10 TAC §255.1, §255.8
The Office of Rural Community Affairs (Office) adopts
the amendments to §255.1 and §255.8, for the Community Development
Block Grant (CDBG) non-entitlement area funds with changes to the
proposed text as published in the April 17, 2009, issue of the
Texas Register (34 TexReg 2431).
The adopted rules modify the appeal of Texas Community Development
Block Grant Program actions, §255.1 and the appeal of Regional
Review Committee decisions, §255.8. The adopted rules will eliminate
any reference to Texas Capital Fund appeals.
No comments were received regarding the adoption of the amendments.
The amendments are adopted under §487.052 of the
Government Code, which provides the Board 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 Block Grant Program (TxCDBG) 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 TxCDBG to eligible units of general
local government in the following program areas:
(1) community development 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) small towns environment program fund;
(8) renewable energy demonstration pilot program.
(c) Types of applications.
(1) Single jurisdiction applications. An applicant
may submit one application per TxCDBG 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 TxCDBG fund category.
(C) An application from an eligible city or county
for a project that would primarily benefit another city or county
that was not meeting the TxCDBG application threshold requirements
would be considered ineligible.
(2) Multi jurisdiction applications. Subject to each
participating community satisfying the application requirements of
the TxCDBG 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 TxCDBG 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) - (C) 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 TxCDBG. 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 TxCDBG.
(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 TxCDBG 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 (including
smoke testing televising/video taping line work, or any other investigative
method to determine the overall scope and location of the project
work activities); 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 TxCDBG 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 TxCDBG 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
TxCDBG, the plans of the applicant to minimize displacement of persons
and to assist persons actually displaced as a result of activities
assisted with TxCDBG funds, and the use of past TxCDBG 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) Any public hearing held prior to submission of
the application must be held after 5:00 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 TxCDBG 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 5:00 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 TxCDBG 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 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 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 due to human or computer error.
(C) Other procedural error. The application is not
processed by the Office 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 contract awards is published on the Office's website. 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. The Executive Director then considers the appeal
within 30 days and makes a 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 application is rejected,
the office notifies the applicant of its decision, including the basis
for rejection.
(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.
(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 TxCDBG:
(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 TxCDBG 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 TxCDBG; 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 TxCDBG 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 approve 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 state review committee approves 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 Texas Department of
Housing and Community Affairs 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 Board for review and consideration.
(7) TxCDBG 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 Texas 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 TxCDBG 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 TxCDBG funds by the incorporated city.
(8) Based on a pattern of unsatisfactory performance
on previous TxCDBG contracts, unsatisfactory management and administration
of previous TxCDBG 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 TxCDBG contracts,
the Office or TDA, in the case of the Texas Capital Fund application
may determine that an applicant is ineligible to apply for TxCDBG
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
TxCDBG 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 colonia fund, disaster relief 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 TxCDBG 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 TxCDBG 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.
(5) A survey that was completed on or after January
1, 2004 for a previous TxCDBG 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 TxCDBG 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 TxCDBG 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 Board 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 Board. Should the TxCDBG be required to make payments
to HUD to cover any loan payments not made by any recipient of a TxCDBG
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 TxCDBG funds
awarded under an open TxCDBG contract within 12 months from the start
date of the contract or prior to the application deadlines and have
received all applicable environmental approvals from TxCDBG covering
this obligation. This threshold is applicable to TxCDBG contracts
with an original 24-month contract period. To meet this threshold,
50% of the TxCDBG funds must be obligated through executed contracts
for administrative services, engineering services, acquisition, construction,
materials purchase, etc. The TxCDBG contract activities do not have
to be 50% completed, nor do 50% of the TxCDBG contract funds have
to be expended to meet this threshold. This threshold is applicable
to previously awarded TxCDBG contracts under the community development
fund, community development supplemental 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 TxCDBG 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 TxCDBG disaster relief fund.
