10 TAC §§53.53, 53.54, 53.57, 53.59, 53.61 - 53.63
The Texas Department of Housing and Community Affairs (the
Department) adopts the amendments to §§53.53, 53.54, 53.57, 53.59,
and new §§53.61-53.63, regarding the HOME Investment Partnerships
Program. Sections 53.53, 53.57, 53.59 and 53.61-53.63 are adopted with changes.
Section 53.54 is adopted without changes and will not be republished. The
amendments and new sections were adopted by The Texas Department of Housing
and Community Affairs' Board of Directors at the February 15, 2006 Board Meeting.
The amendments and new sections were published in the
Texas Register
(30 TexReg 8768) on December 30, 2005. These sections
are adopted in order to provide clarification on the threshold, scoring, and
selection criteria for single Family HOME Program Activities.
Round table discussions were held in Austin and Longview to receive input
and public comment on the proposed amendments and new sections to the rule.
In addition to publishing the document in the Texas Register, a copy of the
proposed amendments and new sections to the rules were published on the Department's
web site and made available upon request to the general public.
The scope of public comment concerning the amendments and new sections
of the HOME Rules pertains to the following sections:
§53.53 (l) Applicant requirements
No comment received
Department response: Staff recommends no change to the proposed section.
Board Response: Accepted Department's recommendation.
§53.54. Application Limitations (2, 3, 4, 6, 7, 10, 12, 13, 16, 18,
23,32, 33, 34, 35, 38, 41, 42, 46, 48, 49, 51, 53, 54, 55, 56, 57, 59, 60,
61, 62, 63,64, 65, 66, 67, 68, 69, 70)
Comments expressed opposition to reducing the award amount. Comments stated
that the reduction would significantly decrease the number of families served
under the HOME Program, and is not reasonable. Currently, $500,000 may assist
9 households, and $275,000 may assist 5 households. One comment opposing this
proposal stated that the amount of funding is too low for the experienced
administrator to maintain their normal level of production.
Department Response: Staff recommends no changes to proposed section. With
regards to comments that fewer households would be assisted, staff agrees
that the number of households assisted under a $275,000 contract may be up
to 5 households. However, under this change, more communities will be funded
and the total number of households assisted within a region will potentially
remain the same.
Board Response: Accepted Department's recommendation.
§53.54. Application Limitations (44)
Comment addressed the Homebuyer Assistance activity, and states that HBA
is not over subscribed, and that the proposed change would drastically reduce
the number of homebuyers assisted, especially if an organization's service
area covers several counties. Reducing the contract award amount will hinder
the HBA program.
Department Response: Staff recommends no change to the proposed section.
Board Response: Accepted Department's recommendation with the exception
of the maximum contract award amount for a Homebuyer Assistance applicant.
The Board included that if a Homebuyer Assistance Applicant service area includes
more than one county within a Uniform State Service Region, the maximum award
amount cannot exceed $500,000.
§53.54. Application Limitations. (2, 4, 5, 6, 7, 12, 14, 16, 18, 32,
33, 34, 35, 36, 41, 42, 47, 50, 51, 52, 53 54, 56, 57, 58, 59, 62, 63, 65,
68, 69)
Comments stated that reducing the contract terms is not a viable option
and stated that currently Administrators are forced to request a 6-month extension
to complete projects, due to the paperwork involved.
Department Response: Staff recommends no change to the proposed section,
considering the recommended decrease in maximum contract award, 18 month contracts
is a reasonable contract term to complete a minimum of five units.
Board Response: Accepted Department's recommendation.
§53.57. Distribution of Funds (2, 3, 4, 6, 7, 9, 10, 24, 28, 29, 32,
33, 34, 35, 39, 41, 42, 43, 46, 48, 49, 50, 51, 52, 53, 54, 55, 56 57, 59,
60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70)
Comments received in support of a biennial funding cycle or a double funding
cycle noted that it would expedite the funding process, allow more communities
to receive funding, and prevent some cities from being funded two years in
a row.
Department Response: Staff recommends applications submitted for Single
Family non-development activities under a competitive application cycle may
be accepted, reviewed, and recommended for an award, on an annual or biennial
funding cycle.
Board Response: Accepted Department's recommendation.
§53.59. Process for Award (1, 2, 3, 4, 5, 6, 7, 10, 11, 13, 14, 15,
28, 29, 32, 33, 35, 36, 37, 38, 42, 46, 47, 48, 49, 51, 52, 53, 54, 55 56,
57, 58, 59, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71)
Several comments received requested a "weighted lottery" method stating
that a weighted lottery method would be the best and most reasonable method
if it is decided by the Board that funds will be allocated utilizing a lottery
method. Comments received stated that a weighted lottery method will encourage
a larger applicant pool, provide a broader chance for distributing funds based
on multiple criteria. Several comments received opposed the lottery method
of fund distribution stated that grant consultants will submit a larger number
of applications to increase the probability of their cities getting funded,
cities with high AHN scores will not have to submit match to reach the 66
point threshold. The competitive method of awarding funds would be fair if
the State would correct the methodology it uses for calculating the AHN score
and if the rules for match were stricter so that cities could not creatively
inflate their match to increase their scores. One comment stated that the
Department has not conducted adequate research on the impact of a lottery
system, since "chance" is a large element of any lottery, it does not ensure
critical affordable housing funds will go to the areas of greatest need. One
comment stated that a competitive cycle with a realistic affordable housing
need (AHN) score would be preferable to a lottery system.
Department Response: Staff appreciates the positive feedback regarding
a lottery method for awarding HOME funds. Although a weighted lottery system
was not proposed in the rules, many comments received refer to a weighted
lottery. Staff has conducted preliminary research of a lottery method as it
relates to awarding HOME funds. If a lottery method of awarding HOME funds
is adopted by the Board, staff has proposed weighting factors such as the
AHN score, whether an applicant has ever been previously funded and the population
size of the community served. Staff will implement the method of awarding
HOME funds that is approved by the Board.
Board Response: Board voted for the competitive method of awarding HOME
funds.
§53.61. Threshold and Selection Criteria for Single Family non-Development
Activities. (39,23, 8, 9, 34, 24, 41, 60)
Comments received requested the Department re-evaluate the calculation
of the AHN scores. Comments stated that AHN scores in several cities do not
accurately reflect the actual need of the community. One comment requested
the Department consider poverty, per capita income, local unemployment, and/or
other community distress factors in the scoring system. One comment stated
that all geographic areas of the State have need, and the available funding
will not allow them to address all of their needs. Suggestion made to not
triple the AHN score. One comment requested that the Department eliminate
the Urban/Ex-Urban and the AHN score.
Department Response: Staff appreciates the concerns regarding the AHN score.
