Texas Register
(30 TexReg 8525).
The amendments add language to 10 TAC §255.1 and §255.11 to identify
program years, specify additional ineligible activities, introduce additional
threshold criteria, and present new selection criteria.
No comments were received regarding the adoption of the amendments.
The amendments are adopted under §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.
§255.1.General Provisions.
(a)
Definitions and abbreviations. The following words and
terms, when used in this subchapter, shall have the following meanings, unless
the context clearly indicates otherwise.
(1)
Applicant--A unit of general local government which is
preparing to submit or has submitted an application for Texas Community Development
funds to the Office or to the Texas Department of Agriculture (TDA).
(2)
Application--A written request for Texas Community Development
Program TCDP funds in the format required by the Office or by the TDA for
Texas Capital Fund TCF applications
(3)
Community Development Block Grant nonentitlement area funds--The
funds awarded to the State of Texas pursuant to the Housing and Community
Development Act of l974, Title I, as amended, (42 United States Code §§5301
et seq.) and the regulations promulgated thereunder in 24 Code of Federal
Regulations Part 570.
(4)
Community--A unit of general local government.
(5)
Contract--A written agreement, including all amendments
thereto, executed by the Office, or by the TDA, and contractor which is funded
with community development block grant nonentitlement area funds.
(6)
Contractor--A unit of general local government with which
the Office or the TDA has executed a contract.
(7)
Office--The Office of Rural Community Affairs.
(8)
Local government--A unit of general local government.
(9)
Low-and moderate-income person--A member of a family which
earns less than 80% of the area median family income, as defined under the
United States Department of Housing and Urban Development §8 Assisted
Housing Program.
(10)
Nonentitlement area--An area which is not a metropolitan
city or part of an urban county as defined in 42 United States Code, §5302.
(11)
Poverty--The current official poverty line established
by the Director of the Federal Office of Management and Budget.
(12)
Primary beneficiary--A low or moderate income person.
(13)
Regional review committee--A regional community development
review committee, one of which is established in each of the 24 state planning
regions established by the governor pursuant to Texas Local Government Code, §391.003.
(14)
Slum or blighted area--An area which has been designated
a state enterprise zone, or an area within a municipality or county that is
detrimental to the public health, safety, morals, and welfare of the municipality
or county because the area:
(A)
has a predominance of buildings or other improvements that
are dilapidated, deteriorated, or obsolete due to age or other reasons;
(B)
is prone to high population densities and overcrowding
due to inadequate provision for open space;
(C)
is composed of open land that, because of its location
within municipal or county limits, is necessary for sound community growth
through replatting, planning, and development for predominantly residential
uses; or
(D)
has conditions that exist due to any of the causes enumerated
in subparagraphs (A) - (C) of this paragraph or any combination of those causes
that:
(i)
endanger life or property by fire or other causes; or
(ii)
are conducive to:
(I)
the ill health of the residents;
(II)
disease transmission;
(III)
abnormally high rates of infant mortality;
(IV)
abnormally high rates of juvenile delinquency and crime;
or
(V)
disorderly development because of inadequate or improper
platting for adequate residential development of lots, streets, and public
utilities.
(15)
Slum or blight, spot basis--A building which has been
declared as a slum or blight and has multiple and unattended building code
violations, and qualifies as slum or blighted on a spot basis under local
law.
(16)
State review committee--The State Community Development
Review Committee established pursuant to Texas Government Code, §487.353.
(17)
Unemployed person--A person between the ages of 16 and
64, inclusive, who is not presently working but is seeking employment.
(18)
Unit of general local government--An entity defined as
a unit of general local government in 42 United States Code §5302(a)(1),
as amended.
(b)
Overview--Community Development Block Grant nonentitlement
area funds are distributed by the TCDP to eligible units of general local
government in the following program areas:
(1)
community development fund and community development supplemental
fund;
(2)
Texas Capital fund. The Texas Capital Fund TCF is administered
by the TDA under an interagency agreement with the Office. Applications for
the TCF shall be submitted to the TDA.
(3)
planning/capacity building fund;
(4)
disaster relief fund;
(5)
urgent need fund;
(6)
colonia fund;
(7)
Young v. Martinez fund (discontinued after 2003 program
year);
(8)
housing fund (discontinued after 2004 program year);
(9)
small towns environment program fund;
(10)
microenterprise fund (program income);
(11)
small business fund (program income);
(12)
section 108 loan guarantee pilot program;
(13)
community development supplemental fund;
(14)
non-border colonia fund.
(c)
Types of applications.
(1)
Single jurisdiction applications. An applicant may submit
one application per TCDP fund, as outlined in subsection (b) of this section,
on its own behalf, or as a participant in a multi-jurisdictional application,
per funding cycle (except as specified for the TCF, community development
fund, housing fund, colonia fund, and small towns environment program fund).
(A)
A city may submit a single jurisdiction application that
includes beneficiaries located within the extraterritorial jurisdiction of
the city. However, the applicant must document that each activity benefiting
persons located in its extraterritorial jurisdiction is meeting its community
and housing development needs, including the needs of low and moderate income
persons. A city cannot submit a single jurisdiction application that includes
beneficiaries located inside the corporate city limits and outside of the
city's extraterritorial jurisdiction. In this instance, the city and county
in which the beneficiaries outside of the city's extraterritorial jurisdiction
are located must submit the project as a multi-jurisdiction application.
(B)
A county may submit an application on behalf of an incorporated
city when the proposed application activities provide improvements to a public
facility or service that is not owned or operated by the incorporated city
and the persons benefiting from the application activities are located within
the city's corporate city limits or the city's extraterritorial jurisdiction.
If a county submits an application on behalf of an incorporated city, then
the county and that city cannot submit another single jurisdiction application
or be a participating jurisdiction in a multi-jurisdiction application submitted
under the same TCDP fund category.
(C)
A county may submit a single jurisdiction application for
a housing rehabilitation program that includes the rehabilitation of housing
units in unincorporated areas and incorporated cities located in the county.
The housing units that are rehabilitated under the county program must be
located in unincorporated areas and in each incorporated city that is included
as a participant in the county housing rehabilitation program. If a county
submits a housing rehabilitation program application that includes the rehabilitation
of housing units in incorporated cities, then the county cannot submit another
single jurisdiction application or be a participating jurisdiction in a multi-jurisdiction
application submitted under the same TCDP fund category.
(D)
An application from an eligible city or county for a project
that would primarily benefit another city or county that was not meeting the
TCDP application threshold requirements would be considered ineligible.
(2)
Multi jurisdiction applications. Subject to each participating
community satisfying the application requirements of the TCDP fund under which
the application is submitted and this paragraph, an application will be accepted
from two or more units of general local government if the application clearly
demonstrates that the proposed activities will mutually benefit the residents
of the communities applying for funds. A multi-jurisdiction application solely
for administrative convenience will not be accepted. Any community participating
in a multi-jurisdiction application may not submit a single jurisdiction application
under the project fund for which the multi-jurisdiction application was submitted.