(2) Submit to the Office the certificate of expenditures
(COE) report showing the expended TxCDBG funds and a final drawdown
for any remaining TxCDBG funds as required by the most recent edition
of the TxCDBG Project Implementation Manual. Any reserved funds on
the COE must be approved in writing by TxCDBG staff. To meet this
threshold "expended" means that the construction and services covered
by the TxCDBG funds are complete and a drawdown for the TxCDBG funds
has been submitted prior to the application deadlines. This threshold
will apply to an open TxCDBG contract with an original 24-month contract
period and to TxCDBG contractors that have reached the end of the
24-month period prior to the application deadlines. This threshold
is applicable to previously awarded TxCDBG contracts under the community
development fund, community development supplemental 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
TxCDBG 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 (original 24-month contract
extended to 36-months). This paragraph does not apply to a city or
county that meets the eligibility criteria for current assistance
from the TxCDBG 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 TxCDBG funds and a final drawdown
for any remaining TxCDBG funds as required by the most recent edition
of the TxCDBG Project Implementation Manual. Any reserved funds on
the COE must be approved in writing by TxCDBG staff. To meet this
threshold "expended" means that the construction and services covered
by the TxCDBG funds are complete and a drawdown for the TxCDBG funds
has been submitted prior to the application deadlines. This threshold
will apply to an open TxCDBG contract with an original 36-month contract
period or a small towns environment program 24-month contract, extended
to 36 months, and to TxCDBG contractors that have reached the end
of the 36-month period prior to the application deadlines. This threshold
is applicable to previously awarded TxCDBG 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 36 months. This threshold is not applicable to previously awarded
TxCDBG 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 microenterprise 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 TxCDBG 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 TxCDBG; in consultation with the Executive
Director and TxCDBG office staff, review and approve grant and loan
applications and associated funding awards of eligible counties and
municipalities and advise 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 TxCDBG. All applicants to the TxCDBG 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 TxCDBG contract must meet
the requirements for Revolving Loan Funds described in the TxCDBG
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, TxCDBG
contract provisions, and the appropriate Revolving Loan Fund guidelines
issued by the Office. The requirement in this section applies to all
local Revolving Loan Funds (RLF) established from program income from
Texas Capital Fund projects, housing projects and the Small Business
Loan Fund. Funds retained in the local RLF must be committed within
three years of the original TxCDBG contract programmatic close date.
Every award from the RLF must be used to fund the same type of activity,
for the same business, from which such income is derived. A local
Revolving Loan Fund may retain a cash balance not greater than 33
percent of its total cash and outstanding loan balance. If the local
government does not comply with the local RLF requirements, all program
income retained in the local RLF and any future program income received
from the proceeds of the RLF must be returned to the State.
(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 TxCDBG's award letter to the
applicant, the award will be immediately withdrawn by the TxCDBG (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 TxCDBG fund
categories and, if unallocated to another fund, are then subject to
the procedures described in subsection (l) of this section.
(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
TxCDBG fund categories and, if unallocated to another fund, are then
subject to the procedures described in subsection (l) of this section.
(3) 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 TxCDBG fund categories. Remaining
unallocated funds are then subject to the procedures in subsection
(l) of this section.
(4) 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 TxCDBG fund categories. Remaining unallocated
funds are then subject to the procedures in subsection (l) of this
section.
(5) 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 TxCDBG fund categories. Remaining unallocated
funds are then subject to the procedures in subsection (l) of this
section.
(6) 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 subsection (l) of
this section.
(7) 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 TxCDBG fund categories. Any unallocated
STEP funds are subject to the procedures described in subsection (l)
of this section.
(8) Funds recaptured under the Texas Capital Fund from
the withdrawal of an award are subject to the procedures described
in subsection (l) of this section.
(9) For both the community development fund, 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 subsection (l) of this section.
(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 TxCDBG
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 TxCDBG project implementation
manual that is required by the Office to report on Community Development
Block Grant program performance measures promulgated by the Board,
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 TxCDBG 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 allocate 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.
(x) The TxCDBG is under no obligation to approve any
changes in a performance statement of a TxCDBG contract that would
result in a program year score lower than originally used to make
the award if the lower score would have initially caused that project
to be denied funding. This does not apply to colonia self-help centers
or the Texas Capital Fund.
(y) Any applicant's cash match included in the TxCDBG
contract budget may not be obtained from any person or entity that
provides contracted professional or construction-related services
(other than utility providers) to the applicant to accomplish the
purpose described in the TxCDBG contract, in accordance with 24 CFR
Part 570.