The AHN score serves as a measure of the general level of affordable housing
need in an area. The AHN component utilized for scoring applications of the
HOME Program was approved by the Board on November 10, 2005. If the Board
adopts a competitive methodology, staff recommends not multiplying the AHN
score by a factor of three. Points will be assigned in a range from 1-7 depending
upon the number a community received for their 2006 HOME Affordable Housing
Needs Score (AHNS).
Board Response: Accepted Department's recommendation.
General: Previous Award and Past Performance (12, 18) Comment suggesting
that the Department implement a system whereby negative past performance can
be forgiven after a certain period of time has elapsed. A time period of seven
years was suggested.
Department Response: Staff appreciates the concerns, and concurs that a
cut-off date be established so that an applicant will not continue to be penalized
for unsatisfactory past performance which may have occurred years earlier.
Staff recommends that Unsatisfactory past performance on any contract will
be forgiven if 2 years from the application deadline date has elapsed. In
cases where entities have been funded for multiple years, the most recent
award will be reviewed for performance.
Board Response: Accepted Department's Recommendation
General: Match (9, 16, 39, 24, 26, 50)
Comments received suggested requiring each applicant to provide a minimum
of 12.5% match. A suggestion was made to remove match as a scoring criteria
so that smaller communities do not have a disadvantage in the system. One
comment supported the additional match points for population and views it
as a better opportunity for smaller communities. One comment suggested the
match burden should also be on Multi-Family because the biggest match burden
is on the smallest communities.
Department Response: Match is a federal requirement under the HOME final
Rule at 24 CFR 92.218. HUD match requirement is twenty-five percent. However,
Texas met HUD requirements for a fiscal distressed State; therefore, the HUD
match requirement has been reduced to 12.5%. The match scoring criteria has
been modified to allow small communities the opportunity to provide match
and still be competitive; by awarding additional points based on population
size. Staff recommends match remain in the scoring criteria.
Board Response: Accepted Department's recommendation.
General: Serving Persons with Disabilities (20, 45)
Comment from United Cerebral Palsy of Texas (UCP) states that TDHCA has
encouraged the development of some housing that meets the needs of people
with disabilities; however, additional efforts are needed. The 2006 Consolidated
Plan states that a minimum of 5% of the annual HOME Program funds will be
allocated to serve persons with disabilities. In order to target services
in all regions and activities to serve the housing needs of people with disabilities,
a recommendation was made that all Owner Occupied Housing Assistance, Homebuyer
Assistance, and Tenant Based Rental Assistance awards target at least 15%
of the total number of units to Persons who meet the definition of Persons
with Disabilities.
Department Response: Staff appreciates the compliments related to the Department's
efforts to serve persons with disabilities. In order to be in compliance with §2306.111(
c) of the Texas Government Code and the Consolidated Plan, Staff recommends
that applicants must target 5% of the total units contractually obligated
to persons who meet the definition of persons with disabilities and document
how the beneficiaries will be identified and how the applicant will work with
the disability community. Staff also proposes this rule change be specific
to the Owner Occupied Housing Assistance (OCC) and Tenant Based Rental Assistance
(TBRA) Programs. OCC applications are generally funded in every uniform state
service region, thereby assuring the availability of the program statewide.
Historically the TBRA Program has served a population of persons with disabilities.
A direct HOME award of $500,000 is made by the Department to the Home of Your
Own Program on an annual basis for Homebuyer Assistance and/or Homebuyer Assistance
with Rehabilitation.
Board Response: Board Accepted Department's recommendation.
§53.62. Program Administration
Comment was received requesting that the environmental clearance requirement
be clarified. (17)
Department Response: Staff has made an administrative change to clarify
the environmental clearance requirement as stated in §53.62(g)
Board Response: Accepted Department's recommendation.
List of Commenters
Number 1: Presidio County Judge
Number 2: Mayor, City of Gregory
Number 3: Mayor, City of Eustace
Number 4: Mayor, City of Hallsville
Number 5: City Manager, City of Trinity
Number 6: City Secretary, City of Miles
Number 7: City Secretary, City of Elkhart
Number 8: City Manager, City of Sulphur Springs
Number 9: Lucas Consulting
Number 10: City Secretary, City of Merkel
Number 11: Austin County Judge
Number 12: Texas Association of Community Development Corporations
Number 13: Jeff Davis County Judge
Number 14: Kleberg County Judge
Number 15: City Secretary, City of Odem
Number 16: Vice President, GrantWorks Consultants
Number 17: President, GrantWorks Consultants
Number 18: City of Huntsville
Number 19: Kebrow & Associates-round table verbal comments
Number 20: United Cerebral Palsy of Texas
Number 21: Gary Traylor & Associates round table verbal comments
Number 22: City of DeLeon round table verbal comments
Number 23: Hunter & Hunter
Number 24: Amazing Grants, Inc.
Number 25: City Clerk, City of Linden round table verbal comments
Number 26: City Administrator, City of West Tawakoni round table verbal
comments
Number 27: Housing Services, Inc. Consultant round table verbal comments
Number 28: Raymond K. Van & Assoc. Consultant round table verbal comments
Number 29: Raymond K. Van & Assoc. Consultant round table verbal comments
Number 30: GrantWorks, Inc. Dallas Office, Consultants round table verbal
comments
Number 31: GrantWorks, Inc., Rusk Office, Consultants round table verbal
comments
Number 32: Haskell County Judge
Number 33: Mayor, City of Barry
Number 34: Langford Community Management Services
Number 35: City Manager, City of Rusk
Number 36: CityManager, City of Trinity
Number 37: Mayor, City of Josephine
Number 38: Mayor, City of Farmersville
Number 39: Kerbow and Associates consulting, Inc.
Number 40: City of Midland
Number 41: City Manager, City of Flatonia
Number 42: Mayor, City of Orange Grove
Number 43: Resource Management & Consulting Co.
Number 44: Southeast Texas Housing Finance Corporation
Number 45: Chair, Disability Policy Consortium
Number 46: City Manager, City of Gainsville
Number 47: Mayor, City of Celeste
Number 48: Mills County Judge
Number 49: Mayor, City of Amherst
Number 50: Association of Rural Communities in Texas (ARCIT)
Number 51: Mayor, City of Bay City
Number 52: City Manager, City of Belton
Number 53: Brewster County Judge
Number 54: Grants Administrator, Brooks County
Number 55: Mayor, City of Carrizo Springs
Number 56: Mayor, City of el Cenizo
Number 57: Executive Director, Corrigan Housing Authority
Number 58: Interim City Manager, City of Devine
Number 59: Director of City Planning, City of Emory
Number 60: Mayor, City of Florence
Number 61: City Secretary, City of Goldsmith
Number 62: City Manager, City of Littlefield
Number 63: Mayor, City of Lone Oak
Number 64: Mayor, City of Mart
Number 65: City Manager, City of Monahans
Number 66: City of New Deal
Number 67: City of San Saba
Number 68: Mayor, City of Seadrift
Number 69: Mayor, City of Tuscola
Number 70: Wharton County Judge
Number 71: City of Whiteface
Number 72: State Senator, District 3
The amendments and new sections are adopted pursuant to the authority
of the Texas Government Code, Chapter 2306.