One of the participating communities must be primarily accountable to the
Office and the TDA, in instances where the TCF is accessed, for financial
compliance and program performance; however, all entities participating in
the multi-jurisdiction application will be accountable for application threshold
compliance. Only one unit of general local government may be the official
applicant and this applicant must enter into a legally binding cooperation
agreement with each participant that incorporates TCDP requirements. A proposed
project which is located in more than one jurisdiction or in which beneficiaries
from more than one jurisdiction will be counted must be submitted as a multi-jurisdiction
application (except as specified for the TCF and single jurisdiction applications
described in paragraph (1)(A) - (D) of this subsection).
(d)
Eligible location. Only projects or activities which are
located in the nonentitlement areas of the state are eligible for funding
under the TCDP. An exception to this requirement is Hidalgo County, an entitlement
county, which is eligible for the colonia fund. Another exception to this
requirement is that entitlement areas located in disaster recovery initiative
eligible counties are eligible locations for disaster recovery initiative
funds.
(e)
Ineligible activities. Any type of activity not described
or referred to in the Federal Housing and Community Development Act of 1974, §5305(a)
(42 United States Code §5301 et seq.) is ineligible for funding under
the TCDP.
(1)
Specific ineligible activities include, but are not limited
to: construction of buildings and facilities used for the general conduct
of government (e.g., city halls and courthouses); new housing construction,
except as described as eligible under the current TCDP application guides;
the financing of political activities; purchases of construction equipment
(except in limited circumstances under the small towns environment program);
income payments, such as housing allowances; most operation and maintenance
expenses; pre-contract costs, except for costs incurred prior to submittal
of an application and paid with local government or other funds for administrative
consultant and engineering/architectural services and pre-agreement costs
described in a TCDP contract; prisons/detention centers; government supported
facilities; and racetracks.
(2)
The following activities and/or uses are specifically ineligible
under the TCF: monies may not be used for speculation, investment or excess
improvements over the minimum improvements needed for the business. TCF funds
may not be utilized for refinancing or to repay the applicant, a local related
economic development entity, the benefiting business or its owners and related
parties for expenditures. Educational institutions, including but not limited
to colleges and/or universities, and governmental entities may not qualify
as the benefiting business. Ineligible infrastructure activities/improvements
include, but are not limited to: landfills, incinerators, recycling facilities,
machinery and equipment. Real estate improvements designed and/or built for
a single, special or limited use or purpose are an ineligible use of funds.
Real estate improvements do not include machinery and equipment used in the
production and/or services marketed by the business.
(f)
Citizen Participation.
(1)
Public hearing requirements. For each public hearing scheduled
and conducted by an applicant or contractor, the following public hearing
requirements shall be followed.
(A)
Notice of each hearing must be published in a newspaper
having general circulation in the city or county at least 72 hours prior to
each scheduled hearing. The published notice must include the date, time,
and location of each hearing and the topics to be considered at each hearing.
The published notice must be printed in both English and Spanish, if appropriate.
Articles published in such newspapers which satisfy the content and timing
requirements of this subparagraph will be accepted by the Office and, in the
case of TCF hearings, by the TDA, in lieu of publication of notices. Notices
should also be prominently posted in public buildings and distributed to local
Public Housing Authorities and other interested community groups.
(B)
Each public hearing shall be held at a time and location
convenient to potential or actual beneficiaries, with accommodation for persons
with disabilities. Persons with disabilities must be able to attend the hearings
and an applicant must make arrangements for individuals who require auxiliary
aids or services if contacted at least two days prior to each hearing.
(C)
When a significant number of non-English speaking residents
can reasonably be expected to participate in a public hearing, an applicant
or contractor shall provide an interpreter to accommodate the needs of the
non-English speaking residents.
(2)
Application requirements. Prior to submitting a formal
application, an applicant for TCDP funding shall satisfy the following requirements.
(A)
At least one public hearing shall be held prior to the
preparation of its application and a public notice shall be published in a
newspaper having general circulation in the city or county notifying the public
of the availability of the application for public review prior to submitting
its completed application to the Office and, in the case of TCF applications,
to the TDA. The requirements described in this subparagraph are not applicable
to applications submitted under the housing infrastructure fund.
(B)
For an application submitted for housing infrastructure
fund assistance, an applicant must hold two public hearings. At least one
public hearing shall be held prior to the preparation of the application and
a second public hearing shall be held prior to submission of the application.
(C)
An applicant shall retain documentation of the hearing
notices, a list of attendees at each hearing, minutes of the hearings, and
any other records concerning the proposed use of funds for a period of three
years or until the project, if funded, is closed out. Such records must be
made available to the public in accordance with Texas Government Code, Chapter
552.
(D)
The public hearing must include a discussion with citizens
on the development of housing and community development needs, the amount
of funding available, all eligible activities under the TCDP, the plans of
the applicant to minimize displacement of persons and to assist persons actually
displaced as a result of activities assisted with TCDP funds, and the use
of past TCDP contract funds, if applicable. Citizens, with particular emphasis
on persons of low and moderate income who are residents of slum and blight
areas, shall be encouraged to submit their views and proposals regarding community
development and housing needs. Local organizations that provide services or
housing for low to moderate income persons, including but not limited to,
the local or area Public Housing Authority, the local or area Health and Human
Services office, and the local or area Mental Health and Mental Retardation
office, must receive written notification concerning the date, time, location,
and topics to be covered at the first public hearing. Citizens shall be made
aware of the location where they may submit their views and proposals should
they be unable to attend the public hearing. For submission of a housing infrastructure
fund application, these requirements must be followed for the first public
hearing.
(E)
The notice announcing the availability of the application
for public review must be published five days prior to the submission of the
application and the published notice must include the fund category for which
the application is submitted, the amount of funds requested, a description
of the application activities, the location or locations of the application
activities, and the location and hours when the application is available for
review.
(F)
The second public hearing for a housing infrastructure
fund application must include a discussion with citizens on the proposed project,
including the locations and the project activities, the amount of funds being
requested, and the estimated amount of funds proposed for activities that
will benefit low and moderate income persons. The published notice for this
public hearing must include the location and hours when the application is
available for review.
(G)
Any public hearing held prior to submission of the application
must be held after 5 p.m. on a weekday or at a convenient time on a Saturday
or Sunday.
(3)
Contractor requirements.
(A)
A contractor must hold a public hearing concerning any
substantial change, as determined by the Office and, in the case of TCF program
changes, by the TDA, proposed to be made in the use of TCDP funds from one
eligible activity to another.
(B)
Upon completion of its contract, the contractor shall hold
a public hearing to review its program performance, including the actual use
of the funds provided under the contract.
(C)
A contractor shall retain documentation of the hearing
notices, a list of attendees at each hearing, minutes of the hearings, and
any other records concerning the actual use of funds for a period of three
years after the contract is closed out. Such records must be made available
to the public in accordance with Texas Government Code, Chapter 552.
(D)
The public hearings must be held after 5 p.m. on a weekday
or at a convenient time on a Saturday or Sunday.