(z) If an audit becomes due after the award date, the
Office may withhold the issuance of a contract until it receives a
satisfactory audit. If a satisfactory audit is not received by the
Office within four months of the audit due date, the Office may withdraw
the award and re-allocate the funds in accordance with subsection
(s) of this section (excludes the colonia self-help center awards
and Texas Capital Fund awards).
(aa) If the Regional Review Committee for a particular
region fails to approve, to the satisfaction of the Office, an objective
scoring methodology for the 2009 Community Development Fund competition,
the Office will award 2008 Program Year funds in that region for the
Community Development Fund and Community Development Supplemental
Fund based the state's existing scores under section IV (C)(1)(a-e)
of the approved 2007 Texas CDBG Action Plan.
§255.8.Regional Review Committees.
(a) Composition. There is a regional review committee
in each of the 24 state planning regions. Each committee consists
of at least 12 members appointed by the governor. Composition of each
regional committee reflects geographic diversity within the region,
difference in population among eligible localities, and types of government
(general law cities, home rule cities, and counties). The chairperson
of the committee is also appointed by the governor. Members of the
committee serve two-year staggered terms. An individual may not serve
as a member of a regional review committee while serving as a member
of the State Community Development Review Committee.
(b) Role. Under the Community Development Fund each
Regional Review Committee is responsible for determining local project
priorities and objective factors based on public input. The RRC shall
establish the numerical value of the points assigned to each scoring
factor and determine the total combined points for all RRC scoring
factors. Each regional review committee may review and comment on
other TxCDBG applications.
(c) General requirements. In the performance of its
responsibilities, each regional review committee shall comply with
all federal and state laws and regulations relating to the administration
of community development block grant nonentitlement area funds including,
but not limited to, requirements of this subchapter, the scoring procedures
specified in the current Regional Review Committee Guidebook, and
the procedures established by the regional review committee under
the TxCDBG.
(1) RRC Must Notify Applicants of Public Hearing to
Adopt Local Project Priorities and Objective Scoring Factors.
(A) The RRC proceedings are subject to the Texas Open
Meetings Act. The notice of the public hearing and agenda to determine
local project priorities and objective scoring criteria must be posted
electronically in the Secretary of State's internet site under the
Texas Register/Open Meetings, http://www.sos.state.tx.us/texreg/.
The notification process requires three days (72-hours) advance notice.
The public hearing information must include the date, time and place
of the RRC public hearing and the full agenda.
(B) In addition, the RRC must notify each eligible
locality in the region in writing of the date, time and place of the
RRC public hearing at least five days prior to the public hearing.
One of the following four methods must be utilized when sending the
notice: certified mail; electronic mail; first class (regular) mail,
with a return receipt for local signature enclosed; or deliver in
person (e.g., at a Council of Governments (COG) meeting);
(C) A notice of the public hearing must be published
in a regional newspaper in the region at least three days in advance
of the actual meeting. A published newspaper article is acceptable
in lieu of a public notice if it meets the content (date, time, location
and purpose) and timing requirements.
(D) The RRC must provide for public comments on the
public hearing agenda. RRC discussions, deliberations and votes must
be taken in public and must comply with the Texas Open Meetings Act.
(2) Quorum Required for Public Hearing. A public hearing
of the RRC requires a quorum of seven members (regardless of status
of term or elected office) appointed by the governor. Each Regional
Review Committee must establish a policy that prohibits voting by
committee members who arrive late or do not attend the entire public
hearing held to adopt local project priorities and objective scoring
factors and other RRC procedures.
(3) Only Appointed RRC Members May Vote on RRC Actions.
An appointed member may designate a local official alternate from
his/her city or county to participate in the RRCs deliberations for
the purpose of meeting a quorum. This alternate person must be authorized
in writing from the official being represented prior to his/her participation
at any RRC meeting where voting is to occur. Please note, however,
that proxies cannot vote on RRC matters. (This means that proxies
may not vote on organizational matters, selection of project priorities,
objective scoring factors, and any other related scoring procedures.)
Proxies are there to satisfy the quorum requirements.
