10 TAC §§255.1 - 255.11
The Office of Rural Community Affairs adopts amendments to §§255.1-255.11,
concerning the review of grant applications. Sections 255.2, 255.3, 255.4,
255.8, 255.9, and 255.10 are adopted with changes to the text as published
in the September 20, 2002, issue of the
Texas Register
(27 TexReg 8847). Sections 255.1, 255.5, 255.6, 255.7, and 255.11
are adopted without changes and will not be republished.
The adoption requires agency grant awards that exceed $300,000 to be reviewed
and approved by the Executive Committee of the Office of Rural Community Affairs,
excluding awards to the Texas Capital Fund, Disaster Relief Fund and Urgent
Need Fund. The adoption also substitutes all references to the Texas Department
of Community Affairs with Office of Rural Community Affairs, Texas Department
of Economic Development with Texas Department of Agriculture and General Services
Commission with Building and Procurement Commission.
No written comments were received regarding adoption of the amendments.
The amendments are adopted pursuant to Section 487.052 of the
Government Code, which provides the Office of Rural Community Affairs with
the authority to adopt rules to implement its statutory responsibilities.
The amendments affect the Government Code, Chapter 487.
§255.2.Community Development Fund.
(a)
General provisions. This fund covers housing, public facilities,
and public service projects. Eligible units of general local government may
apply for funding of a single purpose project such as housing assistance,
sewer improvements, water improvements, drainage, roads, or community centers,
or for a multi-purpose project which consists of any combination of such eligible
activities.
(1)
An applicant may not submit an application under this fund
and also under any other TCDP fund category at the same time if the proposed
activity under each application is the same or substantially similar. An applicant
may not submit a single jurisdiction application or be a participant in a
multi-jurisdiction application under this fund and also submit a single jurisdiction
application or be a participant in a multi-jurisdiction application submitted
under the housing rehabilitation fund.
(2)
In addition to the threshold requirements of §9.1(h)
and §9.1(n) of this title (relating to General Provisions), in order
to be eligible to apply for community development funds, an applicant must
document that at least 51% of the persons who would directly benefit from
the implementation of each activity proposed in the application are of low
to moderate income.
(b)
Funding cycle. This fund is allocated to eligible units
of general local government on a biennial basis for the 2001 and 2002 program
years pursuant to regional competitions held for the 2001. Applications for
funding must be received by the TCDP by the dates and times specified in the
most recent application guide for this fund.
(c)
Allocation plan.
(1)
This fund is allocated among the 24 state planning regions
established pursuant to Texas Local Government Code, Section 391.003, by a
formula based on the following factors and weights:
(A)
number of persons living in poverty--25%
(B)
percentage of persons living in poverty--25%
(C)
population--30%
(D)
number of unemployed persons--10%
(E)
unemployment rate--10%
(2)
Each state planning region is provided with a 2001 program
year target allocation and a 2002 program year target allocation of funds
for applications in its region that are ranked through the 2001 program year
regional competitions in accordance with a shared scoring system involving
the Office and the regional review committees. Where the remainder of the
2001 program year target allocation is insufficient to completely fund the
next highest ranked applicant, the applicant receives complete funding of
the original grant request through a combination of 2001and 2002 program year
funds. Where the remainder of the 2002 program year target allocation is insufficient
to completely fund the next ranked application, the Office works with the
affected applicant to determine whether partial funding is feasible. If partial
funding is not feasible, the remaining funds from all the target allocations
are pooled to fund projects from among the highest ranked, unfunded applications
from each of the 24 state planning regions. Selection criteria for such applications
will consist of the selection criteria scored by the Office under this fund.
Marginal applicants' community distress scores are recomputed based on the
applicants competing in the marginal pool competition only.
(d)
Selection procedures.
(1)
Prior to the submission deadline specified in the most
recent application guide for this fund, each eligible unit of general local
government may submit an application to the Office for funding under the community
development fund. Two copies of the application must be submitted. Each applicant
must also provide at least one copy of its application to the applicant's
regional review committee within two weeks after the Office submission deadline.
(2)
Upon receipt of an application, the Office staff performs
an initial review to determine whether the application is complete and whether
all proposed activities are eligible for funding, if ranked. The results of
this initial review are provided to the applicant. If not subject to disqualification,
the applicant may correct any deficiencies identified within 10 calendar days
of the date of the staff's notification.
(3)
Each regional review committee shall hold a scoring meeting
in accordance with the procedures specified in the Office's regional review
committee guidebook and in accordance with the procedures and priorities previously
established by each regional review committee. Each regional review committee
must provide every applicant within its region with an opportunity to make
a presentation before the regional review committee. The regional review committee
will then score the regional review committee scoring factors.
(4)
Following the resolution of any appeals from actions of
the regional review committees as specified in Section 9.8 of this title (relating
to Regional Review Committees) the Office adds scores relating to community
distress, benefits to low-and moderate-income persons, project impact, other
considerations, and match to the regional review committees' scores to determine
regional rankings. Scores on the factors in these categories are derived from
standardized data from the U.S. Census Bureau, Texas Workforce Commission,
and from information provided by the applicant.
(5)
Following a final technical review, the Office staff presents
the 2001 program year and the 2002 program year funding recommendations to
the state review committee. Office staff make a site visit to each of the
applicants recommended for funding prior to the completion of contract agreements.
(6)
The funding recommendations of the state review committee
are then provided to the executive director of the Office. If the state review
committee recommendations differ from the funding recommendations of a regional
review committee, the state review committee must provide the affected regional
review committee with a written explanation of its determination. The regional
review committee may then provide a response to the executive director of
the Office. If there is not a consensus between a regional review committee
and the state review committee, all review comments by all of the parties
involved in the selection process will be forwarded to the executive director
of the Department.
(7)
The executive director of the Office reviews the 2001 final
recommendations for project awards and except for awards exceeding $300,000
announces the contract awards. Awards exceeding $300,000.00 are submitted
to the Executive Committee for approval.
(8)
Upon announcement of the 2001 program year contract awards,
the Office staff works with recipients to execute the contract agreements.
While the award must be based on the information provided in the application,
the Office may negotiate any element of the contract with the recipient as
long as the contract amount is not increased and the level of benefits described
in the application is not decreased. The level of benefits may be negotiated
only when the project is partially funded with the remainder of the target
allocation within a region.
(9)
When the 2002 program year TCDP allocation becomes available,
the executive director of the Office reviews the 2002 program year final recommendations
for project awards and except for awards exceeding $300,000 announces the
contract awards. Awards exceeding $300,000.00 are submitted to the Executive
Committee for approval.
(10)
Upon announcement of the 2002 program year contract awards,
the Office staff works with recipients to execute the contract agreements.
While the award must be based on the information provided in the application,
the Office may negotiate any element of the contract with the recipient as
long as the contract amount is not increased and the level of benefits described
in the application is not decreased. The level of benefits may be negotiated
only when the project is partially funded with the remainder of the target
allocation within a region.
(e)
Selection criteria. The following is an outline of the
selection criteria used by the Office and the regional review committees for
scoring applications under the community development fund. Seven hundred points
are available.
(1)
Community distress (total--55 points). All community distress
factor scores are based on the population of the applicant. An applicant that
has 125% or more of the average of all applicants in its region of the rate
on any community distress factor, except per capita income, receives the maximum
number of points available for that factor. An applicant with less than 125%
of the average of all applicants in its region on a factor will receive a
proportionate share of the maximum points available for that factor. An applicant
that has 75% or less of the average of all applicants in its region on the
per capita income factor will receive the maximum number of points available
for that factor.