(4)
Complaint procedures. Applicants and contractors must maintain
written citizen complaint procedures that provide a timely written response
to complaints and grievances. Citizens must be made aware of the location
and hours at which they may obtain a copy of the written procedures.
(5)
Technical assistance. An applicant shall provide technical
assistance to groups representative of persons of low-and moderate-income
that request such assistance in developing proposals for the use of TCDP funds.
The level and type of assistance shall be determined by the applicant based
upon the specific needs of its residents.
(g)
Appeals. An applicant for funding under the TCDP may appeal
the disposition of its application in accordance with this subsection.
(1)
The appeal may only be based on one or more of the following
grounds.
(A)
Misplacement of an application. All or a portion of an
application is lost, misfiled, or otherwise misplaced by Office staff and,
in the case of TCF applications, by TDA staff, resulting in unequal consideration
of the applicant's proposal.
(B)
Mathematical error. In rating the application, the score
on any selection criteria is incorrectly computed by the Office and, in the
case of TCF applications, by the TDA due to human or computer error.
(C)
Other procedural error. The application is not processed
by the Office and, in the case of TCF applications, by the TDA, in accordance
with the application and selection procedures set forth in this subchapter.
Procedural errors alleged to have been committed by a regional review committee
may only be appealed in accordance with the provisions of §255.8 of this
title (relating to Regional Review Committees).
(2)
The appeal must be submitted in writing to the TCDP of
the Office no later than 30 days after the date the announcement of community
development fund, community development supplemental fund and planning/capacity
building fund contract awards is published in the
Texas Register.
In addition, timely appeals not submitted in writing
at least five working days prior to the next regularly scheduled meeting of
the state review committee will be heard at the subsequent meeting of the
state review committee. The Office staff will evaluate the appeal and may
either concur with the appeal and make an appropriate adjustment to the applicant's
scores, or disagree with the appeal and prepare an appeal file for consideration
by the state review committee at its next regularly scheduled meeting. The
state review committee will make a final recommendation to the executive director
of the Office. The decision of the executive director of the Office is final.
If the appeal concerns a TCF application, the appeal must be submitted in
writing to the TDA no later than 30 days following the date of the notification
letter of the denial. If the appeal concerns a disaster relief fund or urgent
need fund application, the appeal must be submitted in writing to the Office
no later than 30 days following the date of the notification letter of the
denial. If the appeal concerns a small business fund, microenterprise fund,
section 108 loan guarantee pilot program, non-border colonia fund, housing
fund, colonia fund or Young v. Martinez fund application, the appeal must
be submitted in writing to the Office no later than 30 days after the date
the announcement of contract awards is published in the
Texas Register.
The staff of either the Office or the TDA, when appropriate,
evaluates the appeal and may either concur with the appeal or disagree with
the appeal and prepare an appeal file for consideration by the appropriate
executive director. The executive director, of the agency with which the appeal
was filed, then considers the appeal within 30 days and makes the final decision.
(3)
In the event the appeal is sustained and the corrected
scores would have resulted in project funding, the application is approved
and funded. If the appeal concerning a community development fund or planning/capacity
building fund application is rejected, the office notifies the applicant of
its decision, including the basis for rejection after the meeting of the state
review committee at which the appeal was considered. If the appeal concerns
a small business fund, microenterprise fund, section 108 loan guarantee pilot
program, non-border colonia fund, Young v. Martinez fund, TCF, housing fund,
colonia fund, disaster relief fund, small towns environment program fund,
or urgent need fund application, the applicant will be notified of the decision
made by the appropriate executive director within ten days after the final
determination by the executive director.
(4)
Appeals not submitted in accordance with this subsection
are dismissed and may not be refiled.
(h)
Threshold requirements. An applicant must satisfy each
of the following requirements in order to be eligible to apply for or to receive
funding under the TCDP:
(1)
Demonstrate the ability to manage and administer the proposed
project, including meeting all proposed benefits outlined in its application.
The applicant can meet this threshold by:
(A)
Providing the roles and responsibilities of local staff
designated to administer or work on the proposed project and a plan for project
implementation;
(B)
Indicating the intention to use a third-party administrator,
if applicable; or
(C)
If local staff along with a third-party administrator,
will jointly administer the proposed project, by providing the roles and responsibilities
of the designated local staff.
(2)
Demonstrate the financial management capacity to operate
and maintain any improvement made in conjunction with the proposed project.
The applicant can meet this threshold by:
(A)
Providing the name of the financial person on the applicant's
staff, or evidence that the applicant intends to contract services for financial
oversight; and
(B)
Providing a statement certifying that financial records
for the proposed project will be kept at an officially designated city/county
site, accessible by the public, and will be adequately managed on a timely
basis using generally accepted accounting principles.
(3)
Levy a local property tax or local sales tax option.
(4)
Demonstrate satisfactory performance on previously awarded
TCDP contracts. The applicant can meet this threshold by:
(A)
Showing past responses, if applicable, to audit and monitoring
issues (over the most recent 48 months before the application due date) within
prescribed times as indicated in the Office's resolution letter(s);
(B)
The presence of documentation related to past contracts
(over the most recent 48 months before the application due date), through
close-out monitoring and reporting, that the activity or service was made
available to all intended beneficiaries, that low and moderate income persons
were provided access to the service, or there has been adequate resolution
of issues regarding beneficiaries served;
(C)
The non-presence of any outstanding delinquent response
to a written request from the Office regarding a request for repayment of
funds to TCDP; or
(D)
By not having at least one outstanding delinquent response
to a written request from the Office regarding compliance issues such as a
request for closeout documents or any other required information.
(5)
Resolve all outstanding compliance and audit findings related
to previously awarded TCDP contracts and any other Office contracts. The applicant
can meet this threshold if the applicant is actively participating in the
resolution of any outstanding audit and/or monitoring issues by responding
with substantial progress on outstanding issues within the time specified
in the resolution process.
(6)
Submit any past due audit to the Office.
(A)
A community with one year's delinquent audit may be eligible
to submit an application for funding by the established application deadline,
but may not receive a contract award if the audit continues to be delinquent
on the date the state review committee meets to review funding recommendations
for applications from fund categories scheduled for state review committee
review. For applications from fund categories that are not reviewed by the
state review committee, a community with one year's delinquent audit may be
eligible to submit an application for funding by the established application
deadline, but may not receive a contract award if the audit continues to be
delinquent on the date that the executive director approves funding recommendations,
or in the case of funding recommendations over $300,000, on the date that
the Executive Committee reviews the funding recommendations. Applications
for the colonia self-help center fund and the disaster relief/urgent need
fund are exempt from this threshold.
(B)
A community with two years of delinquent audits may not
apply for additional funding and may not receive a funding recommendation.
This applies to all funding categories under the Texas Community Development
Program. The colonia self-help centers fund may be exempt from this threshold,
since funds for the self-help centers fund is included in the program's state
budget appropriation. Failure to meet the threshold will be reported to the
Legislative Budget Board for review and recommendation. The disaster relief
fund may be exempt from this threshold, but failure to meet this threshold
will be forwarded to the Executive Committee for review and consideration.
