A centralised community development grant will create a fund to support the community's recovery from Covid-19, Horowhenua District councillors believe.

Council voted to create the new grant at its meeting on May 6 by combining all contestable grants funds into one community development fund. The new fund will have approximately $143,000 to disburse and will be a one-off response for the 2020/2021 financial year, with community grants schemes returning to normal in 2021/2022.

Applications for the new grant will remain open for as long as funds are available, and will be assessed every two months.

"This approach allows us to be agile and responsive, which is important given the moving feast that is Covid-19," said Councillor David Allan.

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The new fund will replace the existing Community Development Grant, Vibrant Communities Grant, Community Consultation Grant, Events Grant, Rural Halls Grant and International Representation Grant.

It will not affect the Creative Communities Scheme, which is administered according to Creative NZ guidelines. Discussions are underway with the committee that disburses funds from the Shannon Community Development Trust.

The Community Recognition and Funding Committee will propose criteria for the new fund, for Council to consider at its June meeting.