(4) RRC May Provide Information to ORCA Concerning
Threshold Criteria. RRCs are encouraged to provide information that
would assist ORCA in determining applicant compliance with eligibility
thresholds and other information that may be considered by ORCA in
the state scoring factors.
(d) RRC Responsible for Adopting Local Project Priorities
and Objective Scoring Factors.
(1) Preliminary Meetings to Obtain Public Input and
Provide Input to the RRC for Consideration During the Public Hearing
to Discuss, Select, and Adopt Scoring Factors. The RRCs may hold preliminary
meetings prior to the public hearing to obtain public input regarding
priorities and scoring factors. Preliminary meetings held by the RRC
are subject to the Texas Open Meetings Act. The RRC must notify each
eligible locality in the region of the date, time and place of the
preliminary meeting at least five days in advance of the meeting by
first class (regular) mail, electronic mail, or telephone call. If
a quorum is not established, the RRC preliminary meetings may be still
be held, but no formal action may be taken. Sample scoring criteria
may be developed with public participation and submitted to ORCA for
preliminary review and for full discussion and deliberation by the
RRC during the public hearing.
(2) Hold Public Hearing to Discuss, Select, and Adopt
Scoring Factors. During the public hearing to discuss priorities and
adopt objective scoring criteria, the public must be given an opportunity
to comment on the priorities and the scoring criteria being considered
by the RRC. The RRC may limit the duration of public comment period
and length of time for comments. The final selection of the scoring
factors is the responsibility of each RRC. The RRC may not adopt scoring
factors that directly negate or offset ORCA scoring factors.
(3) RRC Indicates How Responses Will Be Scored and
Identify Data Sources. The RRC must clearly indicate how responses
would be scored under each factor and use data sources that are verifiable
to the public. After the RRC's adoption of its scoring factors, the
score awarded to a particular application under any RRC scoring factor
may not be dependent upon an individual RRC member's judgment or discretion.
(This does not preclude collective RRC action that the state TxCDBG
has approved under any appeals process.)
(e) RRC Selects Administrative Support Staff. The RRC
shall select one of the following entities to develop the RRC Guidebook,
calculate the RRC scores, and provide other administrative RRC support:
Regional Council of Governments (COG), TxCDBG staff or TxCDBG designee,
or a combination of COG and TxCDBG staff or TxCDBG designee. The RRC
Guidebook must identify the entity responsible for calculating the
scores and must define the role of each entity selected. The RRC support
staff, as determined above, is responsible for reviewing and verifying
RRC information found in the application for scoring purposes, but
may not accept additional information from applicants. The RRC support
staff may only use the application information forwarded by ORCA for
scoring purposes.
(f) RRC May Establish Maximum Grant Amounts. RRC may
establish maximum grant amounts within the following ranges:
(1) Single Jurisdiction Applications: $250,000 - $800,000
(2) Multi-Jurisdiction Applications: $350,000 - $800,000
(3) Where the RRC takes no action, the grant maximum
will be $800,000 for single jurisdiction applications and $800,000
for multi-jurisdiction applications.
(g) RRC Housing and Non-Border Colonia Set-Asides Encouraged.
Each Regional Review Committee is highly encouraged to allocate a
percentage or amount of its Community Development Fund (CD) allocation
to housing projects and for RRCs in eligible areas, non-border colonia
projects, for that region. Under a set-aside, the highest ranked applications
for a housing or non-border colonia activity, regardless of the position
in the overall ranking, would be selected to the extent permitted
by the housing or non-border colonia set-aside level. If the region
allocates a percentage of its funds to housing and/or non-border colonia
activities and applications conforming to the maximum and minimum
amounts are not received to use the entire set-asides, the remaining
funds may be used for other eligible activities. (Under a housing
and/or non-border colonia set-aside process, a community would not
be able to receive an award for both a housing or non-border colonia
activity and an award for another Community Development Fund activity
during the biennial process. Housing projects/activities must conform
to eligibility requirements in 42 U.S.C Section 5305 and applicable
HUD regulations.) The RRC must include any set-aside in its Regional
Review Committee Guidebook.