(7)
TCDP funds cannot be expended in any county that is designated
as eligible for the Texas Water Development Board Economically Distressed
Areas Program unless the county has adopted and is enforcing the Model Subdivision
Rules established pursuant to §16.343 of the Water Code. An incorporated
city that is located in a Texas Water Development Board Economically Distressed
Areas Program eligible county that has not adopted, or is not enforcing, the
Model Subdivision Rules, may submit an application for TCDP funds. However,
in lieu of county adoption of the Model Subdivision Rules, the incorporated
city must adopt the Model Subdivision Rules prior to the expenditure of any
TCDP funds by the incorporated city.
(8)
Based on a pattern of unsatisfactory performance on previous
TCDP contracts, unsatisfactory management and administration of previous TCDP
contracts, or the presence of evidence that an applicant lacks financial management
capacity based on a review of official financial records and audits related
to previous TCDP contracts, the Office or TDA, in the case of the Texas Capital
Fund application may determine that an applicant is ineligible to apply for
TCDP funding even though at the application deadline date it meets the threshold
and past performance requirements. The Office or TDA, in the case of the Texas
Capital Fund applications will consider an applicant's performance during
the most recent 48 months before an application due date to make the eligibility
determination. An applicant would still remain eligible for funding under
the disaster relief fund.
(i)
Unmet benefits. Actions that may be taken against a contractor
by the Office where the Office finds that the contractor did not provide the
level of benefits specified in its contract include, but are not limited to:
(1)
holding the contractor ineligible to apply for TCDP funds
for a period of two program years or until any issue of restitution is resolved,
whichever is longer;
(2)
requiring the contractor to reimburse the Office for the
difference between the amount of funds provided for the level of benefits
specified in the contract and the amount of funds actually expended in providing
such level of benefits; and
(3)
rescoring the contractor's application, and if the level
of benefits actually provided by the contractor would have changed the funding
recommendation, terminating the local government's contract.
(j)
False information. If an applicant provides false information
in its community development fund or planning/capacity building fund application
which has the effect of increasing the applicant's competitive advantage,
the number of beneficiaries, or the percentage of low to moderate income beneficiaries,
the Office refers the matter to the state review committee for disciplinary
action. If the applicant provides false information in a small business fund,
microenterprise fund, section 108 loan guarantee pilot program, non-border
colonia fund, Young v. Martinez fund, colonia fund, disaster relief fund,
housing fund, small towns environment program fund, or urgent need fund application,
the Office staff shall make a recommendation for action to the executive director
of the Office. If the applicant provides false information in a TCF application,
TDA staff shall make a recommendation for action to the appropriate executive
director. The state review committee makes a recommendation for action to
the executive director of the Office at its next regularly scheduled meeting.
Documentation of false information must be submitted at least ten business
days prior to the next regularly scheduled meeting of the state review committee
to be considered at that meeting. Recommendations that the state review committee
or executive director may make include, but are not limited to:
(1)
Disqualification of the application and holding the locality
ineligible to apply for TCDP funding for a period of at least one year not
to exceed two program years;
(2)
holding the applicant or contractor ineligible to apply
for TCDP funds for a period of two program years or until any issue of restitution
is resolved, whichever is longer; and
(3)
terminating the local government's contract if the correct
information would have changed the scores and resulted in a change in the
rankings for purposes of funding.
(k)
Substitution of standardized data. Any applicant that chooses
to substitute locally generated data for standardized information available
to all applicants must use the survey instrument provided by the Office and
must follow the procedures prescribed in the instructions to the survey instrument.
This option does not apply to applications submitted to the TCF.
(1)
Only door-to-door surveys are allowed, unless an alternate
method is approved in writing by the Office.
(2)
Surveys, including signed tabulation sheets, signed surveys
location sheets, all responses, and all non-responses must be submitted to
the Office by the application deadline, for verification and spot-checking.
(3)
A survey instrument that lacks information prescribed in
the instructions to the survey instrument or which includes conflicting information
may be considered as a non-response for that family.
(4)
The applicant must demonstrate a 100% effort in contacting
households to be surveyed and obtain at least an 80% response rate for surveys
which include 150 or fewer beneficiary households or obtain at least a 70%
response rate for surveys which include 151 or more beneficiary households.
(5)
A survey that was completed on or after January 1, 1993,
or January 1, 1994, or January 1, 1995, for a previous TCDP application may
be accepted by the Office for a new application to the extent specified in
the most recent application guide for the proposed project.
(l)
Unobligated and recaptured funds. Deobligated funds, unobligated
funds and program income generated by TCF projects shall be retained for expenditure
in accordance with the Consolidated Plan. Program income derived from TCF
projects will be used by the Office for eligible TCDP activities in accordance
with the Consolidated Plan. Any deobligated funds, unobligated funds, program
income, and unused funds from the current year's allocation or from previous
years' allocations derived from any TCDP Fund, including program income recovered
from TCF local revolving loan funds, and any reallocated funds which HUD has
recaptured from Small Cities may be redistributed among the established current
program year fund categories, for otherwise eligible projects. The selection
of eligible projects to receive such funds is approved by the Office Executive
Director, or when applicable, approved by the Office Executive Committee or
by the TDA on a priority needs basis with eligible disaster relief and urgent
need projects as the highest priority; followed by, any awards necessary to
resolve appeals under fund categories requiring publication of contract awards
in the
Texas Register,
TCF projects, special
needs projects, projects in colonias, housing activities, and other projects
as determined by the Office Executive Director. Other purposes or initiatives
may be established as a priority use of such funds within existing fund categories
by the Office Executive Committee. Should the TCDP be required to make payments
to HUD to cover any loan payments not made by any recipient of a TCDP Section
108 loan guarantee, it would first use any available deobligated funds.
(m)
Waivers. The Office may waive any provision of this subchapter
upon its own motion, or upon an applicant's or contractor's written request
for such a waiver if the Office finds that compelling circumstances exist
outside the control of the applicant or contractor which justifies the approval
of such a waiver. The Office shall not waive any provision hereof concerning
the TCF program unless written request to do so is received from the Executive
Director of the TDA. The provisions of the foregoing sentence shall not apply
to contracts other than those awarded and/or administered by the TDA for the
Office. Issues related to audit requirements will be handled by the appropriate
agency.
(n)
Performance threshold requirements. In addition to the
requirements of subsection (h) of this section, an applicant must satisfy
the following performance requirements in order to be eligible to apply for
program funds. A contract is considered executed for the purposes of this
subsection on the date stated in section 2 of such contract.
(1)
Obligate at least 50% of the total TCDP funds awarded under
an open TCDP contract within 12 months from the start date of the contract
or prior to the application deadlines. This threshold is applicable to TCDP
contracts with an original 24-month contract period. To meet this threshold,
50% of the TCDP funds must be obligated through executed contracts for administrative
services, engineering services, acquisition, construction, materials purchase,
etc. The TCDP contract activities do not have to be 50% completed, nor do
50% of the TCDP contract funds have to be expended to meet this threshold.