(A)
percentage of persons living in poverty--20
(B)
per capita income--20
(C)
unemployment rate--15
(2)
Benefit to low- and moderate-income persons (total--40
points). An application in which at least 60% of the Texas Community Development
Program funds requested benefit low and moderate income persons receives 40
points.
(3)
Project impact (total--175 points).
(A)
Each application is scored within a point range based on
the application activities. Multi-activity projects which include activities
in different scoring ranges will receive a combination score within the possible
range. Information submitted in the application or presented to the regional
review committees is used by a committee composed of staff of the Office to
generate scores on this factor. The point ranges used for project impact scoring
are as follows:
(i)
water activities, sewer activities, and housing activities
(145 to 175 points);
(ii)
eligible public facilities in a defense economic readjustment
zone (145 to 175 points);
(iii)
street paving, drainage, flood control and handicapped
accessibility activities (130 to 150 points);
(iv)
gas facilities, electrical facilities, solid waste disposal,
fire protection, and health clinic activities (125 to 145 points);
(v)
community center, senior citizens center, social services
center, demolition/clearance, and code enforcement activities (115 to 135
points);
(vi)
jail facilities and detention facilities (105 to 125 points);
(vii)
all other eligible activities (85 to 115 points).
(B)
Other factors that will be evaluated by Office staff in
the assignment of project impact scores within the point ranges for activities
include, but are not limited to, the following:
(i)
each application is scored based on how the proposed project
will resolve the identified need and the severity of the need within the applying
jurisdiction;
(ii)
projects that address basic human needs such as water,
sewer, and housing generally are scored higher than projects addressing other
eligible activities;
(iii)
projects that provide a first-time public facility or
service generally receive a higher score than projects providing an expansion
or replacement of existing public facilities or services;
(iv)
public water and sewer projects that provide a first-time
public facility or service generally receive a higher score than other eligible
first-time public facility or service projects;
(v)
projects designed to bring existing services up to at least
the state minimum standards as set by the applicable regulatory agency are
given additional consideration;
(vi)
projects which include self-help methods (volunteer labor,
donated materials, donated equipment, etc.) to significantly reduce the project
cost or to significantly increase the proposed improvements are given additional
consideration;
(vii)
projects designed to address drought-related water supply
problems are generally given additional consideration;
(viii)
water and sewer projects that provide first-time water
or sewer service through a privately-owned for-profit utility or an expansion/improvement
of the existing water or sewer service provided through a privately-owned
for-profit utility may, on a case-by-case basis, receive less consideration
than the consideration given to projects providing these services through
a public nonprofit organization.
(4)
Matching Funds (total--60 points). An applicant's matching
share may consist of one or more of the following contributions: cash; in-kind
services or equipment use; materials or supplies; or land. An applicant's
match is considered only if the contributions are used in the same target
areas for activities directly related to the activities proposed in its application;
if the applicant demonstrates that its matching share has been specifically
designated for use in the activities proposed in its application; and if the
applicant has used an acceptable and reasonable method of valuation. The population
category under which county applications are scored depends on the project
type and the beneficiary population served. If the project benefits residents
of the entire county, the total population of the county is used. If the project
is for activities in the unincorporated area of the county with a target area
of beneficiaries, the population category is based on the residents of the
entire unincorporated area of the county. For county applications addressing
water and sewer improvements in unincorporated areas, the population category
is based on the actual number of beneficiaries to be served by the project
activities. The population category under which multi-jurisdiction applications
are scored is based on the combined populations of the participating applicants
according to the 1990 census. Applications for housing rehabilitation and
for affordable new permanent housing for low- and moderate-income persons
receive the 60 points without including any matching funds. This exception
is for housing activities only. Sewer or water service line/connections are
not counted as housing rehabilitation. Demolition/clearance and code enforcement,
when done in the same target area are counted as part of the housing rehabilitation
activity. When demolition/clearance and code enforcement are proposed without
housing rehabilitation activities, then the match score is still based on
actual matching funds committed by the applicant. Applications which include
additional activities, other than related housing activities, are scored based
on the percentage of match provided for the additional activities. Program
funds cannot be used to install street/road improvements in areas that are
not currently receiving water or sewer service from a public or private service
provider unless the applicant provides matching funds equal to at least 50%
of the total construction cost budgeted for the street/road improvements.
This requirement will not apply when the applicant provides assurance that
the street/road improvements proposed in the application will not be impacted
by the possible installation of water or sewer lines in the future because
sufficient easements and rights-of-way are available for the installation
of such water or sewer lines. The terms used in this paragraph are further
defined in the current application guide for this fund.
(A)
Applicants with populations equal to or less than 1,500
according to the 1990 census:
(i)
match equal to or greater than 5.0% of grant request--60;
(ii)
match at least 4.0% but less than 5.0% of grant request--40;
(iii)
match at least 3.0% but less than 4.0% of grant request--20;
(iv)
match at least 2.0% but less than 3.0% of grant request--10;
(v)
match less than 2.0% of grant request--0.
(B)
Applicants with populations equal to or less than 3,000
but over 1,500 according to the 1990 census:
(i)
match equal to or greater than 10% of grant request--60;
(ii)
match at least 7.5% but less than 10% of grant request--40;
(iii)
match at least 5.0% but less than 7.5% of grant request--20;
(iv)
match at least 2.5% but less than 5.0% of grant request--10;
(v)
match less than 2.5% of grant request--0.
(C)
Applicants with populations equal to or less than 5,000
but over 3,000 according to the 1990 census:
(i)
match equal to or greater than 15% of grant request--60;
(ii)
match at least 11.5% but less than 15% of grant request--40;
(iii)
match at least 7.5% but less than 11.5% of grant request--20;
(iv)
match at least 3.5% but less than 7.5% of grant request--10;
(v)
match less than 3.5% of grant request--0.
(D)
Applicants with populations over 5,000 according to the
1990 census:
(i)
match equal to or greater than 20% of grant request--60;
(ii)
match at least 15% but less than 20% of grant request--40;
(iii)
match at least 10% but less than 15% of grant request--20;
(iv)
match at least 5.0% but less than 10% of grant request--10;
(v)
match less than 5.0% of grant request--0.
(5)
Other considerations (total--20 points). An applicant receives
up to 20 points on the following three factors.
(A)
Ten of the 20 points available are awarded to applicants
that did not receive a community development fund or a housing rehabilitation
fund contract award during the 1999 or 2000 program years.
(B)
An applicant receives five (5) points if the applicant
has completed the request-for-proposals (RFP) process prior to the application
deadline for engineering services and administrative services that will be
needed to implement the activities included in the application. To receive
these points an applicant must complete the process for selection of these
service providers prior to the application deadline and submit information
described in the most recent application guide for this fund.
(C)
An applicant receives from zero to five (5) points based
on the applicant's past performance on previously awarded TCDP contracts.
The applicant's score will primarily be based on an assessment of the applicant's
performance on the applicant's two (2) most recent TCDP contracts that have
reached the end of the original contract period stipulated in the contract.
TCDP staff may also assess the applicant's performance on existing TCDP contracts
that have not reached the end of the original contract period. An applicant
that has never received a TCDP grant award will automatically receive these
points. TCDP staff will assess the applicant's performance on TCDP contracts
up to the application deadline date. The applicant's performance on TCDP contracts
after the application deadline date will not be evaluated in this assessment.
The evaluation of an applicant's past performance will include, but is not
necessarily limited to the following:
(i)
The applicant's completion of the previous contract activities
within the original contract period.
