TITLE 10.COMMUNITY DEVELOPMENT

Part 1. TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS

Chapter 80. MANUFACTURED HOUSING

Subchapter G. STATEMENTS OF OWNERSHIP AND LOCATION

10 TAC §80.201

The Manufactured Housing Division of the Texas Department of Housing and Community Affairs (the "Department") proposes amendments to §80.201 relating to issuance of Statements of Ownership and Location. The amendments are for clarification and to organize in a more logical manner.

Timothy K. Irvine, Executive Director of the Manufactured Housing Division of the Texas Department of Housing and Community Affairs, has determined that for the first five-year period that these sections as proposed are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering these sections.

Mr. Irvine also has determined that for each year of the first five years the sections as proposed are in effect the public benefit as a result of enforcing the sections will be clarification of Statement of Ownership and Location procedures and records. There will be no economic effect on small businesses or micro-businesses as a result of enforcing these sections. There is no anticipated economic cost to persons who are required to comply with the section as proposed.

The Department will conduct a hearing on the proposed rules on Tuesday, May 17, 2005 at 9:00 a.m. at the Austin Headquarters located in the Waller Creek Office Building at 507 Sabine, 4th Floor Boardroom, Austin, Texas 78701.

Comments may be submitted to Mr. Timothy K. Irvine, Executive Director of the Manufactured Housing Division, of the Texas Department of Housing and Community Affairs, P. O. Box 12489, Austin, Texas 78711-2489 or by e-mail to tirvine@tdhca.state.tx.us. The deadline for comments is 30 days after publication in the Texas Register .

The amendments are proposed under the Texas Manufactured Housing Standards Act, Occupations Code, Subtitle C, Chapter 1201, §1201.052, which provides the Department with authority to amend, add, and repeal rules governing the Manufactured Housing Division of the Department and under Texas Government Code, Chapter 2306, §2306.603, which authorizes the director to adopt rules as necessary to administer and enforce the manufactured housing program through the Manufactured Housing Division.

No other statute, code, or article is affected by the proposed amendments.

§80.201.Issuance of Statements of Ownership and Location.

(a) Application Requirements. In order to be deemed complete, an application for a Statement of Ownership and Location must include, as applicable: [ Initial Statements. ]

[ (1) The Department will issue an initial Statement of Ownership and Location within ten (10) working days after receipt of a complete application, accompanied by all documentation necessary to support the application.]

[ (2) In order to be deemed complete, an application for a Statement of Ownership and Location must include, as applicable:]

(1) [ (A) ] A completed and fully executed Application for Statement of Ownership and Location on the department’s [ Department’s ] prescribed form;

(2) [ (B) ] The required fee;

(3) [ (C) ] To record a lien for which the department does not have the owner’s consent [ If one or more liens are to be reflected on the Statement of Ownership and Location ], copies of documentation establishing the creation [ , ] and existence [ , and priority ] of each such lien;

(4) [ (D) ] If a manufactured home is relocated, satisfactory evidence that there are no property tax liens on the home or that provision has been made for them. Satisfactory evidence would include, but would not be limited to, evidence that the relocation was effected with a TxDOT approved move , [ or ] a paid taxes certificate from the county tax assessor for the county where the home was located prior to the move, or an original, signed statement from a title company, lender, or escrow agent, executed by a person purporting to be its duly authorized officer or representative, that money sufficient to pay the taxes was being held by them and would be applied to the payment of those taxes ; and [ . ]

(5) If one or more existing liens are to be released, assigned, or foreclosed, appropriate supporting documentation;

(6) If an application for Statement of Ownership and Location indicates a change in ownership but no change in lien, supporting documentation that clearly establishes that the lienholder consented to that change;

(7) If a manufactured home is to be designated for use as a dwelling after the home has been designated for business use only or salvage, evidence of a satisfactory habitability inspection by the department.

