10 TAC §§255.1 - 255.4, 255.6 - 255.11
The Office of Rural Community Affairs (Office) adopts amendments
to §§255.1-255.4, 255.6-255.11, concerning the allocation of Community
Development Block Grant (CDBG) non-entitlement area funds under the Texas
Community Development Program (TCDP). Section 255.7 is adopted with changes
to the text as published in the February 14, 2003, issue of the
Texas Register
(28 TexReg 1302). Sections 255.1-255.4, 255.6, 255.8-255.11
are adopted without changes and will not be republished.
The amendments establish the standards and procedures by which the Office
will allocate 2003 and 2004 fiscal years' community development, planning
capacity building, and housing rehabilitation funds and fiscal year 2003 colonia,
housing infrastructure, urgent need, economic development, and TCDP Small
Town Environment Program funds. The amendments are being adopted to make changes
to the application and selection criteria for the program fund categories.
Section 255.7, at subsection (f)(2)(D) is adopted with changes based on
comments received on the proposal. The language of this subparagraph has been
changed from "Award 5 points if the community has been awarded one contract
in the current calendar year or preceding 4 calendar years. Award 10 points
if the community has been awarded zero contracts in the current calendar year
or the preceding 4 calendar years." to "Award 5 points if the community has
been awarded one contract in the current calendar year or preceding 2 calendar
years. Award 10 points if the community has been awarded zero contracts in
the current calendar year or the preceding 2 calendar years." This change
is made in response to comments received requesting that the 4 calendar years
period seems excessive and penalizes communities that have successfully participated
in the Texas Capital Fund program. The change described here is the only change
to the proposed text for §255.7.
No written comments were received on the amendments to §§255.1-255.4,
255.6, 255.8-255.11. Both oral and written comments were received on the proposed
amendments to §255.7. Oral comments were received at a public hearing
conducted by the Texas Department of Agriculture, the current administrator
of the Texas Capital Fund program on March 11, 2003. Only two persons commented
on the amendments at this public hearing and these comments have been addressed
with the adopted change made to the language of Section 255.7, subparagraph
(f)(2)(D). Written comments received on the proposed amendments to §255.7
were supportive of the changes.
The amendments are adopted under §487.052 of the Government
Code, which provides the Office of Rural Community Affairs with the authority
to adopt rules implementing its statutory responsibilities.
The Texas Administrative Code, Title 10, Part 6, Chapter 255, is affected
by the adoption of the amendments to §§255.1, 255.2, 255.3, 255.4,
255.6, 255.7, 255.8, 255.9, 255.10, and 255.11.
§255.7.Texas Capital Fund.
(a)
General Provisions. This fund covers projects which will
result in either an increase in new, permanent employment within a community
or retention of existing permanent employment. Under the main street improvements
program, projects may also qualify if they meet the national program objective
of aiding in the prevention or elimination of slum or blighted areas.
(1)
For an activity that creates/retains jobs, the city/county
and business must document that at least 51% of the jobs are or will be held
by low and moderate income persons. For purposes of determining whether a
job is or will be held by a low or moderate income person or not, the following
options are available.
(A)
The business must survey all persons filling a created/retained
job. Persons filling a created job should be surveyed at the time of employment.
Persons holding a retained job should be surveyed prior to application submission.
This determination is based on the family's size and previous 12 month income
and is normally documented on the Family Income/Size Certification form, which
is filled out, dated and signed by employees; or
(B)
The person(s) employed by the business for created/retained
jobs may be presumed to be a low or moderate income person if the person resides
within a census tract or block numbering area that either is part of a Federally-designated
Empowerment Zone or Enterprise Community or the person(s) reside in a census
tract or block numbering area that meets the following criteria:
(i)
The census tract or block numbering area has a poverty
rate of at least 20% as determined by the most recently available decennial
census information;
(ii)
The census tract or block numbering area does not include
any portion of a central business district, as this term is used in the most
recent Census of Retail Trade, unless the tract has a poverty rate of at least
30% as determined by the most recently available decennial census information;
and
(iii)
The census tract or block numbering area shows evidence
of pervasive poverty and general distress by meeting at least one of the following
standards:
(I)
All block groups in the census tract have poverty rates
of at least 20%; or
(II)
The specific activity being undertaken is located in a
block group that has a poverty rate of at least 20%; or
(III)
Has at least 70% of its residents who are low- and moderate-income
persons; or
(IV)
The assisted business is located within a census tract
or block numbering area that meets the requirements of sub paragraph (B) of
this section, and the job under consideration is to be located within that
census tract or block numbering area.