(ii)
The applicant's submission of the required close-out documents
within the period prescribed for such submission.
(iii)
The applicant's timely response to monitoring findings
on previous TCDP contracts especially any instances when the monitoring findings
included disallowed costs.
(iv)
The applicant's timely response to audit findings on previous
TCDP contracts.
(6)
Regional scoring factors (total--350 points).
(A)
Required factors. Each regional review committee shall
use the following two factors to score applications in its region.
(i)
Project priorities. Each regional review committee shall
rank and assign points to categories of eligible activities based on the priority
of such projects in the region. The first priority shall receive at least
100 points.
(ii)
Merits of the project. A maximum of 175 points shall be
awarded based on definitions and criteria adopted by each regional review
committee.
(B)
Optional factor. Each regional review committee may award
points based on a local effort factor. Points shall be awarded based on definitions
and criteria adopted by each regional review committee.
§255.3.Allocation of Program Funds.
(a)
General provisions. Assistance under this fund is limited
to the eligible cities selected by the U.S. Department of Housing and Urban
Development (HUD) to complete the Court-ordered activities under the Final
Order and Decree in the Young v. Cuomo litigation. The only eligible activities
are the activities described in revised Memoranda of Understanding (MOUs)
and any 1990 Desegregation Plan activities cited in the revised MOUs.
(1)
A local government with Young v. Cuomo required activities
must submit an application under this fund which addresses the required activities
and which includes local matching funds.
(2)
In addition to the threshold requirements of Section 9.1(h)
of this title (relating to General Provisions) and the requirements of Section
9.1(n), in order to be eligible to apply for Young v. Cuomo funding, an applicant
must document that at least 51% of the persons who would directly benefit
from the implementation of each activity proposed in the application are of
low to moderate income.
(b)
Funding cycle. Funds, not to exceed $2.3 million, are available
to eligible cities from the 2001 program year allocation. Applications for
funding must be received by the TCDP by the date specified in the application
guide for this fund.
(c)
Selection procedures.
(1)
Prior to the application deadline, each eligible local
government may submit one application for funding under the Young v. Cuomo
fund. Two copies of the application must be submitted to the Office and at
least one copy of the application must be submitted to the applicant's state
planning region.
(2)
Upon receipt of an application, the Office staff performs
an initial review to determine whether the application is complete and whether
all proposed activities are eligible for funding. The results of this initial
review are provided to the applicant. If not subject to disqualification,
the applicant may correct any deficiencies identified within ten calendar
days of the date of the staff's notification.
(3)
Each regional review committee may, at its option, review
and comment on an application from a local government within its state planning
region. These comments become part of the application file, provided such
comments are received by the Office prior to final review of the applications.
(4)
HUD reviews the activities included in each application,
selects the applications that receive funding, and the order in which the
applications receive funding recommendations. HUD then notifies the Office
when a funding decision is made.
(5)
Following a final technical review, the Office staff makes
funding recommendations for the applications selected by HUD to the executive
director of the Office.
(6)
The executive director of the Office reviews the recommendations
for project awards and, except for awards exceeding $300,000 announces the
contract awards. Awards exceeding $300,000.00 are submitted to the Executive
Committee for approval.
(7)
Upon announcement of the contract awards, the Office staff
works with recipients to execute the contract agreements. While the award
must be based on the information provided in the application, the Office may
negotiate any element of the contract with the recipient as long as the contract
amount is not increased and the level of benefits described in the application
is not decreased. The level of benefits may be negotiated only when the project
is partially funded.
§255.4.Planning/Capacity Building Fund.
(a)
General provisions. This fund is intended to provide an
opportunity for units of general local government to prepare comprehensive
community development plans, develop strategies, assess needs, and build or
improve local capacity to undertake future community development projects
or to prepare other needed planning elements. Eligible units of general local
government are to be the direct recipients of planning contracts. Units of
general local government may submit one application for planning funds annually
if all previous planning/capacity building contracts with the Office have
been totally reimbursed by the Office.
(1)
A cash match equal to or greater than 20% of the total
TCDP funds requested is required of all applicants having a population over
5,000, a cash match equal to or greater than 15% of the total TCDP funds requested
is required of all applicants having a population over 1,500 but equal to
or less than 5,000, a cash match equal to or greater than 10% of the total
TCDP funds requested is required of all applicants having a population over
750 but equal to or less than 1,500, and a cash match equal to or greater
than 5% of the total TCDP funds requested is required of all applicants having
a population of less than 750. The population of an applicant is based on
the 1990 census unless an applicant submits a survey conducted in accordance
with Section 9.1(k) of this title (relating to General Provisions). The percentage
of match required from a county applicant is based on the actual target area
population benefitting from the proposed planning project. In lieu of providing
the cash match specified in this paragraph, and as further described in the
most recent application guide for this fund, an applicant may agree to pay
out of its own resources for other eligible planning activities described
on the matrix included in such application guide.
(2)
In addition to the threshold requirements of Section 9.1(h)
and Section 9.1(n) of this title (relating to General Provisions), in order
to be eligible to apply for planning/capacity building funding, an applicant
under this section must document that at least 51% of the persons in the area
who would benefit from the implementation of the proposed planning activity
are of low and moderate income.
(b)
Funding cycle. This fund is allocated to eligible units
of general local government on a biennial basis for the 2001 and 2002 program
years pursuant to a statewide competition held during the 2001 program year.
Applications for funding from the 2001 and 2002 program year allocations must
be received by the TCDP by the dates and times specified in the most recent
application guide for this fund.
(c)
Selection procedures. Scoring and the recommended ranking
of projects is done by staff and a committee composed of Office staff with
input from the regional review committees. The application and selection procedures
consist of the following steps.
(1)
Prior to the application deadline, each eligible jurisdiction
may submit one application for funding under the planning/capacity building
fund. An applicant may not submit an application under this fund and also
under the colonia fund if the proposed activity under each application is
the same or substantially similar. One copy of the application must be provided
to the applicant's regional review committee and two copies must be submitted
to the department.
(2)
Upon receipt of an application, the Office staff performs
an initial review to determine whether the application is complete and whether
the activities proposed are eligible for funding. Results of this initial
staff review are provided to the applicant. If not subject to disqualification,
the applicant may correct any deficiencies identified within 10 calendar days
of the date of the staff's notification.
(3)
Each regional review committee may, at its option, review
and comment on a planning/capacity building proposal from a jurisdiction within
its state planning region. These comments become part of the application file,
provided such comments are received by the Office prior to scoring of the
applications.
(4)
The Office staff and the Office staff committee generate
scores on factors related to planning strategy and products. Each application
is scored on how the proposed planning activities resolve the identified community
development needs of the local government. This information, as well as any
comments made by the regional review committee, are used by the Office staff
committee and Office staff to generate scores on the planning strategy and
products factors.
(5)
The Office generates scores on selection criteria relating
to community distress, project design, and planning strategy and products.
Scores on the factors in these categories are derived from standardized data
from the Census Bureau, Texas Workforce Commission, or from information provided
by the applicant.
(6)
Scores on all factors are totaled to obtain project rankings.
(7)
The Office staff submits the 2001 program year and 2002
program year funding recommendations to the state review committee. The state
review committee reviews the project rankings and provides funding recommendations
to the executive director of the Department.
(8)
The executive director of the Office reviews the 2001 program
year funding recommendations and except for awards exceeding $300,000 announces
the contract awards. Awards exceeding $300,000.00 are submitted to the Executive
Committee for approval.
(9)
Upon the announcement of the 2001 program year contract
awards, the Office staff works with recipients to execute the contract agreements.