No other code, articles or statutes are affected by this section.
§53.53.Applicant Requirements.
(a)
Eligible Applicant. The following organizations or entities
are eligible to apply for HOME eligible activities:
(1)
nonprofit organizations;
(2)
CHDOs;
(3)
units of general local government;
(4)
for-profit entities and sole proprietors; and
(5)
public housing agencies.
(b)
Ineligible Applicant: The following violations will cause
an Applicant, and any applications they have submitted, to be ineligible:
(1)
previously funded Recipient(s) whose HOME funds have been
partially or fully deobligated due to failure to meet contractual obligations
during the 12 months prior to the current funding cycle;
(2)
applicants who have not satisfied all eligibility requirements
described in subsection (g) of this section and the NOFA, and application
guidelines to which they are responding, and for which Administrative Deficiencies
were unresolved (relating to Applicant Requirements);
(3)
Applicants that have failed to make payment on any loans
or fee commitments made with the Department;
(4)
applicants that have been otherwise barred by HUD and/or
the Department;
(5)
applicant or developer, or their staff, that violate the
state's revolving door policy; or
(6)
applicants that may be ineligible in accordance with those
requirements at §50.5 of this title, excluding those requirements at §§50.5(a)(5)
- (8), (10) and (11) of this Title.
(c)
Communication with Department Employees. Communication
with Department staff by Applicants that submit a Pre-Application or Application
must follow the following requirements. During the period beginning on the
date a Development Pre-Application or Application is filed and ending on the
date the Board makes a final decision with respect to any approval of that
Application, the Applicant or a Related Party, and any Person that is active
in the construction, rehabilitation, ownership or Control of the proposed
Development including a General Partner or contractor and a Principal or Affiliate
of a General Partner or contractor, or individual employed as a lobbyist by
the Applicant or a Related Party, may communicate with an employee of the
Department about the Application orally or in written form, which includes
electronic communications through the Internet, so long as that communication
satisfies the conditions established under paragraphs (1) - (3) of this subsection. §50.5(b)(7)
of this title applies to all communication with Board members. Communications
with Department employees is unrestricted during any board meeting or public
hearing held with respect to that Application.
(1)
the communication must be restricted to technical or administrative
matters directly affecting the Application;
(2)
the communication must occur or be received on the premises
of the Department during established business hours; and
(3)
a record of the communication must be maintained by the
Department and included with the Application for purposes of board review
and must contain the date, time, and means of communication; the names and
position titles of the persons involved in the communication and, if applicable,
the person's relationship to the Applicant; the subject matter of the communication;
and a summary of any action taken as a result of the communication (§2306.1113).
(d)
Noncompliance. Each application will be reviewed for its
compliance history by the Department, consistent with Chapter 60 of this title.
Applications found to be in Material Noncompliance, or otherwise violating
the compliance rules of the Department, will be terminated.
(e)
Rental Housing Development Site and Development Restrictions.
Restrictions include all those items referred to in 24 CFR Part 92 of the
HUD HOME program rules, and any additional items included in the NOFA for
rental housing developments.
(f)
Limitations on the Size of Developments. Developments involving
new construction will be limited to 252 Units. These maximum Unit limitations
also apply to those Developments which involve a combination of rehabilitation
and new construction. Developments that consist solely of acquisition/rehabilitation
or rehabilitation only may exceed the maximum Unit restrictions. The minimum
number of units shall be 4 units.
(g)
Eligibility requirements. An Applicant must satisfy each
of the following requirements in order to be eligible to apply for HOME funding
and as more fully described in the NOFA and application guidelines, when applicable:
(1)
provide evidence of its ability to carry out the Program
in the areas of financing, acquiring, rehabilitating, developing or managing
affordable housing developments;
(2)
demonstrate fiscal, programmatic, and contractual compliance
on previously awarded Department contracts or loan agreements;
(3)
submit any past due audit to the department in a satisfactory
format on or before the application deadline, in accordance with §1.3(b)
of this Title;
(4)
demonstrate reasonable HOME Program expenditure and project
performance on contract(s), as determined through program monitoring; and
(5)
demonstrate satisfactory performance otherwise required
by the Department and set out in the application guidelines.
(h)
If indicated by the Department, Recipients must comply
with all requirements to utilize the Department's website to provide necessary
data to the Department.
(i)
For funds being used for Rental Housing Developments, the
Recipient must establish a reserve account consistent with §2306.186,
Texas Government Code, and as further described in §1.37 of this title.
(j)
Public Notification. Applicants for Rental Development
activities will be required to provide written notification to each of the
following persons or entities 14 days prior to the submission of any application
package. Failure to provide written notifications 14 days prior to the submission
of an application package at a minimum will cause an application to lose its
"received by date" under open application cycles, or be terminated under competitive
application cycles. Applicants must provide notifications to:
(1)
the executive officer and elected members of the governing
board of the community where the development will be located. This includes
municipal governing boards, city councils, and County governing boards;
(2)
all neighborhood organizations whose defined boundaries
include the location of the Development;
(3)
executive officer and Board President of the school district
that covers the location of the Development;
(4)
residents of occupied housing units that may be rehabilitated,
reconstructed or demolished; and
(5)
the State Representative and State Senator whose district
covers the location of the Development.
(6)
The notification letter must include, but not be limited
to, the address of the development site, the number of units to be built or
rehabilitated, the proposed rent and income levels to be served, and all other
details required of the NOFA and Application Manual.
(k)
An applicant shall provide certification that no person
or entity that would benefit from the award of HOME funds has provided a source
of match or has satisfied the applicant's cash reserve obligation or made
promises in connection therewith.
(l)
All contractors, consulting firms, and Administrators must
sign an affidavit to attest that each request for payment of HOME funds is
for the actual cost of providing a service and that the service does not violate
any conflict of interest provisions.
§53.57.Distribution of Funds.
In accordance with 24 CFR §92.201(b)(1), the Department makes
every effort to distribute HOME funds throughout the state according to the
Department's assessment of the geographic distribution of housing needs, as
identified in the Consolidated Plan. Funds shall also be allocated in accordance
with §2306.111(d) and (g), Texas Government Code. The Department receives
HOME funds for areas of the state which have not received Participating Jurisdiction
(PJ) status from HUD. Section 2306.111(c) of the Texas Government Code requires
the Department to award at least 95% of HOME Program funds to entities in
nonparticipating jurisdictions. All funds not set aside under this section
shall be used for the benefit of persons with disabilities who live in areas
other than nonparticipating areas.