(2)
If the project is designed to aid in the prevention or
elimination of slum or blighted areas, then it must meet the area slum or
blight or spot slum or blight criteria and threshold requirements outlined
in the separate main street program application.
(3)
A firm financial commitment from all funding sources other
than the United States Department of Commerce or the United States Department
of Agriculture is required upon submission of an application.
(4)
The leverage ratio between all funding sources to the Texas
Capital Fund (TCF) request may not be less than 1:1 for awards of $750,000
or less (except for the main street improvements program in which case a 0.5:1
match for cities with a population of less than 5,000 is acceptable), 4:1
for awards of $750,001 to $1,000,000, and 9:1 for awards of $1,000,001 to
$1,500,000.
(5)
In order for an applicant to be eligible, the cost per
job calculation must not exceed $25,000 for awards of $750,000 or less; $10,000
for awards of $750,001 to $1,000,000; and $5,000 for awards of $1,000,001
to $1,500,000. These requirements do not apply to the Main Street Program.
(6)
No financial assistance will be provided to projects involved
in the relocation of any industrial or commercial plant, facility or operation,
from one state to another state, if the relocation is likely to result in
a significant loss of employment in the labor market area from which the relocation
occurs. No assistance will be provided for projects intended to facilitate
the relocation of any industrial or commercial plant, facility or operation
from one unit of general local government within Texas to another unit of
general local government within Texas unless a 10% net gain of jobs will occur
and one or more of the following requirements has been met prior to submitting
an application for consideration under this section:
(A)
Business to relocate with approval of current locality.
Local government must provide written documentation within the application,
verifying the chief elected official (mayor or judge) of the unit of local
government from which the business is relocating supports and approves the
relocation proposal. A written agreement between the two local governments
involved in the business relocation is preferred.
(B)
Business to relocate out-of state. Business must provide
written documentation between business and out-of-state contact verifying
the business has secured out-of-state location.
(C)
Local government notification with no response. Local government
must provide written documentation that a letter has been mailed (by registered
mail) to the local government from which the business is relocating, notifying
it of the relocation. The local government, upon receipt of the notification,
then has 30 days to object to the relocation, in writing, to the TDA before
the TCF application can be considered. A written objection to a relocation
from a local government will prevent the application from being considered.
(7)
The TDA will not consider any application for funding which
will result in the provision of assistance for an economic development project
where the applicant and one or more other cities or counties are competing
to provide economic development project funds to that project.
(8)
The TDA will not consider any application for funding in
which the business or principals to be assisted thereunder, or a business
that shares common principals has filed under the Federal Bankruptcy Code,
and the matter is in the process of being adjudicated or in which such business
has been adjudicated bankrupt. On a case by case basis, extenuating circumstances
will be evaluated.
(9)
With the exception of the main street improvements program,
the TDA will only consider applications that provide funding for one business.
(10)
The TDA will consider a project proposed by a city that
is in the city's corporate limits or its extraterritorial jurisdiction, and
will consider a project proposed by a county that is in the unincorporated
area of the county. Counties may not sponsor an application for a business
located in a city, if that business is currently participating in a TCF project
with that city. TDA may consider providing funding for an economic development
project proposed by a city that is outside the city's corporate limits or
extraterritorial jurisdiction, but within the county that the city is located
and will consider a project proposed by a county that is within an incorporated
city, if the applicant demonstrates that the project is appropriate to meet
its needs, if the applicant has the legal authority to engage in such a project
and if at least fifty-one percent (51%) of the principal beneficiaries reside
within the applicant's jurisdiction.
(11)
A TCF contractor must satisfactorily close out a contract
in support of a specific business or main street improvements project in order
to be eligible to receive additional funds under the TCF for the same business
or main street city. The contractor is eligible for an additional TCF award
in support of a specific business, provided that the prerequisite program
income choice has been selected, if the assisted business is not in the designated
main street geographic area or if the main street project selected the elimination
of slums and blight as its national program objective and the assisted business
will create or retain jobs to meet the national program objective.
