school care

12. Q: Is there a maximum amount an applicant can request?

A: No, there is not a maximum amount of funding that can be requested. ECECD and the New

Mexico Finance Authority (NMFA), who are administering the grant, reserve the right to deny,

reduce, or restrict requested funding based on the application review, the demonstrated ability

of the applicant to maintain and sustain the additional capacity after the grant award, the

overall financial viability of the applicant, any health or safety concerns regarding the proposed

child care site, and the total available budget of the Child Care Supply Building Grant. ECECD and

NMFA make no promise to fund any specific request or application under this grant opportunity

until a full review of each Letter of Interest (LOI) and application has been completed and all

information provided has been verified.

13. Q: What is the amount of matching funds needed to qualify for the Child Care Supply Building

Grant?

A: There is not a required amount for matching funds; however, the state is interested in

supporting projects that leverage local, state, or private sector dollars.

Updated: 07/07/22

Page 4

MICHELLE LUJAN GRISHAM

GOVERNOR

HOWIE MORALES

LIEUTENANT GOVERNOR

ELIZABETH GROGINSKY

CABINET SECRETARY

JOVANNA ARCHULETA

ASSISTANT SECRETARY for Native American

Early Childhood Education and Care

14. Q: What resources are available to help applicants navigate and complete the LOI and

application?

A: ECECD will record a webinar on the Child Care Supply Building the week of July 11, 2022, and

it will be recorded and posted on www.nmececd.org

. Other resources available include, but are

not limited to the following:

Name of

Entity

Services

Link to website

Women’s

Economic Self

Sufficiency

Team (WESST)

Business consulting, training,

and access to capital.

https://www.wesst.org/

Crianza at

Central New

Mexico (CNM)

Crianza is an Early Childhood

Business Accelerator program

at CNM that supports early

childhood businesses in New

Mexico

https://www.cnm.edu/programs-of-

study/programs-a-z/early-childhood-

multicultural-education/crianza

Chambers of

Commerce

New Mexico business

community that advocates on

the needs of the private sector.

https://www.nmchamber.org/

Council of

Governments

A multi-county governmental

agency that helps planning

services in the areas of:

agriculture, economic growth,

employment growth, land-use,

transportation, water, and

workforce development

https://www.mrcog-nm.gov/

New Mexico

Finance

Authority

NMFA has become a reliable

source of financing for a broad

range of projects and offers

different financing programs for

communities and businesses to

improve the quality of life in

New Mexico.

https://www.nmfinance.com/

Elevate NM

Child Care

Wonderschool

Get access to free business

coaching, child care

management software, and

community coaching to help

streamline time-consuming

business tasks.

https://pages.wonderschool.com/elevate-

nm-childcare