The award is based on the information provided in the application and on the
amount of funding proposed for each contract activity based on the matrix
included in the most recent application guide for this fund.
(10)
When the 2002 program year TCDP allocation becomes available,
the executive director of the Office reviews the 2002 program year funding
recommendations and except for awards exceeding $300,000 announces the contract
awards. Awards exceeding $300,000.00 are submitted to the Executive Committee
for approval.
(11)
Upon the announcement of the 2002 program year contract
awards, the Office staff works with recipients to execute the contract agreements.
The award is based on the information provided in the application and on the
amount of funding proposed for each contract activity based on the matrix
included in the most recent application guide for this fund.
(d)
Selection criteria. The following is an outline of the
selection criteria used by the Office for selection of the projects under
the planning/capacity building fund. Four hundred thirty points are available.
(1)
Community distress (total--55 points). All community distress
factor scores are based on the total population of the applicant.
(A)
Percentage of persons living in poverty--20
(B)
Per capita income--20
(C)
Unemployment rate--15
(2)
Project design (total--100 points).
(A)
Program priority (50 points). An applicant chooses its
own priorities under this scoring factor. All activities are weighted at ten
points apiece. An applicant receives 50 points for its first five priorities.
Base studies (base mapping, housing, land use, population components) are
recommended for those who lack these updated studies. An applicant is not
limited to requesting only its first five priorities. It may also request
funds for activities viewed as necessary, but no additional points would be
available for these activities. Applicants with fewer than five priorities
or wishing to accomplish fewer than five activities receive point consideration
for efficient use of grant funds under "Planning Strategy and Products" described
in the most recent application guide for this fund.
(B)
Areawide proposals (50 points). An applicant must propose
to conduct all activities described in its application throughout the entire
jurisdiction of the applicant to receive the maximum 50 points. An applicant
proposing target area planning receives zero points. County applicants with
identifiable, unincorporated communities qualify for these points provided
that incorporation or other organization of the unincorporated communities
is being considered as an option.
(3)
Planning strategy and products (total 275 points).
(A)
Previous planning (50 points).
(i)
An applicant which has not previously received a planning/capacity
building contract or an applicant which has received a planning/capacity building
fund contract prior to the 1991 program year and has not received any subsequent
planning/capacity building fund contracts --50 points.
(ii)
An applicant which has received previous planning/capacity
building funding and demonstrates that at least three previous planning recommendations
have been implemented, i.e., funds from any source have been spent to implement
recommendations included in the plans--40 points.
(iii)
An applicant which has participated in the program established
under this section and demonstrates implementation of some of the planning
recommendations, regardless of the source of funding, or an applicant which
has received previous planning/capacity building funding but demonstrates
that conditions have changed to warrant new planning for the same activities--20
points.
(B)
Proposed planning effort (225 points). The factors considered
by a committee composed of staff of the Office in determining this score are
as follows:
(i)
the extent to which findings of any previous planning efforts
have been implemented;
(ii)
how clearly the proposed planning effort will resolve
the community needs addressed in the application;
(iii)
whether the proposed activities will result in the development
of a strategy capable of implementation and will be an efficient use of contract
funds; and
(iv)
demonstration of local commitment.
§255.8.Regional Review Committees.
(a)
Composition. There is a regional review committee in each
of the 24 state planning regions. Each committee consists of at least 12 members
appointed by the governor. Composition of each regional committee reflects
geographic diversity within the region, difference in population among eligible
localities, and types of government (general law cities, home rule cities,
and counties). The chairperson of the committee is also appointed by the governor.
Members of the committee serve two-year terms. An individual may not serve
as a member of a regional review committee while serving as a member of the
State Community Development Review Committee.
(b)
Role. Each regional review committee reviews and scores
all applications submitted from within its region under the community development
fund. Each regional review committee may review and comment on other TCDP
applications. Each regional review committee sends its scores and comments
to the Office. Regional review committees may elect to utilize staff of regional
planning commissions to assist with project review responsibilities.
(c)
General requirements. In the performance of its responsibilities,
each regional review committee shall comply with all federal and state laws
and regulations relating to the administration of community development block
grant nonentitlement area funds including, but not limited to, requirements
of this subchapter, the scoring procedures specified in the current Regional
Review Committee Guidebook, and the procedures established by the regional
review committee under the TCDP.
(1)
Meetings. Each meeting held by a regional review committee
shall conform to the following requirements.
(A)
The regional review committee shall notify each eligible
unit of general local government within the regional review committee's state
planning region, in writing, of the date, time, and location of its organizational
meeting at least five days prior to the meeting. The regional review committee
shall notify each applicant within its region, in writing, of the date, time,
and location of its scoring meeting at least five days prior to the meeting.
The notices must be in the format specified by the department in the most
recent Regional Review Committee Guidebook. The notices must also be published
in a regional newspaper at least three days prior to the meeting. Articles
published in such newspapers which satisfy the content and timing requirements
of this subparagraph will be accepted by the department in lieu of publication
of notices.
(B)
Each applicant shall be provided with the opportunity to
make a presentation to the regional review committee at its scoring meeting.
(C)
The order of the presentations shall be randomly selected
by the regional review committee.
(D)
All discussions, deliberations, and votes shall be made
in public except for items which would be specifically exempted under the
Texas Open Meetings Act. The scoring of applications must occur at the same
meeting of the regional review committee at which the presentations by applicants
are made.
(E)
A quorum of a simple majority of the current members of
the regional review committee, rounded to the nearest whole number, shall
be present. Any actions taken by a regional review committee in which a quorum
was not present shall be voidable, provided, however, that if a conflict of
interest situation has required a regional review committee member to excuse
himself, thus dropping the number of participating members below the simple
majority requirement, a quorum shall have been considered present.
(2)
Conflicts of interest. No member of a regional review committee
shall vote on an application if the member is on the governing body of the
applicant or in cases where that member has a personal or pecuniary interest
as defined under state law. A county judge or county commissioner may not
score an application from an incorporated city within the county, unless specifically
authorized by the regional review committee. A regional review committee member
may not discuss any application, including the scoring of any application
that the member is allowed to score, with any person that may benefit from
an award of TCDP funds to such application. If a regional review committee
member discusses an application with any person that may benefit from an award
of TCDP funds to such application, the regional review committee member shall
abstain from the scoring of that application.
(3)
Voting. Only appointed members of a regional review committee
may vote on an action of the regional review committee. A regional review
committee member may designate an alternate to participate in the member's
absence. Each regional review committee shall retain all ballots or other
voting records used by its members. Such records shall be maintained in an
accessible location and be made available for inspection by the public for
a period of one year. Each member of a regional review committee shall score
each application individually and shall sign each of his or her ballots and
other voting records or scoring sheets. The high and low scores are eliminated
and the average of the remaining individual scores is the regional review
committee's score on each scoring factor. Consensus scoring is not permitted.
(4)
Scoring procedures. Each regional review committee must
submit its scoring procedures to the Office for approval before the procedures
are disseminated to all eligible applicants in its region.
(d)
Appeals. An applicant may appeal the actions of the regional
review committee established in its state planning region by following the
procedures set forth in this subsection. The department will withhold the
running of computer scores on community development fund applications for
five working days after the regional review committee's scoring meeting or
until all regional appeals, if any, have been resolved, whichever is longer.
A regional review committee must provide written notification of each appeal
to all applicants in the region. An applicant that is adversely affected by
the action of its regional review committee on an appeal, may appeal that
action in accordance with the procedures specified in this subsection.