(1)
CHDO Set-Aside. In accordance with 24 CFR §92.300,
not less than 15% of the HOME allocation will be set aside by the Department
for CHDO eligible activities. CHDO set-aside projects are owned, developed,
or sponsored by the CHDO, and result in the development of rental units or
homeownership. Development includes projects that have a construction component,
either in the form of new construction or the rehabilitation of existing units.
If an insufficient number of qualified applications are received by the deadline,
the Department reserves the right to hold additional competitions in order
to meet federal set-aside requirements.
(2)
Special Needs: In accordance with the Consolidated Plan,
funds will be available to eligible Applicants, as defined in §53.52(a)
of this title (relating to Applicant Requirements), with a documented history
of working with special needs populations and with relevant housing related
experience. Applicants may submit applications for eligible activities, as
outlined in the Consolidated Plan. If an insufficient number of qualified
applications are received, the Department reserves the right to transfer funds
remaining in accordance with paragraph (6) of this subsection regarding Redistribution.
(3)
Other Set-Asides. In accordance with the Consolidated Plan,
funds will be available to eligible Applicants, as defined in §53.52(a)
of this title (relating to Applicant Requirements), for those eligible activities
outlined under Set-Asides.
(4)
Administrative Funds. In accordance with 24 CFR §92.207
up to 10% of the Department's HOME allocation plus 10% of any program income
received may be used for eligible and reasonable planning and administrative
costs. Administrative and planning costs may be incurred by the Department,
State Recipient, Subrecipient, nonprofit entity, or CHDO.
(5)
CHDO Operating Expenses. In accordance with 24 CFR §92.208
up to 5% of the Department's HOME allocation may be used for the operating
expenses of CHDOs. The Department may award CHDO Operating Expenses in conjunction
with the award of CHDO Funds, or through a separate application cycle not
tied to a specific Activity.
(6)
Redistribution. In an effort to commit HOME funds in a
timely manner, the Department may reallocate funds set-aside in accordance
with the Consolidated Plan, at its own discretion, to other regions or activities
if:
(A)
the Department fails to receive a sufficient number of
applications from a particular region or Activity;
(B)
no applications are submitted for a region; or
(C)
applications for a region or Activity do not meet eligibility
requirements or minimum threshold scores (when applicable), or are financially
infeasible as applicable.
(7)
Marginal Applications. When the remainder of the allocation
within a region is insufficient to completely fund the next ranked application
in the region or Activity, it is within the discretion of the Department to:
(A)
fund the next ranked application for the partial amount,
reducing the scope of the application proportionally;
(B)
make necessary adjustments to fully fund the application;
or
(C)
transfer the remaining funds to other regions or activities.
(8)
HOME Demonstration Fund. The Department, with Board approval,
may reserve HOME funds to combine and coordinate with other programs administered
by the Department as outlined in the Consolidated Plan, or for housing activities
the Department is permitted to fund under applicable law.
(9)
Single Family Non-Development Applications. Applications
submitted for Single Family non-development Activities under a Competitive
Application Cycle may be accepted, reviewed, and recommended for an award,
on an annual or biennial funding cycle.
§53.59.Process for Awards
(a)
The Department will publish a NOFA in the Texas Register
and on the Department's website. The NOFA may be published as either an Open
or Competitive Application Cycle. The NOFA will establish and define the terms
and conditions for the submission of applications, and may set a deadline
for receiving applications under a Competitive Application Cycle. The NOFA
will also indicate the approximate amount of available funds.
(b)
Selection Procedures for non-development Activities such
as, Owner Occupied Housing Assistance, Homebuyer Assistance, Tenant-Based
Rental Assistance, and Contract for Deed:
(1)
Applications must comply with all applicable HOME requirements
or regulations established in 24 CFR Part 92 and in these rules. Applications
that do not comply with such requirements are disqualified. Disqualified Applicants
are notified in writing.
(2)
Applications for funds not subject to the Regional Allocation
Formula may be awarded on a first-come, first-serve basis. Applicants may
also receive a partial recommendation for funding.
(3)
Applications subject to the Regional Allocation Formula
must meet or exceed a minimum score determined by Department's staff for the
respective activities to be considered for funding.
(4)
Applicants will be notified of their score in writing no
later than seven calendar days after all applications received have been scored.
Should an Activity not have enough qualified Applicants, the funds will be
redirected to the next Activity and geography type in the region that had
a higher number of qualified applicants. If sufficient applications are not
received in a region, any remaining funds will be redirected to the region
with the highest number of qualified applicants. Applicants may also receive
a partial recommendation for funding. A minimum award amount may be established
to ensure feasibility.
(5)
Subsequently, recommendations for funding will be made
available on the Department's website at least seven calendar days prior to
the Board meeting at which the awards may be approved.
(6)
Applications receiving a favorable staff recommendation
are then presented to the Board for approval, pending the availability of
HOME funds for each Activity.
(7)
Applicants may appeal staff's decision regarding their
applications in accordance with §1.7 of this title.
(c)
Selection Procedures for Development activities, such as,
Single Family Housing Development and Rental Housing Development.
(1)
Applications must comply with all applicable HOME requirements
or regulations established in 24 CFR Part 92, and in these rules. Applications
that do not comply with HOME requirements are disqualified. Disqualified Applicants
are notified in writing.
(2)
Housing Developments activities will undergo a review in
accordance with §53.58 of this title governing open and competitive application
cycles, as appropriate, and as prescribed in the NOFA, and application guidelines.
(3)
A site visit will be conducted as part of the HOME Program
Development feasibility review. Applicants must receive recommendation for
approval from the Department to be considered for HOME funding by the Board.
(4)
In event of a tie between two or more Applicants, the Department
reserves the right to determine which application will receive a recommendation
for funding. This decision will be based on housing need factors and feasibility
of the proposed project identified in the application. Tied Applicants may
also receive a partial recommendation for funding.
(5)
Each Development application will be notified of its score
in writing no later than seven calendar days after all applications received
have been scored. Subsequently, the recommendation regarding their application
will be made available on the Department's web site at least seven calendar
days prior to the Board meeting at which the awards may be approved.
(6)
Applications receiving a favorable staff recommendation
are then presented to the Board for approval, pending the availability of
HOME funds for such Activity.
(7)
Even after Board approval for the award of HOME Development
Activity funds may be conditional upon a completed loan closing and any other
conditions deemed necessary by the Department.
(8)
Applicants may appeal staff's decision regarding their
applications in accordance with §1.7 of this title.
§53.61.Threshold and Selection Criteria for Single Family Non-development Activities.