(12)
The TDA will not consider or accept an application for
funding from a community, in support of a business project that is currently
receiving TCF assistance through that same community.
(13)
The minimum and maximum award amount that may be requested/awarded
for a project funded under the TCF infrastructure or real estate development
programs, regardless of whether the application is submitted by a single applicant
or jointly by two or more eligible jurisdictions is addressed here. Award
amounts are directly related to the number of jobs to be created/retained
and the level of matching funds in a project. Projects that will result in
a significantly increased level of jobs created/retained and a significant
increase in the matching capital expenditures may be eligible for a higher
award amount, commonly referred to as jumbo awards. TCF monies are not specifically
reserved for projects that could receive the increased maximum award amount,
however, jumbo awards may not exceed $2 million in total awards during the
program year. Additionally, no more than $1 million in jumbo awards will be
approved in any round. The maximum amount for a jumbo award is $1 million
and the minimum award amount is $750,001. The maximum amount for a normal
award is $750,000 and the minimum award amount is $50,000. These amounts are
the maximum funding levels. The program can fund only the actual, allowable,
and reasonable costs of the proposed project, and may not exceed these amounts.
All projects awarded under the TCF program are subject to final negotiation
between TDA and the applicant regarding the final award amount, but at no
time will the award exceed the amount originally requested in the application.
(14)
TDA will allocate the available funds for the year, less
$600,000 for the Main Street program, as follows:
(A)
First round. 50% of the annual allocation plus any deobligated
and program income funds available, as of the application due date.
(B)
Second round. 60% of the remaining allocation plus any
deobligated and program income funds available, as of the application due
date.
(C)
Third round. Any remaining allocation plus any deobligated
and program income funds available, as of the application due date.
(b)
Overview. This fund is distributed to eligible units of
general local government for eligible activities in the following program
areas:
(1)
The infrastructure program. The infrastructure program
provides funds for eligible activities such as the construction or improvement
of water/wastewater facilities, public roads, natural gas-line main, electric-power
services, and railroad spurs.
(2)
The real estate program. The real estate program provides
funds to purchase, construct, or rehabilitate real estate that is wholly or
partially owned by the community and leased to a specific benefitting business
(either a for-profit entity or a non-profit entity).
(3)
The main street improvements program. The main street improvements
program provides public improvements in support of Texas main street program
designated municipalities.
(c)
Application Dates. The TCF (except for the Main Street
Program) is available three times during the year, on a competitive basis,
to eligible applicants statewide. Applications for the Main Street Program
are accepted annually. Applications will not be accepted after 5:00 pm on
the final day of submission. The application deadline dates are included in
the program guidelines.
(d)
Repayment Requirements. TCF awards for real estate improvements
and private infrastructure require repayment. Infrastructure payments and
real estate lease payments are intended to be paid by the benefitting business
to the applicant/contractor and constitute program income. The repayment is
structured as follows:
(1)
Real estate improvements. These improvements are intended
to be owned by the applicant and leased to the business. Real estate improvements
require full repayment. At a minimum, the lease agreement with the business
must be for a minimum three year period or until the TCF contract between
the applicant and TDA has been satisfactorily closed (whichever is longer).
A minimum monthly lease payment will be required to be collected from the
original business and any subsequent business which occupies the real estate
funded by the TCF, which equates to the principal funded by the TCF divided
over a maximum 20 year period (240 months), or until the entire principal
has been recaptured. The repayment term is determined by TDA and may not be
for the maximum of 20 years for smaller award amounts. There is no interest
expense associated with an award. Payments begin the first day of the third
month following the construction completion date or acquisition date. Payments
received 15 calendar days or more late will be assessed a late charge/fee
of 5% of the payment amount. After the contract between the applicant and
the Office is satisfactorily closed, the applicant will be responsible for
continuing to collect the minimum lease payments only if a business (any business)
occupies the real estate. The lease agreement may contain a purchase option,
if the option is effective after a minimum five year ownership requirement
and if the purchase price equals (at a minimum) the remaining principal amount
originally funded by the TCF which has not been recaptured.
(2)
Infrastructure improvements.