(b) Right of Survivorship: If the survivorship election is taken, then the department will issue a new Statement of Ownership and Location to the surviving person(s) upon receipt of a copy of the death certificate of the deceased person(s), and a properly executed application for Statement of Ownership and Location, and the applicable fee. [ Revised Statements. ]

[ (1) The Department will issue a revised Statement of Ownership and Location within ten (10) working days after receipt of a complete application, accompanied by all documentation necessary to support the application.]

[ (2) In order to be deemed complete, an application for a revised Statement of Ownership and Location must include, as applicable:]

[ (A) A completed and fully executed Application for Statement of Ownership and Location on the Department’s prescribed form;]

[ (B) The required fee;]

[ (C) If one or more liens are to be reflected on the Statement of Ownership and Location, copies of documentation establishing the creation, existence, and priority of each such lien;]

[ (D) If one or more existing liens are to be released or transferred, appropriate supporting documentation, including a properly executed and completed release of lien form;]

[ (E) If a manufactured home is to be designated for use as a dwelling after the home has been designated for business use only or salvage, evidence of a satisfactory habitability inspection by the Department, accompanied by the required fee;]

[ (F) If a manufactured home is relocated, satisfactory evidence that there are no property tax liens on the home or that provision has been made for them. Satisfactory evidence would include but would not be limited to, evidence that the relocation was effected with a TxDOT approved move, a paid taxes certificate from the county tax assessor for the county where the home was located prior to the move, or an original, signed statement from a title company, lender, or escrow agent, executed by a person purporting to be its duly authorized officer or representative, that money sufficient to pay the taxes was being held by them and would be applied to the payment of those taxes;]

[ (G) In instances where title to a manufactured home is conveyed in a transaction other than a transaction requiring a license under the Standards Act, such as testamentary and non-testamentary transfers, private sales not requiring a license, voluntary or court-ordered partitions, etc, originals or certified copies of appropriate documentation to support any such transfer, as required by the Department; and]

[ (3) Any change in a Statement of Ownership and Location shall result in a new Statement of Ownership and Location being issued, and the new Statement of Ownership and Location shall specify the effective date which shall be either the date of the submission of the completed application or such other date as the Director may determine is appropriately supported by the information provided.]

[ (c) Replacing a Document of Title.]

[ (1) Upon receipt of a written request, applicable fee(s), and any necessary additional information, including a notarized statement of election of real or personal property status, the Department will replace a document of title with a Statement of Ownership and Location.]

[ (2) If a manufactured home title showed that it was personal property, that will be presumed to be its status until and unless a revised Statement of Ownership and Location is applied for and issued. Likewise, if a manufactured home has had a certificate of attachment issued and had title cancelled to real property, that shall be presumed to be its status until and unless a revised Statement of Ownership and Location is applied for and issued.]

(c) [ (d) ] Corrections to Statements of Ownership and Location.

(1) If a correction is required as a result of a department error, it will be corrected at no charge.

[ (2) If an error was made for another reason, it will be corrected upon receipt of all documentation needed to support the correction.]

(2) [ (3) ] If a correction is requested because of an error made by a party other than the department, the correction will not be made until the department receives the following:

(A) A complete corrected application for Statement of Ownership and Location,

(B) Any necessary supporting documentation, and

(C) The required fee [ of $25 ], which can be reduced or waived by the director for good cause.

(d) Upon issuance of a Statement of Ownership and Location, the department will mail one certified copy to the owner and one certified copy to the lienholder. If additional certified copies are desired, a written request must be submitted and accompanied by the additional fee.

(e) Exchanging a Document of Title for a Statement of Ownership and Location.

(1) Upon receipt of the original title and completed application for Statement of Ownership and Location, including the physical location of the home, the department will issue a Statement of Ownership and Location.

(2) If a manufactured home title showed that it was personal property, that will be presumed to be its status until and unless a revised Statement of Ownership and Location is applied for and issued. Likewise, if a manufactured home has had a certificate of attachment issued and had title cancelled to real property, that shall be presumed to be its status until and unless a revised Statement of Ownership and Location is applied for and issued.