(a)
Applications must meet the minimum threshold score in order
to be considered eligible to receive a funding recommendation:
(1)
Owner Occupied Housing Assistance, 65 Points.
(2)
Homebuyer Assistance, 55 points.
(3)
Tenant Based Rental Assistance, 56 points
(4)
Contract for Deed, 50 points.
(b)
The following selection criteria point breakdown will be
utilized when scoring applications:
(1)
Affordable Housing Needs Score. Points range from 1 to
7, as published by the Department.
(2)
Income Targeting: Points will be awarded based on the percentage
of total units targeted to specific income levels. Counties whose median income
is at or below the statewide median income will receive the same number of
points for income targeting when serving households at or below 50% AMFI as
those counties exceeding the statewide median income targeting households
at or below 30% AMFI.
(A)
For Owner Occupied Housing Assistance and Tenant Based
Rental Assistance:
(i)
0% to 19.99% of units at 60% AMFI, 0 points
(ii)
20% to 39.99% of units at 60% AMFI, 2 points
(iii)
40% to 59.99% of units at 60% AMFI, 4 points
(iv)
60% to 79.99% of units at 60% AMFI, 6 points
(v)
80% to 99.99% of units at 60% AMFI, 8 points
(vi)
100% of units at 60% AMFI, 10 points
(vii)
0% to 19.99% of units at 30% AMFI, an additional 0 points
(viii)
20% to 39.99% of units at 30% AMFI, an additional 2
points
(ix)
40% to 59.99% of units at 30% AMFI, an additional 4 points
(x)
60% to 79.99% of units at 30% AMFI, an additional 6 points;
(xi)
80% to 99.99% of units at 30% AMFI, an additional 8 points;
(xii)
100% of units at 30% AMFI, and additional 10 points.
(B)
For Homebuyer Assistance and Contract for Deed:
(i)
0% to 19.99% of units at 80% AMFI, 5 points;
(ii)
20% to 39.99% of units at 80% AMFI, 4 points;
(iii)
40% to 59.99% of units at 80% AMFI, 3 points;
(iv)
60% to 79.99% of units at 80% AMFI, 2 points;
(v)
80% to 100% of units at 80% AMFI, 1 point;
(vi)
0% to 9.99% of units at 60% AMFI, an additional 2 points;
(vii)
10% to 19.99% of units at 60% AMFI, an additional 4 points;
(viii)
20% to 29.99% of units at 60% AMFI, an additional 6
points;
(ix)
30% to 39.99% of units at 60% AMFI, an additional 8 points;
(x)
40% to 49.99% of units at 60% AMFI, an additional 10 points;
(xi)
50% to 59.99% of units at 60% AMFI, an additional 11 points;
(xii)
60% to 69.99% of units at 60% AMFI, an additional 12
points;
(xiii)
70% to 79.99% of units at 60% AMFI, an additional 13
points;
(xiv)
80% to 89.99% of units at 60% AMFI, an additional 14
points;
(xv)
90% to 100% of units at 60% AMFI, an additional 15 points.
(3)
Previous Award and Past Performance: Applicants will receive
points for having received an award and performed in accordance with their
contracts and Department rules. If unsatisfactory performance exists on any
prior award regardless of set aside or activity, a score of zero points will
result. In cases where entities have been funded for multiple years, the most
recent award will be reviewed for performance. Unsatisfactory past performance
on any contract will be forgiven if 2 years from the application deadline
date has elapsed.
(A)
Applicants applying for Owner Occupied Housing Assistance:
(i)
Applicant has never received a HOME Owner Occupied Housing
Assistance award, 20 points; or
(ii)
Applicant has received a HOME award prior to 2002 and
funds are 100% committed, drawn and programmatically closed based on the number
of units contractually obligated, by application deadline date, 17 points;
or
(iii)
Applicant received a HOME award in 2002-2003 and funds
are 100% committed and drawn based on the number of units contractually obligated,
by application deadline date, 14 points; or
(iv)
Applicant received a HOME award in 2004, and funds are
100% committed and 50% drawn by application deadline date, 11 points; or
(v)
Applicant received a HOME award during 2005 and a Contract
Environmental Clearance completed by application deadline date, 8 points.
(B)
Applicants applying for all other Single Family non-development
Activities:
(i)
Applicant has never received a HOME award, 20 points; or
(ii)
Applicant has received a HOME award prior to 2002 and
is 100% committed, drawn and programmatically closed based on the number of
units contractually obligated, by application deadline date, 17 points; or
(iii)
Applicant received a HOME award in 2002-2003 and funds
are 100% committed and drawn based on number of units contractually obligated,
by application deadline date, 14 points; or
(iv)
Applicant received a HOME award in 2004 and funds are
75% committed and 50% drawn by application deadline date, 11 points; or
(v)
Applicant received a HOME award during 2005 and a Contract
Environmental Clearance completed by application deadline date, 8 points
(4)
Match. Points will be awarded based on the dollar amount
of eligible match as a percentage up to 25% of the requested project funds
and the population size to be assisted.
(A)
Percentage of Match per Project Request.
(i)
0% to 12.49% of project request, 0 points;
(ii)
12.5% to 15.5% of project request, 6 points;
(iii)
15.51 to 18.5% of project request, 7 points;
(iv)
18.51% to 21.5% of project request, 8 points;
(v)
21.51% to 24.99% of project request, 9 points;
(vi)
25% or greater of project request, 10 points.
(B)
Applicants will only receive additional points for population
size if providing 12.5% or greater in match.
(i)
Population size of 20,001 and above, 0 points;
(ii)
Population size of 10,001 to 20,000, 2 points;
(iii)
Population size of 5,001 to 10,000, 4 points;
(iv)
Population size of 3,001 to 5,000, 6 points;
(v)
Population size of 1,501 to 3,000, 8 points;
(vi)
Population size of 1 to 1,500, 10 points.
(5)
Specific to Activity.
(A)
Owner Occupied Housing Assistance and Contract for Deed.
Local Contractor Letters of Interest. Points will be awarded based on a review
of the letters (up to five letters) submitted from potential local contractors
who indicate a willingness or availability to participate in an invitation
for bid under the applicant's proposed application. To be considered for scoring,
the letters must be on the contractor's letterhead, including: the contractor's
full name; address, city, state, and zip code; signed and dated within three
months of the application deadline. Maximum of 10 points.
(i)
The contractor must be headquartered within the Uniform
State Service Region proposed in the application, 2 points per letter for
a maximum of 10 points.
(ii)
If the contractors that submit letters are not headquartered
within the Uniform State Service Region proposed in the application, the applicant
must submit a notarized certification for each potential contractor outside
of the Uniform State Service Region, 1 point per letter for a maximum of 5
points.