(A)
Private Infrastructure is infrastructure that will be located
on the business's site or on adjacent and/or contiguous property, to the site,
that is owned by the business, principals, or related entities. All funds
for private infrastructure improvements require full repayment. Terms for
repayment will be interest free, with repayment not to exceed 20 years and
are intended to be repaid by the business through a repayment agreement. Payments
begin the first day of the third month following the construction completion
date. Payments received 15 calendar days or more late will be assessed a late
charge/fee of 5% of the payment amount.
(B)
Public Infrastructure is infrastructure located on public
property or right-of-ways and easements granted by entities unrelated to the
business or its owners and not included or identified as private infrastructure.
All funds for public infrastructure do not require repayment.
(C)
Rail improvements on private property require full repayment.
Terms for repayment will be no interest, with repayment not to exceed 20 years
and are intended to be repaid by the business through a repayment agreement.
Payments begin the first day of the third month following the construction
completion date. Payments received 15 calendar days or more late will be assessed
a late charge/fee of 5% of the payment amount.
(e)
Application process for the infrastructure and real estate
programs. The TDA will only accept applications during the months identified
in the program guidelines. Applications are reviewed after they have been
competitively scored. Staff makes recommendation for award to TDA executive
director. TDA executive director makes the final decision. The application
and selection procedures consist of the following steps:
(1)
Each applicant must submit a complete application to TDA's
Trade and Investment Division. No changes to the application will be allowed
after the application deadline date, unless they are a result of TDA staff
recommendations. Any change that occurs will only be considered through the
amendment/modification process after the contract is signed.
(2)
Upon receipt of applications, TDA staff reviews scores
for validity and ranks them in descending order.
(3)
TDA staff will review the applications for eligibility
and completeness in descending order based on the scoring. The applicant will
be given 10 business days to rectify all deficiencies. An application containing
an excessive number of deficiencies, or deficiencies of a material nature
will be determined incomplete and returned. In the event staff determines
that an application contains activities that are ineligible for funding, the
application will be restructured or returned to the applicant. An application
resubmitted for future funding cycles will be competing with those applications
submitted for that cycle. No preferential placement will be given an application
previously submitted and not funded.
(4)
TDA staff then conducts a review of each complete application
to make threshold determinations with respect to:
(A)
The financial feasibility of the business to be assisted
based on a credit analysis;
(B)
The strength of commitments from all other public and/or
private investments identified in the application;
(C)
Whether the use of TCF is appropriate to carry out the
project proposed in the application;
(D)
Whether efforts have been made to maximize other financial
resources. The applicant must document that other funds are unavailable to
fund the project. Cities that collect an economic development sales tax must
document status of funds, including balance available, monthly collections
and a detailed list of outstanding commitments;
(E)
Whether there is evidence that the permanent jobs created
or retained will primarily benefit low-and-moderate income persons; and
(F)
The ability of the applicant to operate or maintain any
public facility, improvements, or services funded with TCDP funds.
(5)
A copy of a complete application must be provided to the
appropriate Regional Review Committee (RRC). Proposals submitted for funding
under the TCF require regional review "from the standpoint of consistency
with regional plans and other such considerations" as provided for under the
Texas Review and Comment System and Chapter 391, Texas Local Government Code.
It has been determined that the participation by the RRC, as defined in the
TCDP Annual Action Plan, meets the intent and purpose of these statutes through
this concurrent review process. Each regional review committee may, at its
option, review and comment on an economic development proposal from a jurisdiction
within its state planning region. These comments become part of the application
file and are considered by the staff provided, such comments are received
by the staff prior to a recommendation to management.
(6)
Upon TDA staff determination that an application supports
a feasible and eligible project, staff normally will schedule a visit to the
applicant jurisdiction to discuss the project and program rules with the chief
elected official (or designee), business representative(s), and to visit the
project site.
(7)
TDA staff prepares a project report with recommendations
(for approval or denial) to TDA's Commissioner.
(8)
The TDA Commissioner reviews the recommendation and announces
the final decision.
(9)
TDA staff works with the recipient to execute the contract
agreement. While the contract award must be based on the information provided
in the application, TDA staff may negotiate some elements of the final contract
agreement with the recipient.