(h) RRC Guidebook Adopted and Approved At Least 90
Days Prior to Application Deadline. The RRC Guidebook should be adopted
by the RRC and approved by TxCDBG staff at least 90 days prior to
the CD application deadline set by ORCA. The RRC shall disseminate
the RRC Guidebook to the applicants upon written approval by ORCA.
The RRC will be required to submit the public input documentation
along with the RRC Guidebook to ORCA.
(i) RRC Scores Are Due to ORCA Within 30 Days to Completion
of the Deficiency Period. RRC scores are due to ORCA within 30 days
after ORCA notifies the region in writing that the deficiency period
is complete. The RRC may not change the requested amount of TxCDBG
funding, change the scope of the project proposed, or negotiate the
specifics of any application. Regional scores may be calculated and
reported to ORCA on less than full point intervals (i.e., using decimal
points) in order to reduce the chance of ties between regional applicants.
ORCA will retain these same intervals when calculating the total scores
and final rankings. The RRC shall announce the RRC scores to the public
after ORCA has reviewed the scores for accuracy and written approval
is received.
(j) COGs Preparing Applications/Administering CD Contracts
May Not Be Selected As RRC Support Staff. COGs that prepare CD Fund
applications and manage contracts will not be allowed to serve as
Regional Review Committee (RRC) support staff for that region during
the public hearing and scoring of applications. These COGs may not
prepare the RRC Guidebook or score the region's applications.
(k) Impacts of Failure to Adopt RRC Objective Scoring
Factors. ORCA will award 2008 funds for a region after its RRC has
adopted an objective scoring for PY 2009. If the RRC does not adopt
an objective scoring methodology and submit it to the state TxCDBG
for approval by the established deadline above, the state TxCDBG staff
will establish for the region the scoring factors in Appendix A for
the 2009 applications as described above and will award PY 2008 funds
for a region after the region's applications have been re-scored using
the State scoring method in IV (C)(1)(a-e) of the 2007 Action Plan.
(l) Appeals. Appeals will be handled in accordance
with the following procedures:
(1) Written Notification to RRC and ORCA. An applicant
must notify its Regional Review Committee and ORCA in writing of the
alleged specific violation of the RRC procedures within five working
days following the date the RRC scores are made available to the applicants
(RRC staff support is advised to record this date).
(2) RRC Notification to Applicants of Appeal(s). Within
ten working days following the receipt of an appeal, the RRC will
notify all applicants in the region that the RRC will reconvene to
hear the appeal. The RRC will give notice to applicants that their
scores may be affected by the outcome of the appeal.
(3) RRC Reconvenes to Hear the Appeal(s). In an open
meeting, the RRC shall consult with the appellant jurisdiction and
consider the appeal. With a simple majority quorum present (i.e.,
seven members), the RRC will vote to either deny the appeal and forward
the appeal and the original regional scores to ORCA or to sustain
the appeal and proceed with corrective actions. If the RRC sustains
the appeal, the RRC makes corrections and forwards the corrected regional
scores to ORCA. The RRC administrative staff will send a written description
of the results of the appeals meeting to all applicants in the region
and to ORCA. Please note that applicants negatively affected by an
original appeal have the same procedural rights to counter-appeal.
(4) Applicants May Appeal a Decision of the RRC. Within
five working days following the decision of the RRC, an applicant
may submit an appeal of the RRC decision to ORCA. The appeal must
be submitted to ORCA in writing stating the alleged specific violation
of the RRC procedure.
(5) ORCA Makes Final Scoring and Ranking Determinations.
If the appeal is unresolved by the RRC, denied at the regional level,
or if an applicant appeals a decision of the RRC, the ORCA Executive
Director will make a final determination as follows: sustain the appeal
and make funding recommendations based on corrected regional scores;
or reject the appeal and make funding recommendations considering
the original RRC scores. ORCA will notify the region of the decision
and post the final rankings for the region.
(6) Applicants May Appeal a Decision of the ORCA Executive
Director and File a Complaint with the ORCA Board. An applicant may
appeal a decision of the ORCA Executive Director 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 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 19, 2009.
TRD-200902489
Charles S. (Charlie) Stone
Executive Director
Office of Rural Community Affairs
Effective date: July 9, 2009
Proposal publication date: April 17, 2009
For further information, please call: (512) 936-7887