(B)
Homebuyer Assistance. Description of Lender Products. Points
will be awarded based on a review of the commitment letters (up to three letters)
submitted from lenders interested in participating in the Applicant's proposed
application. To be considered for scoring, the letters must be on the lender's
letterhead, including: name of lender; address, city, state, and zip code;
and state the willingness and ability to make affordable loan products available
for first-time homebuyers. Letters must be signed and dated within three months
of application deadline. 2 points per letter for a maximum of 6 points.
(C)
Level of Homebuyer Counseling for Homebuyer Assistance
and Contract for Deed. Points will be awarded based on a review of the documentation
submitted describing the level of homebuyer counseling proposed for potential
homebuyers. Maximum of 4 points.
(i)
Copy of curriculum, 2 points;
(ii)
Copy of written agreement with service provider, 1 point;
(iii)
Post purchase counseling to be provided, 1 point.
(D)
Tenant Based Rental Assistance. Self Sufficiency Plan.
Points will be awarded based on a review of the documentation submitted describing
the Self Sufficiency Plan proposed for potential tenants. Maximum of 10 points.
(i)
Description of the services to be provided, 4 points;
(ii)
Training schedule, 4 points;
(iii)
Copy of written agreement with service provider, 2 point.
(6)
Citizen Forms. Points will be awarded based on the number
of completed citizen forms as a percentage of the total units proposed. Maximum
of 5 points.
(A)
0% to 9.99% of forms complete, 0 points;
(B)
10% to 29.99% of forms complete, 1 point;
(C)
30% to 49.99% of forms complete, 2 points;
(D)
50% to 69.99% of forms complete, 3 points;
(E)
70% to 89.99% of forms complete, 4 points;
(F)
90% to 100% of forms complete, 5 points.
(7)
Financial Oversight. Submission of 2004 or 2005 "Independent
Auditor's Report", 2 points.
(8)
Serving Persons with Disabilities. Applicants applying
for OCC and TBRA must propose targeting at least 5% of the number of units
proposed, to persons who meet the definition of Persons with Disabilities.
Applicant will include in the Applicant's Program Design, how the beneficiaries
will be identified and how the applicant will work with the disability community.
If Applicant is unable to document a person with a disability that meets the
HOME eligible guidelines, the Applicant may request a waiver of this requirement
from the Department.
§53.62.Program Administration.
(a)
Agreement. Upon approval by the Board, Applicants receiving
HOME funds shall enter into, execute, and deliver to the Department all written
agreements between the Department and Recipient, including land use restriction
agreements and compliance agreements as required by the Department.
(b)
Amendments. The Department, acting by and through its Executive
Director or his/her designee, may authorize, execute, and deliver modifications
and/or amendments to any HOME written agreement provided that:
(1)
in the case of a modification or amendment to the dollar
amount of the award, such modification or amendment does not increase the
dollar amount by more than 25% of the original award or $50,000, whichever
is greater; and
(2)
in the case of all other modifications or amendments, such
modification or amendment does not, in the estimation of the Executive Director,
significantly decrease the benefits to be received by the Department as a
result of the award.
(3)
Modifications and/or amendments that increase the dollar
amount by more than 25% of the original award or $50,000, whichever is greater;
or significantly decrease the benefits to be received by the Department, in
the estimation of the Executive Director, will be presented to the Board for
approval.
(c)
Deobligation.
(1)
The Department reserves the right to deobligate funds in
the following situations:
(A)
Recipient has any unresolved compliance issues on existing
or prior contracts with the Department;
(B)
Recipient fails to set-up programs/projects or expend funds
in a timely manner;
(C)
Recipient defaults on any agreement by and between Recipient
and the Department;
(D)
Recipient misrepresents any facts to the Department during
the HOME application process, award of contracts, or administration of any
HOME contract;
(E)
Recipient's inability to provide adequate financial support
to administer the HOME contract or withdrawal of significant financial support;
(F)
Recipient is not in compliance with 24 CFR Part 92, or
these rules;
(G)
Recipient declines funds; or
(H)
Recipient fails to expend all funds awarded.
(2)
The Department, with approval of the Board, may elect to
reassign funds following the Deobligation Policy, adopted by the Board on
January 17, 2002, in the order prioritized as follows:
(A)
Successful appeals (as allowable under program rules and
regulations);
(B)
Disaster Relief (disaster declarations or documented extenuating
circumstances such as imminent threat to health and safety);
(C)
Special Needs;
(D)
Colonias; or
(E)
Other projects/uses as determined by the Executive Director
and/or Board including the next year's funding cycle for each respective program.
(d)
Waiver. The Board, in its discretion and within the limits
of federal and state law, may waive any one or more of these Rules if the
Board finds that waiver is appropriate to fulfill the purposes or policies
of Chapter 2306, Texas Government Code, or for good cause, as determined by
the Board.
(e)
Additional Funds. In the event the Department receives
additional funds from HUD, the Department, with Board approval, may elect
to distribute funds to other Recipients.
(f)
Accounting Requirements. Within 60 days following the conclusion
of a contract issued by the Department the recipient shall provide a full
accounting of funds expended under the terms of the contract. Failure of a
recipient to provide full accounting of funds expended under the terms of
a contract shall be sufficient reason to terminate the contract and for the
Department to deny any future contract to the recipient.
(g)
Department may terminate a contract in whole or in part.
If Applicant has not achieved substantial progress in performance of a contract
within six (6) months of the effective date of this contract, the contract
will terminate. The Department will track substantial progress during the
initial six (6) month period and throughout the contract term. Substantial
progress in contract performance must be satisfactorily completed during the
term of the contract as follows:
(1)
Owner-Occupied Housing Assistance:
(A)
6 months, Contract Environmental Clearance must be complete;
(B)
12 months, 50% of funds must be committed, 25% of funds
drawn, and 25% of match supplied;
(C)
18 months, 100% of funds must be committed, 50% of funds
drawn, and 50% of matched supplied;
(D)
24 months, 100% of funds must be committed, 100% of funds
drawn, and 100% of matched supplied;
(2)
Homebuyer Assistance Activities:
(A)
6 months, Environmental Clearance must be complete;
(B)
12 months, 50% of funds must be committed, 25% of funds
drawn, and 25% of match supplied;
(C)
18 months, 75% of funds must be committed, 50% of funds
drawn, and 50% of matched supplied;
(D)
24 months, 100% of funds must be committed, 100% of funds
drawn, and 100% of matched supplied;
(3)
Tenant-Based Rental Assistance:
(A)
6 months, Contract Environmental Clearance must be complete;
(B)
12 months, 50% of funds must be committed, 25% of funds
drawn, and 25% of match supplied;
(C)
18 months, 75% of funds must be committed, 50% of funds
drawn, and 50% of matched supplied;
(D)
24 months, 100% of funds must be committed, 75% of funds
drawn, and 75% of matched supplied;
(E)
30 months, 100% of funds must be committed, 100% of funds
drawn, and 100% of matched supplied;
(4)
Lower percentages, due to extenuating circumstances, may
be allowed as approved by the Executive Director.