(f) [ (e) ] Updating of Statements of Ownership and Location on Manufactured Homes Transferred as Real Property.

(1) When a manufactured home has become real property because the owner elected real property status and their Statement of Ownership and Location was recorded in the appropriate county records, the home may be sold or transferred as real property by the customary means used for real property transactions. As long as the home remains real property at the same location, ownership of the home is confirmed in the same manner as any other real property, rather than by verifying department records. Any buyer or transferee is not required to apply for a new Statement of Ownership and Location until and unless:

(A) the manufactured home is moved to a new location;

(B) the current owner of the manufactured home wishes to convert it to personal property status; or

(C) the manufactured home no longer meets the requirements to be classified as real property (such as the home being on property subject to a long term lease which is not assignable to the buyer or transferee).

(2) To convert a manufactured home from real property to personal property, the owner of the home must submit a completed Application for Statement of Ownership and Location to the department with supporting documentation as follows:

(A) If the applicant is not the owner of record with the department, satisfactory proof of ownership under a complete chain of title. Acceptable evidence would include, but not be limited to, authenticated copies of all intervening transfer documents, a court order confirming ownership, or [ a commitment for ] title insurance policy in such owner’s name issued by a title insurance company licensed to do business in Texas.

(B) Satisfactory evidence that any liens on the manufactured home have been discharged or that all lienholders have consented to the change.

(3) Upon receipt of the certified copy of the new Statement of Ownership and Location that reflects the real [ personal ] property election of the home, the certified copy shall be filed [ owner shall file that certified copy ] in the county real property records, at which time the real [ personal ] property election will take effect.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 4, 2005.

TRD-200501385

Timothy K. Irvine

Executive Director

Texas Department of Housing and Community Affairs

Earliest possible date of adoption: May 15, 2005

For further information, please call: (512) 475-2206


Part 6. OFFICE OF RURAL COMMUNITY AFFAIRS

Chapter 255. TEXAS COMMUNITY DEVELOPMENT PROGRAM

Subchapter A. ALLOCATION OF PROGRAM FUNDS

10 TAC §§255.1, 255.9, 255.16

The Office of Rural Community Affairs (Office) proposes amendments to §255.1, §255.9, and §255.16 concerning the allocation of Community Development Block Grant (CDBG) non-entitlement area funds under the Texas Community Development Program (TCDP).

The amendment to §255.1 is being proposed to define the area benefit standards that apply to street paving activities. The amendments to §255.9 will change the colonia construction fund funding cycle from an annual competition to a biennial competition and include new language for the past performance scoring criteria. The amendments to §255.16 include new language for the past performance scoring criteria.

Charles S. (Charlie) Stone, Executive Director of the Office, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the sections.

Charles S. (Charlie) Stone, Executive Director of the Office, also has determined that for the period that the sections are in effect, the public benefit as a result of enforcing the section will be the equitable allocation of CDBG non-entitlement area funds to eligible units of general local government in Texas. There will be an effect on small businesses or micro-businesses as two new programs are being proposed to assist small businesses and micro-businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Comments on the proposal may be submitted to Jerry Hill, General Counsel, Office of Rural Community Affairs, P.O. Box 12877, Austin, Texas 78711, telephone : (512) 936-6701. Comments will be accepted for 30 days following the date of publication of this proposal in the Texas Register .

The amendments are proposed under the §487.052 of the Government Code, which provides the executive committee with the authority to adopt rules concerning the implementation of the Office's responsibilities.

No other code, article, or statute is affected by the proposed amendments.

§255.1.General Provisions.

(a) - (u) (No change.)

(v) Street paving activities. Area benefit can be used to qualify street paving activities. However, for street paving activities with multiple and non-contiguous target areas, each target area must separately meet the principally benefit low and moderate income national program objective. At least 51% of the residents located in each non-contiguous target area must be low and moderate income persons. A target area that does not meet this requirement cannot be included in an application for TCDP funds. The only exception to this requirement is street paving eligible under the disaster relief fund.