This threshold is applicable to previously awarded TCDP contracts under the
community development fund, the colonia construction fund, the colonia planning
fund, the non-border colonia fund the planning and capacity building fund,
and the disaster relief/urgent need fund. This threshold is not applicable
to previously awarded TCDP contracts under the TCF, the housing infrastructure
fund, the housing rehabilitation fund, the colonia self-help centers fund,
the colonia economically distressed area program fund, the Young v. Martinez
fund, the disaster recovery initiative program, microenterprise loan fund,
small business loan fund, Section 108 loan guarantee pilot program, and the
small towns environment program fund. This paragraph does not apply to a city
or county that meets the eligibility criteria for current assistance from
the TCDP disaster relief fund.
(2)
Submit to the Office the certificate of expenditures (COE)
report showing the expended TCDP funds and a final drawdown for any remaining
TCDP funds as required by the most recent edition of the TCDP Project Implementation
Manual. Any reserved funds on the COE must be approved in writing by TCDP
staff. To meet this threshold "expended" means that the construction and services
covered by the TCDP funds are complete and a drawdown for the TCDP funds has
been submitted prior to the application deadlines. This threshold will apply
to an open TCDP contract with an original 24-month contract period and to
TCDP contractors that have reached the end of the 24-month period prior to
the application deadlines. This threshold is applicable to previously awarded
TCDP contracts under the community development fund, the colonia construction
fund, the colonia planning fund, the non-border colonia fund, the planning
and capacity building fund, and the disaster relief/urgent need fund. This
threshold is not applicable to previously awarded TCDP contracts under the
TCF, the housing infrastructure fund, the housing rehabilitation fund, the
colonia self-help centers fund, the colonia economically distressed area program
fund, the Young v. Martinez fund, the disaster recovery initiative program,
microentreprise loan fund, small business loan fund, Section 108 loan guarantee
pilot program, and the small towns environment program fund. This paragraph
does not apply to a city or county that meets the eligibility criteria for
current assistance from the TCDP disaster relief fund.
(3)
TCF applicants may not have an existing contract with an
award date in excess of 48 months prior to the application deadline date,
regardless of extensions granted. If an existing contract requires an extension
beyond the initial term, TDA must be in receipt of the request for extension
no less than 30 days prior to contract expiration date. If an existing contract
expires prior to or on the new application deadline date, without an approved
extension, TDA must be in receipt of complete closeout documentation for the
existing contract, no less than 30 days prior to the new application deadline
date (complete closeout documentation is defined in the most recent version
of the TCF Implementation Manual).
(4)
Submit to the Office the certificate of expenditures (COE)
report showing the expended TCDP funds and a final drawdown for any remaining
TCDP funds as required by the most recent edition of the TCDP Project Implementation
Manual. Any reserved funds on the COE must be approved in writing by TCDP
staff. To meet this threshold "expended" means that the construction and services
covered by the TCDP funds are complete and a drawdown for the TCDP funds has
been submitted prior to the application deadlines. This threshold will apply
to an open TCDP contract with an original 36-month contract period or a small
towns environment program 24-month contract, extended to 26 months, and to
TCDP contractors that have reached the end of the 36-month period prior to
the application deadlines. This threshold is applicable to previously awarded
TCDP contracts under the housing infrastructure fund (when the applicant is
applying for the housing infrastructure fund competition) and the small towns
environment program fund original 36-month contract or original 24-month contract,
extended to 365 months. This threshold is not applicable to previously awarded
TCDP contracts under the TCF, the housing rehabilitation fund, the colonia
self-help centers fund, the colonia economically distressed area program fund,
the Young v. Martinez fund, the disaster recovery initiative program the microentreprise
loan fund, the small business loan fund, and the section 108 loan guarantee
pilot program. This paragraph does not apply to a city or county that meets
the eligibility criteria for current assistance from the TCDP disaster relief
fund.
(o)
State review committee. The committee shall consult with
and advise the Office's executive director on the administration and enforcement
policies of the TCDP; review funding recommendations for applicants under
the community development fund, community development supplemental fund, and
planning/capacity building fund and assist the Office's executive director
in the allocation of program funds to the applicants; review appeals and submit
recommendations for the disposition of such appeals to the Office's executive
director in accordance with the procedures described in subsection (g) of
this section; and report committee actions concerning these tasks to the Office's
executive director through the minutes of committee meetings and written reports
prepared by Office staff on behalf of the committee.
(p)
Minority hiring/participation. It is the policy of the
Office to encourage minority employment and participation among all applicants
under the TCDP. All applicants to the TCDP are required to submit information
documenting the level of minority participation as part of the application
for funding.
(q)
Revolving loan funds. A Revolving Loan Fund established
through program income recovered from a TCDP contract must meet the requirements
for Revolving Loan Funds described in the TCDP Final Statement, Consolidated
Plan or Action Plan for the program year in which the original contract was
awarded. Revolving Loan Funds are also subject to appropriate state and federal
requirements, TCDP contract provisions, and the appropriate Revolving Loan
Fund guidelines issued by the Office.
(r)
Withdrawal of award.
(1)
Should the applicant fail to substantiate or maintain the
claims and statements made in the application upon which the award is based
including failure to maintain compliance with application thresholds in subsection
(h)(1) - (4) of this section, within a period ending 90 days after the date
of the TCDP's award letter to the applicant, the award will be immediately
withdrawn by the TCDP (excluding the colonia self-help center awards).
(2)
Should the applicant fail to execute the Office's award
contract (excluding Texas Capital Fund and colonia self-help center contracts)
within 60 days from the date of the letter transmitting the award contract
to the applicant, the award will be withdrawn by the Office.
(s)
Funds recaptured from withdrawn awards. For an award that
is withdrawn from an application, the Office follows different procedures
for the use of those recaptured funds depending on the fund category where
the award is withdrawn.
(1)
Funds recaptured under the community development fund from
the withdrawal of an award made from the first year of the biennial funding
are offered to the next highest ranked applicant from that region that was
not recommended to receive an award from the first year regional allocation.
Funds recaptured under the community development fund from the withdrawal
of an award made from the second year of the biennial funding are offered
to the next highest ranked applicant from that region that was not recommended
to receive full funding (the applicant recommended to receive marginal funding)
from the second year regional allocation. Any funds remaining from the second
year regional allocation after full funding is accepted by the second year
marginal applicant are offered to the next highest ranked applicant from the
region as long as the amount of funds still available exceeds the minimum
community development fund grant amount. Any funds remaining from the second
year regional allocation that are not accepted by an applicant from the region
or that are not offered to an applicant from the region may be used for other
TCDP fund categories and, if unallocated to another fund, are then subject
to the procedures described in §255.1(l) of this title (relating to General
Provisions).