(1)
An applicant shall notify its regional review committee,
in writing, of an alleged violation of regional review committee procedures
committed by the regional review committee within five working days after
the date of the regional review committee meeting which is the subject of
the appeal. The applicant shall also send a copy of the appeal to the department.
All appeals must be based on a specifically identified violation of regional
review committee procedures.
(2)
Within 10 working days after the receipt of an appeal,
the regional review committee shall notify all the applicants within its region
that the regional review committee will reconvene to hear the appeal. If a
quorum of the regional review committee agrees that the alleged procedural
violation occurred, the regional review committee shall sustain the appeal,
make appropriate adjustments to regional scores, and notify the Office. If
a quorum of the regional review committee votes to deny the appeal, the regional
review committee shall provide all applicants in the region and the Office
with a written statement of the basis of its denial.
(3)
If the appeal is resolved, the Office runs the computer
scores and provides funding recommendations to the state review committee.
(4)
If the appeal is not resolved, the Office prepares an appeal
file for the state review committee. The file includes:
(A)
the appeal;
(B)
the response of the regional review committee;
(C)
Office staff reports; and
(D)
comments of other interested parties.
(5)
The state review committee shall make one of the following
recommendations to the executive director of the Office:
(A)
sustain the appeal and suggest corrective actions; or
(B)
reject the appeal and sustain the regional scores.
§255.9.Colonia Fund.
(a)
General provisions. This fund covers the payment of assessments,
access fees, and capital recovery fees for low and moderate income persons
for eligible water and sewer improvements projects, all other program eligible
activities, eligible planning activities projects, and the establishment of
colonia self-help centers to serve severely distressed unincorporated areas
of counties which meet the definition of a colonia under this fund. A colonia
is defined as: any identifiable unincorporated community that is determined
to be a colonia on the basis of objective criteria, including lack of potable
water supply, lack of adequate sewage systems, and lack of decent, safe, and
sanitary housing; and was in existence as a colonia prior to November 28,
1990. For an eligible county to submit an application on behalf of eligible
colonia areas, the colonia areas must be within 150 miles of the Texas-Mexico
border region, except that any county that is part of a standard metropolitan
statistical area with a population exceeding one million is not eligible under
this fund.
(1)
An applicant may not submit an application under this fund
and also under any other TCDP fund category at the same time if the proposed
activity under each application is the same or substantially similar.
(2)
In addition to the threshold requirements of Section 9.1(h)
and Section 9.1(n) of this title (relating to General Provisions), in order
to be eligible to apply for colonia funds, an applicant must document that
at least 51% of the persons who would directly benefit from the implementation
of each activity proposed in the application are of low to moderate income.
(3)
Eligibility for the Office's colonia economically distressed
areas program EDAP fund (colonia EDAP fund) is limited to counties, and nonentitlement
cities located in those counties, that are eligible under the TCDP Colonia
Fund and Texas Water Development Board's EDAP. Eligible colonia EDAP fund
projects shall be located in unincorporated colonias and in eligible cities
that annexed the eligible colonia where improvements are to be made within
five years after the effective date of the annexation, or are in the process
of annexing the colonia where improvements are to be made. A colonia EDAP
fund application cannot be submitted until the construction of the Texas Water
Development Board's Economically Distressed Areas Program financed water or
sewer system begins.
(4)
In accordance with Subchapter Z, Chapter 43, Section 43.905
of the Local Government Code, eligible colonia areas annexed by municipalities
on or after September 1, 1999, remain eligible for five years after the effective
date of the annexation to receive any form of assistance for which the colonia
would be eligible if the annexation had not occurred. A nonentitlement city
located in a county that is eligible under the TCDP Colonia Fund and Texas
Water Development Board's Economically Distressed Areas Program that has annexed
a colonia area is an eligible applicant for the Department's colonia EDAP
fund. However, an application for TCDP colonia construction fund or colonia
planning fund assistance for a colonia area annexed by a municipality on or
after September 1, 1999, may only be submitted by the county where the annexed
colonia area is located.
(b)
Eligible activities. The only eligible activities under
the colonia fund are:
(1)
the payment of assessments (including any charge made as
a condition of obtaining access) levied against properties owned and occupied
by persons of low and moderate income to recover the capital cost for a public
water and/or sewer improvement;
(2)
payment of the cost of planning community development (including
water and sewage facilities) and housing activities; costs for the provision
of information and technical assistance to residents of the area in which
the activities are located and to appropriate nonprofit organizations and
public agencies acting on behalf of the residents; and costs for preliminary
surveys and analyses of market needs, preliminary site engineering and architectural
services, site options, applications, mortgage commitments, legal services,
and obtaining construction loans;
(3)
other activities eligible under the Housing and Community
Development Act of 1974, Section 105, as amended, designed to meet the needs
of residents of colonias;
(4)
the establishment of colonia self-help centers and activities
conducted by colonia self-help centers in accordance with the provisions of
Chapter 2306, Subchapter Z, of the Government Code.
(5)
For the Office's colonia EDAP fund, eligible activities
are limited to those that provide assistance to low and moderate income colonia
residents that cannot afford the costs associated with connections and service
to water or sewer systems funded through the Texas Water Development Board's
Economically Distressed Areas Program. The eligible activities are water or
sewer connection fees, water or sewer taps, water meters, water or sewer yard
service lines, plumbing improvements associated with the provision of water
or sewer service to an occupied housing unit, water or sewer house service
connections, reasonable associated administrative costs, and reasonable associated
engineering costs.
(c)
Types of applications. Eligible applicants may submit one
application for the colonia EDAP fund, the colonia construction fund and the
colonia planning fund. Eligible planning activities cannot be included in
an application for the colonia construction fund. Two separate fund categories
are available under the colonia planning fund. The colonia area planning fund
is available for eligible planning activities that are targeted to selected
colonia areas. The colonia comprehensive planning fund is available for countywide
comprehensive planning activities that include an assessment and profiles
of a county's colonia areas. Separate competitions are held for the colonia
area planning fund and colonia comprehensive planning fund allocations. A
county that has previously received a colonia comprehensive planning fund
grant award from the Office may not submit another application for colonia
comprehensive planning fund assistance.
(d)
Funding cycle. The colonia construction fund and the colonia
planning fund are allocated on an annual basis to eligible county applicants
through competitions conducted during the program year. Applications for funding
must be received by the Office by the dates and times specified in the most
recent application guide for each separate colonia fund category. The colonia
self-help centers fund is allocated on an annual basis to counties included
in Subchapter Z, Chapter 2306, Section 2306.582, Government Code, and/or counties
designated as economically distressed areas under Chapter 17, Water Code.
The colonia EDAP fund is allocated on an annual basis and the funds are distributed
on an as-needed basis.
(e)
Selection procedures.
(1)
On or before the application deadline, each eligible county
may submit one application for the colonia construction fund, for colonia
comprehensive planning, and for colonia area planning. Eligible applicants
for the colonia EDAP fund may submit one application after construction begins
on the water or sewer system financed by the Texas Water Development Board's
Economically Distressed Areas Program. Copies of the application must be provided
to the applicant's regional planning commission and the Office.
(2)
Upon receipt of an application, the Office staff performs
an initial review to determine whether the application is complete and whether
all proposed activities are eligible for funding. The results of this initial
review are provided to the applicant. If not subject to disqualification,
the applicant may correct any deficiencies identified within ten calendar
days of the date of the staff's notification.
(3)
Each regional review committee may, at its option, review
and comment on a colonia fund proposal from a jurisdiction within its state
planning region. These comments will become part of the application file,
provided such comments are received by the Office prior to scoring of the
applications.