§255.9.Colonia Fund.

(a) - (b) (No change.)

(c) Types of applications. Eligible applicants may submit one application for the colonia construction fund and the colonia planning fund. Eligible applicants may submit one application for the colonia EDAP fund, unless the TCDP has an excess amount of colonia EDAP funds available in which case an eligible applicant could submit more than one application for the colonia EDAP 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. For a county to be eligible to submit an application for the colonia area planning fund, the county must have previously completed a colonia comprehensive plan that prioritizes problems and colonias for future action. The colonia or colonias included in the colonia area planning fund application must be colonias that were included in the colonia comprehensive plan.

(d) Funding cycle. The colonia construction fund is allocated to eligible county applicants on a biennial basis for the 2005 and 2006 program years pursuant to a competition held for the 2005 program year applicants. The [ colonia construction fund and the ] colonia planning fund is [ 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, §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.

(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 presents the funding recommendations for the 2005 and 2006 colonia construction fund and the 2005 colonia planning fund to the executive director of the Office. [ 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 2005 final recommendations and except for awards exceeding $300,000 announces the contract awards. Awards exceeding $300,000 are submitted to the Executive Committee for approval.

(7) Upon announcement of the 2005 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 2006 program year TCDP allocation becomes available, the executive director of the Office reviews the 2006 program year colonia construction fund final recommendations for project awards and except for awards exceeding $300,000 announces the contract awards. Awards exceeding $300,000 are submitted to the Executive Committee for approval.

(9) Upon announcement of the 2006 program year colonia construction fund 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.

(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. [ For the 2004 program year, four hundred twenty points are available based on the criteria included in paragraphs (1) through (6) of this subsection. ] For the 2005 program year, four hundred thirty points are available [ based on the criteria included in paragraphs (1) through (7) of this subsection ]. [ For the 2005 program year, the past performance scoring described in paragraph (5)(G) and paragraph (6)(G) of this subsection will be replaced by the criteria described in paragraph (7) of this subsection. ]

(1) Community distress (total--40 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 the competition 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 the competition 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 the competition on the per capita income factor will receive the maximum number of points available for that factor. An applicant with greater than 75% of the average of all applicants in the competition on the per capita income factor will receive a proportionate share of the maximum points available for that factor.

(A) Percentage of persons living in poverty--15

(B) Per capita income--15

(C) Percentage of housing units without complete plumbing--10

(2) Benefit to low and moderate income persons (total--30 points). A formula is used to determine the percentage of TCDP funds benefiting low to moderate income persons. The percentage of low to moderate income persons benefiting from each construction, acquisition, and engineering activity is multiplied by the TCDP funds requested for each corresponding construction, acquisition, and engineering activity. Those calculations determine the amount of TCDP benefiting low to moderate income person for each of those activities. Then, the funds benefiting low to moderate income persons for each of those activities are added together and divided by the TCDP funds requested minus the TCDP funds requested for administration to determine the percentage of TCDP funds benefiting low to moderate income persons. Points are then awarded in accordance with the following scale:

(A) 100% to 90% of funds benefitting low to moderate income persons--30

(B) 89.99% to 80% of funds benefitting low to moderate income persons--25

(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--15

(E) Below 60% of funds benefitting low to moderate income persons--5

(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 service activities (including yard service lines)--145

(C) first time public sewer service activities (including yard service lines)--145

(D) installation of approved residential on-site wastewater disposal systems --145

(E) housing activities--140

(F) first time water and/or sewer service through a privately-owned for profit utility--135