(5)
Definitions and Terms. The following words and terms, when
used in the subsection, shall have the following meanings, unless the context
clearly indicates otherwise.
(A)
Extenuating Circumstances--An event or set of incidents
beyond the control of the Applicant.
(B)
Committed--Funds budgeted to a household in the Department's
central database and approved by the Department.
(C)
Drawn--Funds approved by the Department for reimbursement.
§53.63.Community Housing Development Organization (CHDO) Certification.
(a)
Definitions and Terms. The following words and terms, when
used in this section, shall have the following meanings, unless the context
clearly indicates otherwise.
(1)
Applicant--A private nonprofit organization that has submitted
a request for certification as a Community Housing Development Organization
(CHDO) to the Department. An Applicant for the CHDO set aside must be a CHDO
certified by the Department or as otherwise certified or designated as described
in subsection (d) of this section.
(2)
Articles of Incorporation--A document that sets forth the
basic terms of a corporation's existence and is the official recognition of
the corporation's existence. The documents must evidence that they have been
filed with the Secretary of State.
(3)
Bylaws--A rule or administrative provision adopted by a
corporation for its internal governance. Bylaws are enacted apart from the
articles of incorporation. Bylaws and amendments to bylaws must be formally
adopted in the manner prescribed by the organization's articles or current
bylaws by either the organization's board of directors or the organization's
members, whoever has the authority to adopt and amend bylaws.
(4)
Community--For urban areas, the term "community" is defined
as one or several neighborhoods, a city, county, or metropolitan area. For
rural areas, "community" is defined as one or several neighborhoods, a town,
village, county, or multi-county area, but not the whole state.
(5)
Low income--An annual income that does not exceed eighty
percent (80%) of the median income for the area, with adjustments for family
size, as defined by the U.S. Department of Housing and Urban Development (HUD).
(6)
Memorandum of Understanding (MOU)--A written statement
detailing the understanding between parties.
(7)
Resolutions--Formal action by a corporate board of directors
or other corporate body authorizing a particular act, transaction, or appointment.
Resolutions must be in writing and state the specific action that was approved
and adopted, the date the action was approved and adopted, and the signature
of person or persons authorized to sign resolutions. Resolutions must be approved
and adopted in accordance with the corporate bylaws.
(b)
Application Procedures for Certification of CHDO. An Applicant
requesting certification as a CHDO must submit an application for CHDO certification
in a form prescribed by the Department. The CHDO application must be submitted
with an application for HOME funding under the CHDO set-aside, and be recertified
on an annual basis. The application must include documentation evidencing
the requirements of this subsection.
(1)
Applicant must have the following required legal status
at the time of application to apply for certification as a CHDO:
(A)
Organized as a private nonprofit organization under the
Texas Nonprofit Corporation Act or other state not-for-profit/nonprofit statute
as evidenced by:
(i)
Charter; or
(ii)
Articles of Incorporation.
(B)
The Applicant must be registered with the Secretary of
State to do business in the State of Texas.
(C)
No part of the private nonprofit organization's net earnings
inure to the benefit of any member, founder, contributor, or individual, as
evidenced by:
(i)
Charter; or
(ii)
Articles of Incorporation.
(D)
The Applicant must have the following tax status:
(i)
A current tax exemption ruling from the Internal Revenue
Service (IRS) under Section 501(c)(3), a charitable, nonprofit corporation,
or Section 501(c)(4), a community or civic organization, of the Internal Revenue
Code of 1986, as evidenced by a certificate from the IRS that is dated 1986
or later. The exemption ruling must be effective on the date of the application
and must continue to be effective while certified as a CHDO; or
(ii)
Classification as a subordinate of a central organization
non-profit under the Internal Revenue Code, as evidenced by a current group
exemption letter, that is dated 1986 or later, from the IRS that includes
the Applicant. The group exemption letter must specifically list the Applicant;
and
(iii)
A private nonprofit organization's pending application
for 501(c)(3) or (c)(4) status cannot be used to comply with the tax status
requirement under this subparagraph.
(E)
The Applicant must have among its purposes the provision
of decent housing that is affordable to low and moderate income people as
evidenced by a statement in the organization's:
(i)
Articles of Incorporation,
(ii)
Charter;
(iii)
Resolutions; or
(iv)
Bylaws.
(F)
The Applicant must have a clearly defined service area.
The Applicant may include as its service area an entire community as defined
in subsection (a)(4) of this section, but not the whole state. Private nonprofit
organizations serving special populations must also define the geographic
boundaries of its service areas. This subparagraph does not require a private
nonprofit organization to represent only a single neighborhood.
(2)
An Applicant must have the following capacity and experience:
(A)
Conforms to the financial accountability standards of 24
CFR 84.21, "Standards of Financial Management Systems" as evidenced by:
(i)
notarized statement by the Executive Director or chief
financial officer of the organization in a form prescribed by the Department;
(ii)
certification from a Certified Public Accountant; or
(iii)
HUD approved audit summary.
(B)
Has a demonstrated capacity for carrying out activities
assisted with HOME funds, as evidenced by:
(i)
resumes and/or statements that describe the experience
of key staff members who have successfully completed projects similar to those
to be assisted with HOME funds; or
(ii)
contract(s) with consultant firms or individuals who have
housing experience similar to projects to be assisted with HOME funds, to
train appropriate key staff of the organization.
(C)
Has a history of serving the community within which housing
to be assisted with HOME funds is to be located as evidenced by:
(i)
statement that documents at least one year of experience
in serving the community; or
(ii)
for newly created organizations formed by local churches,
service or community organizations, a statement that documents that its parent
organization has at least one year of experience in serving the community;
and
(iii)
The CHDO or its parent organization must be able to show
one year of serving the community prior to the date the participating jurisdiction
provides HOME funds to the organization. In the statement, the organization
must describe its history (or its parent organization's history) of serving
the community by describing activities which it provided (or its parent organization
provided), such as, developing new housing, rehabilitating existing stock
and managing housing stock, or delivering non-housing services that have had
lasting benefits for the community, such as counseling, food relief, or childcare
facilities. The statement must be signed by the president or other official
of the organization.
(3)
An Applicant must have the following organizational structure:
(A)
The Applicant must maintain at least one-third of its governing
board's membership for residents of low-income neighborhoods, other low-income
community residents, or elected representatives of low-income neighborhood
organizations in the Applicant's service area. Low-income neighborhoods are
defined as neighborhoods where 51 percent or more of the residents are low-income.
