TITLE 10. COMMUNITY DEVELOPMENT

PART 6. OFFICE OF RURAL COMMUNITY AFFAIRS

CHAPTER 255. TEXAS COMMUNITY DEVELOPMENT PROGRAM

SUBCHAPTER A. ALLOCATION OF PROGRAM FUNDS

10 TAC §255.1, §255.8

The Office of Rural Community Affairs (Office) proposes amendments to §255.1, concerning an appeals process for recommendations of awards, contingent upon enactment of House Bill 1079 and §255.8, concerning Regional Review Committees.

The proposed amendments will modify the appeal of Texas Community Development Block Grant Program actions (§255.1) and the appeal of Regional Review Committee decisions (§255.8). The amendments will eliminate any reference to Texas Capital Fund appeals.

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

Mr. Stone also has determined that for each year of the first five years the amendments are in effect, the public benefit as a result of enforcing the amended sections will be the equitable allocation of Community Development Block Grant non-entitlement are funds to eligible units of general local government in Texas. There will be no costs to small business or individuals.

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

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

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

§255.1.General Provisions.

(a) - (f) (No change.)

(g) Appeals. An applicant for funding under the TxCDBG , except for the Texas Capital Fund, 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 TxCDBG of the Office no later than 30 days after the date the announcement of [community development fund and planning/capacity building fund] contract awards is published on [in] the Office's website. [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 Executive Director. [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 10 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. 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 a [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 an [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 TCF 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) Appeal of Executive Director's Decision to the Board.

(A) If the appealing party is not satisfied with the Executive Director's response to the appeal, it may appeal in writing directly to the board within seven days after the date of the Executive Director's response. In order to be placed on the next agenda of the board, the appeal must be received by the Office at least fourteen days prior to the next scheduled board meeting. Appeals received after the fourteenth calendar day prior to the board meeting will be scheduled for the next board meeting. The Executive Director shall prepare an appeal file for the board's review based on the information provided. If the appealing party receives additional information after the Executive Director has denied the appeal, but prior to the posting of the appeal, for board consideration, the new information must be provided to the Executive Director for further consideration or the board will not consider any information submitted by the applicant after the written appeal. New information will cause the deadlines in this subparagraph to begin again. The board will review the appeal de novo and may consider any information properly considered by the Office in making its prior decision(s).

(B) Public comment. The board hears public comment on the appeal under its usual procedures. Persons making public comment are not parties to the appeal and no rights accrue to them under this section or any other appeal process. Nothing in this section provides a right to appeal any decision made on an application if the appealing party does not have direct grounds to appeal.

(C) Possible actions regarding applications. In instances in which the appeal if sustained by the board could have resulted in an award to the applicant, the application shall be approved by the board contingent on the availability of funds. If the appeal is denied, the Office shall notify the applicant of the decision.

(5) Decisions are final. Appeals not submitted in accordance with the section will not be considered. The decision of the board is final.

[(4) An applicant for a grant, loan, or award under a community development block grant program may appeal a decision of the state review committee by filing a complaint with the Board. The Board will hold a hearing on a complaint filed with the Board and render a decision.]

[(5) Appeals not submitted in accordance with this subsection are dismissed and may not be refiled.]

(h) - (aa) (No change.)

§255.8.Regional Review Committees.

(a) - (k) (No change.)

(l) Appeals. Appeals will be handled in accordance with the following procedures:

(1) - (5) (No change.)

[(6) ORCA Forwards Funding Recommendations to the SRC. Following resolution of regional appeals, ORCA staff will make funding recommendations to the State Review Committee for the 2009 and 2010 program years. The SRC consists of 12 elected officials, including a chairman appointed by the Governor. In consultation with the executive director and TxCDBG office staff, the State Review Committee is responsible for reviewing and approving grant applications and associated funding awards of eligible counties and municipalities.]

(6) [(7)] Applicants May Appeal a [A] Decision of the ORCA Executive Director [SRC] and File a Complaint with the ORCA Board. An applicant [applying under the CD Fund] may appeal a decision of the ORCA Executive Director [SRC] by filing a complaint with the ORCA Board. The ORCA Board shall hold a hearing on a complaint filed with the Board and render a decision. After the ORCA Board renders a final decision, ORCA will notify the region of the determination and post the final rankings for the region.

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

Filed with the Office of the Secretary of State on April 6, 2009.

TRD-200901360

Charles S. (Charlie) Stone

Executive Director

Office of Rural Community Affairs

Earliest possible date of adoption: May 17, 2009

For further information, please call: (512) 936-6734