(2)
Funds recaptured under the planning and capacity building
fund from the withdrawal of an award made from the first year of the biennial
funding are offered to the next highest ranked applicant from that statewide
competition that was not recommended to receive an award from the first year
allocation. Funds recaptured under the planning and capacity building fund
from the withdrawal of an award made from the second year of the biennial
funding are offered to the next highest ranked applicant from that statewide
competition that was not recommended to receive full funding (the applicant
recommended to receive marginal funding) from the second year allocation.
Any funds remaining from the second year allocation after full funding is
accepted by the second year marginal applicant are offered to the next highest
ranked applicant from the statewide competition. Any funds remaining from
the second year allocation that are not accepted by an applicant from the
statewide competition or that are not offered to an applicant from the statewide
competition may be used for other TCDP fund categories and, if unallocated
to another fund, are then subject to the procedures described in §255.1(l)
of this title.
(3)
Funds recaptured under the housing rehabilitation fund
from the withdrawal of an award made from the first year of the biennial funding
are offered to the next highest ranked applicant from that statewide competition
that was not recommended to receive an award from the first year allocation.
Funds recaptured under the housing rehabilitation fund from the withdrawal
of an award made from the second year of the biennial funding are offered
to the next highest ranked applicant from that statewide competition that
was not recommended to receive full funding (the applicant recommended to
receive marginal funding) from the second year allocation. Any funds remaining
from the second year allocation after full funding is accepted by the second
year marginal applicant are offered to the next highest ranked applicant from
the statewide competition. Any funds remaining from the second year allocation
that are not accepted by an applicant from the statewide competition or that
are not offered to an applicant from the statewide competition are then subject
to the procedures described in §255.1(l) of this title.
(4)
Funds recaptured under the colonia construction fund from
the withdrawal of an award remain available to potential colonia program fund
applicants during that program year to meet the 10 percent colonia set-aside
requirement and, if unallocated within the colonia fund, may be used for other
TCDP fund categories. Remaining unallocated funds are then subject to the
procedures in §255.1(l) of this title.
(5)
Funds recaptured under the colonia planning fund from the
withdrawal of an award remain available to potential colonia program fund
applicants during that program year to meet the 10 percent colonia set-aside
requirement and, if unallocated within the colonia fund, may be used for other
TCDP fund categories. Remaining unallocated funds are then subject to the
procedures in §255.1(l) of this title.
(6)
Funds recaptured under the program year allocation for
the colonia economically distressed areas program fund from the withdrawal
of an award remain available to potential colonia economically distressed
areas program fund applicants during that program year. Any funds remaining
from the program year allocation that are not used to fund colonia economically
distressed areas program fund applications within twelve months after the
Office receives the federal letter of credit would remain available to potential
colonia program fund applicants during that program year to meet the 10 percent
colonia set-aside requirement and, if unallocated within the colonia fund,
may be used for other TCDP fund categories. Remaining unallocated funds are
then subject to the procedures in §255.1(l) of this title.
(7)
Funds recaptured under the housing infrastructure fund
from the withdrawal of an award are subject to the procedures described in §255.1(l)
of this title.
(8)
Funds recaptured under the program year allocation for
the disaster relief/urgent need fund from the withdrawal of an award are subject
to the procedures described in §255.1(l) of this title.
(9)
Funds recaptured under the small towns environment program
fund (STEP) from the withdrawal of an award will be made available in the
next round of STEP competition following the withdraw date in the same program
year. If the withdrawn award had been made in the last of the two competitions
in a program year, the funds would go to the next highest scoring applicant
in the same STEP competition. If there are no unfunded STEP applicants, then
the recaptured funds would be available for other TCDP fund categories. Any
unallocated STEP funds are subject to the procedures described in §255.1(l)
of this title.
(10)
Funds recaptured under the microenterprise loan fund from
the withdrawal of an award are subject to the procedures described in §255.1(l)
of this title.
(11)
Funds recaptured under the small business loan fund from
the withdrawal of an award are subject to the procedures described in §255.1(l)
of this title.
(12)
Funds recaptured under the Texas Capital Fund from the
withdrawal of an award are subject to the procedures described in §255.1(l)
of this title.
(13)
Funds recaptured under the community development supplemental
fund from the withdrawal of an award made from the first year of the biennial
funding are offered to the next highest ranked applicant from that region
that was not recommended to receive an award from the first year regional
allocation. Funds recaptured under the community development supplemental
fund from the withdrawal of an award made from the second year of the biennial
funding are offered to the next highest ranked applicant from that region
that was not recommended to receive full funding (the applicant recommended
to receive marginal funding) from the second year regional allocation. Any
funds remaining from the second year regional allocation after full funding
is accepted by the second year marginal applicant are offered to the next
highest ranked applicant from the region as long as the amount of funds still
available exceeds the minimum community development supplemental fund grant
amount. Any funds remaining from the second year regional allocation that
are not accepted by an applicant from the region or that are not offered to
an applicant from the region may be used for other TCDP fund categories and,
if unallocated to another fund, are then subject to the procedures described
in §255.1(l) of this title. This process would also apply to an application
under the community development supplemental fund that received a portion
of its funds from community development marginal funds. The community development
marginal funds would be provided to the replacement application.
(14)
For both the community development fund and community
development supplemental fund (including applications funded with a portion
from each of the two funds), if there are no remaining unfunded eligible applications
in the region from the same biennial application period to receive the withdrawn
funding, then the withdrawn funds are considered as deobligated funds, subject
to the procedures described in §255.1(l) of this title.
(15)
Funds recaptured under the Non-border Colonia Fund from
the withdrawal of an award remain available to potential Non-Border Colonia
Fund applicants during that program year and, if unallocated within the non-border
colonia fund, may be used for other TCDP fund categories. Remaining unallocated
funds are then subject to the procedures described in §255.1(l) of this
title.
(t)
Readiness to proceed requirements: In order to determine
that the project is ready to proceed, the applicant must provide in its application
information that:
(1)
Identifies the source of matching funds and provides evidence
that the applicant has applied for any non-local matching funds, and for local
matching funds, evidence that local matching funds would be available.
(2)
Provides written evidence of a ratified, legally binding
agreement, contingent upon award, between the applicant and the utility that
will operate the project for the continual operation of the utility system
as proposed in the application. For utility projects that require the applicant
or service provider to obtain a certificate of convenience and necessity for
the target area proposed in the application, provides written evidence that
the Texas Commission on Environmental Quality has received the applicant or
service provider's application.
(3)
Where applicable, provide a written commitment from service
providers, such as the local water or sewer utility, stating that they will
provide the intended services to the project area if the project is constructed.
(u)
Performance measures. Each applicant for TCDP funds and
each city or county receiving a contract award shall provide applicable information
requested in application guides, the grant contract, or the most recent edition
of the TCDP project implementation manual that is required by the Office to
report on Community Development Block Grant program performance measures promulgated
by the Executive Committee, the Texas Legislature, and the U.S. Department
of Housing and Urban Development.
(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.
(w)
For any award made on or after September 1, 2005, any political
subdivision that receives community development block grant program money
targeted toward street improvement projects in eligible colonia areas must
allocated not less than five percent but not more than 15 percent of the total
amount of street improvement money to providing financial assistance to colonias
within the political subdivision to enable the installation of adequate street
lighting in those colonias if street lighting is absent or needed.