(4)
The Office then scores the colonia construction fund and
colonia planning fund applications to determine rankings. Scores on the selection
factors are derived from standardized data from the Census Bureau, other federal
or state sources, and from information provided by the applicant. For colonia
EDAP fund applications, the Office evaluates information in each application
and other factors before the completion of a final technical review of each
application.
(5)
Following a final technical review, the Office staff makes
funding recommendations to the executive director of the Office.
(6)
The executive director of the Office reviews the final
recommendations and except for awards exceeding $300,000 announces the contract
awards. Awards exceeding $300,000.00 are submitted to the Executive Committee
for approval.
(7)
Upon announcement of contract awards, the Office staff
works with recipients to execute the contract agreements. While the award
must be based on the information provided in the application, the Office may
negotiate any element of the contract with the recipient as long as the contract
amount is not increased and the level of benefits described in the application
is not decreased. The level of benefits may be negotiated only when the project
is partially funded.
(f)
Selection criteria (colonia construction fund). The following
is an outline of the selection criteria used by the Office for scoring colonia
construction fund applications. Four hundred forty points are available.
(1)
Community distress (total--60 points). All community distress
factor scores are based on the unincorporated population of the applicant.
An applicant that has 125% or more of the average of all applicants in its
region of the rate on any community distress factor, except per capita income,
receives the maximum number of points available for that factor. An applicant
with less than 125% of the average of all applicants in its region on a factor
will receive a proportionate share of the maximum points available for that
factor. An applicant that has 75% or less of the average of all applicants
in its region on the per capita income factor will receive the maximum number
of points available for that factor.
(A)
Percentage of persons living in poverty--15
(B)
Per capita income--15
(C)
Percentage of housing units without public sewer service--15
(D)
Percentage of housing units without public water service--15
(2)
Benefit to low and moderate income persons (total--50 points).
To determine the percentage of TCDP funds benefitting low to moderate income
persons, the number equal to the percentage of low to moderate income persons
benefitting from the proposed project multiplied by the amount of TCDP funds
requested for construction activities is divided by the total amount of TCDP
funds requested. Points are awarded based on the percentage of TCDP funds
benefitting low to moderate income persons in accordance with the following
scale:
(A)
100% to 90% of funds benefitting low to moderate income
persons--50
(B)
89.99% to 80% of funds benefitting low to moderate income
persons--40
(C)
79.99% to 70% of funds benefitting low to moderate income
persons--25
(D)
69.99% to 60% of funds benefitting low to moderate income
persons--10
(E)
Below 60% of funds benefitting low to moderate income persons--0
(3)
Project priorities (total--195 points) When necessary,
a weighted average is used to assign scores to applications which include
activities in the different project priority scoring levels. Using as a base
figure the TCDP funds requested minus the TCDP funds requested for engineering
and administration, a percentage of the total TCDP construction dollars for
each activity is calculated. The percentage of the total TCDP construction
dollars for each activity is then multiplied by the appropriate project priorities
point level. The sum of the calculations determines the composite project
priorities score. The different project priority scoring levels are:
(A)
activities (service lines, service connections, and/or
plumbing improvements) providing access to water and/or sewer systems funded
through the Texas Water Development Board Economically Distressed Area program--195
(B)
first time public water and/or sewer service and housing
activities--145
(C)
first time water and/or sewer service through a privately-owned
for profit utility-135
(D)
installation of approved residential on-site wastewater
disposal systems--110
(E)
expansion or improvement of existing water and/or sewer
service--95
(F)
street paving and drainage activities--75
(G)
all other eligible activities--20
(4)
Project design (total--135 points). Each application is
scored based on how the proposed project resolves the identified need and
the severity of need within the applying jurisdiction. Each application is
scored by a committee composed of TCDP staff using the following information
submitted in the application:
(A)
the severity of need within the colonia area(s) and how
the proposed project resolves the identified need (additional consideration
is given to water activities addressing impacts from drought conditions);
(B)
the TCDP cost per low to moderate income beneficiary;
(C)
the applicant's past efforts, especially the applicant's
most recent efforts, to address water, sewer, and housing needs in colonia
areas through applications submitted under the TCDP community development
fund or through community development block grant entitlement funds;
(D)
the projected water and/or sewer rates after completion
of the project based on 3,000 gallons, 5,000 gallons, and 10,000 gallons of
usage;
(E)
the ability of the applicant to utilize the grant funds
in a timely manner;
(F)
the availability of grant funds to the applicant for project
financing from other sources;
(G)
the applicant's past performance on prior TCDP contracts;
(H)
whether the applicant, or the service provider, has waived
the payment of water or sewer service assessments, capital recovery fees,
and other access fees for the proposed low and moderate income project beneficiaries;
(I)
whether the applicant's proposed use of TCDP funds is to
provide water or sewer connections/yardlines and/or plumbing improvements
that provide access to water/sewer systems financed through the Texas Water
Development Board Economically Distressed Areas Program; and
(J)
whether the applicant provides any local matching funds
for project activities.
(g)
Selection criteria (colonia area planning fund). The following
is an outline of the selection criteria used by the Office for scoring applications
for eligible planning activities under this fund. Three hundred fifty points
are available.
(1)
Community distress (total--60 points). All community distress
factor scores are based on the unincorporated population of the applicant.
(A)
Percentage of persons living in poverty--15
(B)
Per capita income--15
(C)
Percentage of housing units without public sewer service--15
(D)
Percentage of housing units without public water service--15
(2)
Benefit to low and moderate income persons (total--40 points).
Points are awarded based on the low and moderate income percentage for the
entire colonia areas where project activities are located according to the
following scale:
(A)
100% to 90% of funds benefitting low to moderate income
persons--40
(B)
89.99% to 80% of funds benefitting low to moderate income
persons--30
(C)
79.99% to 70% of funds benefitting low to moderate income
persons--20
(D)
69.99% to 60% of funds benefitting low to moderate income
persons--10
(E)
Below 60% of funds benefitting low to moderate income persons--0
(3)
Project design (total--250 points). Each application is
scored based on how the proposed planning effort resolves the identified need
and the severity of need within the applying jurisdiction. Each application
is scored by a committee composed of TCDP staff using the following information
submitted in the application:
(A)
the severity of need within the colonia area(s);
(B)
how clearly the proposed planning effort removes barriers
to the provision of public facilities to the colonia area(s) and results in
a strategy to resolve the identified needs;
(C)
the planning activities proposed in the application;
(D)
whether each proposed planning activity is conducted on
a colonia-wide basis;
(E)
the extent to which any previous planning efforts for colonia
areas have been accomplished;
(F)
the TCDP cost per low to moderate income beneficiary;
(G)
the availability of grant funds to the applicant for project
financing from other sources;
(H)
whether the applicant provides any local matching funds
for project activities; and
(I)
the applicant's past performance on prior TCDP contracts.
(h)
Selection criteria (colonia comprehensive planning fund).
The following is an outline of the selection criteria used by the Office for
scoring applications for eligible planning activities under this fund. Two
hundred points are available.
(1)
Community distress (total--25 points). All community distress
factor scores are based on the unincorporated population of the applicant.
(A)
Percentage of persons living in poverty--15
(B)
Per capita income--10
(2)
Project design (total--175 points). Each application is
scored by a committee composed of Department staff using the following information
submitted in the application:
(A)
the severity of need for the comprehensive colonia planning
effort and how effectively the proposed comprehensive planning effort will
result in a useful assessment of colonia populations, locations, infrastructure
conditions, housing conditions, and the development of short-term and long-term
strategies to resolve the identified needs;
(B)
the extent to which any previous planning efforts for colonia
areas have been implemented;
(C)
whether the applicant provides any local matching funds
for project activities; and
(D)
the applicant's past performance on previously awarded
TCDP contracts.