Residents of low-income neighborhoods do not have to be low income individuals
themselves. If a low-income individual does not live in a low-income neighborhood
as herein defined, the low-income individual must certify that he qualifies
as a low-income individual. This certification is in addition to the affidavit
required in clause (ii) of this subparagraph. For the purpose of this subparagraph,
elected representatives of low-income neighborhood organizations include block
groups, town watch organizations, civic associations, neighborhood church
groups, Neighbor Works organizations and any organization composed primarily
of residents of a low-income neighborhood as herein defined whose primary
purpose is to serve the interest of the neighborhood residents. Compliance
with this subparagraph shall be evidenced by:
(i)
written provision or statement in the organizations By-laws,
Charter or Articles of Incorporation;
(ii)
affidavit in a form prescribed by the Department signed
by the organization's Executive Director and notarized; and
(iii)
current roster of all Board of Directors, including names
and mailing addresses. The required one-third low-income residents or elected
representatives must be marked on list as such.
(B)
The Applicant must provide a formal process for low-income,
program beneficiaries to advise the organization in all of its decisions regarding
the design, siting, development, and management of affordable housing projects.
The formal process should include a system for community involvement in parts
of the private nonprofit organization's service areas where housing will be
developed, but which are not represented on its boards. Input from the low-income
community is not met solely by having low-income representation on the board.
The formal process must be in writing and approved or adopted by the private
nonprofit organization, as evidenced by:
(i)
organization's By-laws;
(ii)
Resolution; or
(iii)
written statement of operating procedures approved by
the governing body. Statement must be original letterhead, signed by the Executive
Director and evidence date of board approval.
(C)
A local or state government and/or public agency cannot
qualify as a CHDO, but may sponsor the creation of a CHDO. A private nonprofit
organization may be chartered by a State or local government, but the following
restrictions apply:
(i)
The state or local government may not appoint more than
one-third of the membership of the organization's governing body;
(ii)
The board members appointed by the state or local government
may not, in turn, appoint the remaining two-thirds of the board members;
(iii)
No more than one-third of the governing board members
may be public officials. Public officials include elected officials, appointed
public officials, employees of the participating jurisdiction, or employees
of the sponsoring state or local government, and individuals appointed by
a public official. Elected officials include, but are not limited to, state
legislators or any other statewide elected officials. Appointed public officials
include, but are not limited to, members of any regulatory and/or advisory
boards or commissions that are appointed by a State official;
(iv)
Public officials who themselves are low-income residents
or representatives do not count toward the one-third minimum requirement of
community representatives in subparagraph (A) of this paragraph; and
(v)
Compliance with clauses (i)-(iv) of this subparagraph shall
be evidenced by:
(I)
organization's By-laws;
(II)
Charter; or
(III)
Articles of Incorporation.
(D)
If the Applicant is sponsored or created by a for-profit
entity, the for-profit entity may not appoint more than one-third of the membership
of the Applicant's governing body, and the board members appointed by the
for-profit entity may not, in turn, appoint the remaining two-thirds of the
board members, as evidenced by the Applicant's:
(i)
By-laws;
(ii)
Charter; or
(iii)
Articles of Incorporation.
(E)
An Applicant may be sponsored or created by a for-profit
entity provided the for-profit entity's primary purpose does not include the
development or management of housing, as evidenced in the for-profit organization's
By-laws. If an Applicant is associated or has a relationship with a for-profit
entity or entities, the Applicant must prove it is not controlled, nor receives
directions from individuals, or entities seeking profit as evidenced by:
(i)
organization's By-laws; or
(ii)
Memorandum of Understanding (MOU).
(4)
Religious or Faith-based Organizations may sponsor a CHDO
if the CHDO meets all the requirements of this section. While the governing
board of a CHDO sponsored by a religious or a faith-based organization remains
subject to all other requirements in this section, the faith-based organization
may retain control over appointments to the board. If a CHDO is sponsored
by a religious organization, the following restrictions also apply:
(A)
Housing developed must be made available exclusively for
the residential use of program beneficiaries and must be made available to
all persons regardless of religious affiliations or beliefs;
(B)
A religious organization that participates in the HOME
program may not use HOME funds to support any inherently religious activities:
such as worship, religious instruction, or proselytizing;
(C)
HOME funds may not be used for the acquisition, construction,
or rehabilitation of structures to the extent that those structures are used
for inherently religious activities. Sanctuaries, chapels, or other rooms
which a faith-based CHDO uses as its principal place of worship are always
ineligible for HOME-funded improvements;
(D)
Compliance with clauses (A)-(C) of this subparagraph may
be evidenced by:
(i)
The Organizations By-laws;
(ii)
Charter; or
(iii)
Articles of Incorporation.
(c)
An application for Community Housing Development Organization
(CHDO) Certification will only be accepted if submitted with an application
to the Department for HOME funds. If all requirements under this section are
met, the Applicant will be certified as a CHDO upon the award of HOME funds
by the Department. A new application for CHDO certification must be submitted
to the Department with each new application for HOME funds under the CHDO
set aside.
(d)
If an Applicant submits an application for CHDO certification
for a service area that is located in a local Participating Jurisdiction,
the Applicant must submit evidence of the local taxing jurisdiction or local
Participating Jurisdiction certification or designation of the Applicant as
a CHDO.
(e)
In the case of an Applicant applying for HOME funds (See
5% Disability requirement at §53.52(a)(2) of this Title) from the Department
to be used in a Participating Jurisdiction, where neither the Participating
Jurisdiction nor the local taxing entity certifies CHDOs outside of the local
HOME application process, the Certification process described in this section
applies.
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 March 27, 2006.
TRD-200601820
William Dally
Acting Executive Director
Texas Department of Housing and Community Affairs
Effective date: April 16, 2006
Proposal publication date: December 30, 2005
For further information, please call: (512) 475-4595
10 TAC §53.61, §53.62
The Texas Department of Housing and Community Affairs (the
Department) adopts without changes the repeal of §53.61 and §53.62,
concerning the HOME Investment Partnerships Program (HOME), as published in
the December 30, 2005, issue of the
Texas Register
(30 TexReg 8776). The sections are adopted in order to enact new sections
to address and provide clarification on the threshold, scoring, and selection
criteria for Single Family HOME eligible Activities.
No comments were received regarding the adoption of the repeal.
The repeal is adopted pursuant to the authority of the Texas
Government Code, Chapter 2306.
No other code, articles or statutes are affected by this section.
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 March 27, 2006.
TRD-200601819
William Dally
Acting Executive Director
Texas Department of Housing and Community Affairs
Effective date: April 16, 2006
Proposal publication date: December 30, 2005
For further information, please call: (512) 475-4595