§255.11.Small Towns Environment Program Fund.
(a)
General provisions. This fund is available to eligible
units of general local government to provide financial assistance to cities
and communities that are willing to address water and sewer needs through
self-help methods that are encouraged and supported by the Small Towns Environment
Program (STEP). The self-help method for addressing water and sewer needs
is best utilized by cities and communities recognizing that conventional water
and sewer financing and construction methods cannot provide an affordable
response to the water or sewer needs. By utilizing a city's or community's
own resources (human, material, and financial), the costs for the water or
sewer improvements can be reduced significantly from the retail costs of the
improvements through conventional construction methods. Participants in the
small town environment program fund should attain at least a forty percent
reduction in the costs of the water or sewer project by using self-help in
lieu of conventional financing and construction methods.
(1)
Small towns environment program funds can be used to cover
material costs, certain engineering costs, administrative costs, and other
necessary project costs that are approved by program staff.
(2)
In addition to the threshold requirements of §255.1(h)
and §255.1(n) of this title (relating to General Provisions), in order
to be eligible to apply for small towns environment program funds, an applicant
must document that at least 51% of the persons who would directly benefit
from the implementation of each activity proposed in the application are of
low to moderate income.
(3)
Cities and counties receiving 2005 and 2006 Community Development
Fund/Community Development Supplemental Fund grant awards for applications
that do not include water, sewer, or housing activities are not eligible to
receive a 2006 grant award from this fund. However, the Office may consider
a city's or county's request to transfer funds that are not financing water,
sewer, or housing activities under a 2005 or 2006 Community Development Fund/Community
Development Supplemental Fund grant award to finance water and sewer activities
that will be addressed through self-help methods.
(b)
Eligible activities. For the small towns environment program
fund eligible activities are limited to the following:
(1)
The installation of facilities to provide first-time water
or sewer service.
(2)
The installation of water or sewer system improvements.
(3)
Ancillary repairs related to the installation of water
and sewer systems or improvements.
(4)
The acquisition of real property related to the installation
of water and sewer systems or improvements (easements, rights of way, etc.).
(5)
Sewer or water taps and water meters.
(6)
Water or sewer yard service lines (for low and moderate
income persons).
(7)
Water or sewer house service connections (for low and moderate
income persons).
(8)
Plumbing improvements associated with providing water or
sewer service to a housing unit.
(9)
Water or sewer connection fees (for low and moderate income
persons).
(10)
Equipment for installation of water or sewer if justification
is provided.
(11)
Reasonable associated administrative costs.
(12)
Reasonable associated engineering services costs.
(c)
Ineligible activities. Any activity not described in subsection
(b) of this section is ineligible under this fund unless the activity is approved
by the TCDP. Other ineligible activities are temporary solutions, such as
emergency inter-connects that are not used on an on-going basis for supply
or treatment and back-ups not required by the regulations of the Texas Commission
on Environmental Quality. The TCDP will not reimburse for force account work
for construction activities on the STEP project.
(d)
Funding cycle. Applications are accepted three times a
year as long as funds are available. Funds will be divided among the three
application periods. After all projects are ranked, only those that can be
fully funded will be awarded a grant. There will be no marginally funded grant
awards. The TCDP will not accept an application for STEP fund assistance until
TCDP staff and representatives of the potential applicant have evaluated the
self-help process and TCDP staff determine that self-help is a feasible method
for completion of the water or sewer project, the community is committed to
self-help as the means to address the problem, and the community is ready
and has the capacity to begin and complete a self-help project. If it is determined
that the community meets all of the STEP criteria then an invitation to apply
for funds will be extended to the community and the application may be submitted.
(e)
Threshold criteria. The self-help response to water and
sewer needs may not be appropriate in every community. In most cases, the
decision by a community to utilize self-help to obtain needed water and sewer
facilities is based on the community's realization that it cannot afford even
a "no frills" water or sewer system based on the initial construction costs
and the operations/maintenance costs (including debt service costs) for water
or sewer facilities installed through conventional financing and construction
methods. The following are threshold requirements for the STEP framework:
Without all these elements the project may not be considered under the STEP
fund.
(1)
The community receiving benefits from the project must
have one or more sparkplugs (preferably three). Sparkplugs are local leaders
willing to both lead and sustain the effort to complete the project. While
local officials may serve as sparkplugs, at least two of the three sparkplugs
must be residents and not local officials. One of the sparkplugs should have
the skills necessary to maintain the paperwork needed for the project. One
of the sparkplugs should have knowledge or skills necessary to lead the self-help
effort, and one sparkplug can have a combination of these skills or just be
the motivator and problem solver of the group.
(2)
The community receiving benefits from the project should
exhibit a readiness to proceed with the project. The community's readiness
to proceed is based on a strong local perception of the problem and the willingness
to take action to solve the problem. A community's readiness to proceed is
shown when the following conditions exist:
(A)
A strong local perception of the problem exists.
(B)
The community has the perception that local implementation
is the best and maybe only solution to the problem.
(C)
The residents of the community have confidence that they
can adequately complete the project.
(D)
The community has no strong competing priority.
(E)
The local government is supportive of the effort and understands
the urgency.
(F)
There exists a public and private willingness to pay additional
costs if needed such as fees, hook-ups for churches, and other costs.
(G)
Some effort and attention have already been given to local
assessment of the problem.
(H)
There is enthusiastic, capable support for the community
from the county or regional field staff of any regulatory agency involved
with solutions to the problem.
(3)
The community receiving benefits from the project should
have the capacity and manpower with the skills needed to complete the project.
The capacity and skills to complete the project include the following:
(A)
Skilled workers within the community such as an electrician,
plumber, engineer water system operator and persons with experience operating
heavy equipment, and persons with construction skills and pipe laying experience.
(B)
The community has a list of volunteers that includes the
tasks that are assigned to each volunteer.
(C)
The community has equipment that will be needed to complete
the project.
(D)
The community has letters stating support from local businesses
in form of donation of supplies or manpower.
(E)
The community has letter from the water and/or sewer service
provider supporting the project and agreeing to provide service.
(F)
A letter from a Certified Public Accountant documenting
that applying locality has financial and management capacity to compete project.
(4)
The community receiving benefits from the project must
be able to show that by completing the proposed project through self-help
volunteer methods the community can achieve at least a 40% savings off the
retail price of completing the same project through the bid/contract process.
The information provided to the TCDP to document the reduced project cost
through self-help includes the following:
(A)
Two engineering break-outs of cost, one that shows the
retail construction cost and another that shows the self-help cost and demonstrates
the 40% savings.
(B)
Documents containing material prices and pledges of equipment.
(C)
A list of the volunteers by project completion task.
(D)
A determination of appropriate technology for the project
and the feasibility of project through a letter from an engineer.
(5)
Project work, except for any contract administrative activities
or engineering services activities, must be performed predominately by community
volunteer workers.
(f)
Selection procedures.