(i)
Program guidelines (colonia self-help centers fund). The
following is an outline of the administrative requirements and eligible activities
under this fund.
(1)
The geographic area served by each colonia self-help center
shall be determined by the Office. Five colonias located in each established
colonia self-help center service area shall be designated to receive concentrated
attention from the center. Each colonia self-help center shall set a goal
to improve the living conditions of the residents located in the colonias
designated for concentrated attention within a two-year period set under the
contract terms. The Office has the authority to make changes to the colonias
designated for this concentrated attention.
(2)
The Office's grant contract for each colonia self-help
center is awarded and executed with the county where the colonia self-help
center is located. Each county executes a subcontract agreement with a non-profit
community action agency or a public housing authority.
(3)
A colonia advisory committee is established and not fewer
than five persons who are residents of colonias are selected from the candidates
submitted by local nonprofit organizations and the commissioners court of
a county where a self-help center is located. One committee member shall be
appointed to represent each of the counties in which a colonia self-help center
is located. Each committee member must be a resident of a colonia located
in the county the member represents but may not be a board member, contractor,
or employee of or have any ownership interest in an entity that is awarded
a contract through the TCDP. The advisory committee shall advise the Office
regarding:
(A)
the needs of colonia residents;
(B)
appropriate and effective programs that are proposed or
are operated through the centers; and
(C)
activities that may be undertaken through the centers to
better serve the needs of colonia residents.
(4)
The purpose of each colonia self-help center is to assist
low income and very low income individuals and families living in colonias
located in the center's designated service area to finance, refinance, construct,
improve or maintain a safe, suitable home in the designated service area or
in another suitable area. Each self-help center may serve low income and very
low income individuals and families by:
(A)
providing assistance in obtaining loans or grants to build
a home;
(B)
teaching construction skills necessary to repair or build
a home;
(C)
providing model home plans;
(D)
operating a program to rent or provide tools for home construction
and improvement for the benefit of property owners in colonias who are building
or repairing a residence or installing necessary residential infrastructure;
(E)
helping to obtain, construct, assess, or improve the service
and utility infrastructure designed to service residences in a colonia, including
potable water, wastewater disposal, drainage, streets and utilities;
(F)
surveying or platting residential property that an individual
purchased without the benefit of a legal survey, plat, or record;
(G)
providing credit and debt counseling related to home purchase
and finance;
(H)
applying for grants and loans to provide housing and other
needed community improvements;
(I)
monthly programs to educate individuals and families on
their rights and responsibilities as property owners;
(J)
providing other eligible services that the self-help center,
with the Office's approval, determines are necessary to assist colonia residents
in improving their physical living conditions, including help in obtaining
suitable alternative housing outside of a colonia's area; and
(K)
providing assistance in obtaining loans or grants to enable
an individual or family to acquire fee simple title to property that originally
was purchased under a contract for a deed, contract for sale, or other executory
contract.
(5)
A self-help center may not provide grants, financing, or
mortgage loan services to purchase, build, rehabilitate, or finance construction
or improvements to a home in a colonia if water service and suitable wastewater
disposal are not available.
(j)
Selection criteria (colonia EDAP fund). The following is
an outline of the application information evaluated by a committee composed
of the Office's staff.
(1)
The proposed use of the colonia EDAP funds including the
eligibility of the proposed activities and the effective use of the funds
to provide water or sewer connections/yard lines to water/sewer systems funded
through the Texas Water Development Board Economically Distressed Area Program.
(2)
The ability of the applicant to utilize the grant funds
in a timely manner.
(3)
The availability of grant funds to the applicant for project
financing from other sources.
(4)
The applicant's past performance on previously awarded
TCDP contracts.
§255.10.Housing Fund.
(a)
General provisions. Two separate fund categories are available
under the housing fund. The housing infrastructure fund is available for public
facilities and infrastructure improvements supporting the development and
construction of single family and multifamily low to moderate income housing.
The housing infrastructure funds may not be used for the actual construction
cost of new housing. The housing rehabilitation fund is available for the
rehabilitation or existing owner-occupied and renter-occupied housing units
and, in strictly limited circumstances, the construction of new housing that
is accessible to persons with disabilities. The housing rehabilitation fund
selection criteria places emphasis on housing activities that provide accessible
housing for persons with disabilities.
(1)
An applicant may not submit an application under this fund
and also under any other TCDP fund category at the same time if the proposed
activity under each application is the same or substantially similar.
(2)
Each applicant must meet the threshold requirements of
Section 9.1(h) and Section 9.1(n) of this title (relating to General Provisions),
in order to be eligible to apply for housing fund assistance.
(3)
In order to meet a national program objective under the
housing infrastructure fund, at least 51% of the housing units built in conjunction
with each housing infrastructure fund project must be occupied by low to moderate
income persons. In the case of a rental housing construction project, occupancy
by low to moderate income persons must be at affordable rents. TCDP funds
can be used to finance 100% of the eligible project costs when at least 51%
of the units are occupied by low to moderate income persons.
(4)
There is only one type of housing infrastructure fund project
that may qualify for assistance when less than 51% of the units will be occupied
by low to moderate income persons. Eligible assistance may also be provided
to reduce the cost of new construction of a multifamily non-elderly rental
housing project. However, at least 20% of the units must be occupied by persons
of low to moderate income at affordable rents. For this type of project, the
maximum percentage of TCDP funds available for the eligible project costs
is equal to the percentage of the project's units that are occupied by persons
of low to moderate income at affordable rents.
(5)
A housing rehabilitation fund applicant must document that
at least 51% of the persons who would directly benefit from the implementation
of housing activities proposed in the application are of low to moderate income.
It is generally expected that 100% of the persons benefitting from the housing
activities will be low to moderate income persons.
(b)
Eligible activities (housing infrastructure fund). The
only eligible activities under the housing infrastructure fund are:
(1)
The provision of public facilities improvements supporting
the development of the low to moderate income housing.
(2)
Engineering costs associated with the public facilities
improvements.
(3)
Administrative costs associated with the site clearance,
site improvements and public facilities improvements.
(4)
Eligible projects must leverage public (local, state, or
federal) or private resources for the actual housing construction costs and
any other project costs that are not eligible for assistance under this fund.
(c)
Funding cycle (housing infrastructure fund). This fund
is allocated on an annual basis to eligible units of general local government
through a statewide competition. Applications for funding must be received
by the TCDP by the application deadline date or dates specified in the application
guide for this fund.
(d)
Eligible activities (housing rehabilitation fund). Housing
units rehabilitated under this fund must be brought up to HUD Section 8 Existing
Housing Quality Standards or local housing codes. The only eligible activities
under the housing rehabilitation fund are:
(1)
Loan or deferred loan assistance for the rehabilitation
of owner-occupied or renter-occupied housing units that are inhabited by persons
with disabilities or that will be occupied by persons with disabilities after
completion of the housing unit rehabilitation. Rehabilitated housing units
must include any improvements necessary to make the housing unit accessible
to persons with disabilities.
(2)
Loan or deferred loan assistance for the rehabilitation
of owner-occupied housing units that are not inhabited by persons with disabilities.
(3)
Loan or deferred loan assistance for the construction of
new housing units that include accessibility features for persons with disabilities.