(G) expansion or improvement of existing water and/or sewer service--110

(H) street paving and drainage activities--75

(I) all other eligible activities--20

(4) Matching funds (total--20 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 is dependent upon the project type and the beneficiary population served. 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 unincorporated residents for the entire 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 applicants according to the 2000 Census. Applications that include a housing rehabilitation and/or affordable new permanent housing activity for low- and moderate-income persons as a part of a multi-activity application do not have to provide any matching funds for the housing activity. This exception is for housing activities only. The TCDP does not consider sewer or water service lines and connections as housing activities. The TCDP also does not consider on-site wastewater disposal systems as housing activities. Demolition/clearance and code enforcement, when done in the same target area in conjunction with a housing rehabilitation activity, is counted as part of the housing activity. When demolition/clearance and code enforcement are proposed activities, but are not part of a housing rehabilitation activity, then the demolition/clearance and code enforcement are not considered as housing activities. Any additional activities, other than related housing activities, are scored based on the percentage of match provided for the additional activities.

(A) Applicants with populations equal to or less than 1,500 according to the 2000 census:

(i) match equal to or greater than 5.0% of grant request--20;

(ii) match at least 2.0% but less than 5.0% of grant request--10;

(iii) 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 2000 census:

(i) match equal to or greater than 10% of grant request--20;

(ii) match at least 2.5% but less than 10% of grant request--10;

(iii) 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 2000 census:

(i) match equal to or greater than 15% of grant request--20;

(ii) match at least 3.5% but less than 15% of grant request--10;

(iii) match less than 3.5% of grant request--0.

(D) Applicants with populations over 5,000 according to the 2000 census:

(i) match equal to or greater than 20% of grant request--20;

(ii) match at least 5.0% but less than 20% of grant request--10;

(iii) match less than 5.0% of grant request--0.

(5) 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. A more detailed description on the assignment of points under the project design scoring is included in the application guide for this fund and in paragraph (6) of this subsection. 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; ]

(G) [ (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;

(H) [ (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;

[ (J) whether the applicant provides any local matching funds for project activities; ]

(I) [ (K) ] whether the applicant has already met its basic water and wastewater needs if the application is for activities other than water or wastewater; and

(J) [ (L) ] whether the project has provided for future funding necessary to sustain the project.

(6) Project design scoring guidelines. Project design scores are assigned by Office staff using guidelines that first consider the severity of the need for each application activity and how the project resolves the need described in the application. The severity of need and resolution of the need determine the maximum project design score that can be assigned to an application. After the maximum project design score has been established, points are then deducted from this maximum score through the evaluation of the other project design evaluation factors until the maximum score and the point deductions from that maximum score determine the final assigned project design score. When necessary, a weighted average is used to set the maximum project design score to applications that include activities in the different severity of the need/project resolution maximum 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 maximum project design point level. The sum of the calculations determines the maximum project design score that the applicant can be assigned before points are deducted based on the evaluation of the other project design factors.

(A) Maximum project design score that can be assigned based on the severity of the need and resolution of the problem.

(i) Activities providing first-time sewer service to the area--maximum score 135 points.

(ii) Activities providing first-time water service to the area--maximum score 135 points.

(iii) Installation of approved residential on-site wastewater disposal systems--maximum score 135 points.

(iv) Housing rehabilitation and eligible new housing construction--maximum score 130 points.

(v) Water activities addressing and resolving water supply shortage from drought conditions--maximum score 130 points.

(vi) Water or sewer activities expanding or improving existing water or sewer system--maximum score 120 points.

(vii) Street paving activities providing first time surface pavement to the area--maximum score 100 points.

(viii) Installation of designed drainage structures providing first time designed drainage system to the area--maximum score 100 points.

(ix) Reconstruction of streets with existing surface pavement--maximum score 90 points.

(x) Installation of improvements or drainage structures to a designed drainage system--maximum score 90 points.

(xi) All other eligible activities--maximum score 80 points.

(B) TCDP cost per low to moderate income beneficiary. The total amount of TCDP funds requested by the applicant is divided by the total number of low to moderate income persons benefitting from the application activities to determine the TCDP cost per beneficiary.