(10)
The contract is drafted and then reviewed by management
and legal prior to two copies being mailed to award recipient. Upon receipt,
the award recipient has 30 days to review and execute both copies. Once returned
to TDA, the contract will be fully executed by the TDA Commissioner and then
a single copy is returned to contractor.
(f)
Scoring criteria for the infrastructure and real estate
programs. There is a minimum 25-point threshold requirement. Applications
will be reviewed for feasibility in descending order based on the scoring
criteria. There are a total of 100 points possible.
(1)
In the event of a tie score and insufficient funds to approve
all applications, the following tie breaker criteria will be used.
(A)
The tying applications are ranked from lowest to highest
based on poverty rate stated on the score sheet. Thus, preference is given
to the applicant with the higher poverty rate.
(B)
If a tie still exists after applying the first criteria
then applications are ranked from lowest to highest based on unemployment
rate stated on the score sheet. Thus, preference is then given to the applicant
with the higher unemployment rate.
(2)
Community Need (maximum 60 points). Measures the economic
distress of the applicant community.
(A)
Unemployment (maximum 10 points). Five points awarded if
the applicant's unemployment rate (for cities, the most recently available
quarterly city rate will be used; for counties, the most recently available
quarterly county or census tract rate, for where the business site is located,
whichever is higher, will be used) is higher than the state rate, indicating
that the community is economically below the state average. Ten points awarded
if the applicant's most recently available quarterly unemployment rate is
1.5% over the state rate.
(B)
Poverty (maximum 15 points). Awarded if the applicant's
most recently available annual county poverty rate, as provided in Appendix
A of the Application, is higher than the annual state rate, indicating that
the community is economically below the state average. Applicants will score
5 points if their rate meets or exceeds the state average; score 10 points
if this figure exceeds the state average by at least 15%; and score 15 points
if this figure exceeds the state average by at least 25%.
(C)
Enterprise/Empowerment/Defense Zone (maximum 5 points).
A project located in a state designated enterprise zone, federal enterprise
community, federal empowerment zone, or defense zone receives these five points.
(D)
Previous Contracts (Maximum 10 points). Award 5 points
if the community has been awarded one contract in the current calendar year
or preceding 2 calendar years. Award 10 points if the community has been awarded
zero contracts in the current calendar year or the preceding 2 calendar years.
(E)
Community Population (maximum 10 points). Points are awarded
to applying cities with populations of 5,050 or less and counties with a total
population of 35,000 or less, using 2000 census data. For cities: score 5
points if the city is located in a county with a population of 35,000 or less;
and score 5 additional points if the population of the city is less than 5,050.
For counties: score 5 points if the county population is less than 35,000
and score 5 additional points if the county population is less than 15,350.
(F)
Community Income (maximum 10 points). Ten points awarded
to communities that have a low and moderate income level for a 4 person household
that is in the bottom 90% of all county level 4 person low and moderate income
levels.
(3)
Jobs (maximum 20 points).
(A)
Job Impact (maximum 10 points). Awarded by taking the Business'
total job commitment, created & retained, and dividing by applicant's
2000 unadjusted population. This equals the job impact ratio. Score 5 points
if this figure exceeds the median job impact ratio for prior years; and score
10 points if this figure exceeds 200% of the ratio. County applicants should
deduct the 2000 census population amounts for all incorporated cities, except
in the case where the county is sponsoring an application for a business that
is or will be located in an incorporated city. In this case the city's population
would be used, rather than the county's.
(B)
Cost per Job (maximum 10 points). Awarded by dividing the
amount of TCF monies requested (including administration) by the number of
full-time job equivalents to be created and/or retained. Points are then awarded
in accordance with the following scale:
(i)
Below $15,000--10 points.
(ii)
Below $20,000--5 points.
(4)
Business Emphasis (maximum 20 points).
(A)
Manufacturers (max 10 points). Awarded if the Business'
primary Standard Industrial Classification (SIC) code number starts with 20-39
or if their primary North American Industrial Classification System (NAICS)
code number starts with 31-33. This is based on the SIC number reported on
the Business' Texas Workforce Commission (TWC) Quarterly Contribution Report,
Form C-3 or their IRS business tax return. Foreign businesses that have not
had an SIC/NAICS code number assigned to them by either the TWC or IRS may
submit alternative documentation to support manufacturing as their primary
business activity to be eligible for these points.