Construction of new housing must be provided through an eligible subrecipient
such as a neighborhood-based non-profit organization or a non-profit organization
serving the development needs of the TCDP-eligible community. In this instance,
the applicant must provide documentation that confirms a need for a housing
unit or units, that are accessible to persons with disabilities; and that
there is no existing housing currently available in the applicant's jurisdiction
that can satisfy or meet the documented need.
(4)
Soft costs associated with the delivery of the housing
program assistance including the preparation of work write-ups; required architectural
or professional services that are directly attributable to a particular housing
unit; interim and final inspections; and inspections for lead-based paint,
asbestos, termites, and existing septic systems.
(5)
Administrative costs associated with the housing assistance
program.
(6)
TCDP assistance for the hard costs of housing assistance
is limited to no more than $25,000 per housing unit. The cost of replacement
housing can exceed this $25,000 limit.
(e)
Funding cycle (housing rehabilitation fund). This fund
is allocated to eligible units of general local government on a biennial basis
for the 2001 and 2002 program years pursuant to a statewide competition held
during the 2001 program year. Applications for funding from the 2001 and 2002
program year allocations must be received by the TCDP by the dates and times
specified in the most recent application guide for this fund.
(f)
Selection procedures (housing rehabilitation fund).
(1)
Each eligible local government may submit one application
for funding under the housing rehabilitation fund. Two copies of the application
must be submitted to the Office and at least one copy of the application must
be submitted to the applicant's state planning region.
(2)
Upon receipt of an application, the Office staff performs
an initial review to determine whether the application is complete and whether
all proposed activities are eligible for funding. The results of this initial
review are provided to the applicant. If not subject to disqualification,
the applicant may correct any deficiencies identified by the Office staff
in the timeframe stated in the notification.
(3)
Each regional review committee may, at its option, review
and comment on an application from a local government within its state planning
region. These comments become part of the application file, provided such
comments are received by the Office prior to final review of an application.
(4)
The Office then scores the housing rehabilitation fund
to determine rankings. Scores on the selection factors are derived from standardized
data from the Census Bureau, other federal or state sources, and from information
provided by the applicant.
(5)
Following a final technical review, the Office staff submits
the 2001 program year and 2002 program year funding recommendations to the
executive director of the Office.
(6)
The executive director of the Office reviews the 2001 program
year funding recommendations for project awards and except for awards exceeding
$300,000 announces the contract awards. Awards exceeding $300,000.00 are submitted
to the Executive Committee for approval.
(7)
Upon announcement of the 2001 program year contract awards,
the Office staff works with recipients to execute the contract agreements.
While the award must be based on the information provided in the application,
the Office may negotiate any element of the contract with the recipient as
long as the contract amount is not increased and the level of benefits described
in the application is not decreased. The level of benefits may be negotiated
only when the project is partially funded.
(8)
When the 2002 program year TCDP allocation becomes available,
the executive director of the Office reviews the 2002 program year final recommendations
for project awards and announces the contract awards.
(9)
Upon announcement of the 2002 program year contract awards,
the Office staff works with recipients to execute the contract agreements.
While the award must be based on the information provided in the application,
the Office may negotiate any element of the contract with the recipient as
long as the contract amount is not increased and the level of benefits described
in the application is not decreased. The level of benefits may be negotiated
only when the project is partially funded with the remainder of the target
allocation within a region.
(g)
Selection criteria (housing rehabilitation fund). The following
is an outline of the selection criteria used by the Office for scoring applications
under this fund. Two hundred points are available.
(1)
Community distress (total--25 points). All community distress
factor scores are based on the unincorporated population of the applicant.
(A)
Percentage of persons living in poverty--15
(B)
Per capita income--10
(2)
Project design (total--175 points). Each application is
scored by a committee composed of Department staff using the following information
submitted in the application:
(A)
how the proposed project will resolve the identified housing
needs and the severity of the needs within the applicant's jurisdiction;
(B)
whether the application includes a commitment to rehabilitate
existing housing units addressing the needs of persons with disabilities (applications
that include housing activities providing accessible housing for persons with
disabilities receive additional consideration);
(C)
whether the applicant provides any local matching funds
for the administration or service delivery soft costs activities; and
(D)
the applicant's past performance on previously awarded
TCDP contracts.
(h)
Selection procedures (housing infrastructure fund.
(1)
Each eligible local government may submit one application
for funding under the housing infrastructure fund. Two copies of the application
must be submitted to the Office and at least one copy of the application must
be submitted to the applicant's state planning region.
(2)
Upon receipt of an application, TCDP staff and Credit Division
staff review the application to determine whether it is complete, if all proposed
activities are program eligible, and if the project is financially feasible.
If not subject to disqualification, the applicant may correct any deficiencies
identified by the Office staff in the timeframe stated in the notification.
(3)
After review by Office staff, each application is evaluated
by a team of reviewers. Reviewer's scores are averaged for a final team score
and applications recommended for funding are forwarded to the executive director
of the Office.
(4)
The executive director forwards the recommended applications
to the Office's Board for final approval. If approved by the Office's Board,
the executive director except for awards exceeding $300,000 announces the
contract awards. Awards exceeding $300,000.00 are submitted to the Executive
Committee for approval.
(5)
Upon announcement of the contract awards, the Office staff
works with recipients to execute the contract agreements. While the award
must be based on the information provided in the application, the Office may
negotiate any element of the contract with the recipient as long as the contract
amount is not increased and the level of benefits described in the application
is not decreased.
(i)
Selection criteria (housing infrastructure fund). The following
is an outline of the selection criteria used by the Office for scoring applications
under this fund. One hundred sixty-five points are available.
(1)
Financial feasibility (20 points).
(2)
Market assessment (30 points).
(3)
Affordable housing solutions (30 points).
(4)
Organizational capacity (25 points).
(5)
Program consideration (35 points).
(6)
Project design (10 points).
(7)
Community support (10 points).
(8)
Rural project (5 points). Project is located in a community
with a population of 10,000 persons or less.
(j)
Principal residence requirement (housing infrastructure
fund). Each resident must be one that, at the time the mortgage loan is executed,
the borrower reasonably expects to become his or her principal residence within
a reasonable time (not to exceed 60 days) after the financing is provided.
Whether a residence is occupied as a principal residence depends upon all
the facts and circumstances of each case, including the good faith of the
borrower. A residence that is intended to be used primarily in a trade of
business will not satisfy the principal residence requirement. Further, a
residence that will be used as an investment property or a recreational home
does not satisfy the principal residence requirement.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on January 6, 2003.
TRD-200300025
Robt. J. "Sam" Tessen, MS
Executive Director
Office of Rural Community Affairs
Effective date: January 26, 2003
Proposal publication date: September 20, 2002
For further information, please call: (512) 936-6710
Subchapter B. CONTRACT ADMINISTRATION
10 TAC §255.41
The Office of Rural Community Affairs adopts an amendment
to §255.41, concerning Uniform Administrative Requirements without changes
to the text as published in the September 20, 2002, issue of the
Texas Register
(27 TexReg 8862) and will not be republished. .
The amendment to subsection (b) updates the use of the acronym TCDP for
Texas Community Development Program.
No written comments were received regarding adoption of the amendment.
The amendment is adopted pursuant to Section 487.052 of the Government
Code, which provides the Office of Rural Community Affairs with the authority
to adopt rules to implement its statutory responsibilities.
The amendment affects the Government Code, Chapter 487.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on January 6, 2003.
TRD-200300026
Robt. J. "Sam" Tessen, MS
Executive Director
Office of Rural Community Affairs
Effective date: January 26, 2003
Proposal publication date: September 20, 2002
For further information, please call: (512) 936-6710