(i) Cost per low to moderate income beneficiary is equal to or less than $2,000. Deduct zero points from the set maximum project design score.

(ii) Cost per low to moderate income beneficiary is greater than $2,000 but equal to or less than $4,000. Deduct 1 point from the set maximum project design score.

(iii) Cost per low to moderate income beneficiary is greater than $4,000 but equal to or less than $6,000. Deduct 2 points from the set maximum project design score.

(iv) Cost per low to moderate income beneficiary is greater than $6,000 but equal to or less than $8,000. Deduct 3 points from the set maximum project design score.

(v) Cost per low to moderate income beneficiary is greater than $8,000 but equal to or less than $10,000. Deduct 4 points from the set maximum project design score.

(vi) Cost per low to moderate income beneficiary is greater than $10,000. Deduct 5 points from the set maximum project design score.

(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.

(i) The nonentitlement county submitted an application under the TCDP community development fund 2003/2004 biennial competition that was not addressing water, sewer, and housing needs in colonia areas. Deduct 3 points from the set maximum project design score.

(ii) The nonentitlement county submitted an application under the TCDP community development fund 2001/2002 biennial competition that was not addressing water, sewer, and housing needs in colonia areas. Deduct 3 points from the set maximum project design score.

(iii) The entitlement county did not use 2003 CDBG entitlement funds to address water, sewer, and housing needs in colonia areas. Deduct 3 points from the set maximum project design score.

(iv) The entitlement county did not use 2002 CDBG entitlement funds to address water, sewer, and housing needs in colonia areas. Deduct 3 points from the set maximum project design score.

(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.

(i) The projected water and/or sewer rates may be too high for the application beneficiaries. Deduct 1 point from the set maximum project design score.

(ii) The projected water and/or sewer rates are too low to discourage water conservation by the application beneficiaries. Deduct 1 point from the set maximum project design score.

(E) The ability of the applicant to utilize the grant funds in a timely manner.

(i) The application includes the acquisition of real property, easements or rights-of-way. Deduct 1 point from the set maximum project design score.

(ii) The application includes matching funds that have not been secured by the applicant. Deduct 1 point from the set maximum project design score.

(iii) The proposed application target area is not located in an area where a service provider already has the certificate of convenience and necessity (CCN) needed to provide service to the application beneficiaries. Deduct 1 point from the set maximum project design score.

(F) The availability of grant funds to the applicant for project financing from other sources. Grant funds for any activity included in the application are available from another source. Deduct 1 point from the set maximum project design score.

[ (G) The applicant's past performance on prior 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 does not have any points deducted from the project design final score. ]

[ (i) The applicant did not complete the previous TCDP contract activities within the original contract period. Deduct 1 point from the set maximum project design score for each occurrence (maximum of 2 points deducted from the set maximum project design score). ]

[ (ii) The applicant did not submit the required close-out documents for the previous TCDP contracts within the period prescribed for such submission. Deduct 1 point from the set maximum project design score for each occurrence (maximum of 2 points deducted from the set maximum project design score). ]

[ (iii) The applicant did not provide a timely response to monitoring findings on previous TCDP contracts. Deduct 1 point from the set maximum project design score (maximum of 1 point deducted from the set maximum project design score). ]

[ (iv) The applicant did not provide a timely response to audit findings on previous TCDP contracts. Deduct 1 point from the set maximum project design score (maximum of 1 point deducted from the set maximum project design score). ]

(G) [ (H) ] The applicant, or the service provider, has not 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) Assessments and fees budgeted in the application are equal to or less that $100 per low and moderate income household. Deduct 2 points from the set maximum project design score.

(ii) Assessments and fees budgeted in the application are greater than $100 but equal to or less that $200 per low and moderate income household. Deduct 4 points from the set maximum project design score.

(iii) Assessments and fees budgeted in the application are greater than $200 but equal to or less that $300 per low and moderate income household. Deduct 6 points from the set maximum project design score.