(B)
Small businesses (maximum 5 Points). Awarded if the Business
employs no more than 50 employees for all locations both in and out of state.
This number is determined by the business and any related entities, such as
parent companies, subsidiaries & common ownership. Common ownership is
considered 51% or more of the same owners.
(C)
HUB--Historically Underutilized Business (maximum 5 Points).
Awarded if a business is certified by the state Texas Building and Procurement
Commission (TBPC) as a Historically Underutilized Business (HUB). Provide
a copy of TBPC's certification in the application.
(g)
Equity requirement by the business. All businesses are
required to make financial contributions to the proposed project. A cash injection
of a minimum of 2.5% of the total project cost is required. Total equity participation
must be no less than 10% of the total project cost. This equity participation
may be in the form of cash and/or net equity value in fixed assets utilized
within the proposed project. A minimum of a 33% equity injection (of the total
projects costs) in the form of cash and/or net equity value in fixed assets
is required, if the business has been operating for less than three years
and is accessing the R/E program. TDA staff will consider a business to have
been operating for at least three years if:
(1)
The business or principals have been operating for at least
three years with comparable product lines or services;
(2)
The parent company (100% ownership of the business) has
been operating for at least three years with comparable product lines or services;
or
(3)
An individual or partnership (100% ownership of the business)
has been in existence/operation for at least three years with comparable product
lines or services.
(h)
Application process for the main street program. The application
and selection procedures consist of the following steps:
(1)
Each applicant must submit two complete applications to
Texas Historical Commission (THC). No changes to the application are allowed
after the application deadline date, unless they are a result of TDA staff
recommendations. Any change that occurs will only be considered through the
amendment/modification process after the contract is signed.
(2)
Upon receipt of the applications, THC evaluates applications
based on the scoring criteria and ranks them in descending order.
(3)
TDA staff will then review the four highest ranking applications
for eligibility and completeness in descending order based on the scoring.
Applications with 13 or more deficiencies will be considered ineligible. If
that occurs than the next highest ranking application will be substituted.
In those instances where the staff determines that the application has 12
or less deficiencies on the Application Checklist, unless an extension is
granted, the applicant will be given 10 business days to rectify all deficiencies.
In the event the staff determines the application contains activities that
are ineligible for funding, the application will be restructured or considered
ineligible. An application resubmitted for future funding cycles will be competing
with those applications submitted for that cycle. No preferential placement
will be given an application previously submitted and not funded.
(4)
TDA staff then conducts a review of each complete application
to make threshold determinations with respect to:
(A)
The project feasibility;
(B)
The strength of commitments from all other public and/or
private investments identified in the application;
(C)
Whether the use of TCF is appropriate to carry out the
project proposed in the application;
(D)
Whether efforts have been made to maximize other financial
resources. The applicant must document that other funds are unavailable to
fund the project. Cities that collect an economic development sales tax must
document status of funds, including balance available, monthly collections
and a detailed list of outstanding commitments; and
(E)
The ability of the applicant to operate or maintain any
public facility, improvements, or services funded with TCDP funds.
(5)
A copy of a complete application must be provided to the
appropriate Regional Review Committee (RRC). Proposals submitted for funding
under the TCF require regional review "from the standpoint of consistency
with regional plans and other such considerations" as provided for under the
Texas Review and Comment System and Chapter 391, Texas Local Government Code.
It has been determined that the participation by the RRC, as defined in the
TCDP Annual Action Plan, meets the intent and purpose of these statutes through
this concurrent review process. Each regional review committee may, at its
option, review and comment on an economic development proposal from a jurisdiction
within its state planning region. These comments become part of the application
file and are considered by THC and TDA provided, such comments are received
by TDA prior to a recommendation to management.
(6)
Upon TDA staff determination that an application supports
a feasible and eligible project, an on-site visit to the four highest scoring
applicants may be conducted by THC and TDA staff to discuss the project and
program rules with the chief elected official, as applicable, or their designee
and to visit the Main Street area.
(7)
TDA staff prepares a project report with recommendations
(for approval or denial) for credit committee and then credit committee makes
a recommendation to TDA's executive director for the final decision.
(8)
TDA executive director reviews the recommendation and announces
the project selected for funding.