(1)
During each of the two application rounds, the Office staff
initially evaluate eligible cities or counties that have expressed an interest
in using the self-help method and potentially applying for funding under the
STEP Fund. Office staff assess whether self-help is a feasible method for
completion of the water or sewer project, the community is committed to self-help
as the means to address the problem, and the community is ready along with
having the capacity to begin and complete a self-help project. If Office staff
determines that the community meets all of the STEP threshold criteria then
the community is invited to apply prior to the application deadline.
(2)
The Office will not accept an application under the STEP
Fund unless this assessment and invitation process is followed.
(3)
Applicants invited to apply under the STEP Fund are scored
using the selection criteria to determine the ranking.
(4)
Following a final technical review, the Office staff makes
funding recommendations to the executive director of the Office.
(5)
The executive director of the Office reviews the final
recommendations and except for awards exceeding $300,000 announces the contract
awards. Awards exceeding $300,000 are submitted to the Executive Committee
for approval.
(6)
Upon announcement of contract awards, the Office staff
works with recipients to execute the contract agreements. While the award
must be based on the information provided in the application, the Office may
negotiate any element of the contract with the recipient as long as the contract
amount is not increased and the level of benefits described in the application
is not decreased. The level of benefits may be negotiated only when the project
is partially funded.
(g)
Selection criteria. The following is an outline of the
selection criteria used by the Office for scoring applications under the STEP
fund. One hundred twenty (120) points are available.
(1)
Project impact (total--60 points). When necessary, a weighted
average is used to assign scores to applications which include activities
in the different project impact 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 will
be calculated. The percentage of the total TCDP construction dollars for each
activity will then be multiplied by the appropriate project impact point level.
The sum of these calculations will determine the composite project impact
score. Factors that are evaluated by the TCDP staff in the assignment of scores
within the predetermined scoring ranges for activities include, but are not
limited to, how the proposed project will resolve the identified need and
the severity of the need within the applying jurisdiction; and projects designed
to bring existing services up to at least the state minimum standards as set
by the applicable regulatory agency are generally given additional consideration.
The different project impact scoring levels and scoring ranges within each
level are:
(A)
first time water and/or sewer service--50
(B)
water activities addressing drought conditions--50
(C)
activities addressing severe impact to a water system (imminent
loss of well, transmission line, supply impact)--50
(D)
water and/or sewer activities addressing an imminent threat
to health as documented by the Texas Commission of Environmental Quality or
Department of State Health Services--50
(E)
activities addressing documented severe water pressure
problems--40
(F)
replacement of existing water or sewer lines that are not
addressing activities described in subparagraphs (A) - (E) of this paragraph--30
(G)
all other proposed water and sewer projects that are not
addressing activities described in subparagraphs (A) - (F) of this paragraph--20
(2)
STEP Characteristics, Merits of the Project, and Local
Effort (total--30 points). The TCDP staff will assess the proposal for the
following STEP characteristics not scored in other factors:
(A)
Degree work will be performed by community volunteer workers,
including information provided on the volunteer work to total work;
(B)
Local leaders (sparkplugs) willing to both lead and sustain
the effort;
(C)
Readiness to proceed--the local perception of the problem
and the willingness to take action to solve it;
(D)
Capacity--the manpower required for the proposal including
skills required to solve the problem;
(E)
Merits of the projects, including the severity of the need,
whether the applicant sought funding from other sources, cost in TCDP dollars
requested per beneficiary, etc.; and
(F)
Local efforts being made by applicants in utilizing local
resources for community development.
(3)
Past participation and performance (total--15 points).
An applicant receives up to 15 points on the following two factors.
(A)
Ten of the 15 points available are awarded to applicants
that do not have a current TCDP STEP grant.
(B)
An applicant can receive from zero to five (5) points based
on the applicant's past performance on previously awarded TCDP contracts.
The applicant's score will be primarily based on our 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.
The TCDP may also assess the applicant's performance on existing TCDP contracts
that have not reached the end of the original contract period. Applicants
that have never received a TCDP grant award will automatically receive these
points. The TCDP will assess the applicant's performance on TCDP contracts
up to the application deadline date. The applicant's performance after the
application deadline date will not be evaluated in this assessment. The evaluation
of an applicant's past performance will include, but is not necessarily limited
to the following:
(i)
The applicant's completion of the previous contract activities
within the original contract period (total--2 points).
(ii)
The applicant's submission of all contract reporting requirements
such as Quarterly Progress Reports, Certificates of Expenditures, and Project
Completion Reports (total--1 point).
(iii)
The applicant's submission of the required close-out
documents within the period prescribed for such submission (total--1 point).
(iv)
The applicant's timely response to monitoring findings
on previous TCDP contracts especially any instances when the monitoring findings
included disallowed costs and the applicant's timely response to audit findings
on previous TCDP contracts (total--1 point).
(4)
Percentage of savings off the retail price (total--10 points).
For STEP, the percentage of savings off of the retail price is considered
a form of community match for the project. In STEP, a threshold requirement
is a minimum of 40% savings off the retail price for construction activities.
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 beneficiaries for the entire county, the total population of the county
is used. If the project is for activities in the unincorporated area of the
county with a target area of beneficiaries, the population category is based
on the 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. An applicant can receive from zero to 10 points
based on the following population levels and savings percentages:
(A)
Communities with populations equal to or less than 1,500
according to the 2000 census:
(i)
55% or more savings--10
(ii)
50% - 54.99% savings--9
(iii)
45% - 49.99% savings--7
(iv)
41% - 44.99% Savings--5
(B)
Communities with populations above 1,500 but equal to or
less than 3,000 according to the 2000 census:
(i)
55% or more savings--10
(ii)
50% - 54.99% savings--8
(iii)
45% - 49.99% savings--6
(iv)
41% - 44.99% Savings--3
(C)
Communities with populations above 3,000 but equal to or
less than 5,000 according to the 2000 census:
(i)
55% or more savings--10
(ii)
50% - 54.99% savings--7
(iii)
45% - 49.99% savings--5
(iv)
41% - 44.99% Savings--2
(D)
Communities with populations above 5,000 but less than
10,000 according to the 2000 census:
(i)
55% or more savings--10
(ii)
50% - 54.99% savings--6
(iii)
45% - 49.99% savings--3
(iv)
41% - 44.99% Savings--1
(E)
Communities with populations that are 10,000 or above 10,000
according to the 2000 census:
(i)
55% or more savings--10
(ii)
50% - 54.99% savings--5
(iii)
45% - 49.99% savings--2
(iv)
41% - 44.99% Savings--0
(5)
Benefit to low/moderate income persons (total--5 points).
Applicants are required to meet the 51 percent low/moderate-income benefit
for each activity as a threshold requirement. Any project where at least 60
percent of the TCDP funds benefit low/moderate-income persons will receive
5 points.
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 June 12, 2006.
TRD-200603181
Mark Wyatt
Manager, Program Development
Office of Rural Community Affairs
Effective date: July 2, 2006
Proposal publication date: December 23, 2005
For further information, please call: (512) 936-6701