(iv) Assessments and fees budgeted in the application are greater than $300 but equal to or less that $500 per low and moderate income household. Deduct 8 points from the set maximum project design score.

(v) Assessments and fees budgeted in the application are greater than $500 per low and moderate income household. Deduct 10 points from the set maximum project design score.

(H) [ (I) ] Applicant's proposed use of TCDP funds does not 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. Deduct 2 points from the set maximum project design score.

(I) [ (J) ] The application is for activities other than water or wastewater and the applicant has not already met its basic water and wastewater needs. Deduct 3 points from the set maximum project design score,

(J) [ (K) ] The applicant has not documented that future funding necessary to sustain the project is available. Deduct 3 points from the set maximum project design score,

(7) Past performance. An applicant receives from zero to ten (10) 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:

(A) The applicant's completion of the previous contract activities within the original contract period. Deduct 2 points from the maximum past performance score for each occurrence where the applicant did not complete contract activities within the original contract period (maximum of 4 points deducted from the maximum past performance score).

(B) The applicant's submission of the required close-out documents within the period prescribed for such submission. Deduct 1 point from the maximum past performance score for each occurrence where the applicant did not submit the required close-out documents within the period prescribed for such submission (maximum of 2 points deducted from the maximum past performance score).

(C) The applicant's timely response to monitoring findings on previous TCDP contracts especially any instances when the monitoring findings included disallowed costs. Deduct 1 point from the maximum past performance score for any occurrence where the applicant did not provide a timely response to monitoring findings (maximum of 1 point deducted from the maximum past performance score).

(D) The applicant's timely response to audit findings on previous TCDP contracts. Deduct 1 point from the maximum past performance score for any occurrence where the applicant did not provide a timely response to audit findings (maximum of 1 point deducted from the maximum past performance score).

(E) The applicant's submission of all contract reporting requirements such as quarterly progress reports, certificates of expenditures, and project completion reports. Deduct 1 point from the maximum past performance score for each occurrence where the applicant did not submit contract reporting documents (maximum of 2 points deducted from the maximum past performance score).

(g) - (j) (No change.)

§255.16.Non-Border Colonia Fund.

(a) - (c) (No change.)

(d) Selection criteria (non-border colonia fund). The following is an outline of the selection criteria used by the Office for scoring colonia construction fund applications. Four hundred thirty points are available.

(1) - (6) (No change.)

(7) Past performance. An applicant receives from zero to ten (10) 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:

(A) The applicant's completion of the previous contract activities within the original contract period. Deduct 2 points from the maximum past performance score for each occurrence where the applicant did not complete contract activities within the original contract period (maximum of 4 points deducted from the maximum past performance score).

(B) The applicant's submission of the required close-out documents within the period prescribed for such submission. Deduct 1 point from the maximum past performance score for each occurrence where the applicant did not submit the required close-out documents within the period prescribed for such submission (maximum of 2 points deducted from the maximum past performance score).

(C) The applicant's timely response to monitoring findings on previous TCDP contracts especially any instances when the monitoring findings included disallowed costs. Deduct 1 point from the maximum past performance score for any occurrence where the applicant did not provide a timely response to monitoring findings (maximum of 1 point deducted from the maximum past performance score).

(D) The applicant's timely response to audit findings on previous TCDP contracts. Deduct 1 point from the maximum past performance score for any occurrence where the applicant did not provide a timely response to audit findings (maximum of 1 point deducted from the maximum past performance score).

(E) The applicant's submission of all contract reporting requirements such as quarterly progress reports, certificates of expenditures, and project completion reports. Deduct 1 point from the maximum past performance score for each occurrence where the applicant did not submit contract reporting documents (maximum of 2 points deducted from the maximum past performance score).

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on April 4, 2005.

TRD-200501389

Charles S. (Charlie) Stone

Executive Director

Office of Rural Community Affairs

Earliest possible date of adoption: May 15, 2005

For further information, please call: (512) 936-6710