(9)
TDA staff works with the recipient to execute the contract
agreement. While the contract award must be based on the information provided
in the application, TDA staff may negotiate some elements of the final contract
agreement with the recipient.
(10)
The contract is drafted and then reviewed by management
and legal prior to two copies being mailed to award recipient. Upon receipt,
unless an extension is granted, award recipient has 30 days to review and
execute both copies. Once returned to TDA, the contract will be fully executed
by the executive director and then a single copy is returned to contractor.
(i)
Scoring criteria for the main street program. There is
a minimum 25-point threshold requirement. Applications will be reviewed for
feasibility and placed in descending order based on the scoring criteria.
There is a total of 100 points possible.
(1)
In the event of a tie score, applications are ranked from
the lowest to the highest based on the current aggregate available balance,
from all existing open TCF contracts. Thus, an applicant that has a TCF project
balance of $250,000 in existing projects would be ranked above one having
a balance of $600,000.
(2)
Project Feasibility (maximum 70 points). Measures the applicant's
potential for a successful project. Each applicant must submit detailed and
complete support documentation for each category. Compliance with the ten
criteria for Main Street Recognition is required. First year Main Street Cities
must receive prior approval from THC to apply and must submit the Main Street
Criteria for Recognition Survey with the TCF application. The ten criteria
include the following:
(A)
Broad-based public support for commercial district revitalization--(10
points)
(B)
Local Main Street program's organization's vision and mission-(5
points)
(C)
Main Street work/marketing plan--(5 points)
(D)
Historic preservation ethic--(10 points)
(E)
Involvement of board of directors and committees--(10 points)
(F)
Main Street operating budget--(5 points)
(G)
Professional Main Street program manager experience--(10
points)
(H)
Local Main Street program training--(5 points)
(I)
Reinvestment statistics related to financial reinvestment,
job creation, and new business creation--(5 points)
(J)
Participation in the National Main Street Network--(5 points)
(3)
Applicant (maximum 10 points).
(A)
Applicant has not received a TCF main street grant--(5
points)
(B)
Applicant has not received a TCF main street grant and
the applicant has been an Official Texas Main Street City for more than 5
years--(10 points)
(4)
Leverage (5 points). Score 5 points if matching dollars
are greater than or equal to the following ratios based on two separate population
categories:
(A)
Applicant's population less than 5,000 persons--0.75:1
(B)
Applicant's population equal to or greater than 5,000 persons--1.5:1
(5)
Minority Hiring (maximum 5 points). Measures applicant's
hiring practices. Percentage of minorities presently employed by the applicant
divided by the percentage of minority residents within the local community.
In the event 10% or less of the applicant's population base is composed of
minority residents, the applicant has seven or fewer non-seasonal full-time
employees, or 5% or more of the applicant's population base is living in quarters
or institutions, the applicant is assigned the average score on this factor
for all applicants for the previous program year or the score based on the
actual figures, whichever is higher.
(6)
Main Street Reinvestment Statistics (maximum 10 points).
(Private Sector Reinvestment) Formulates amount based on per capita, per year
in program.
(j)
Threshold criteria for the main street improvements program.
In order for its application to be considered, an applicant must meet the
requirements of either paragraph (1) or (2) and paragraph (3) of this subsection.
(1)
The national objective of aiding in the prevention or elimination
of Slum or Blight on a spot basis. To show how this objective will be met,
the applicant must:
(A)
document that the project qualifies as slum or blighted
on a spot basis under local law; and
(B)
describe the specific condition of blight or physical decay
that is to be treated.
(2)
Area slums/blight objective. Document the boundaries of
the area designated as a slum or blighted, document the conditions which qualified
it under the definition in §255.1(a)(14) of this title (relating to General
Provisions), and the way in which the assisted activity addressed one or more
of the conditions which qualified the area as slum or blighted.
(3)
Main street designation. The applicant must be designated
by the THC as a Main Street City prior to submitting a TCF application for
main street improvements.
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 April 14, 2003.
TRD-200302445
Robt. J. "Sam" Tessen, MS
Executive Director
Office of Rural Community Affairs
Effective date: May 4, 2003
Proposal publication date: February 14, 2003
For further information, please call: (512) 936-6710